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www.crainsdetroit.com Vol. 27, No. 1 JANUARY 3 – 9, 2011 $2 a copy; $59 a year

©Entire contents copyright 2011 by Crain Communications Inc. All rights reserved

Page 3 As orders roll in, suppliers roll out welcome mat Auto show hitches a ride to new hires

Drug firms Industry 2011 NORTH AMERICAN show INTERNATIONAL AUTO SHOW interest in rebound gives Press Preview: Jan. 10-11 supplement Industry Preview: Jan 12-13 numbers a lift Charity Preview: Jan. 14 to fight Public Show: Jan. 15-23 Web site: www.naias.com Alzheimer’s BY DUSTIN WALSH CRAIN’S DETROIT BUSINESS Nineteen new sponsors have The glitz of the North American signed on for the 2011 show, and 23 Inside International Auto Show is return- are returning from last year’s ing in 2011, but show, according to its organizers. INSIDE the theme is Many of the new sponsors come Snyder adds to team, gets still on effi- from this year’s new Michigan Eco- ready to tackle challenges, Events: Some ciency. nomic Development Corp. Town planners see The Detroit Square and DTE Smarter Living ex- signs of revival, auto show NATHAN SKID/CRAIN’S DETROIT BUSINESS hibits. Page 4 Page 17 struggled over Porsche is returning to the North American International Auto Show after a The exhibits expand the show’s Sponsors: See three-year absence. previous EcoXperience exhibit by who’s new to the the past two MEDC choice marks a first show, Page 17 years with a 2009 and 2010 shows due to the eco- fic and sponsorship during the bringing in advanced technologies decline in at- nomic collapse in 2008 that crip- 2010 show are expected to continue in electric vehicle charging sta- for foundations, Page 11 tendance from 2008 and automak- pled the industry. this year as the industry rides the ers and suppliers pulling out of the But marginal increases in traf- wave back to prosperity. See Auto show, Page 17 This Just In Rockbridge to buy maker of medical-alert devices 2010NEWS Livonia-based Rockbridge Visionary or bettor? Growth Equity LLC, one of the portfolio companies of Quick- MAKERSOF en Loans founder Dan Gilbert, is expected to announce this Time will help form picture of Granholm’s legacy weekthe acquisition of struggled throughout her eight- Philadelphia-based Connect BY AMY LANE CAPITOL CORRESPONDENT year tenure — a backdrop that America LLC — one of the old- THEYEAR shaped her battles, strategy and est and largest companies in Did I expect that LANSING — When she took of- accomplishments as governor. the U.S. selling medical-alert “ fice, the economic landscape “Did I expect that this whole this whole term devices for seniors. looked promising, with the state term would be a process of down- Terms will not be an- projected to turn the corner soon sizing and restructuring? No, I would be a process nounced. The company em- and add jobs. did not. But nor did anyone else,” ploys about 80 and has rev- But it didn’t happen. Granholm said. of downsizing and enue of more than $25 Amid auto industry restructur- Some say Granholm did the best million. Rockbridge and a ing and a national recession, Gov. with the hand she was dealt; others restructuring? No, I partner in the deal, Falcon In- Jennifer Granholm faced years of say she could have done much vestments LLC of New York, job losses and an economy that more. And history has yet to write did not. will acquire an 81 percent in- whether her unflagging ef- ” terest in the company, which forts to diversify the Former Gov. Jennifer Granholm will retain current manage- economy in areas ment. like advanced man- Ann Arbor. “Five, 10 years from The purchase dovetails ufacturing, tech- now … we will be able to see with two previous acquisi- nology and alter- whether that economic develop- tions by Rockbridge, in Pro- native energy pay ment was sustainable or not. tect America Inc., a home secu- long-term divi- “If some of the things that she rity and monitoring dends to the state. started really take off in Michi- company based in Big Rock, “Time will tell gan, she could look like a vision- Texas, and in One Reverse whether some of ary. Right now, it looks like a se- Mortgage of San Diego, Calif. the globetrotting ries of bets.” Connect America will be able PROFILES COMING UP she did, some of the Diversification was a hallmark to cross-sell through those Big names: No. 1: Crain’s many incentives she of Granholm’s response to the companies as part of its What they announces handed out, work or state’s economic crisis. growth strategy. did to make top not,” said John Bebow, Initiatives championed and — Tom Henderson news, newsmaker Pages 6-7 on Jan. 17 executive director of the created in tandem with the Legis- Center for Michigan in lature, like the 21st Century Jobs Fund to invest in emerging sectors and business growth and nation- leading tax credits for targeted in- dustries, draw both praise and criticism. JEFF JOHNSTON/CDB Sarah Hubbard, principal at Acuitas LLC, a Lansing-based lob- bying firm, and former senior NEWSPAPER See Granholm, Page 18 20110103-NEWS--0002-NAT-CCI-CD_-- 12/30/2010 3:38 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS January 3, 2011

Bob Allen rejoins Crain’s as senior editor Bob Allen has rejoined Crain’s Detroit Business as se- Vanguard to ramp up DMC construction nior editor. Allen, 51, had been a copy editor with Crain’s sister BY CHAD HALCOM Center tower adjacent to DMC’s building. The cash component of the purchase publication Automotive News since CRAIN’S DETROIT BUSINESS The DMC and Vanguard originally is down from the earlier $391 million es- 2006. Before that he spent more than a formed a joint venture to share equally timate in part because the hospital has decade at Crain’s in assignments in- The Detroit Medical Center should be- the $1 million cost of site preparation made payments on its own bond obliga- cluding deputy managing editor and come a larger, newer, and profit-making and other early construction costs now tions since September, when the deal general manager of the publication’s network of hospitals with possible under way. Southfield-based Barton-Mal- had been expected to close, Duggan said. website. growth through referrals in Nashville- ow Co. has been handling that prelimi- “Since September there was less Allen’s new duties include oversee- based Vanguard Health Systems Inc.’s net- nary development work for the hospital. transactional debt (assumed by Van- ing Crain’s daily e-newsletter and its work, following its acquisition that be- Duggan said Vanguard also has agreed guard), but also a reduction in total un- Crain’s Michigan Business e-newslet- came effective Saturday. to put up half the costs of the entire restricted assets,” Pitts said of the lat- ter and associated monthly print sec- President-CEO Mike Duggan of the 105,550-square-foot tower. Pitts said he est changes to the deal. “Really, the tion to be launched in February. DMC and Vanguard Vice Chairman expects the next phase of construction to value of the deal doesn’t go down — ef- Allen Other appointments: Keith Pitts signed final documents begin no later than the spring thaw. fectively it has gone up.” Assistant Managing Editor Jennette Smith, 36, has Thursday in a transaction valued at Pitts also said another future possibil- But Vanguard also rolls into the ac- been promoted to deputy managing editor as a reflection nearly $1.5 billion, including $365 mil- ity is turning DMC assets like Children’s quisition the $30 million fine under a set- of her expanded role in newsroom supervision. She will lion in cash. Hospital into regional attractions or cen- tlement finalized this week among DMC, continue to oversee many of Crain’s Focus sections. The deal also includes an agreement ters of referral care. Vanguard has 18 Vanguard and the Department of Justice Reporter Bill Shea, 36, becomes enterprise editor, re- for Vanguard to pay a $30 million set- hospitals in four urban markets — over alleged violations of the federal sponsible for helping to deepen Crain’s coverage of pub- tlement between DMC and the U.S. De- Chicago, Phoenix, San Antonio and cen- False Claims Act, the Anti-Kickback lic policy and metro Detroit business stories. He will partment of Justice over allegations of tral Massachusetts — and adds metro Statute and Stark law by improper rela- continue to report on transportation and the business of improper relationships with its refer- Detroit with the acquisition. tionships with referring physicians. sports as well as continue his two blogs, “For Immediate ring physicians. The settlement was “This will become the first freestand- Duggan said the improper relation- Release” and “Shea’s Stadium.” also signed by Vanguard. ing children’s care center within our ships DMC uncovered were somewhat Jay Greene, 55, has been promoted to senior reporter Duggan, Pitts and U.S. Attorney Bar- (inventory),” he said. “There are possi- technical violations, and the hospital in recognition of his extensive experience in covering bara McQuade in Detroit all said bilities of building destination care admits no wrongdoing. health care. Greene also oversees Crain’s Health Care Thursday the DMC had itself disclosed centers with some of its assets, and if Some examples, Duggan said, includ- Extra e-newsletter and monthly print section. the improper relationships. Federal we can help in their growth by adding ed sending referring physicians to a law restricts the financial relation- referral care to them, we’ll do that.” lecture series for continuing education ships that hospitals may have with doc- Duggan said Vanguard has no imme- tuition free — which could be consid- tors who refer patients to them. diate plans to change hospital staffing ered a form of compensation. Vanguard’s acquisition of the DMC levels and has an approved budget for “We even decided at one point not to CORRECTIONS brings for-profit health care in a signif- DMC that runs from January until next have a Christmas party this year,” A story on Page 11 of the Dec. 13 edi- icant way to Michigan and also the June. Afterward, it will be more in- Duggan said. “Because it could be con- tion listed an incorrect title for Sandra promise of new construction projects volved in DMC budgeting and add to sidered another thing of value, and I Pierce. Pierce is president and CEO of and improvements to the DMC campus. staff as patient demand dictates, he said. didn’t want us to have to go through a Charter One Bank in Michigan. Duggan said the first order of business Vanguard agreed to invest an esti- review of another 2,500 physicians we Because of a technical problem, a list- will be appointing a general contractor mated $350 million for routine capital have contracts with and see what else Crain’s Book of Lists and ramping up construction within improvement and an additional we had to disclose.” ing on Page 29 of , days on the five-story, $43 million DMC $500 million on specific capital projects Chad Halcom: (313) 446-6796, chal- Dec. 27, included a wrong photo for Alan Children’s Hospital of Michigan Specialty during the first five years of ownership. [email protected] Mulally. Mulally’s photo is at left.

In Memory of Our Esteemed Colleague Brian Sullivan

December 31, 1924 – December 17, 2010

The leadership Brian demonstrated throughout his long career with our firm is an enduring legacy. As Dykema’s managing partner from 1981-1989, he led the firm through a significant period of growth. He was a lawyer’s lawyer whose passion for his work and his clients continues to inspire us.

The firm has lost a remarkable attorney and dear friend.

California | Illinois | Michigan | Texas | Washington, D.C. www.dykema.com 20110103-NEWS--0003-NAT-CCI-CD_-- 12/30/2010 3:34 PM Page 1

January 3, 2011 CRAIN’S DETROIT BUSINESS Page 3

Inside Prentice: Trowbridge lineup New orders leaner, healthier, Page 4 Number of troubled banks unchanged, Page 5 Companies find ‘buy local’ have suppliers campaigns work, Page 14

Company index These organizations appear in this week’s Crain’s looking to hire Detroit Business: Acra Grinding ...... 15 Acument Global Technologies ...... 15 Adeona Pharmaceuticals ...... 3 77% adding corporate, tech staff Ann Arbor Spark ...... 11 Arts League of Michigan ...... 17 BY DUSTIN WALSH Seventy-seven percent of re- Automation Alley ...... 10 CRAIN’S DETROIT BUSINESS spondents to the Original Equipment Suppliers Association’s November Blue Cross Blue Shield of Michigan ...... 6 Southeast Michigan’s automo- Automotive Supplier Barometer COURTESY OF ADEONA PHARMACEUTICALS INC. Bosco’s Pizza ...... 15 Adeona CEO James Kuo, M.D., said a licensing deal for its anti-Alzheimer’s tive suppliers are on the rebound, survey said they were adding cor- Center for Michigan ...... 1 supplement could come before or after human trials end in March. and as orders begin to roll in, porate and technical staff, while Citizens Research Council of Michigan ...... 18 they’re looking to replace some of 66 percent said they were adding Continental Automotive Systems ...... 16 the jobs cut during the downturn. hourly production personnel. Council of Michigan Foundations ...... 11 Van Buren Township-based en- However, supplier efforts to gineering service streamline produc- Detroit Wayne County Health Authority ...... 3 firm Ricardo Inc. put tivity during the Alzheimer’s trial may Detroit Regional Convention Facility Authority . . . . . 6 up billboards on I-75, We very much downturn mean Detroit Pistons ...... 6 M-39 and I-275 and “ plants need fewer Detroit Medical Center ...... 6 started running ra- feel that it’s a workers for the Detroit International Bridge Co...... 7 dio ads in December same output. Global- Detroit Symphony Orchestra ...... 7 to aid its efforts to good time to be ization also means win deal for Adeona Detroit Regional Chamber ...... 18 hire 30 engineers. suppliers are mov- Edward Lowe Foundation ...... 11 Ricardo is work- an engineer in ing production jobs ing on several new to regionalized man- Supplement interests drug firms First Michigan Bancorp ...... 7 automotive pro- Southeast ufacturing plants in First Step Fund ...... 10 grams, including de- Michigan. emerging markets BY TOM HENDERSON istration, the resignation of both Forte Belanger ...... 17 velopmental pro- ” like Brazil and Chi- CRAIN’S DETROIT BUSINESS its CEO and its president and a Greater Detroit Area Health Council ...... 3 grams with original na. filing by the company, then Guardian Alarm ...... 14 Andrew Smart, Ricardo Inc. equipment manufac- So while there is It was a very good year in 2010 called Pipex Pharmaceuticals Inc., Henry Ford Health System ...... 3 turers, as well as re- recovery, the indus- for Adeona Pharmaceuticals Inc. with the U.S. Securities and Ex- IHS Automotive ...... 3 search programs for the U.S. mili- try likely won’t see a return to pre- (Amex: AEN), a small drug com- change Commission that said its Kelly Services ...... 16 tary, including the development of recession figures. U.S. supplier pany in Ann Arbor with 10 em- future was in doubt and that it a flying car. employment averaged more than ployees that has might not be able to raise enough Lear ...... 17 “We’re leveraging a lot of new 600,000 in 2007, then dropped to TIMELINE taken aim at in- money to survive. Loomis, Sayles ...... 17 technology and bringing in a lot of 392,000 in January 2009, according tractable illness- The company went through a Macomb County ...... 6 new business,” said Andrew to the U.S. Bureau of Labor Statistics. Adeona’s es with large round of layoffs, survived and Michigan Cover the Uninsured Network ...... 3 journey: Roots Smart, vice president of business markets, includ- now appears to have stabilized. It Michigan Economic Development ...... 11 Employment rose to 435,000 in Oc- began in ’88, development and marketing. “We tober. Page 16 ing Alzheimer’s had a run of good news last year, Michigan Economic Growth Authority ...... 11 very much feel that it’s a good time “The suppliers I’m talking to disease, multi- but the news it is waiting for most Michigan Chamber of Commerce ...... 18 to be an engineer in Southeast are very pleased with the way they ple sclerosis, fibromyalgia, age- are results of a double-blind clini- MRC Manufacturing ...... 15 Michigan.” have been able to pull costs out of related macular degeneration cal trial of 60 Alzheimer’s patients North American light-vehicle the system,” said Mike Wall, se- and rheumatoid arthritis. at three sites in the U.S. that is ex- North American International Auto Show ...... 1 production fell about 43 percent in nior manager of strategic analysis A new name, a new CEO — pected to be completed in March. Piston Automotive ...... 11 2009; OEMs and suppliers purged for IHS Automotive. “They really James Kuo, M.D. — and a change The trial is of Zinthionein, a Premium Event Services ...... 17 jobs to hold the bottom line. How- want to keep that mentality going in focus have combined to save a compound made of zinc and cys- Ricardo ...... 3 ever, production is expected to forward, but the workforce is get- company that seemed on its teine, an amino acid with antiox- Ring Screw ...... 11 reach 13 million in 2011, according ting strained with new business. deathbed in 2008, a tumultuous idant properties. Both are de- Romeo RIM ...... 15 to Northville-based IHS Automotive year that saw its lead drug reject- Tata Technologies ...... 16 Inc. See Suppliers, Page 16 ed by the U.S. Food and Drug Admin- See Adeona, Page 16 The Wine Palace ...... 14 The Detroit Shoppe ...... 14 Think Local First of Washtenaw County ...... 14 TK Holdings ...... 16 Tower International ...... 15 Hospital CEOs push for more-coordinated health services Trowbridge Restaurant Group ...... 4 TRW Automotive Holdings ...... 16 Y AY REENE Anthony, CEO of the Greater Detroit Schlichting, who noted that many joint programs.” B J G Unitask Software ...... 10 CRAIN’S DETROIT BUSINESS Area Health Coun- of Detroit’s health plans, auto com- The other hospital CEOs in the University of Michigan Health System ...... 7 cil, to work with panies and health systems subsi- Detroit group are Patricia Mary- Four hospital system CEOs in the other orga- dize the organizations. land of St. John Providence Health Voices of Detroit Initiative ...... 3 Detroit are recommending nizations to Schlichting said the health agen- System in Warren, Brian Connolly Yanfeng USA Automotive Trim Systems ...... 15 changes and the development of a come up with a cies include GDAHC, the Detroit of Dearborn-based Oakwood Health- master plan to encourage more co- plan, said Nancy Wayne County Health Authority, Voic- care and Mike Duggan of the De- ordination of services between Schlichting, es of Detroit Initiative and the Michi- troit Medical Center. Department index several nonprofit health organiza- CEO of Henry gan Cover the Uninsured Network. Duggan said the effort to get the BUSINESS DIARY ...... 12 tions that serve as the medical Ford Health Sys- “We believe each organization organizations to eliminate redun- safety net for Southeast Michigan. tem. should develop a set of core ser- dancies and conduct joint plan- CALENDAR ...... 13 To reduce subsidies paid to the “How do we vices and focus on those to elimi- ning will benefit everyone in De- CLASSIFIED ADS ...... 14 Anthony health agencies and improve their focus the efforts nate duplication,” Schlichting troit. IN MEMORIAM...... 19 effectiveness, the hospital CEO of the organizations and econo- said. “Some organizations may KEITH CRAIN...... 8 group has asked Vernice Davis mize as much as we can?” said work more closely together on See Health services, Page 15 LETTERS...... 8 OPINION ...... 8 A shot from the hip The nonprofit perspective OTHER VOICES ...... 9 Get the latest news at crainsdetroit.com/section THIS WEEK @ Catch an interview with Motor City PEOPLE ...... 13 Denim lead designer Joe Faris, /nonprofits-philanthropy, and sign up for the free WWW.CRAINSDETROIT.COM Thursday on DetroitMakeItHere.com. weekly e-newsletter at crainsdetroit.com/getemail. RUMBLINGS ...... 19 WEEK ON THE WEB ...... 19 20110103-NEWS--0004-NAT-CCI-CD_-- 12/30/2010 2:53 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS January 3, 2011 Snyder prepares restructuring orders, fills more top slots

BY AMY LANE comment. Caruso. CAPITOL CORRESPONDENT Berger is senior deputy director Also named to administration of department posts last week were former Michi- LANSING — Gov. Rick Snyder services in the gan public relations officials Sara last week continued to fill spots in Michigan Depart- and Brad Wurfel. his administration and was ready- ment of State and Sara Wurfel, director of commu- ing executive orders to begin his from 2001 to 2003 nications for AARP Oregon, will be restructuring of was director of Snyder’s press secretary. Her pre- APPOINTED state government. the then-Michi- vious positions in Michigan in- Expected to gan Department clude serving as communications Rob Collier: emerge, possibly of Management director for the Michigan Depart- Foundations after his Saturday and Budget. ment of Agriculture under Govs. Jen- get a voice inaugural, was an Former state on MEDC Berger nifer Granholm and John Engler. executive executive order to Rep. Dudley Husband Brad Wurfel, public in- committee, split what is now Spade, D-Tipton, who chaired the formation officer for the Oregon De- Page 11 the Michigan Depart- House Appropriations Commit- partment of Transportation, will be ment of Natural Re- tee’s subcommittee on human ser- director of communications for the sources and Environment back into vices, will be a deputy director in DEQ. Past Michigan posts include the Michigan Department of Environ- Human Services, as will attorney serving as public information offi- mental Quality and the Michigan De- Brian Rooney, director of commu- cer for the Michigan Department of partment of Natural Resources. The nications and development at the Education and the DNR. DEQ and DNR were combined by Thomas More Law Center in Ann Ar- Department director appoint- Gov. Jennifer Granholm. bor. ments that remained outstanding, Snyder last week made appoint- At the Michigan Department of as of Thursday when Crain’s went ments to top spots in the Michigan Corrections, Snyder tapped a for- to press, included those for the Department of Human Services, in- mer chief of staff from the depart- THE MILLER LAW FIRM Michigan Department of Energy, La- cluding naming state government ment to serve as acting director a professional corporation official Duane Berger to be the de- while a national search is conduct- bor and Economic Growth and the partment’s acting director. There ed for a permanent director. Michigan Department of Military and was speculation late last week that Acting Corrections Director Veterans Affairs. Michigan Supreme Court Justice Richard McKeon is on the board of Also yet to be named was a di- Maura Corrigan would resign directors of Siren/Eaton Shelter Inc. rector for the Michigan Department from the court to head the depart- in Charlotte, which serves sur- of Technology, Management & Bud- ment or hold another position vivors of domestic violence and get, although that department is within the administration. Sny- homeless families in Eaton Coun- expected to fall under a group der’s press office would not com- ty. He worked at Corrections from headed by Budget Director John ment on the rumor, and neither 1981 to 2004 in various positions, Nixon. Corrigan nor Supreme Court including in his last year serving Amy Lane: (517) 371-5355, spokespeople could be reached for as an adviser to Director Patricia [email protected]

Our firm specializes in litigation: • Complex Commercial and Business • Shareholder and Partnership Trowbridge seeks flexibility, Ponzi probe • Automotive Supplier • Class Actions faces deadline • Employment Federal prosecutors consider- profits after difficult year ing possible criminal charges in • Family Law and Probate Litigation the alleged $50 million Ponzi (248) 841-2200 BY NATHAN SKID Dickson Jr. also decided to end 950 West University Drive, Suite 300 scheme of BBC Equities want U.S. CRAIN’S DETROIT BUSINESS plans for a banquet facility in millerlawpc.com Rochester, Michigan 48307 District Judge David Lawson to Troy. allow a review of company Last year was a difficult one for “Right now, we are looking to records soon — because the the Trowbridge Restaurant Group, keep things going and to be prof- statute of limitations may lapse which closed two of its nine restau- itable while making sure that we this spring on at least some of rants, scrapped plans for a large are intact, he said. “And when it is the alleged offenses. banquet center and is no longer in time to expand, there is no short- The Southfield-based real es- the running for the Seldom Blues age of opportunities.” tate investment fund was closed space in the Renaissance Center. Meanwhile, Coach Insignia had by the U.S. Securities and Ex- But the closures of Shiraz in its best year to date. change Commission, which Bingham Farms and Tavern on 13 Prentice said the company brought a civil lawsuit in mid- in Beverly Hills will allow the changed the focus of the restau- 2009 seeking to recover “ill-got- Bingham Farms-based restaurant rant, which sits atop the Renais- ten gains” taken from investors. group to enter the new year with a sance Center, from a fine dining A federal grand jury subpoe- leaner, healthier lineup of both destination to a banquet center. naed documents from the com- fine dining and casual eateries, “What we did was put more ef- pany in February, but attorneys making it more nimble when the fort into the banquet area and for BBC Chairman John Bravata time comes to expand, according looked at the model a little differ- and his family raised objections, to Matt Prentice, president of the ently,” he said. “We have been able claiming some records might fall restaurant group. to book a lot more private events, under attorney-client privilege. Shiraz and Tavern on 13 were about $500,000 more, or nearly Run by Bravata and Vice the only restaurants in the group $10,000 a week. So that is a big part Chairman Richard Trabulsy, to lose money in 2010. of its success.” BBC raised $50 million from Prentice said he should have Coach Insignia will host three May 2006 until sometime after a closed Shiraz long before the an- large parties during the North March 2009 cease-and-desist or- nouncement was made. American International Auto Show for der from the Michigan Office of “I had the right idea years ago Daimler’s Mercedes-Benz brand, Gen- Financial and Insurance Regula- when I closed both Morels and Shi- eral Motors Co. and Ford Motor Co. tion to stop selling unregistered raz,” he said. “But I reopened Shi- But Prentice said the biggest securities. raz two weeks after closing, main- boost came from wedding parties. The SEC earlier this year ob- ly for sentimental reasons.” Trowbridge Restaurant Group tained copies of the company’s Prentice said he spent a fair was also vying for the sought-after electronic records, according to amount of money renovating Tav- Seldom Blues space but is no the court motion, but needs the ern on 13, but it was not enough to longer in the running. court’s approval to begin re- save the restaurant. Nathan Skid: (313) 446-1654, viewing them. Prentice and co-owner Stanley [email protected] — Chad Halcom 20110103-NEWS--0005-NAT-CCI-CD_-- 12/30/2010 2:54 PM Page 1

January 3, 2011 CRAIN’S DETROIT BUSINESS Page 5 Number of troubled area banks unchanged; 3 keep 5-star ratings

BY TOM HENDERSON Just two — Kelly Federal Credit CRAIN’S DETROIT BUSINESS Union of Troy and Premier Financial Eight area banks got Credit Union of Clinton Township — Metro Detroit’s roster of trou- got zero stars. That’s about six- bled banks remains troubling. zero stars for the tenths of one percent. Area banks For the third consecutive quar- getting four stars were the Bank of ter, the number of distressed third quarter, Ann Arbor, Crestmark Bank of Troy, banks in Southeast Michigan re- Level One Bank and Lotus Bank of mained the same, according to a according to Novi. leading banking research firm. Getting three-and-a-half stars Eight area banks got zero stars for Florida-based were Chelsea State Bank, Dearborn the third quarter that ended Sept. Federal Savings Bank, First Indepen- 30, according to Florida-based BauerFinancial dence Bank of Detroit and Huron Val- BauerFinancial Inc. Inc. ley State Bank of Milford. State credit unions, which large- The three-star banks were the ly avoided subprime mortgages Bank of Birmingham, Farmington and do far less commercial lending National Bank in Howell, Ann Arbor- Hills-based Bank of Michigan, Citi- than their banking brethren, fared based Michigan Commerce Bank, Ox- zens Bank of Flint, First State Bank much better in the BauerFinancial ford Bank and Madison Heights- of Eastpointe, Main Street Bank of ratings. based Peoples State Bank. Bingham Farms, Sterling Bank and At least one of the zero-star Three area banks retained their Trust of Southfield, United Bank & banks is assured of not showing up five-star ratings: Auto Club Trust of Trust of Ann Arbor and University as a zero-star bank in the Bauer Dearborn, First Michigan Bank of Bank of Ann Arbor. ratings that come out for the Troy and Shelby State Bank. Flagstar Bank of Troy was the fourth quarter that ended Dec. 31. Statewide, things improved only local two-star bank. There Paramount Bank of Farmington modestly, with 28 of 133 banks get- were no one-star banks locally. Hills was closed by state and feder- ting five stars, up from 26 the quar- Ann Arbor State Bank wasn’t rated al regulators on Dec. 10, with its ter before. because it hasn’t been operating assets and four branches taken The number of zero-star banks for the minimum period of two and over by Farmington Hills-based remained the same, 12. a half years required by BauerFi- Level One Bank. About 21.1 percent of state banks nancial. The other zero-star banks were got the highest rating; 9 percent The 26 Detroit-area credit Clarkston State Bank, Mt. Clemens- got the lowest. By contrast, 137 of unions to get five stars were: based Community Central Bank, the 306 rated credit unions in the ARC Credit Union, Roseville; Belle Dearborn-based Fidelity Bank, First state, or 44.8 percent, got five stars. River Community Credit Union, Rich- mond; Chiropractic Federal Credit Union, Farmington; Construction Federal Credit Union, Southfield; Detroit Metropolitan Credit Union, Detroit; DFCU Financial Credit Union, Dearborn; Eastern Michigan University Credit Union, Ypsilanti; Eastside Family Federal Credit Union, Eastpointe; Electrical Work- ers Local 58 Credit Union, Detroit; Genisys Credit Union, Auburn Hills; Health One Credit Union, Detroit; Lincoln Park Community Credit Union; LOC Federal Credit Union of Farmington; Michigan Education Credit Union of Plymouth; Michigan First Credit Union, Lathrup Village; Michigan Schools and Government Credit Union, Clinton Township; My Postal Credit Union, Pontiac; Southeast Michigan State Employees Federal Credit Union, Southfield; You Deserve: A Comprehensive Business Transition T&I Credit Union, Clawson; Tandem Federal Credit Union, Warren; Unit- Find us at PMFA.com. ed VIP Credit Union, Sterling Heights; Unity Credit Union, War- ren; University of Michigan Credit Union, Ann Arbor; Walled Lake School Employees Credit Union; UPCOMING BREAKFAST ROUNDTABLE: Washtenaw Federal Credit Union, Ypsilanti; and Westacres Credit January 19 Union, Orchard Lake. Four credit unions in the state The Road Ahead: What Can We Expect in the Coming Year? got one star, including Shores Area Credit Union of St. Clair Shores. All roundtables will be held from 7:30-8:30 a.m. at BauerFinancial evaluates capi- 27400 Northwestern Hwy., Southfield, MI 48034. tal-to-debt ratios, profit and loss trends, delinquent loans and Visit roundtables.pmfa.com to register. Seating is limited. write-offs, historical data, liquidi- ty, reserves, repossessed assets, community reinvestment ratings and market versus book value. Bankers say the ratings are sim- plistic and don’t always reflect a particular bank’s health. They also point out that deposits at all INVESTMENT MANAGEMENT I *TRUST SERVICES banks and credit unions, regard- *INSURANCE SERVICES I *TAX PLANNING less of rankings, are insured up to ESTATE PLANNING I WEALTH MANAGEMENT $250,000 by the Federal Deposit Insur- ance Corp. BUSINESS TRANSITION I PHILANTHROPIC PLANNING Tom Henderson: (313) 446-0337, QHHGTGFVJTQWIJCHſNKCVGUQH2/(# [email protected] 20110103-NEWS--0006,0007-NAT-CCI-CD_-- 12/30/2010 3:17 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS January 3, 2011

2010 Newsmakers

LARRY ALEXANDER DAN LOEPP Chairman, KAREN MIKE DUGGAN CEO, Detroit Regional DAVIDSON CEO, MARK HACKEL Blue Cross Blue Convention Owner, Detroit Medical Macomb County Shield of Facility Authority Detroit Pistons Center Executive Michigan ith the controversy that aren Davidson sent shock- fter taking over a nearly t was a year of major head- ne of the highlights of the led up to the regional waves throughout metro bankrupt Detroit Medical lines and political history for year for Dan Loepp was W ownership of Cobo Cen- K Detroit when she an- A Center in 2004, CEO Mike I Macomb County Executive O when he approved a plan to ter, the recent lack of controversy nounced in January 2010 that she Duggan has led the eight-hospital Mark Hackel — but the sheriff- begin a yearlong process begin- in its operation is a true accom- wanted to sell the Detroit Pistons. system to six consecutive years of turned-CEO also held the spotlight ning early this year to move 3,000 plishment. She inherited the team when profitability. in a high-profile criminal investi- employees of Blue Cross Blue Shield In just over a year, the Detroit her husband, Guardian Industries It has been good news because gation. of Michigan from Southfield to Regional Convention Facility Authori- Inc. Chairman Bill Davidson, died DMC is no longer facing the possi- Hackel, 48, of Macomb Town- downtown Detroit at the Renais- ty has been formed, found an inter- in March 2009. He’d bought the bility of closing some of its safety- ship handily won election as the sance Center. im CEO, found a permanent man- team for $8 million in 1974 and was net hospitals. county’s first executive Nov. 2, The move, which was widely agement company and secured deeply involved with it — a court- But one frustration remained: more than doubling the combined praised by Detroit’s business and bank lending for $80 million of im- side fixture and proud owner the inability to generate enough votes of his two opponents. He as- civic leaders, is expected to save provements to the aging facility. when the team won NBA champi- cash for capital expansion. sumed the post Saturday at a $30 million in operating costs over As chairman of the authority onships in 1989-90 and 2004. The hospital system knew cash salary of $139,776, along with for- 10 years and garner $35 million in board, Larry Alexander has kept a Bill Davidson had said on sever- generation would help persuade mer Warren Bank Chairman Dami- various economic incentives. professional tone and a low profile al occasions the team would re- bankers to loan DMC the money it an Kassab as assistant executive On the other hand, Loepp saw — a feat of diplomacy as the board main in the family after his death, needed to help keep pace with ri- and former Chippewa Valley Schools Blue Cross lose a high-profile re- members representing Oakland which made his widow’s decision val hospitals like Henry Ford Health Superintendent Mark Deldin as straint-of-trade lawsuit, had an- and Wayne counties have vastly to sell surprising to many. She System and St. John Providence deputy executive. other double-digit premium rate different ideas on the amount of also moved to sell properties in Health System. The Democrat is expected this increase request delayed by the renovation needed at Cobo. New York City and Colorado. So, DMC in March agreed to sell year to borrow from the practices courts and was sued on antitrust The center’s $18 million budget The team was her husband’s in- to Vanguard Health Systems Inc. of GOP leaders, such as Gov. Rick grounds by the U.S. Department of saw a $1 million increase in rev- terest, she said, and she didn’t That deal was set to close Fri- Snyder and his executive team su- Justice and Attorney General Mike enue in 2010 due to more business think it fair for the Pistons or day, the culmination of a process pervising categories of depart- Cox. and a $3.6 million decrease in their fans to have an owner who that began with a letter of intent ments, and a possible multiyear In August, Pontiac-based Thera- spending through the renegotia- didn’t share his enthusiasm — an in March. (See Page 2 for more.) budget strategy like County Exec- Matrix won a $4.5 million lawsuit tion of 22 vendor contracts. honest statement that largely Under the final purchase agree- utive L. Brooks Patterson uses in against Blue Cross for tortious in- In Alexander’s “day job” as staved off criticism. ment, Vanguard acquired DMC as- Oakland County. terference with its business and president of the Detroit Metro Con- She hired New York City-based sets for $365 million in cash and Hackel has asked one of Patter- breach of contract. vention and Visitor’s Bureau, the Citi Private Bank Sports Advisory to assumed most DMC liabilities. son’s deputy executives, Robert A jury in Oakland County Circuit year was equally noncontroversial broker a sale of the team along Vanguard also agreed to keep Daddow, to join an advisory team Court found that Blue Cross tried and effective. with Palace Sports & Entertainment all DMC hospitals open for at least to review budget and finance issues to damage TheraMatrix after it The bureau spent 2010 on a Inc., the management company 10 years, to invest $350 million for for Macomb. And Patterson said in won a contract from Ford Motor Co. strategy to diversify its marketing that includes the Palace of Auburn routine capital improvements and December he is simply “answering to carve out physical therapy ser- efforts and find major conventions Hills, DTE Energy Music Theatre invest another $500 million on spe- questions” whenever the new Ma- vices from the Blues contract with that can mirror the diversifying and Meadow Brook Music Festi- cific capital projects during the comb leadership team has them. Ford. local job base. Military, new ener- val, which PS&E operates on be- first five years of ownership. “Mark and I are friends, so we The antitrust lawsuit, which gy and bio-science conferences half of Oakland University. The deal brings for-profit health talk politics all the time. He han- was filed Oct. 18 in U.S. District have been in the sights of the bu- After soliciting bids — and re- care in a significant way to Michi- dles himself well, but I don’t ex- Court in Detroit, alleges the state’s reau, which is pitching the idea portedly asking for $500 million — gan, a development some eye ner- pect he’s going to try to take on re- largest health insurer pressured that Detroit is more than a car Davidson and Citi in October an- vously. However, Duggan and the gional issues right away,” 23 of the state’s 131 hospitals to town. nounced that Detroit Tigers and De- DMC board believe acquisition Patterson said. “We’ll see him get- sign “most favored nation” con- Last year, the DMCVB also hit a troit Red Wings owner Mike Ilitch was the best way to ensure the ting on the job first and getting his tracts that required them to home run with confirmation that would be granted a 30-day exclu- DMC’s future. feet planted. This isn’t someone charge higher prices to competing the American Society of Association sive negotiating and due diligence In early 2009, DMC officials dis- who started going to church once health insurers. Executives conference will come to window to work out a purchase cussed selling or merging DMC a week and wants to lead the choir The federal lawsuit asks for the Detroit in 2015. agreement. with one of its local competitors. on his first day.” clauses to be removed. Dubbed the “Super Bowl of all The talks reportedly broke No one was interested. Hackel also juggled the election Blue Cross officials deny the conferences,” the event will draw down in November when Ilitch al- In June 2009, DMC hired Kauf- season with his sheriff’s office charges and contend the most-fa- roughly 3,500 people in leadership legedly discovered the Pistons’ man Hall, a Chicago-based consult- search for David Widlak, the pres- vored-nation clauses help keep roles of associations — the people revenue information had been in- ing firm, to explore other solu- ident and CEO of Community Cen- premiums down for its sub- empowered to decide where trade flated — prompting him to sub- tions, including finding potential tral Bank Corp. since 2006, who was scribers. conferences will be held. stantially lower his $400 million national hospital suitors. found dead from a gunshot wound Earlier this year, Blue Cross in- On average, 20 percent to 25 per- bid. One of six prospective buyers one month after he disappeared creased Medigap premiums 3.8 cent of the executives who have at- That prompted Davidson to re- Kaufman Hall found was Van- from the bank’s corporate head- percent after the Michigan Office of tended this conference will book open the bidding process. Others guard, which immediately ex- quarters in Mt. Clemens Sept. 19. Financial and Insurance Regulation an event in that city within five interested in the team include L.A. pressed interest. The case is being treated as a last year rejected a 31.2 percent years, which could net metro De- private equity billionaire Tom Starting in October 2009, Dug- homicide, but suicide has not been rate hike request. troit $2.8 billion in direct spend- Gores, former Houston Rockets ex- gan took charge of the talks with ruled out. — Jay Greene ing. ecutive George Postolos, and some Vanguard and flew to Nashville at Hackel’s jobs and economic de- — Daniel Duggan groups of the Mideast. least six times — several times velopment plan calls for aiding lo- Some say it’s all posturing as with CFO Jay Rising — to pursue cal business expansion and form- part of the bidding process. in-depth discussions with Van- ing a Macomb business No one involved in negotiations guard CEO and Chairman Charles roundtable of local leaders in the will talk, but speculation from in- Martin Jr. and Vice Chairman private sector to advise the coun- siders has said Davidson’s camp Keith Pitts. ty. Observers said he is expected will work out a purchase agree- Duggan also flew out twice to to favor “economic gardening” ment in coming weeks and the sale meet with officials from San Anto- strategies, as Snyder has proposed could be complete by the NBA’s nio-based Baptist Health System, a on a state level, over business at- all-star weekend in February. five-hospital system with 1,500 traction or “hunting” to court in- — Bill Shea beds that Vanguard had acquired vestment from elsewhere. in 2003 for about $306 million. — Chad Halcom — Jay Greene 20110103-NEWS--0006,0007-NAT-CCI-CD_-- 12/30/2010 9:57 AM Page 2

January 3, 2011 CRAIN’S DETROIT BUSINESS Page 7 rs of the Year ORA PESCOVITZ Executive vice president for medical affairs, DAVID MANUEL ANNE University of PROVOST MOROUN PARSONS Michigan Chairman, Chairman, President, CEO, University president, CEO RICK SNYDER Detroit Detroit of Michigan First Michigan Governor, International Symphony Health System, Bancorp Inc., state of Bridge Co. Orchestra Ann Arbor Troy Michigan rosse Pointe trucking in- nne Parsons became a polar- ra Pescovitz, a nationally hen the year began, First rom the start, Rick Snyder dustrialist Manuel “Matty” izing figure in 2010, as the recognized pediatric en- Michigan Bank was a tiny was not a conventional can- G Moroun wasn’t far from the A symphony’s musicians initi- O docrinologist and re- W bank with one branch and F didate for governor. headlines in 2010. ated their first strike since 1987. searcher, was recruited from the In- a relatively puny $100 million in The chairman and CEO of Ann His courtroom and backroom ef- As the DSO’s top executive, Par- diana University School of Medicine in assets. But it had an experienced Arbor venture capital firm Ardesta forts to slay a proposed govern- sons became the face of misman- May 2009 to expand the UM Health CEO in David Provost, who had LLC raised eyebrows branding ment-owned Detroit River bridge agement alleged by the striking mu- System’s statewide footprint and to big growth plans and a track himself “one tough nerd” early in that would compete with the Am- sicians and of DSO management’s play a big role in plans to commer- record of growing small banks and his campaign — a drive to the gov- bassador Bridge he’s owned since efforts to permanently restructure cialize on-campus research. making a lot of money for his in- ernor’s seat in which he ultimate- 1977 appear to have paid off — for the fixed costs of one of the top or- Those plans didn’t take long to vestors. ly spent about $11 million support- now, at least — when the state chestras in the world. materialize. That summer, UM Growing a community bank in ed with nearly $5.9 million he Senate in November let the en- Parsons joined the DSO in 2004 announced it had bought the for- Michigan in the midst of a long- loaned the campaign. abling legislation for the new span after serving as general manager mer 174-acre Pfizer Inc. campus and running implosion of community Going into the August primary die in committee. of the New York City Ballet. its 2 million square feet of office banking and bank takeovers by election, Snyder faced a field of That decision, by outgoing Ma- She continued with the financing and lab space and was renaming it the feds? Far-fetched? Wilbur more politically seasoned Republi- jority Leader Mike Bishop, R- plan derived for the Max M. Fisher the North Campus Research Complex. Ross, the well-known New York fi- can rivals. But his positioning as a Rochester, set off protest and accu- Music Center in the early 2000s un- Last May, Pescovitz told venture nancier, didn’t think so. Lansing outsider who could bring sations that lawmakers, especially der which it paid only interest on capitalists and entrepreneurs at In April, W.L. Ross & Co LLC in- a new approach to state govern- Republicans, were on the take for $54 million in loans until a balloon the annual Michigan Growth Capital vested almost $50 million of a ment and “reinvent” Michigan Moroun — a charge dismissed by payment came due in 30 years. Symposium that UM would turn the $200 million round of fundraising seemed to resonate with voters. some as simplistic because there The thought was that investing complex into a hub of multidiscipli- orchestrated by Provost. The same Snyder’s primary win of some are legitimate unanswered ques- the money raised for the Max in- nary research that would double day, it was announced that First 36 percent of the Republican vote, tions about the proposed bridge. stead of paying down the loan the school’s annual research bud- Michigan had bought at a sharp compared with about 27 percent Critics say Moroun’s political do- principal was a better plan as the get of $1 billion over 10 years. discount about $1.1 billion in as- for his closest contender, U.S. Rep. nations paved the way for the death endowment spun enough invest- She also announced that she sets and the 22 branches of Citizens Peter Hoekstra, R-Holland, sur- of the bills that would have allowed ment income to pay interest on the had begun meeting with stake- First Bank of Port Huron after it prised many and showed momen- the Michigan Department of Trans- loan, contribute a regular draw to holders to lay out plans to raise was closed by regulators. About tum that was to be unflagging portation to continue to work with the DSO’s operations and left some $200 million over three years to re- 350 employees kept their jobs. through the remaining months to Canada on the proposed $5.3 billion money to reinvest in the endow- cruit faculty members to the com- In November, First Michigan ex- November’s general election. Detroit River International Crossing ment. plex, reopen shuttered lab space panded into Wisconsin with the dis- A passionate and hard-fought project, which would be about two But as the market, endowment and jumpstart research. counted purchase of about $470 mil- campaign by Democratic guberna- miles from the Ambassador Bridge. value and earned and contributed Since then, UM’s Office of Tech- lion in deposits and 17 branches of torial contender Lansing Mayor Moroun has long said the DRIC revenue to the DSO fell over the nology Transfer has moved into the the Burlington-based First Banking Virg Bernero failed to derail Sny- is unneeded because border traffic past few years, Parsons and her complex, which also has lured its Center, which also had been shut der’s progress to a Nov. 2 victory. has declined and remains below management team made up for loss- first for-profit tenant, BoroPharm down by regulators. This time, Moving quickly to fill key spots 1999 levels. He also believes the es by tapping the endowment. Inc., a spinoff from Michigan State about 220 employees kept their jobs. in his Cabinet, Republican Snyder bridge to be unfair government In what was a three-month strike University. Suddenly, First Michigan had 40 caught attention by tapping Demo- competition to his bridge, and that by the end of December, musicians The for-profit angle is central to branches and about $2 billion in cratic House Speaker Andy Dillon, Canada is seeking to put his span repeatedly asked the DSO board what Pescovitz says she came to assets. who ran unsuccessfully for gover- out of business. why Parsons’ compensation had UM to accomplish. She says 21st Provost isn’t done. He told nor, to be his state treasurer. Canada opposes Moroun’s own not been affected and why, in early century demands require universi- Crain’s he would continue to bid on Other top picks included Lans- $1 billion plan to twin his bridge, December, she continued to receive ty researchers to leave ivory towers troubled banks being closed by reg- ing lobbying firm founder Dennis saying increased commercial a salary for managing an orchestra behind and work side by side with ulators, with an idea to grow both Muchmore as chief of staff, former truck traffic would create prob- that was not playing at the Max. private sector scientists. in Michigan and in the Midwest. Lt. Gov. Dick Posthumus as senior lems on Windsor’s streets. The DSO’s board of directors in In the last half of the year, UM First Michigan is likely to put $50 adviser, and Utah budget chief A new version of the bill is like- public statements and at the DSO’s made progress toward creating a million into First Banking Center, John Nixon as budget director. ly to be introduced in the new Leg- annual board meeting in early De- statewide health system. which will leave it with between Also tapped were Ann Arbor Spark islature, but it will face a larger cember repeatedly expressed sup- In August, UM Health System $80 million and $100 million for President and CEO Michael GOP majority and continued oppo- port for Parsons’ and the manage- and Munson Healthcare System in more investments. Since banks Finney to be CEO of the Michigan sition from Moroun. ment team’s bargaining position. Traverse City began exploring an leverage their capital at about a 10- Economic Development Corp., and Moroun — who’s also criticized They reiterated their support expanded affiliation that would to-1 ratio, that will allow the bank Business Leaders for Michigan Presi- for his vast real estate holdings that for the demands that Parsons and fall short of a merger. UM and to make up to another $1 billion in dent and CEO Doug Rothwell to include the crumbling Michigan her team were making for musi- Munson already had ties in sever- asset acquisitions, which will be chair the MEDC’s executive com- Central Station — also remains cians to accept salary cuts of al areas, including pediatric ser- enough for one or two more deals. mittee. locked in a legal struggle with roughly a third, cuts in vacation vices, cancer treatment, clinical Financing further acquisitions Ahead for Snyder lies the job of MDOT over the $230 million Am- time and work rule changes that trials and visiting specialists. after that money is gone will not be turning big plans for the state into bassador Gateway project that was would enable the DSO to send mu- In September, a health network a problem. When Provost raised the reality, including putting in place aimed at improving traffic between sicians out for more chamber per- called Pennant Health Alliance was first $200 million, he had commit- a new Michigan budget system the bridge and I-75 and I-96. formances and teaching events formed, linking UM Health Sys- ments in place for $400 million but that is performance- and outcome- The state claims Moroun’s without additional compensation. tem, Novi-based Trinity Health and didn’t need it all. He says he will be based while tackling a general bridge company failed to follow Parsons publicly mourned the Metro Health of Wyoming. Pennant able to raise the second $200 million fund budget gap that the Senate the construction contract and delay of the DSO’s season but con- was created to provide back-office almost immediately, and Ross told Fiscal Agency has pegged at more built, or failed to build, ramps and tinued to insist that the fixed cost and other support for physician Crain’s that his company will be on than $1.8 billion for the next fiscal bridges as agreed. Moroun blames structure of the orchestra needed groups and community hospitals. board when and if further capital year. MDOT for being unclear and to change for it to survive. In October, UM formed the calls are made. Snyder also has pledged to elim- changing the deal. — Sherri Welch Physician Organization of Michigan as No one thinks Wilbur Ross got in- inate the Michigan Business Tax A judge will decide by Jan. 10 if a vehicle to unite independent volved solely to own banks in Mich- and replace it with a 6 percent cor- the bridge company will be held in physician organizations and igan and Wisconsin. Think bigger. porate income tax that would ap- contempt over a February order to named its first partner, Physicians’ Think Chicago. Look for First ply to “C” corporations, providing build the ramps and roads as Organization of Western Michigan in Michigan to take the plunge in that an overall tax cut of about $1.5 bil- agreed. Grand Rapids. market sooner rather than later. lion. — Bill Shea — Tom Henderson — Tom Henderson — Amy Lane 20110103-NEWS--0008-NAT-CCI-CD_-- 12/30/2010 11:53 AM Page 1

Page 8 CRAIN’S DETROIT BUSINESS January 3, 2011 OPINION LETTERS Honorable service, Devil is in details of ‘angel’ bill Editor: fore Jan. 7 when the MEDC will With no huge splash, Michigan’s Crain’s Detroit Business submit its process to the attorney welcomes letters to the editor. Legislature recently passed House general for review before it goes to All letters will be considered for Bill 5921, and it was signed by Gov. the MSF board on Jan. 27. We publication, provided they are Granholm. The bill is meant to get strongly advise business leaders to signed and do not defame uncertain legacy angel investors out of the wood- contact the MEDC immediately individuals or organizations. work by extending a tax credit to Letters may be edited for length and urge them to include provi- ov. Jennifer Granholm left office over the weekend them in the amount of 25 percent and clarity. sions for a broader list of emerging of their investment. The Michigan businesses. Michigan’s recovery with an uncertain legacy. Write: Editor, Crain’s Detroit Strategic Fund is charged with and future growth are at stake. G Her tenure was full of contradictions. Despite intel- Business, 1155 Gratiot Ave., overseeing the program, and the Tom Sesti ligence, charisma and a strong desire to forge alliances, she Detroit, MI 48207-2997. Michigan Economic Development President struggled at times to reach agreement even with her own par- E-mail: [email protected] Bandals International Inc. Corp. is supposed to develop the Commerce Township ty. She promised to fundamentally change the structure and program and have it approved by cost of government but made sure the superintendent of public the MSF at its Jan. 27 meeting. growth sectors and keeps out all instruction was fired in 2005 after he pointed out the bite pen- There are two problematic is- kinds of stray cats, such as real es- Ulterior motive for sues with the legislation, one mi- sion and health care costs take out of education dollars. She tate development. The substantial nor and one major. problem is that these “usual sus- stadium demolition? impressively represented Michigan in national appearances The minor one has to do with re- pects” are being unfairly favored. Editor: but left some of her most fervent supporters in the state feeling quiring the investor to invest These emerging businesses, if they The federal indictment of the disappointed that she hadn’t made more of her time in office. “through or alongside” a regis- create employment, create it for the Kilpatricks and Bobby Ferguson It’s a view Crain’s editorials have sometimes shared. tered angel group or other invest- most employable in the state. An- alleges in part that “Kwame Kil- ing entity. MEDC freely admits it patrick used his position as mayor Granholm clearly feels frustrated and underappreciated, not- other problem is that, while growth is out to expand its Rolodex by re- for them is indeed high, it is binary. of Detroit in an attempt to coerce ing, accurately, that she was dealt a bad economic hand that led quiring this. Nonetheless, mem- A biotech company of three or four an official of the Detroit Economic to time-consuming, constant budget adjustments. But she also bers said they will make some people may labor for years in the Growth Corp. to recommend that believes that she has accomplished more than she is given credit kind of arrangements for those in- lead-up to a human trial, and then Ferguson get the contract to de- for and has taken important steps to diversify Michigan’s econo- vestors who do not want to join the outcome of the trial can often molish Tiger Stadium even though anything or affiliate with anyone. I Ferguson was not the low bidder, my, the payoff from which will take some years to play out. mean a roaring success or crashing suspect some kind of ad hoc group failure. These sorts of businesses and that Kilpatrick tried to retali- As Amy Lane reports on Page 1, several of those measures will be formed for the purposes of are also at risk of reaching a point ate against the official by having were centered on clean energy, which Granholm believes this program, and I do trust the where a substantial follow-on him removed from his position.” gives Michigan “the best opportunity to lead the nation to en- MEDC will make this happen be- round of financing draws them out It now makes me wonder if ergy independence” and that jobs and growth will occur here cause it wants the investors. of Michigan, or they cannot find the from the very beginning, and obvi- The second is more serious and ously without disclosing his true because the state was aggressive. “It’s not something that was talent to move forward. In either has to do with investment qualifi- case, they are gone. motive, Kilpatrick pressured city just a shot in the dark,” she notes. There already have been in- cations. We believe there are many busi- officials to support the destruction vestments in alternative battery and wind energy projects. MEDC is proposing to adopt the nesses outside the traditional of Tiger Stadium so that in the end Granholm also shepherded through controversial tax in- 21st Century Jobs Fund defini- high-technology sectors with lin- he and his friend would financially centives for the film industry and took steps to incentivize re- tions of target businesses. These ear rather than stepwise growth benefit from the demolition. are the “usual suspects,” including If that was the case, it certainly development of the state’s supplier base. trajectories, with the capacity to biotech, advanced auto manufac- create jobs in a range of skill lev- adds to the tragedy that such a She spent significant time abroad, leading 13 foreign trade turing, homeland security and the els, bring wealth to the state and treasured and historic structure missions to 10 countries. like. Software and Internet compa- with attractive exit opportunities has been lost. Whether these programs result in long-term diversifica- nies were added to the list. for investors large and small. Bill Dow Birmingham tion — as well as whether they survive Gov. Rick Snyder’s ad- MEDC says this definition is The time for public comment is “convenient,” captures high- ministration — remains an open question. now and will close sometime be- See Letters, Page 9 Snyder has shown more of an interest in fostering the state’s existing businesses than in recruiting them from else- where, but a sound economic development policy probably should have elements of both. As she left office, Granholm was gracious and helpful to TALK ON THE WEB Snyder and also created an organized transition. The two also From www.crainsdetroit.com collaborated on appointments to the Michigan Economic De- Re: Battery consortium assigns be part of the recovery. velopment Corp., with each appointing half as part of Snyder’s Reader responses to stories and Damian Zikakis commitment to a bipartisan approach to his administration. research work to out-of-state firms blogs that appeared on Crain’s And it’s also true that the initial expectations for Why isn’t Michigan represented Web site. Comments may be Re: NAACP office faces foreclosure Granholm were so high that they may have been hard to live in one of those five companies? edited for length and clarity. Why aren’t we trying to build Why should the NAACP be tax- up to even in better times — something for Snyder, who also Michigan up? This state will never be exempt? It is just another special- faces high expectations, to ponder as he moves forward. what it used to be if we keep sending Re: Snyder hires PR veterans interest group, albeit one with a no- We may not always have agreed with Granholm, but she work out of this state. This shows that talented individu- ble charter. Pay up like the rest of us. served the state honorably, and we wish her well. Gman als are willing to return to Michigan to Walt KEITH CRAIN: It’s a new day for Michigan government Not only do we have a new gover- er up the deficit. we elected our state offi- Let’s hope that the Michigan ture. It should not be a partisan nor in Michigan, but many of our Now the governor cials to do. They should Legislature becomes an inspira- goal to fix the state’s financial state legislators are new as well. and his colleagues in cut the cost of state gov- tion to other government bodies in mess. It is in all of Michigan citi- And all of them have been elected Lansing are going to ernment and get rid of our state that are going to have to zens’ interest to see state govern- on a new mandate for fiscal respon- have to cut costs. That’s the waste. follow its example. It is not just the ment work together for the good of sibility. Not only are they going to a painful process any In a time of economic state that is out of kilter. There are all of Michigan. be charged with the difficult task of time, but it’s one that is malaise, it is even more plenty of county and city govern- There will be plenty for every- balancing a budget, but they are go- essential for the long- difficult to make the ments that are running deficits as one to disagree on during the bud- ing to have to fund the previous term well-being of our necessary revisions. It well because their spending is out get process. I can assure everyone short-term debt from last year. state’s economy. will be up to the private of control. that no one will be completely hap- Michigan used the stimulus No one wants to find sector to try to take up Gov. Snyder knows what has to py, but it’s medicine that we all funds for our state to balance the out that their pet project the slack. But regard- be done. He will have challenges in have needed to take for many budget, which sadly eliminated or what they thought less of what happens, trying to persuade his party’s leg- years. many projects that might have were entitlements are going to be it’s going to be a painful process. I islators to do what he knows needs The governor has some real been done with those funds, plus eliminated or cut. But it’s going to wish our new governor our sup- to be done. I only hope he has the challenges ahead. We wish him the money was simply used to cov- have to be done, and that is what port. cooperation of the entire Legisla- smooth sailing. 20110103-NEWS--0009-NAT-CCI-CD_-- 12/30/2010 9:58 AM Page 1

January 3, 2011 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Redevelopment requires following the plan

The root cause of De- Cities program in the ing constraints. mentation is a death knell for any The Chrysler Jefferson Avenue troit’s redevelopment fail- 1960s and continuing The one square mile Jefferson- redevelopment project in Detroit. Assembly Plant was built nearby. ures over the past 50 years through the creation of 20 Chalmers Redevelopment Project Why? Because the city’s blight is But it was all too slow in coming. has not been the absence citizen district councils in in the southeast corner of the city not a static situation, it is dynamic Jefferson-Chalmers revitalization of community involve- Detroit neighborhoods in is a perfect example. In 1970 city and expanding. If you move too is only half accomplished 32 years ment in the planning. It the 1970s and the city’s planners and residents prepared slowly, the problem gets bigger after the project’s completion date. has consistently been the Community Reinvestment an $18 million plan to acquire U.S. than the solution you are imple- The New York Times recently re- failure to implement Strategy and Empower- Department of Housing and Urban menting and your efforts are over- ported that the nationally whatever plan the com- ment Zone projects of the Development funding. The future whelmed. This is what happened renowned Youngstown, Ohio, munity has agreed upon. 1990s, community organi- looked promising, but problems in Jefferson-Chalmers. rightsizing plan is making little or Community-based plan- John Mogk zations and residents have began in the first year of imple- Since the 1970s this area has no progress in its implementation. ning has been a Detroit tradition been directly involved in deter- mentation. City administrators seen several hundred million pri- Without a successful implementa- since the mid-1960s when it was mining the vision and plans for dropped the ball by failing to vate and public dollars of invest- tion strategy, the Detroit Works mandated by legislation. Despite their neighborhoods. However, spend half the allocated funds on ment that have funded schools, plan will be just another bigger numerous plans prepared by citi- these projects have almost always schedule, so the money had to be boulevards, housing projects and and more disappointing zen groups in partnership with died on the vine as a result of in- returned to HUD. repair programs, park and infra- Youngstown. city planners in past decades, competent implementation, city This debacle slowed project im- structure improvements, and a John Mogk is a professor of law neighborhoods have continued to administrative delays, and fund- plementation — and slow imple- major strip commercial center. at Wayne State University. decline because these plans have never really been followed. There are five major causes for this failure: underestimating the plan’s challenges, committing too few resources, lacking administra- tive capacity, failing to adopt a sense of urgency, and declining to set a firm date for completion. De- troit Works must address these critical issues if the mayor’s right- sizing concept is to succeed. Beginning with Detroit’s Model

LETTERS CONTINUED ■ From Page 8 Update liquor laws Editor: I celebrate your Nov. 22 opinion regarding “Liquor law reform can help state, businesses.” It is en- couraging to see a major publica- tion drawing attention to this im- portant topic. The state desperately needs to overhaul our “off-premise” liquor laws to in- clude licensing to caterers and restaurants to legally sell beer, wine and spirits at events in venues that do not have liquor li- censing attached. The Liquor Control Board has maintained it would be difficult to oversee this type of licensing; I maintain they have no idea the amount of illegal activity that is SAVE THE DATE Crain’s Health Care Leadership Summit — Week of Oct. 17, 2011 currently taking place in the spe- cial-events industry when it comes to the sale of beer, wine and spirits PLATINUM SPONSORS CLOSING REMARKS/RECEPTION SPONSOR for these events. What further con- fuses this issue is the fact that T hank You FROM most business and entities that hold special events or marketing GOLD SPONSORS events are unaware of the liquor laws and believe they are doing the “right thing,” or are told they need to utilize a “restaurant’s liquor li- cense” to service alcohol at their SILVER SPONSORS events. This is not the case; cur- rently the regulations do not re- quire a license to “provide” alco- holic beverages to your guests, whether in one’s home or place of ROUNDTABLE SPONSOR LOCATION SPONSOR BREAKFAST SPONSOR LUNCHEON SPEAKER SPONSOR business, only when selling. I strongly agree our state needs to reform the off-premises liquor regulations and stress that there is PRESENTING SPONSOR a level playing field provided for ACTION GROUP SPONSORS everyone by allowing off-premises catering businesses to secure these licenses or permits as op- posed to only providing permits to restaurants or banquet halls that already have licenses at their fixed AWARD LUNCHEON SPONSORVIP RECEPTION SPONSOR BAG SPONSOR BOOTH SPONSOR establishments. John Forte President, Forte Belanger, Remarkable Events Troy 20110103-NEWS--0010-NAT-CCI-CD_-- 12/30/2010 9:59 AM Page 1

Page 10 CRAIN’S DETROIT BUSINESS January 3, 2011

Liquor License Experience First Step Fund to join supporters In Your Corner. of growing Israeli transplant Unitask

BY TOM HENDERSON Royal decided the meltdown un- CRAIN’S DETROIT BUSINESS der way in the auto industry could After I heard be an advantage and decided to lo- Detroit-based First Step Fund, a “ cate the company here instead of $5 million fund created by the (Unitask in California. New Economy Initiative to help “With the auto companies crash- fund emerging companies in CEO Dale ing, we looked at it and said, ‘We Southeast Michigan, is ex- can pick up a lot of talent here pected to announce this week Royal’s) without having to pay California that it has joined an invest- rates,’ ” he said. ment round in Unitask Soft- presentation, Unitask has developed eight ware Inc., a transplant compa- software products and currently is ny from Israel that set up it was just licensing two of them: headquarters in Bloomfield Ⅲ Output Director, which al- Hills in June. obvious I had lows users of Oracle’s E-Business The First Step portion of that to bring him into our Suite to more easily and cheaply $2.5 million round is $50,000. It is the 20th portfolio company for portfolio. set up printer networks for spread First Step, which has made $1 mil- ” sheets. lion in investments since its incep- Ⅲ Migration Director, which Mahendra Ramsinghani, simplifies changes in large data- tion in March. First Step Fund Troy-based Automation Alley pre- bases and allows changes in one viously announced it was invest- a Silicon Valley company that database to migrate to other ver- ing $250,000 in the round, which in- eventually grew to $2 billion in sions. cludes investments from two sales before being bought by Royal said the current funding venture capital companies that Symantec Corp. in 2005. Royal grew round will allow the company to had earlier been part of a $1 mil- his end of the business from zero bring its next product — Security Chris Baker lion investment round in 2006 — to $250 million during his tenure. Director, which will help prevent a Pittsburgh-based Draper Triangle Royal was later executive vice company’s employees from steal- Ventures LP and Cleveland-based president of sales and operations ing data — to market in the second Early Stage Partners LP. for Minneapolis-based Sistina Soft- quarter next year. Executives at Draper and ESP ware before founding Couem Soft- “We’re not a competitor to Ora- recruited Dale Royal, a Clarkston ware in Clarkston in 2006. Couem cle. We’re a bolt-on to what they resident and veteran of numerous was sold in a private placement to do. We’ll fill in the blanks they software startups, to be CEO and a large software firm in 2008 that haven’t addressed,” said Royal. president of Unitask, which makes he is prohibited from naming be- Royal said the business plan is cause of a nondisclosure agree- to do another VC round in a year, Contact Chris Baker at [email protected] software for customers of comput- er giant Oracle Corp. ment. of between $2.5 million and I Novi I Grand Rapids I Kalamazoo I Grand Haven I Lansing From 1993 to 2001, Royal was “After I heard Dale’s presenta- $5 million. That should allow the vice president in charge of central tion, it was just obvious I had to company to grow to the point U.S. sales for Veritas Software Corp., bring him into our portfolio,” said where it can provide an exit for Mahendra Ramsinghani, manag- investors. ing director of the First Step “Then we’d be a sufficient size to Fund. be an M&A target and the darling “It’s a company coming here of somebody,” he said. from another country. It’s got an The company already has dou- accomplished CEO, and it has very bled from six to 12 and has migrat- good technology. Put those things ed three jobs from Israel. Royal together, and investment capital said he will hire one or two em- will follow.” ployees a month for the next year, “Dale is an extremely bright guy with the first priority on market- who will find ways to enter mar- ing and sales and the second on kets,” said Paul Sallaberry, a mem- product development. ber of the board of directors at one The company has software in- of Unitask’s competitors, Califor- stalled at about 100 clients, includ- nia-based Quest Software Inc. (Nas- ing Ada-based Amway Corp., Balti- daq: QSFT), a relative giant com- more-based Johns Hopkins pared to Royal’s fledgling University and the U.S. Navy. It has company, with 2009 revenue of $695 million. plans for aggressive growth rev- “He’s great with customers and enue. figuring out how to solve their The company’s overview for in- problems,” said Sallaberry, who vestors calls for revenue to grow hired Royal at Veritas. “Being cre- from $1 million last year to ative when you have no name and $1.9 million this year, $2.9 million no brand is tough, but Dale is good in 2011 and $4.1 million in 2012. at it.” “The level of service with Uni- Unitask was founded in Haifa, task is beyond anything we’ve Israel, in 2004, a spinoff from an ex- ever experienced,” said Paul isting software consulting busi- Berman, Amway’s principal sys- ness. Its founders wanted to ex- tems administrator. The company pand from solely providing became a customer of Output Di- services to making and selling rector a year ago and has been software. rolling it out around the world The company had $97,000 in rev- since. It is installed in New enue the first year and grew that to Zealand, Australia and South more than $624,000 in 2006, the Africa now and will go live in Eu- year Draper and ESP agreed to fi- rope and Asia next year. nance further product develop- “So far, everyone is impressed ment and ramp up sales. with the product. My only regret is In May 2008, Royal was hired by we didn’t start using it earlier,” he the VC firms as Unitask’s presi- said. “I told Dale they need to mar- dent and CEO, and the next year it ket this more. I could see it being was decided to move the company important all the way through the from Israel to the U.S. to be closer Oracle customer base.” to U.S. customers and in a market Tom Henderson: (313) 446-0337, far larger than Israel’s. [email protected] 20110103-NEWS--0011-NAT-CCI-CD_-- 12/30/2010 10:00 AM Page 1

January 3, 2011 CRAIN’S DETROIT BUSINESS Page 11

Foundations get a voice on 800-292-3831 indiantrails.com MEDC executive committee

ONE HU BY SHERRI WELCH for three years before he launched $50 million in revenue, as group G ND IN R T E A D CRAIN’S DETROIT BUSINESS his bid for governor. executive for quality of life and di- R Y B E

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L “I think he’s familiar with the rector of the state’s Department of R

E S The new executive committee growing role that foundations Environmental Quality. C 100 for the Michigan Economic Develop- have been playing in Michigan in Wyant recently rotated off of the ment Corp. includes its first-ever supporting economic develop- Council of Michigan Foundation’s representative from the state’s ment,” Collier said. board, Collier said. foundation community. Michigan’s foundations have a The foundations also have a Among Gov. Rick Snyder’s ap- 25-year history of collaborating long history of working with Public pointees is Council of Michigan Foun- with state government “in a quiet Sector Consultants Inc. and its presi- dations President Rob Collier. way,” said Collier, who also serves dent, Bill Rustem, who is Snyder’s Collier’s ap- on the Michigan Community Service director of strategy. pointment is Commission. Snyder has signaled his inten- recognition of “We’ve had foundation repre- tion to continue the Office of the the growing role sentatives on a number of other Foundation Liaison, which was es- foundations state boards, so that’s not unusu- tablished during former Gov. Jen- play in econom- al,” but this is the first time foun- nifer Granholm’s first term, Col- ic development dations have been represented on lier said. in Michigan, the MEDC executive committee, “That’s good news — there have said Geralyn he said. been a number of initiatives that Comfort and Lasher, commu- There also are several other con- office has been engaged with that nications direc- Collier nections between the state’s foun- will (now) continue.” tor for Snyder. dation community and the new ad- Those initiatives include pro- t
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4FSWJDF promotional code at time of booking: CDB52dec The Council of Michigan Founda- Snyder also tapped Dan Wyant, and to operate. tions has worked with Snyder and president and COO of the Cassopo- Foundations helped get the site his colleagues in the venture capital lis-based Edward Lowe Foundation, launched in 2009, and business and arena for years, Collier said. which fosters entrepreneurship state government now must con- And Snyder was a member of and has focused on growing sec- tinue, Collier said. the governing council for the ond-stage businesses with 10-100 Sherri Welch: (313) 446-1694, $100 million New Economy Initiative employees and $1 million to [email protected] State tax credits to 4 suppliers to bring 419 jobs BY DUSTIN WALSH Blanc Township with property tax CRAIN’S DETROIT BUSINESS abatements for the project. It doesn’t just The supplier of screws and other The Michigan Economic Growth “ manufactured fasteners currently Authority approved tax credits for come down to the has 509 employees in Michigan. four automotive suppliers at its In addition, Redford Township- meeting last month. dollars. Access to the based Piston Automotive LLC will re- The four projects would create ceive tax credits for the planned an expected 419 jobs over the next industry is what $15 million expansion of its Red- five years and increase state rev- ford Township chassis parts facili- enue by $13.3 million. pushed Michigan ty, which supplies Ford Motor Co., Bennington, Vt.-based Plasan GM, Honda Motor Co. Ltd. and AM Carbon Composites Inc. will open a over the top. General LLC. The project is expected new technical development center ” to create 135 jobs over the next five in Southeast Michigan early this James Staargaard, years and increase state revenue year thanks to MEGA tax credits. Plasan Carbon Composites Inc. by $6.4 million. Plasan, a supplier of carbon- MEGA approved $889,293 in fiber parts, will receive $697,000 in at a Southfield office, which will be standard employment tax credits high-tech tax credits over the next consolidated into the new facility. for the new positions. seven years to locate in Southeast Plasan supplies the carbon fiber Both Redford Township and De- Michigan and create 36 jobs over body for the Corvette Z06 and Z01 troit are considering tax abate- that time. The project is also ex- to General Motors Co. It also pro- ments for the project. pected to increase state revenue by duced the carbon fiber body of the Pittsburgh-based Otto Bock $1.3 million. Dodge Viper, which ended produc- Polyurethane Technologies Inc., a Tennessee and Ohio were also tion last July. subsidiary of Germany-based Otto courting Plasan, but close access Troy-based Ring Screw LLC, a Bock Schaumstoffwerke GmbH, is to OEMs sealed the deal for the subsidiary of Troy-based Acument investing $13.3 million into a new company, said James Staargaard, Global Technologies Inc., will expand facility in Rochester Hills to pro- Plasan’s CEO. its operations with a $5.1 million duce molded polyurethane parts “The other states were working investment. designed to reduce engine noise. very hard to be competitive,” The project is expected to create Otto, which also manufactures Staargaard said. “But it doesn’t 150 jobs over the next five years and artificial limbs, plans to create 98 just come down to the dollars. Ac- increase state revenue by jobs over five years and increase cess to the industry is what pushed $2.6 million. MEGA approved state revenue by $3 million. The Michigan over the top.” $874,651 in employment tax credits supplier is approved for $671,656 in The supplier is looking to secure for these jobs over the next five high-tech employment tax credits a 25,000-square-foot facility in years. for the jobs. Wixom, Staargaard said. Ring Screw is being courted by Dustin Walsh: (313) 446-6042, It currently has five employees Fenton, Sterling Heights and Grand [email protected] 20110103-NEWS--0012-NAT-CCI-CD_-- 12/30/2010 10:01 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS January 3, 2011

BUSINESS DIARY WHO ARE THE TOP CFOS? Crain’s is seeking nominations for ACQUISITIONS Championships. merce Technologies Inc., Novi, to re- stalled a new Timsons T48A ZMR one- its fourth annual CFO awards to sell and provide implementation ser- and two-color press, increasing capac- give recognition to these unsung Storage Pros Management LLC, Farm- Servant Systems, Ann Arbor, a fran- vices in the Americas for HiQube, the ity and helping meet the needs of heroes of an organization’s senior ington Hills, acquired a rentable chise software development special- company’s data analytics software. clients seeking short- and medium- management team. Winners and 67,625-square-foot Class A self-storage ist, was contracted by Aire Serv Heat- run offset book manufacturing. Web- finalists will be recognized at a facility at 6123 Highland Road, Water- ing and Air Conditioning, Waco, Texas, General Dynamics Land Systems, Ster- site: www.edwardsbrothers.com. June event. ford Township, from Simply Self Stor- a subsidiary of The Dwyer Group, ling Heights, was awarded an addi- age, Orlando, Fla. Waco, Texas, to develop an analytical tional $19 million to convert 15 of the Nominations must be received at Web-based application for the fran- Kingdom of Saudi Arabia’s M1A1 MOVES ProQuest, Ann Arbor, an information www.crainsdetroit.com/nominate chise network. tanks into the M1A2S model. The con- firm supporting the global research Sidock Group Inc., an architectural by Jan. 21. tract was awarded by the U.S. Army Tanner Friedman Strategic Communi- firm, from 43155 Main St., Suite 2310, Nominees must be CFOs or hold community, acquired the Congres- TACOM Lifecycle Management Com- sional Information Service and Uni- cations, Farmington Hills, has been to 45650 Grand River Ave., Novi. Tele- mand, Warren, on behalf of the Royal an equivalent job. Judges will versity Publications of America prod- contracted by DPro Marketing, phone: (248) 349-4500. Website: Saudi Land Forces. select winners based on uct lines from LexisNexis, Dayton, Rochester Hills, to promote its digital www.sidockgroup.com. excellence in financial or other Ohio. productions and Web ventures. Interior Partnership Group Inc., Claw- corporate operational son, a design, construction and build- Great Expressions Dental Centers, United Solar, a subsidiary of Energy NAME CHANGES ing-services firm has been awarded management. Nominees will be Bloomfield Hills, acquired the Family Conversion Devices Inc., Rochester contracts by: Arvin Meritor, Troy, for HR Advantage, Rochester, a business considered for public companies, dental practice of Dr. Hills, in conjunction with Enel Green Smiles Dentistry renovation and updating of 11,000 advisory firm, changed its name to private companies and nonprofits. Ingrid Lee-Loy, Zephyrhills, Fla. Power SpA, Roma, Italy, completed a roof project at the Moon Palace Hotel, square feet in the administrative of- The Metiss Group Website: Questions? Contact Jennette Cancun, Mexico, for a United Nations fice building; Mendelson Kornblum Or- www.themetissgroup.com. Smith, deputy managing editor, at CONTRACTS climate change conference, supported thopedic and Spine Surgeons, War- (313) 446-1622 or Azure Dynamics Corp., Oak Park, an- by the Italian Ministry of the Environ- ren, for a new 4,300-square-foot Spine NEW PRODUCTS [email protected]. nounced the sale of 10 Balance Hybrid Center at the St. John’s Macomb Hos- ment and the Mexican Environmental Plumbing Professors, Canton Town- Electric shuttle buses to NJ Transit, Ministry. pital Medical Building; and Easter Seals of Michigan, Southfield, for the ship, a plumbing and sewer repair Newark, N.J., on behalf of Burlington BorgWarner Inc., Auburn Hills, has renovation and updating of 3,100 company, has introduced Drain Main- County Transportation, Mt. Holly, N.J.; been contracted to supply Honda Per- square feet in the Adult Services and tenance Treatment, a powdered en- Cumberland Area Transportation Sys- formance Development Inc., Santa 20S NOMINATIONS SOUGHT Geriatric Care facility. zyme-based drain cleaning product tem, Bridgeton, N.J.; Mercer County Clarita, Calif., with its new EFR tur- Transportation Resources to Aid the that is safe around people and pets, Do you know a 20-something who bochargers for the 2011 ALMS LMP2 safe on fixtures and pipes and works is someone to watch? Crain’s 20 Disadvantaged and Elderly, Trenton, engine, the HPD CR-Z racer and the EXPANSIONS N.J.; Middlesex County Area Transit, on septic systems. Website: in their 20s awards program seeks CR-Z Hybrid R concept car. Valley Towing Products, Rochester New Brunswick, N.J.; South Jersey www.plumbingprofessors.com. young professionals who are Hills, added a new warehouse in Dal- Transportation Authority, Hammon- Qualitech, Bingham Farms, was se- making their marks in the region. las, Texas, and a new manufacturing Stone Soap Co. Inc., Sylvan Lake, a de- ton, N.J.; and Somerset County Trans- lected by Walnut Services, Bingham facility in San Luis Potosi, Mexico. tergent and cleaning chemicals manu- Winners will be profiled in Crain’s portation, Somerville, N.J. The con- Farms, a property management com- pany, to install a Windows 2003 Small Website: www.vtowing.com. facturer, has developed a bird aversion 20 in their 20 issue on May 2 and tract was managed by American Bus & chemical, Avian Control Bird Repel- honored at honored a spring Business File Server with a Zenith LaVida Massage, Commerce Town- Coach, Trenton, N.J. Goshen Coach, lent. Website: www.stonesoap.com. awards event. Elkhart, Ind., built the bodies for the hard disk backup and disaster recov- ship, a massage and wellness center, buses. ery software. opened a new location at 30911 Or- Automotive Industry Action Group, Nominations must be received by chard Lake Road, Farmington Hills. Jan. 14. Visit Cadillac, Detroit, and the PGA Tour, Lipari Foods Inc., Warren, a food dis- Southfield, announced the publication Website: www.lavidamassage.com. Ponte Vedra Beach, Fla., on behalf of tribution company, hired Simons of Recommended Business Practices for www.crainsdetroit.com/nominate the International Federation of PGA Michelson Zieve Inc., Troy, to create Maddin Hauser Wartell Roth & Heller Long-Distance Supply Chains, a com- for more information. Tours, entered into a multiyear agree- the advertising and marketing cam- PC, Southfield, formed a new practice prehensive set of guidelines to identi- Questions? Contact Jennette ment whereby Cadillac becomes title paign for Lipari’s new Wholey Boil in group, the Real Property and Mort- fy waste, errors and miscommunica- Smith, deputy managing editor, at sponsor of the World Golf Champi- the Bag seafood line. gage Dispute Resolution Group. Web- tion across intercontinental, [email protected] or (313) 446- onships-Cadillac Championship and Altair Engineering Inc., Troy, entered site: www.maddinhauser.com. oceangoing supply chains. Website: 1622. an umbrella sponsor of the World Golf into an agreement with Digital Com- Edwards Brothers, Ann Arbor, in- www.aiag.org.

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January 3, 2011 CRAIN’S DETROIT BUSINESS Page 13

PEOPLE FINANCE mark Corp., Detroit. Kim Easterle IN THE SPOTLIGHT Mattes to vice NONPROFITS Oxford-based Relume president of in- Technologies, a manufacturer of Bill Sullivan to vice president of strategy surance, Meadow- Detroit + = LED products and smart grid and development, The Heat and brook Insurance Warmth Fund, Detroit, from director of Group Inc., South- control systems for outdoor special initiatives, United Way for field, from insur- lighting applications, has named ance sales repre- Crawford Lipsey CEO. Southeastern Michigan, Detroit. sentative, Lipsey, 54, had Mary Hollens to Huntington Insur- been president chief develop- ance, Huntington of Accuity ment officer, Arts growing with a strong (& fun!) Bank, Troy. Brands League of Michi- Mattes Neil Gnebba to tax Technology gan, Detroit, from MI based company! manager, BDO USA, Troy, from senior Services in senior director of tax associate, Grant Thornton LLP, Columbus, development, Southfield; also, Stephanie Rosen- Ohio. Wayne State Uni- record sales growth! baum to director of business develop- versity Law ment, from recruiting manager, He succeeds School, Detroit. Robert Half International Inc., Troy; Michael and Brendan Sullivan to tax manager, McClear, who from senior associate. Lipsey remains with Hollens SERVICES waking up every morning! Barbara Allushus- the company Bill Davis to vice president, Save On ki, president of as COO and CFO. Cars & Trucks, Troy, from vice presi- Right Manage- Lipsey is a graduate of the Harvard dent of sales, Save On Everything, ment Inc.’s Great Business School Advanced Troy. BIGGBY COFFEE Franchise Info Lakes Region, and Management Program. Stefan Wanczyk, Relume Technologies’ products www.biggby.com president and include streetlights, street name PEOPLE GUIDELINES CEO of Utica En- lighting systems, decorative Announcements are limited to terprises Inc., ap- lighting and products for pointed to board management positions. Nonprofit of directors, Level commercial, government and and industry group board One Bank, Farm- military applications. appointments can be found at Allushuski ington Hills. www.crainsdetroit.com. Send Hospital, Troy, re- to senior manager, submissions to Departments, Marianne Lilly Shin- maining chief of , Novi, from audit manager. delRock colon and rectal Crain’s Detroit Business, 1155 Bridgit Chayt to executive vice presi- surgery and chief Gratiot Ave., Detroit, MI 48207- dent of treasury management ser- of endoscopy. 2997, or send e-mail to vices, Comerica Bank Inc., Livonia, [email protected]. from senior vice president of global HOSPITALITY Releases must contain the person’s corporate product management. name, new title, company, city in Michael Seneski to CFO, Ford Motor Antoine Abunassar to general manag- which the person will work, former Credit, Dearborn, from controller, title, former company (if not global and U.S. marketing and sales. er, Italian Ameri- can Banquet & promoted from within) and former city in which the person worked. Lynch Conference HEALTH CARE Center/The Italian Photos are welcome, but we cannot James Lynch to senior vice president American Club of Livonia, Livonia, from guarantee they will be used. and physician-in-chief, Beaumont director of catering, Cobo Hall, Ara-

CALENDAR ATTENTION, DEALMAKERS Involved in a merger or acquisition in 2010? You may be eligible for COMING EVENTS the third annual Crain’s M&A JOIN INFORUM FOR AUTO SHOW Awards. Crain’s Detroit Business North American International Auto and the Detroit chapter of the Show Charity Preview. 6-9 p.m. Jan. 14. BREAKFAST JAN. 13 Association for Corporate Growth Benefiting nine local charities. Cobo will honor companies and Center, Detroit. $250. Contact: (248) 643- The annual Inforum Auto Show individuals in the following 0250; website: www.naias.com. Breakfast, sponsored by Deloitte categories: and DTE Energy Co., takes place Ⅲ Best Deal of the Year: Under 7:30-9:30 a.m. Jan. 13 at the CEED Microloan Orientation. 9-11 a.m. $100 million and $100 million or Detroit Marriott Renaissance Jan. 12. Center for Empowerment and more. Deals must have closed in Center. Economic Development. Learn how to 2010. get a microloan. Southfield Library. The topic to be discussed is: Ⅲ Dealmaker of the Year/buyer- Free, preregistration required. Con- She’s Just Not That Into You: seller. tact: (248) 858-0783; website: Transforming the Auto Industry to oakgov.com. the Destination of Choice for High- Ⅲ Dealmaker of the Year/adviser: Talent Women. M&A experts, lenders, CPAs, consultants and attorneys, among 2011 AutoGlow. 4:30 p.m.-midnight. Panelists are to include Cathy others, are eligible. Jan. 14. Includes valet parking, pre- Benko, vice chairman and chief event reception, food, entertainment Ⅲ Lifetime Achievement: Senior- Mission A+ talent officer, Deloitte; Mary Sue and private shuttle for Charity Preview Coleman, level executive who has been ticket holders to and from Cobo Center. president, involved in significant transactions Would you give your Westin Book Cadillac, Detroit. $250. University of and has made a significant impact law firm an A+? Contact: (313) 262-1220; e-mail: Michigan; Barb on the community. [email protected]; web- Samardzich, Applications can be found at It could happen. site: www.thechildrenscenter.com. vice president, www.crainsdetroit.com/nominate. powertrain The deadline for entering is Jan. The attorneys at McDonald Hopkins Detroit Economic Club. 11:30 a.m.-1:30 engineering, 14. are on a mission to earn the highest p.m. Jan. 14. With: Dan Hesse, CEO, Ford Motor Winners will be profiled in the Feb. grades from every client. Sprint Nextel. Detroit Marriott Renais- Co.; and 28 issue and honored at an event sance Center. $45 DEC members, $55 others. in the spring. ® guests, $75 nonmembers. Contact: (313) Tickets are Attorneys on a Mission 963-8547; e-mail: aczarnik@ For questions concerning Coleman Your mission is our mission. econclub.org; website: econclub.org. $45 for nomination, contact Executive Inforum members, $55 for Editor Cindy Goodaker at We never lose sight of it. nonmembers and $500 for a table [email protected] or (313) State of the Auto Industry. Noon-1:30 of 10. 446-0460. For help with the p.m. Jan. 18. Chartered Financial An- For more information, call (877) nomination form, contact alyst Society of Detroit. With: David 633-3500 or visit Marketing Coordinator Kim Winkler Cole, chairman, Center for Automo- www.inforummichigan.org. at [email protected] or (313) ® tive Research. Detroit Athletic Club. A business advisory and advocacy law firm $20 members, $30 nonmembers. Con- 446-1652. ties, city of Detroit. Detroit Institute of The Detroit chapter of ACG is part of 39533 Woodward Avenue, Suite 318, Bloomfield Hills, MI 48304 • 248.646.5070 tact: (586) 746-1262; e-mail: info@cfade Arts. $29 Inforum members, $39 troit.org; website:www.cfadetroit.org. a global association of professionals Carl J. Grassi Stephen M. Gross nonmembers, includes light hors d’oeu- involved in corporate growth, President Detroit Managing Member vres and cash bar. Corporate Investor development and mergers and Chicago • Cleveland • Columbus • Detroit • West Palm Beach IN4M After Hours. 5:30-7:30 p.m. Jan. free tickets available. Contact: (877) acquisitions. For more information, 19. Inforum. With: Karla Henderson, 633-3500; website: www.inforummichi see chapters.acg.org/detroit. www.mcdonaldhopkins.com group executive of planning and facili- gan.org. 20110103-NEWS--0014-NAT-CCI-CD_-- 12/30/2010 10:15 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS January 3, 2011

CRAIN’S SEEKS BEST IN-HOUSE Companies find ‘buy local’ campaigns work COUNSEL NOMINATIONS BY MARTI BENEDETTI Lisa Diggs and Grand Rapids were early to their way to support local business Michigan companies have been at SPECIAL TO CRAIN’S DETROIT BUSINESS was delighted jump on the bandwagon in Michi- in their communities, said Susan ground zero for some of the most when she heard gan. Think Local First of Washtenaw Yashinsky at Sphere Trending. tumultuous business events in Listeners of local radio over the the owners of County got its start in 2003, and a Independent retailers are suc- this young century. How well have in-house attorneys and general past few months may have heard a The Wine Palace similar campaign soon developed ceeding by emphasizing their com- Guardian Alarm Co. advertisement counsels attorneys handled the in Livonia talk- in Grand Rapids. munity roots and local ownership, challenge? encouraging consumers to keep ing one day Another example of the move- according to a survey published by New for 2011 is Crain’s their money in Michigan. about expand- ment is The Detroit Shoppe, recently the National Retail Federation. The “Guardian Alarm has been cre- General/In-House Counsel ing their selec- opened at the Somerset Collection in survey showed that more than Awards. The awards are presented ating jobs in Michigan and inform- tion of Michi- Troy and featuring only Michigan- 1,800 independent businesses’ holi- by Crain’s, the Association of ing you not to send your money to Diggs gan-made beer made products, from Faygo soda to day sales rose an average of Corporate Counsels Detroit Switzerland-based ADT and Brinks and wine, all because of a cam- music by local performers. 2.2 percent last year — twice the chapter, the State Bar of Michigan … but to keep it here in Michigan,” paign called Buy Michigan Now. A marketing emphasis on buy- rate for the industry as a whole. business law section and the the voiceover says. Diggs founded the campaign in ing local can yield immediate sales Additionally, sales jumped 3 per- Oakland County Bar Association. The company is one of several 2007. for entrepreneurs looking to grow cent on average for independent re- Candidates will be judged on riding the trend of “buy local” “I hear stories like this all the their business, said Michelle tailers in cities with active “buy lo- measures such as litigation campaigns both in Michigan and time,” said Diggs, a consultant to Lange, director of The Walsh Insti- cal” campaigns. Nearly 80 percent avoided, reduction in claims, cost containment and pro nationally. This year’s revenues small and midsize businesses. tute in Troy, during Crain’s recent of those polled said that since 2008 bono/community service. are projected “to be significantly Kelly Denha, who co-owns The Salute to Entrepreneurs event. public awareness of the value of Nominations are due Jan. 28. Visit higher” than last year’s $60 mil- Wine Palace with his brother Lange believes in the revenue buying local has increased. lion, Denver Rochon, media mar- www.crainsdetroit.com/nominate Cliffton Denha, learned of Buy benefits of buying local. She said Ingrid Ault, executive director of to fill out the online form. keting manager at Guardian Michigan Now from his customers. that judging by data she’s seen Think Local First of Washtenaw Alarm, said in an e-mail. The com- Winners will be announced in the “In the last two years, I’ve no- from Sphere Trending, a trend fore- County in Ann Arbor, said out of April 11 issue. An awards event pany also has increased its instal- ticed — and so have my vendors — caster in Waterford Township, every $100 spent at a local business, and education symposium will be lation workers by 30 percent. that more and more of my cus- businesses can benefit by empha- $73 stays in the community, where- held the week of May 2. “Our strength is telling our (80- tomers prefer to buy Michigan sizing their community roots and as only $43 remains in the commu- For questions about the year) story about Michigan,” said wine and beer,” he said. local ownership. nity when spent at a chain store. nomination process, contact David Goldstein, president of the Denha said he is nearly doubling This can be done in a variety of Her organization has 225 mem- Publisher Mary Kramer at Southfield-based company. the size of the store to create more ways, such as hosting an open bers and aspirations of expanding [email protected] or (313) Guardian spends $20,000 to room for Michigan products. He has house featuring Michigan-made statewide during the next year. 446-0399. $35,000 a month to rotate ads on been surprised to see his customers products, offering tasting tables Think Local First promotes what For technical questions regarding WXYZ-Channel 7, WJR AM 760 and don’t mind spending a dollar or two while partnering with local restau- it calls pairing. For example, Arbor a nomination form, contact Kim WWJ 950. more on local products. rants and reminding customers Cycle Delivery, a one-person bicycle Winkler, marketing coordinator, at Examples of successful “buy lo- Such campaigns have been on that the products are made locally. delivery service, delivers food [email protected] or (313) 446- 1652. cal” campaigns are becoming the rise throughout the country “ ‘Buy American’ ” has changed from a local restaurant to down- more common. since the early 2000s. Ann Arbor to ‘buy local’ as consumers go out of town office workers. MARKET PLACE CAREER MOVES

BUSINESS & BUSINESSES FOR SALE MANAGEMENT MANAGEMENT INVESTMENTS — Business for Sale — Senior Vice President, Economic Development Detroit Regional Chamber FRANCHISE OPPORTUNITIES Established gourmet market grossing Vice President for $3.7 million with high profit margin; College Advancement and Community The Detroit Regional Chamber is one of the largest chambers of commerce in the country. The Are you satisfied with your Relations, Job 000831 Chamber’s mission, "To Power the Economy of Southeast Michigan," is carried out through investments and plans for family operated for over 20 years; family retirement? collects over $400,000 income / benefits; Five years of senior-level executive exp. with business attraction efforts, advocacy, strategic partnerships and other activities to benefit the a successful record of significant fund membership. Tired of risking your assets in the beautiful 18,000 sq. ft. building with many development, constituent relationship Stock or Real Estate Markets? Would you be new fixtures; walk-in humidor and management, marketing, institutional The Senior Vice President, Economic Development is a strategic executive position that will drive a open to increasing your cash-flow? This can be cocktail/wine bar; SDD, SDM, Class C branding. Bachelor’s degree req’d; Master’s revitalized and holistic economic development program including international and domestic achieved by sharing in the lucrative income stream degree pref’d or equiv exp. in the field of medicine, particularly dentistry, which licenses; full-service kitchen/catering; deli, Some eves/weekends. business attraction and strategic economic development priorities. The SVP, ED will lead a team has a 98% record of success. The capital costs bakery, produce, meat, etc.; highest of professionals and will work in close collaboration with regional public sector and private sector For notice and online application, visit are small, the time commitment is low and the volume independent Godiva retailer in leadership. The SVP, ED will be responsible for managing and representing the economic rewards are significant. The Dental Plus Support www.Macomb.edu/jobs; search by Franchise is a unique, results-proven proprietary state; great reputation; asking $2.9 million number 000831 development investor relations, facilitating fundraising and managing resources. system that provides a Complete Patient Support plus inventory. Apply by 1-31-11 Center for Dental Offices. For a complete position description please visit the careers section on our website at Call (248) 888-1466 EEO EMPLOYER www.detroitchamber.com. To learn more, visit: Michigan Relay Center 1.800.649.3777 www.Aaronb.PESplus.info (Voice and TDD) Attractive compensation and benefits package. Please send resume with cover letter including Crain’s Classifieds Gets Results salary expectations to [email protected] or fax to (866) 741-5160. NON-PROFIT TECHNICAL Call Us For Personalized REAL ESTATE MICHIGAN HOME HEALTH ASSOCIATION Lead Field Applications Engineer Service: (313) 446-6068 SEEKS EXECUTIVE DIRECTOR Intersil Communications Inc., leader in The Michigan Home Health Association the design and manufacture of high FAX: (313) 446-1757 AUCTIONS INDUSTRIAL PROPERTY (MHHA) seeks Executive Director with demonstrated leadership and performance analog semiconductors, administrative capabilities. Qualified has an opening in Detroit, MI area for a E-MAIL: [email protected] AVAILABLE NOW candidates must have: Baccalaureate Lead Field Applications Engineer. PUBLIC AUCTION degree; superior verbal and written INTERNET: St. Regis Hotel, Detroit communication skills; experience in Assist with new customer designs, 4,000 to 100,000 sq. ft. advocacy with legislative and regulatory perform technical reviews, provide www.crainsdetroit.com/section/classifieds AUCTION DATE: JANUARY 13, 2011 bodies and familiarity with operations analysis and troubleshooting efforts and Also 10,000 & 25,000 sq. ft. required to run 380 member state trade Time: 10:00 a.m., Eastern Standard Time association. Preferred candidate will conduct new product evaluations. See possess working knowledge of health Position requires up to 20% travel. Location: 400 Galleria Officecentre, Suite 400, Free Standing Bldgs w/truckwells. policy and the health services industry; Crainsdetroit.com/Section/Classifieds Southfield, Michigan 48034 1 Mile from Metro Airport along with association management Mail resume to: Property to be auctioned: experience, including conference/event Intersil, 1001 Murphy Ranch Road, for more classified advertisements Hotel and all its Personal Property planning. Knowledge of home care a plus. Milpitas, CA 95035 (Attn: C. Aguirre) REA CONSTRUCTION Resume including cover letter and Auction Bid Requirement: salary requirements must be received The court orders that a deposit, in immediately (734) 946-8730 no later than close of business on available funds, shall be delivered to the Second Friday, January 28, 2011. MHHA offers Successor Receiver, in the amount of $50,000.00 an attractive compensation package. For (the "Bidder’s Deposit"), at least one (1) business Also Heavy Industrial confidential consideration, email your reply day before the auction date. If remitted in the form to MHHA Search Committee at of a wire transfer, any Bidder’s Deposit which shall Land Available [email protected]. Queries be remitted in the form of a cashier’s check may be will be accepted via email, as well. tendered at any time prior to the commencement No phone calls, please. of the auction. All Bidder’s Deposits shall be fully www.reaconstruction.net refundable, other than that which is received from a Successful Bidder. Auction to be conducted by: Call or email today for information Second Successor Receiver Barry Lefkowitz on a custom advertising plan! Managing Director, BBK Ltd. Advertise your For additional information, contact the Second Products and Services in [email protected] Successor Receiver, Barry Lefkowitz, at 248-603-8325 or [email protected] Crain’s Detroit Business 313.446.6068 20110103-NEWS--0015-NAT-CCI-CD_-- 12/30/2010 1:28 PM Page 1

January 3, 2011 CRAIN’S DETROIT BUSINESS Page 15 Macomb biz commitments for 2010: Invest $100M, add 1,275 jobs

BY CHAD HALCOM Only seven of this year’s deals, the planning and economic devel- Other successful attraction or ex- MRC Manufacturing Inc., a Ro- CRAIN’S DETROIT BUSINESS worth a combined $46 million and opment department. pansion deals in late 2010 include: seville-based automotive body adding about 300 new jobs, closed “The tail end of the year typical- Bosco’s Pizza Co., the maker- parts maker, to add 13 jobs and re- Businesses committed to invest during the second half of the year. ly slows a little bit anyway. It does- distributor of pizza and stuffed tain 55 jobs after obtaining a local nearly $100 million and add nearly Two of those — a $17 million in- n’t seem to be related at all to the breadsticks for schools and gro- tax abatement. 1,300 new jobs in Macomb County vestment for Yanfeng USA Automo- changes here at the county, be- cery stores, investing $5.1 million Acra Grinding Co., investing during 2010, county economic de- tive Trim Systems Inc. to buy a Harri- cause the companies involved are in an expansion adding up to 15 $576,000 and adding two jobs in velopment officials reported. son Township location and add 131 often collaborating with the state jobs and retaining 137 jobs at its Sterling Heights. The year-end economic report, jobs, and a $7.6 million deal for and the (local municipal) govern- Warren headquarters. Acument Global Technologies which the Macomb County Planning Romeo plastic parts manufacturer ments, as well as us.” Tower International Inc., the Inc., a maker of fasteners for the and Economic Development Depart- Romeo RIM Inc. to expand and add The year-end report includes post-bankruptcy incarnation of aerospace, defense and automotive ment will present to incoming more than 60 new jobs — were pre- nine investments by automotive or Livonia-based supplier Tower Au- industries, retaining 154 local jobs County Executive Mark Hackel viously reported state tax incen- advanced automotive manufactur- tomotive that went public in Sep- by relocating its corporate head- next week, lists a total of 25 busi- tive deals approved through the ing companies, two alternative-en- tember, investing $11.5 million to quarters into its Sterling Heights ness-attraction or expansion deals Michigan Economic Growth Authority. ergy companies, three defense and add 100 jobs and retain 296 jobs in manufacturing plant. to invest just over $99 million, add “We still have a number of busi- homeland security-related busi- Clinton Township, where it has a Chad Halcom: (313) 446-6796, 1,275 new jobs and retain 1,682 ness projects in development right nesses, two by other advanced stamping plant. [email protected] jobs. That’s compared with now that will probably come to- manufacturing companies, one $74.7 million in investments for 38 gether early next year. They just commercial aerospace business deals that added 680 new jobs in haven’t quite closed yet,” said Ex- and five companies that were not Macomb during 2009. ecutive Director Stephen Cassin of categorized by a specific industry. Health services: Push for coordination ■ From Page 3 “We need to focus our efforts cost growth by 1 percent to 3 per- and Voices of Detroit, and the around key issues to prepare for cent. alignment we have today is work- health reform and Medicaid ex- Formed in 2003, the Detroit ing quite well.” pansion,” Schlichting said. Wayne County Health Authority Voices of Detroit, headed up by Anthony said GDAHC’s board is works with hospitals, physicians, Executive Director Lucille Smith, involved and supportive of the ef- clinics and health plans to improve is a private-public partnership fort to reshape the organization. the safety net for the uninsured in that includes hospitals, clinics, “We are all interested in ways to Detroit and Wayne County. Wayne County government, city of address the underserved who need Over the past year, the authority Detroit and other non-profit health safety-net services and to develop has been lobbying the U.S. Depart- agencies. a stronger effort for the citizens in ment of Health and Human Services Over the past several years, the Southeast Michigan region,” for funding to expand the number Voices of Detroit has been creating said Anthony. of federally qualified health cen- medical homes for the uninsured, “We need to all use limited re- ters. Six organizations recently ap- tracking health indicators and sources more effectively,” she plied for funding for the health working with providers to expand said. “This is a very positive col- centers in Detroit. care to the uninsured. laborative effort and involves us Chris Allen, Jay Greene: (313) 446-0325, all taking a closer look at all the or- the health au- [email protected] ganizations.” thority’s execu- Anthony said discussions are tive director, under way to merge the Cover the also has been Uninsured Network, which works leading efforts to increase awareness of the needs to persuade of the uninsured, with GDAHC. Medicaid health The network is headed by Doug plans to send Our Flu Shot Clinic Halladay, who announced in 2010 more Medicaid that he will retire for medical rea- Allen patients to the sons. health centers comes to your office. “We have a lot of priorities with in Detroit. Most clinics in Detroit health care reform like access to provide free or subsidized care, primary care services, health care and Medicaid funding can help (Actually, we’ll come right to your cubicle.) workforce capacity” and rising subsidize the uninsured. medical costs, Anthony said. Starting in January, Allen said, GDAHC, a coalition of 70 organi- the health authority will coordi- zations representing health care, nate services even more so with business, government and labor, Voices of Detroit when the chair of has several roles including coordi- that organization’s executive com- nating regional health planning ef- mittee, Paul Szilagyi, also becomes forts and monitoring quality and the co-chair of the health authori- health costs. ty’s primary care network council. Since 2005, GDAHC’s major pro- Szilagyi is regional vice president gram has been its Save Lives Save of ambulatory and physician prac- There’s still time to protect your employees! Dollars program. The goal is to tices with Henry Ford Medical Group. achieve 100 percent adherence to “We want to have the right part- The Andover Wellness Mobile Flu Shot Clinic is the safe, fast and most selected evidence-based clinical ners together around the table,” * practice guidelines, which is de- Allen said. “We have had discus- convenient way to protect your employees from the flu . (Not to mention your signed to save lives and reduce sions the past year with GDAHC productivity.) Our Flu Shot Clinic can be set up in a common area within your office. Our nurses can also walk around to offices, desks, cubicles, or anywhere your employees are hard at work. We work with your schedule and budget, and are available 24/7, offering the least amount of disruption to your workday. Or even CRAIN’S CALLS FOR 40 UNDER 40 NOMINATIONS your night shift. Talk about keeping up productivity. Crain’s Detroit Business is seeking under age 40 as of Oct. 3, 2011. nominations for the 2011 class of For sponsorship opportunities, To schedule a Flu Shot Clinic today call 877.9311.FLU, or to learn more 40 Under 40, which recognizes please call (313) 446-6052. visit us at AndoverWellnessGroup.com. young achievers based on factors Nominations must be received by such as financial impact and civic April 8. Visit www.crainsdetroit.com *The 2010-2011 flu vaccine protects against seasonal flu, H1N1 and H3N2. and community leadership. /nominate to fill out the online Winners will be profiled in the Oct. form. 3 issue, and Crain’s will celebrate Questions? Contact Jennette their achievements at a late Smith, deputy managing editor, at October awards event. [email protected] or (313) 446- To be eligible, nominees must be 1622. 20110103-NEWS--0016-NAT-CCI-CD_-- 12/30/2010 3:20 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS January 3, 2011 Adeona: Alzheimer’s trial could win deal for drug maker ■ From Page 3 fined by the FDA as “generally re- pleasant to be with. The quality of getting into the brain? garded as safe,” a status that ap- ADEONA’S HISTORY her life is at a very high level, and “Whether or not it will be effec- peals to potential licensing part- Adeona Pharmaceuticals Inc. traces its history to 1988, when University of I’ll be very satisfied if I can keep tive in trials is the question, of ners and which means fewer Michigan Professor George Brewer began testing a compound to regulate things where they are.” course. They’ll have to capture regulatory hurdles. copper levels in humans. Milestone dates: Dr. Ashley Bush is a physician that effect in the clinical trial, but If results are satisfactory, Zin- and researcher at Harvard University the approach is at least safe. And 2001: Nicholas Stergis co- May: Adeona announced it had thionein will be marketed as a pre- founded Pipex Therapeutics Inc. to entered into an agreement with and chief science adviser for Prana it’s cheap. Good luck to them.” scription-based supplement, not a commercialize Brewer’s drug, Meda AB, a large pharmaceutical Biotechnology Ltd. (ASX: PBT, Nas- J. Rory Rohan is managing di- drug. Adeona is in discussions called Coprexa. company in Sweden, to finish daq: PRAN) an Australian-based rector of Enclave Capital LLC, an in- with several large pharmaceutical Nov. 6, 2006: The company developing and market a drug to company that is developing drugs vestment banking firm in New companies that are interested in a completed a reverse merger with a treat fibromyalgia. Adeona had to regulate copper York that led the licensing deal to market and sell defunct company, Sheffield licensed the drug, called Effirma, and zinc levels in sale of $1 million the supplement. Pharmaceuticals Inc., allowing it to from Harvard University. patients with of Adeona’s com- “We’re going to have a pill we go public as Pipex Pharmaceuticals Meda paid an upfront licensing fee of Alzheimer’s and We’re going to mon shares, an- think will be safe and efficacious Inc. Three weeks later, it completed about $2.5 million, promised to pay Huntington’s dis- “ nounced in July. for early stage Alzheimer’s pa- a private equity offering of a 7 percent royalty on sales and eases. have a pill we think Rohan said Ade- tients that will be priced at about $13.7 million. agreed to pay $5 million upon filing a In 2003, The ona was smart to new drug application with the FDA will be safe and $3 a day,” said Kuo. “It’s less than November 2007: Pipex filed a Wall Street Jour- do a small fund- after clinical trials and $10 million a cup of Starbucks coffee, and it new drug application with the U.S. nal published a raising for the Food and Drug Administration for upon getting federal approval to efficacious for prevents you from losing all your Coprexa to treat Wilson’s disease, begin marketing the drug. front-page profile capital it needed cognitive function.” a rare brain disorder caused by a June: The company finished the of Bush. The re- early stage to fund current Kuo said term sheets have been copper imbalance. The goal was to second quarter with net income of searcher had been trials rather than exchanged for possible licensing get approval for Coprexa to treat $979,782, the first quarterly profit criticized by peers Alzheimer’s dilute equity with agreements with several potential Alzheimer’s, a far more lucrative since it was founded in 2001. For in 1994 when he a larger fund- pharma partners, but no deals market. the first nine months of the year proposed that Alz- patients that will be raising, now that have been finalized. He said a deal January 2008: The FDA rejected that ended Sept. 30, Adeona had heimer’s might be the company has could come before or after the tri- the application for Coprexa in a revenue of more than $2.5 million, caused by imbal- priced at about started to generate als are done, with the terms shift- review that questioned the drug’s compared with $51,085 in the first ances of copper revenue and at- ing in Adeona’s favor if a deal chemistry, effectiveness, nine months of 2009, and had a and zinc, creating $3 a day. tract interest from net loss of $840,575, compared comes after good results are pub- manufacturing and controls, a reaction with a ” potential part- strength and purity. Pipex said it with a loss of $2.6 million in the James Kuo, M.D., lished. would fight to have the agency first nine months last year. protein called beta ners. “In terms of Kuo said a large pharmaceutical amyloid that caus- Adeona Pharmaceuticals Inc. capital, Adeona reverse itself. Later in the year, July: The company completed an partner would fund a larger trial though, the drug was removed from intentionally small public offering of es cells in the has been extreme- that the FDA might require before the pipeline section of the $1 million to fund ongoing clinical brain to oxidize — literally rust. ly prudent,” he said. giving market approval. A deal company’s website. trials of patients with Alzheimer’s Bush was turned down eight Rohan said the fundraising was likely would include an upfront May 2008: In SEC filings, Pipex and multiple sclerosis. In November, times for grants by the National Insti- made easier by a potentially lucra- payment and further payments to said its future was in doubt, and Adeona was awarded a federal grant tutes of Health, and he submitted 30 tive licensing agreement for an- Adeona upon getting FDA ap- President Charles Bisgaier and CEO of $489,000 under the Patient papers to scientific journals that other of Adeona’s compounds that proval. Steve Kanzer resigned. Pipex’s Protection and Affordable Care Act to were rejected. was announced in May by Meda Zinthionein has one strong share price began 2008 at $5.12 further support those trials. Eventually, his papers began to AB, a large Swedish pharmaceuti- booster. One of Adeona’s investors and was at 80 cents when Bisgaier December: Enrollment was be published, he received a five- cal company, and by the naming of and Kanzer stepped down. (As nearing completion in a 150- heard about the study and in- Adeona, it hit a nine-month high of year grant from the NIH and in Kuo as CEO last February. quired about enrolling his mother, patient, Phase II clinical trial at 16 2003 won the Potemkin Prize for “Kuo is extremely accom- $1.40 last week.) sites in the U.S. of Trimesta, a an 84-year-old former math teach- Alzheimer’s research from the plished,” said Rohan. “I’ve known October 2008: Pipex changed its hormone licensed from UCLA that, er who had started showing signs name to Adeona, the Roman when taken orally, shows promise American Academy of Neurology. him since his previous company. of mental deterioration. goddess of safe returns, and in reducing relapses among female This past November, Prana re- He’s got a great temperament, and But rather than risk her taking continued its listing on the Amex patients with relapsing-remitting ceived a commitment of $15 mil- he’s very bright.” a placebo, which could happen in a exchange under a new symbol, AEN. multiple sclerosis. The trial has lion from the Australian govern- Kuo had been a board member double-blind study, it was decided February 2010: James Kuo, M.D., received more than $6 million in ment to fund the clinical study of a since February 2007. Previously, he to give her the compound in what a physician, veteran biotech grant funding, including $5 million drug called PBT2 that would treat was chairman and CEO of Cordex is called an open-label use, where executive and former venture from the National Multiple Sclerosis Alzheimer’s by correcting metallic Pharma Inc. of Philadelphia, a mak- both she and her physician were capitalist, replaced Max Lyon as Society and the society’s Southern imbalances in the brain. er of cardiovascular drugs; was a li- aware of what she was taking and president and CEO. California chapter. “It’s interesting. It’s a different censing executive at Pfizer Inc. and its hoped-for effects. spin,” said Bush, describing Ade- Myriad Genetics Inc. of Salt Lake Results are anecdotal and won’t ration had stopped. term memory isn’t any worse. ona’s approach to market a zinc City; and was a managing director be used to win FDA approval but “Her cognitive functions were “The difference is between be- compound as a nutritional supple- at Massachusetts-based HealthCare have been dramatic, said the in- dropping like a rock, month after ing stable and happy and being in ment. “Beta amyloid makes the Ventures LLC, a venture capital firm vestor, who asked not to be identi- month,” he said. “Where she was complete deterioration. She hasn’t brain zinc-deficient, so you might with $1.6 billion under manage- fied. His mother started taking the dropping like a rock, she has stabi- gotten better, but not doing any think a zinc supplement would ment. compound about five months ago, lized. Her judgment hasn’t gotten worse is a good reality,” he said. work. But what if the amyloid Tom Henderson: (313) 446-0337, and after two months her deterio- any more compromised. Her short- “She’s healthy, happy, polite and traps the zinc and keeps it from [email protected] Suppliers: New orders bring plans to hire corporate, tech staff ■ From Page 3 So, they are working to find the Ann Arbor. its 18,500-square-foot, $14.6 million with incoming orders and remain hire to compete as electric-vehicle balance of adding production and Livonia-based TRW Automotive crash-test center. flexible during any production fluc- technology expands. workers.” Holdings Corp. has 85 open engi- “We made a lot of adjustments tuations, Dziczek said. “A lot of But many of the hiring suppliers Advanced neering and technical positions in and cost-cutting measures during companies remain tentative as the can’t find enough properly trained technology and Southeast Michigan, many fo- the downturn, which left us in a market stabilizes,” she said. engineers to fill these electric-ve- efforts for vehi- cused on development of its active better position,” said Robert Fish- Jane Stehney, manager of public hicle-focused positions, Dziczek cle electrifica- safety technology. er, TK Holdings’ executive vice relations for Troy-based Kelly Ser- said. tion are driving TRW is hiring electrical, soft- president. “The key is now we’re vices Inc., said more suppliers are “There are just not enough hy- hiring, Wall ware, controls and product engi- hiring because of the commitment looking for direct hires, but au- brid engineers out there to fill” all said. neers to cover new business it has to this investment.” tomakers are still seeking tempo- the open positions,” she said. rary workers in engineering, de- Last month acquired with automakers, John The positions are only a tiny “We’re on the cusp of having to GM announced Wilkerson, TRW’s director of portion of the hundreds of thou- sign and purchasing. take a serious look at how we can that it would communications, wrote in an e- sands of automotive jobs that were And some other major suppliers take someone with a generic engi- hire 1,000 engi- Wall mail. eradicated during the recession of aren’t looking to add overhead as neering degree and give them neers and technical staff in Michi- Auburn Hills-based Continental 2008 and 2009, and lots of suppliers they continue to climb out of the enough training to have them gan to expand electrification be- Automotive Systems Inc. also is look- are using contract workers to fill economic rubble. yond the Chevrolet Volt plug-in ing to hire 40 engineers in metro key positions to avoid overhead Southfield-based Lear Corp. is work on the electronics systems. hybrid. Detroit, and Novi-based Tata Tech- costs, said Kristin Dziczek, direc- maintaining its hiring freeze for “As these number of open (posi- Watertown, Mass.-based A123 nologies Inc. is hiring 400. tor of the labor and industry group the foreseeable future, said Mel tions) go up, we’ll start to see (the Systems LLC is hiring 26 engineer- TK Holdings Inc., the North Amer- at the Center for Automotive Re- Stephens, senior vice president of number of) companies offering ing and technical positions for its ican subsidiary of Tokyo-based search in Ann Arbor. corporate relations. training go up as well.” battery plant in Livonia and Ro- Takata Corp., plans to fill 40 techni- Automakers and suppliers are With increasing auto produc- Dustin Walsh: (313) 446-6042, mulus and its research center in cal positions before completion of using contract workers to keep up tion, suppliers will be forced to [email protected] 20110103-NEWS--0017-NAT-CCI-CD_-- 12/30/2010 2:52 PM Page 1

January 3, 2011 CRAIN’S DETROIT BUSINESS Page 17 Auto show: www.crainsdetroit.com ‘The pulse is stronger’ EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or Hitching [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- Event planning shows signs of NAIAS-related boost 0460 or [email protected] DEPUTY MANAGING EDITOR Jennette Smith, (313) 446-1622 or [email protected] ride on BY DANIEL DUGGAN SENIOR EDITOR Bob Allen, (313) 446-0344 or CRAIN’S DETROIT BUSINESS [email protected] COPY DESK CHIEF Gary Piatek, (313) 446-0357 As auto sales slowed to a grind or [email protected] ASSISTANT NEWS EDITOR Jeff Johnston, (313) recovery at the end of 2008, Chrysler Group 446-1608 or [email protected] LLC canceled its well-known pre- ■ DATA EDITOR Anne Marks, (313) 446-0418 or From Page 1 auto show party for automotive [email protected] journalists. WEB DEVELOPER Steve Williams, (313) 446- tions, biofuels, home efficiency, 6059, [email protected] LED lighting and solar and wind Called the Firehouse Party for WEB EDITOR Gary Anglebrandt, (313) 446-1621, power. its location across from Cobo Cen- [email protected] ter in a historic fire station, the EDITORIAL SUPPORT Robertta Reiff (313) 446- “We’re trying 0419, YahNica Crawford, (313) 446-0329 event remained on hold for the to showcase NEWSROOM (313) 446-0329, FAX (313) 446- what’s going on 2010 show. 1687 TIP LINE (313) 446-6766 here in Michi- The party will re-ignite for the REPORTERS gan,” said Bill 2011 show, but for just one day — Daniel Duggan: Covers retail, real estate and hospitality. (313) 446-0414 or Perkins, vice rather than for all the media days [email protected] chairman of the as in the past — and will be hosted Jay Greene, senior reporter: Covers health care, insurance and the environment. (313) 446-0325 NAIAS and by German automaker Volkswa- or [email protected]. president of Bill gen AG as it hypes a midsize sedan Chad Halcom: Covers law, non-automotive NATHAN SKID/CRAIN’S DETROIT BUSINESS manufacturing, defense contracting and Oakland Perkins Automo- to be unveiled at the show. and Macomb counties. (313) 446-6796 or Arts League of Michigan President Oliver Ragsdale says the organization’s [email protected]. tive Group. “The The fact that the party is back Virgil H. Carr Cultural Arts Center in Detroit’s Harmonie Park will benefit by Tom Henderson: Covers banking, finance, is a strong sign, said Barron technology and biotechnology. (313) 446-0337 or state is progress- hosting an auto show-related party for Lear Corp. We’re Meade, co-chairman of the North [email protected]. ing in a lot of dif- Nancy Kaffer: Covers small business, the city of “ ferent fields that American Inter- troit-based Freitag & Co. Lear hold such a prestigious Detroit, Wayne County government. (313) 446- trying to 0412 or [email protected]. people might not national Auto Events/Communications. event at the center is exposure. Bill Shea, enterprise editor: Covers media, know about. Show. On the catering side, John “An event of that level and mag- advertising and marketing, the business of sports, showcase and transportation. (313) 446-1626 or This is meant to “Maybe there Forte, president and CEO of Troy- nitude really draws in a wide [email protected]. highlight these will be two days based catering company Forte Be- range of people from both the cor- Nathan Skid: Multimedia reporter. Also covers the what’s food industry and entertainment. (313) 446-1654, advancements.” next year,” said langer, said he is working on 15 porate world and business com- [email protected]. Exhibitors in- Meade, presi- auto show events, almost double munity,” Ragsdale said. “That ex- Sherri Welch: Covers nonprofits and services. going on (313) 446-1694 or [email protected] clude A123 Sys- dent of Detroit- last year’s number. poses them to the work of the arts Dustin Walsh: Covers auto suppliers, steel, higher based Meade “From a revenue standpoint, league and the facility itself — education and Livingston and Washtenaw here. tems LLC, ALTe counties. (313) 446-6042 or [email protected] Automotive. “I we’re up almost 100 percent,” he which can spawn increased dona- ” LLC, Azure Dynam- LANSING BUREAU see the return of said. “We’re almost at 2008 num- tions, audiences and other uses of Amy Lane: Covers business issues at the Capitol, Bill Perkins, ics LLC, Meade this event as a bers.” the facility.” telecommunications and utilities. (517) 371- NAIAS Builders.org, Al- 5355, FAX (517) 371-2492, [email protected]. or bert Kahn & Asso- positive leading indicator.” Broadly speaking, events are Mel Stephens, senior vice presi- 115 W. Allegan, Suite 220, Lansing 48933. ciates, Cascade Renewable Energy, The party is one of several smaller in scale than in the past, dent of global communications for ADVERTISING events restarted for this year’s said Michelle Yurcak, president Lear, said having a dinner at the ADVERTISING DIRECTOR Marla Downs, (313) Current Motor Co., Danotek Motion 446-6032 or [email protected] Technologies, Dow Kokam, DTE Ener- show, but overall hospitality of Ypsilanti-based Premium Event venue, and renting out the space, is SALES INQUIRIES: (313) 446-6052; FAX (313) gy, Eco-Green Energy, Log Home Out- spending is predicted to be up just Services. meant to help showcase the build- 393-0997 ADVERTISING SALES Christine Galasso, Matthew fitters, LumaSmart, Lumecon, Sakti3, slightly from the 2010 show. She said budgets are still scaled ing and help the nonprofit. J. Langan, Lori Tournay Liggett, Tamara Rokowski, SPX Service Solutions, Swedish Bio- The $325 million economic spin- back for some auto companies, “It’s part of our mission of con- Cheryl Rothe, Dale Smolinski off from the 2010 show will be and others are walking carefully tributing to the communities CLASSIFIED SALES (313)-446-0351 gas, University of Michigan, Ventower, MARKETING MANAGER Irma Clark Wellhome and PEP Stations LLC. slightly higher for the 2011 show, around the spending constraints where we do business,” Stephens MULTIMEDIA MANAGER Alan Baker, (313) 446- Livonia-based PEP Stations will said David Sowerby, portfolio of the domestic automakers and said. 0416 or [email protected] manager in the Bloomfield Hills of- conservative budgets. The 40,000-square-foot building EVENTS MANAGER Nicole LaPointe display its electric vehicle charging MARKETING ARTIST Sylvia Kolaski stations throughout Cobo Center. fice of Loomis, Sayles & Co. LP, which “Instead of lavish events with on Detroit’s Paradise Valley park SALES SUPPORT Suzanne Janik, YahNica Crawford Last year, PEP’s auto show fo- calculates the economic impact of theatrical lighting, high-end dé- has been hosting events and is CIRCULATION Candice Yopp, Manager. cus was on educating the public on the auto show each year. cor and elaborate centerpieces, … seeking funds for a complete reno- MARKETING COORDINATOR Kim Winkler “Given the optimism and clients are scaling back, creating vation of the building and its PRODUCTION MANAGER Wendy Kobylarz vehicle electrification. This year, PRODUCTION SUPERVISOR Larry Williams people understand and want to greater spending this year, the a warm and welcoming environ- third-floor theater space. Lear has CUSTOMER SERVICE impact will be up 3 percent to 5 ment with simple lighting, lounge been a donor to the group and to know more, said President Jim MAIN NUMBER: Call (877) 824-9374 or write Blain. percent,” he said. “The pulse is furniture and hearty menus,” she the building project. [email protected] stronger, and stock prices are said. Meade said that while overall SUBSCRIPTIONS $59 one year, $98 two years. “Now the people are connecting Out of state, $79 one year, $138 for two years. the dots and are interested in charg- helping with personal wealth. Southfield-based Lear Corp. will spending in the automotive indus- Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Call (313) 446-0450 or ing stations and vehicle range,” he We’ve seen the abyss in 2009, and continue an event from last year try remains cautious, it may pick (877) 824-9374. said. “So going forward, at all of our we’ll continue to see marginal im- that puts spending to a good cause. up at the last minute for the show. SINGLE COPIES: (877) 824-9374. provement.” The auto supplier will host a “As this industry heals, the REPRINTS: (800) 290-5460, ext. 125; (717) 505- conferences and shows, we are go- 9701, ext. 125; or ashley.zander@theygsgroup ing to be oriented in a different di- Companies that plan large- Charity Preview afterglow party amount of activity is going to in- .com. scale events have not seen the in the recently revamped Virgil crease,” he said. “When the show TO FIND A DATE A STORY WAS PUBLISHED: rection, more toward the sales of (313) 446-0367 or e-mail [email protected]. the product, not just educating the kind of activity they’ve seen in H. Carr Cultural Arts Center in is over and we’re looking back on past years — but haven’t seen a Harmonie Park as a way to help it, people are going to be pleasant- CRAIN’S DETROIT BUSINESS IS PUBLISHED BY public.” CRAIN COMMUNICATIONS INC. A few automakers that ditched decrease, either. the center and its operator, the ly surprised with the economic CHAIRMAN Keith E. Crain the NAIAS during the economic “We’re doing the same events Arts League of Michigan. impact. And it’s going to set the PRESIDENT Rance Crain as we did last year and haven’t Oliver Ragsdale, president of table well for the year.” SECRETARY Merrilee Crain collapse are also returning to this TREASURER Mary Kay Crain year’s show, including Germany’s seen any kind of increase,” said the arts group, said the largest Daniel Duggan: (313) 446-0414, Executive Vice President/Operations Porsche AG, which has announced Denny Freitag, president of De- benefit of having a company like [email protected] William A. Morrow Group Vice President/Technology, it will unveil a never-before-seen Manufacturing, Circulation model in Detroit. Robert C. Adams spoken for the 2011 Detroit show, Vice President/Production & Manufacturing Organizers are expecting 30-40 with Ford Motor Co., General Motors NEWCOMERS Dave Kamis worldwide vehicle debuts during Co. and Toyota Motors Co. taking the Chief Information Officer Sponsors new to the 2011 North American International Auto Show are: Paul Dalpiaz the show, including from Audi, most space. Corporate Circulation/Audience Development BMW, Chevrolet, Mercedes-Benz, Media and public attendance is Albert Kahn Associates Inc., Inc., Canton Township Director Detroit LumaSmart Technology Kathy Henry Toyota, and Hyundai. expected to top last year’s 714,137 G.D. Crain Jr. Founder (1885-1973) Automakers introduced 37 pro- public attendance and 4,536 media Builders.org & International Inc., Macomb Mrs. G.D. Crain Jr. Chairman (1911-1996) MyHomeCoupons.com, West Township duction and concept vehicles at attendance, said Barron Meade, EDITORIAL & BUSINESS OFFICES: Bloomfield Township Lumecon LLC, Farmington Hills 1155 Gratiot Ave., Detroit MI 48207-2732; (313) the 2010 show, including 27 world- chairman of the show, at a media 446-6000 Cascade Renewable Energy, Cable address: TWX 248-221-5122 AUTNEW DET wide debuts. event in December. ALTe LLC, Auburn Hills Grand Rapids Masco Home Services Inc.’s CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 But Nissan, Infiniti, Mitsubishi, Rolls- “We are seeing evidence the in- is published weekly, except for a special issue the Eco-Green-Energy LLC, Grosse WellHome brand, Taylor Royce, Fisker and Suzuki are skipping dustry is on an upswing,” Meade third week of January, a special issue the fourth Pointe Farms Azure Dynamics Inc., Oak Park week of August, and no issue the third week of the show again this year. Electric- said. “There is even more steel go- December by Crain Communications Inc. at 1155 EV Autos LLC, Austin, Texas Harman International Industries Gratiot Ave., Detroit MI 48207-2732. Periodicals vehicle maker BYD Corp. is the only ing up this year.” postage paid at Detroit, MI and additional mailing Log Home Outfitters LLC, Fenton Inc., Stamford, Conn. Chinese automaker participating in The show is open to the public offices. POSTMASTER: Send address changes to Current Motor Co., Ann Arbor Comcast Corp., Philadelphia CRAIN’S DETROIT BUSINESS, Circulation the show. BYD expects to begin test- Jan. 15-23. Department, P.O. Box 07925, Detroit, MI 48207- Swedish Biogas International LLC, Sony Pictures Entertainment Inc., 9732. GST # 136760444. Printed in U.S.A. ing a fleet of electric vehicles in the For more information, go to Flint Culver City, Calif. Entire contents copyright 2011 by Crain U.S. in late 2011. www.naias.com. Communications Inc. All rights reserved. Ventower Industries LLC, Monroe Mattel Inc.’s Hot Wheels brand, Reproduction or use of editorial content in any However, all 750,000 square feet manner without permission is strictly prohibited. Dustin Walsh: (313) 446-6042, Danotek Motion Technologies El Segundo, Calif. of Cobo’s floor space have been [email protected] 20110103-NEWS--0018-NAT-CCI-CD_-- 12/30/2010 1:29 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS January 3, 2011

THINK I’M FAST? CHECK OUT Granholm: Time will shape legacy ■ From Page 1 COMCAST BUSINESS CLASS vice president of government rela- lature to cuts, patches, shifts and tions at the Detroit Regional Chamber, some tax increases. In 2007, said Granholm had a strategy and Granholm appointed a high-pow- Call today and get Comcast vision and can be credited for some ered advisory panel, headed by for- successes, as seen in emerging wind mer Govs. William Milliken and Business Class Internet and Voice farms and development and the De- James Blanchard, that did inten- cember announcement of the first sive study over two weeks to re- for just $99 a month! large-scale wind turbine manufac- view the state’s situation and offer turing plant to produce utility-scale recommendations on how to avoid turbines made fully in Michigan, lo- chronic budget shortfalls. cated in Saginaw. Hubbard Studley Recommendations included tax There were also tax credits cre- restructuring to increase revenue ated to attract advanced battery to picking winners and losers, and modernize the tax system, manufacturers, which layered on went from industry-specific tax spending cuts, examination of areas top of federal incentives that gave breaks to company-specific tax like rising expenses of public em- battery companies an “even breaks” and should have focused ployee benefits, as well as reform of greater reason to come to Michi- more on improvements in such ar- how public services are delivered. gan,” Hubbard said. eas as taxation and regulation. The panel noted that services More than $2 billion in state as- “All the tax incentives in the represent a steadily increasing sistance has been granted to ad- world won’t make a state attrac- share of the economy but are not vanced battery companies and has tive if you haven’t delivered on the subject to sales tax. so far helped leverage more than basics,” he said. Granholm proposed a budget $1 billion in federal investment. Studley said that while he gives that included a 2 percent tax on State incentives included six sig- Granholm “very high marks for services which later, at a 6 percent nature $100 million-each tax cred- being very bright, very enthusias- rate, joined an income tax increase its that can convert into cash. tic, very energetic,” a central as part of a budget deal that includ- The state now lists 18 advanced “missed opportunity” in her ed cuts and government reforms battery projects of various types in tenure “was not to focus more on and was sealed just as the new fis- Michigan, representing more than existing businesses and to help the cal year began. $5.8 billion in expected capital in- employers that were already here But the ill-fated service tax was vestment. to grow and prosper.” widely unpopular and was re- Granholm said analyses of the Granholm, however, cited ini- pealed and replaced with an also- global economy pointed to clean en- tiatives that include the Michigan unpopular 21.99 percent surcharge ergy as the next big economic sec- Business One-Stop, a Web portal on the state’s newly minted Michi- tor, “and that sector is going to re- has reduced business startup gan Business Tax. quire renewable energy storage.” times and contains more than 200 Jeff Guilfoyle, president of the She said Michigan “now has the permits as well as other business nonpartisan Citizens Research Coun- best opportunity to lead the nation functions, and efforts to make en- cil of Michigan, said the state’s bud- to energy independence” and that vironmental regulation more get would have been balanced for a jobs and growth will occur here be- streamlined and efficient. while in the wake of the 2007 tax cause the state was aggressive. She said her administration did increases “had we not hit the na- “It’s not something that was just a see it important to help existing tional recession of 2009.” General- shot in the dark.” businesses and has made improve- fund revenue that in 2008 had Generous tax incentives for the ments to Michigan’s tax structure, risen 12.5 percent, in 2009 dropped film industry, which have been but Michigan also needed to capi- 22 percent, he said. criticized as largesse and exceed- talize on its assets and go after spe- Granholm continues to advocate ing the state’s ability to afford, cific emerging sectors. for tax restructuring and lowering have drawn more than $648 mil- The state launched programs the state sales tax and extending it lion in film industry investment, like No Worker Left Behind, to pro- to services — a direction that’s according to the governor’s office. vide free tuition to train dislocated failed to gain legislative ground “Now that I’m a small business owner I’m The Jobs Fund, an initiative workers for in-demand jobs. The but that she says can provide a sta- seeded with $1 billion by the state program is scaling back due to ble source of funding for K-12 edu- always trying to stay ahead of the competition. that has leveraged $1.8 billion in lack of federal funding. cation. private and federal investment, in- Granholm also went abroad, Ruff said that, to an extent, the That’s where Comcast Business Class comes cludes programs to support com- leading 13 foreign trade missions state’s economy and budget prob- in. Their speedy Internet is 4x faster than DSL mercialization in advanced manu- to 10 countries, resulting in 49 lems handcuffed Granholm. “She facturing and provide financial companies announcing nearly didn’t have the financial where- and T1 and keeps my business moving! Plus, assistance to manufacturers in- $2 billion in new investment. withal to do anything. She was with Comcast, I get the best in call clarity, 24/7 cluding auto suppliers. In Washington, she was vocal on constantly fighting to preserve Another initiative is the Centers Michigan’s plight, whether it was programs that she felt needed pro- support, Microsoft Outlook, and a website of Energy Excellence grant program the need to extend unemployment tection, and to fend off legislative designed to boost collaboration benefits or fighting for federal in- cuts.” builder at no extra charge. Now that's what I call and create alternative energy tech- tervention and assistance for the But Granholm said she feels a great game plan.” nology industry clusters through- auto industry. “like we have accomplished a lot out the state. Thirteen centers “She tried to persuade Congress, in light of the circumstances.” have been established. Washington, that this was an in- Ruff said Granholm’s biggest Barry Sanders Bill Ballenger, editor of the Inside dustry important not just to Michi- strength is her personality and Michigan Politics newsletter in gan, but to the rest of the country,” charisma, and it was effective not Football Legend & Small Business Owner Lansing, said Granholm wasn’t the said Craig Ruff, senior policy fel- only before citizen audiences but first governor to find the need to di- low at Lansing think tank Public also likely in corporate board versify. “The bottom line is, we’re Sector Consultants Inc. The eventual rooms. But he and others also said not going to know for sure until 20- auto rescue, he said, “did stave off Granholm could have been more 800-391-3000 30 years from now, looking back, at least two of our manufacturers effective in dealing with the Legis- www.Business.Comcast.com whether things that Jennifer from outright bankruptcy.” lature if she had legislative experi- Granholm did to diversify really “She was a clear messenger that ence. specifically pay dividends,” he said. her state was in trouble, and as her “In terms of the greatest handi- Former Michigan Economic Devel- state went, so went the country.” cap, it was her lack of knowledge opment Corp. President and CEO In the years since she took office of the legislative process and the Greg Main, whose contract ended through October, the latest month fact that she (was) like Rick Sny- Friday, said he thinks the for which final employment data der, (who) is going to enter this Granholm administration “has was available, Michigan lost some fray with virtually no experience Restrictions apply. Not available in all areas. Limited to Business Class done more to move the needle in 632,400 payroll jobs, a 14.1 percent of working with what can be an Internet and Business Class Voice. Minimum term contract required. the direction of the diversification decline, and within that, 281,800 unruly body of 148 … as board of Early termination fee applies. Equipment, installation, taxes, franchise of the economy than we’ve ever manufacturing jobs, a 37.6 percent directors,” Ruff said. fees and phone fees extra. $24.95 activation fee (per line, up to 4 lines) seen before. Not only has there decline. But Granholm defended her leg- applies to Business Class Voice. Speed comparison between Comcast been a deliberate attempt, but it’s Tax revenue for Michigan’s gen- islative record and said that look- 6.0 Mbps service and standard T-1 and DSL (downloads only). Actual been backed up by substantial in- eral fund dropped 32 percent from ing at items she proposed in her speeds vary and are not guaranteed. Call clarity claim based on August vestment.” 2001 to 2010. State of the State addresses, she 2010 analysis by Tektronix. Call for restrictions and complete details. But Rich Studley, president and In Lansing, the state budget was “got 80 percent of the things done” Comcast © 2010. All rights reserved. CEO of the Michigan Chamber of central and, for many, consuming. that she set out to do. Commerce, said the governor went Continual budget shortfalls Amy Lane: (517) 371-5355, “farther and farther down the road brought Granholm and the Legis- [email protected] 20110103-NEWS--0019-NAT-CCI-CD_-- 12/30/2010 3:31 PM Page 1

January 3, 2011 CRAIN’S DETROIT BUSINESS Page 19 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEKS OF DEC. 18-30

established by John McCand- seat components suppliers tions before they can re- less, who has held senior 329 jobs to be managed out of its open. public relations positions Plymouth business unit. Birmingham-based Abdul-Jabbar at Toyota and Chrysler. The supplier intends to ac- Bleznak Real Estate Invest- Tom Watkins, CEO of committed in quire Keiper and a business ment Group and Southfield- educational consultant TDW segment of Recaro GmbH based Hartman & Tyner Inc. and Associates, Northville, from Putsch GmbH & Co. KG, in a joint venture have pur- to be at WSU has been given the Upton Medical Main a holding company for the chased the remaining 233 Sinclair Award for educa- Keiper Recaro Group, during unsold condominium units ayne State Universi- waukee Bucks and Los Ange- tion from the first half of 2011. Terms in the Woodland Mews EducationNews.org for his Street program were not disclosed. building in Ann Arbor for ty has landed a fit- les Lakers, was hardly the W ting keynote stereotypical jock. The Na- leadership in educational Quick Lane, a Dearborn- roughly $14 million. ix hospitals, medical speaker in Kareem tional Collegiate Ath- innovation. Watkins was based network of quick-ser- device makers and Abdul-Jabbar for its letic Association Michigan Superintendent vice shops owned and oper- S other life science annual Dr. Martin named the UCLA of Public Instruction from ated by Ford dealers, is on OTHER NEWS companies committed to in- track for sales of just over Luther King Jr. trib- alum one of the top 2001 to 2005. The first budget that vest more than $21 million $550 million in 2010, and ute at the Max M. 100 scholar ath- Conway MacKenzie Inc., Gov. Rick Snyder and law- and add 329 local jobs this Ford Motor Co. expects to Fisher Music Center letes of the 20th Detroit, has been recog- makers face drafting will year, according to a new re- add 102 stores and see dou- on Jan. 18. century. nized by Turnarounds & need to tackle a projected port from Oakland Coun- ble-digit revenue increases Proceeds for the Wayne State is Workouts as one of 2010’s general-fund shortfall of ty’s Medical Main Street this year. Ford currently event go to Adopt-a- looking for more outstanding turnaround more than $1.8 billion, program. has about 600 shops. Classroom, a nation- sponsors for the firms. MacKenzie was rec- based on new estimates The program is an al- Southfield-based Feder- al organization that tribute, with pack- ognized for its work with from the Senate Fiscal liance of hospitals, univer- al-Mogul Corp. is recalling helps increase op- Abdul-Jabbar ages ranging from Greektown Casino and Hotel, Agency. That’s up from the sities, pharmaceutical com- 22,689 replacement control portunities for students $300 to $20,000. For infor- Finger Furniture, J.T. Packard agency’s October projec- panies, medical device arm assemblies it sold to and options for teachers by mation, call Stephanie Fries and Neenah Enterprises, tions of a general-fund bud- manufacturers and medical Chrysler Group LLC because a creating community part- at (313) 557-0717 or e-mail among others. get gap of more than professionals founded by part of the assembly, a ball nerships with schools and communityaffairs@ J.R. Thompson Co., $1.4 billion for fiscal 2012. Oakland County Executive stud, could wear through providing funds for class- wayne.edu. Farmington Hills, has won A report issued by Col- L. Brooks Patterson in 2008. the assembly housing and room resources. Last year’s the Davey Award from the liers PKF Hospitality Research The new investments cause drivers to lose steer- event raised enough money International Academy of Visu- indicates there will be bring the program total to ing control, according to a to sponsor 10 Detroit class- BITS & PIECES al Arts for its “Be the Hero” enough demand for hotel 10 deals that create or re- notice filed with the U.S. Na- rooms. Road Reports, an auto- wholesale parts campaign rooms in the Detroit area tain more than 900 jobs. tional Highway Traffic Safety Abdul-Jabbar, the Hall of motive information and for Chrysler Group LLC’s in 2011 to raise rates by 3.1 Administration. Fame center with the Mil- consulting firm, has been Mopar division. percent. Detroit area hotels Dearborn-based have been cutting rates ON THE MOVE Wolverine Advanced Materials since 2008. Outgoing state Rep. LLC has been sold to pri- In the past year, rates Kathy Angerer, D-Dundee, is vate-equity firm Wyn- have decreased by 6.8 per- joining AT&T Michigan as ex- nchurch Capital Ltd., its par- cent, the report states. ecutive director of govern- ent company, EP ment affairs responsible for Management Corp., an- BEST FROM THE BLOGS strategic planning, advoca- nounced. Terms were not OBITUARIES cy and outreach with state disclosed. Wolverine em- READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS officials on communica- ploys nearly 400 worldwide. Bill Lajoie, former gen- tions policy. A Detroit federal judge eral manager of the Detroit Words of wisdom from Bill Widlak mystery lingers Trucking industry vet- could decide that dealers Tigers, died in his sleep Dec. eran David McClimon will fill who were reinstated in ar- 28. He was 76. Bill Lajoie taught A new sheriff will the new position of presi- bitration with Chrysler Sam Moceri, who co- me“ a lesson that has inherit“ a mystery from dent of Warren-based Cen- Group LLC may not be able owned several area bowl- served me well over the the old one in Macomb tral Transport International to reopen the same stores. ing alleys, died of natural years, and should serve County, where Inc. today. McClimon, 55, Chrysler wants Judge causes Dec. 5. He was 88. as a basic tenet of investigators expect journalism. more detail to surface in was most recently COO at Sean Cox to rule that rein- Nelly Rashid, who co- 2011 surrounding David Ann Arbor-based ADR North stated dealers have won founded Grosse Pointe ” Widlak. America LLC. back a right to be dealers Woods-based travel agency again, but not necessarily Travel with Sharon, died Dec. ” to the same locations and 17. She was 79. COMPANY NEWS market conditions as be- Jared “Buddy” Schubiner, Reporter Tom Henderson’s blog about accounting, Reporter Chad Halcom’s blog on the legal business Johnson Controls Inc. fore. They also may have to founder of Elliott Travel Ser- banking, venture capital and high tech can be found can be found at www.crainsdetroit.com/halcom satisfy other state regula- vice, died of heart disease at www.crainsdetroit.com/henderson said it plans to acquire two Germany-based seat and tions or meet market condi- Dec. 11. He was 81.

In Memoriam 2010

Lillian “Lil” Adams, longtime executive company Brass Ring Productions, Dec. 6, 62. University of Michigan sports star, Sept. 11, Robert Queller, former executive director of director of the Sterling Heights Regional Frank Galeana, owner of the Warren-based 75. the Citizens Research Council of Michigan, Chamber of Commerce, Feb. 5, 75. Galeana Automotive Group, April 20, 80. George La Plata, a former federal and Oakland March 10, 80. George Lee “Sparky” Anderson, who Hilda Gage, former chief judge in Oakland County Circuit Court judge, Nov. 14, 86. James Quello, former general manager and managed the Detroit Tigers to the 1984 World County and the Michigan Court of Appeals, Robert Larson, a longtime executive of The vice president at WJR AM 760 who later sat on Series title, Nov. 4, 76. Sept. 13, 71. Taubman Co., March 11, 75. the Federal Communications Commission, Jan. Donald Barnes Sr., retired owner of Allen George Gorno Sr., owner of Gorno Ford in Jac LeGoff, longtime television newscaster, 24, 95. Park-based Belle Tire Distributors Inc., July 26, Woodhaven, Dec. 21, 2009, 61. July 25, 87. Mel Ravitz, former Detroit City Council 83. Cynthia Harkaway, who held senior executive Mario Lelli, founder of Mario’s Restaurant in president, April 11, 86. George Cantor, longtime local journalist and positions with Gleaners Community Food Bank Detroit, Aug. 7, 97. James Robinson, former U.S. attorney, author, Aug. 13, 69. of Southeastern Michigan, Angels’ Place and Mira Linder, founder of Southfield-based partner at Honigman Miller Schwartz and Cohn Dave Diles, longtime local and network the Bank of Birmingham, April 24, 62. Mira Linder Spa in the City, Dec. 30, 2009, 88. LLP and dean of the Wayne State University sports broadcaster, Dec. 26, 2009, 78. Elizabeth Harp, owner of Harp’s Lingerie in John McAuliffe, former owner of John Law School, Aug. 6, 66. Louis Elias, worldwide franchisor of the Big Birmingham, March 23, 93. McAuliffe Ford in Pontiac, Sept. 16, 90. Robert Spencer, longtime leader of Detroit Boy restaurant chain with his brothers John Ernie Harwell, longtime Detroit Tigers F. James McDonald, president and COO of Economic Growth Corp., Jan. 1, 76. and Fred, Jan. 14, 93. broadcaster, May 4, 92. General Motors Corp. for much of the 1980s, Frank Stella, founder and chairman of the Doug Fieger, lead singer of rock group the Benjamin Hooks, who led Greater New Mount June 13, 87. Detroit-based food service and dining Knack and brother of attorney Geoffrey Fieger, Moriah Baptist Church in Detroit and the George Nouhan, former owner of George equipment distributor F.D. Stella Products Co. Feb. 14, 57. National Association for the Advancement of Nouhan Chevrolet in Hamtramck, April 8, 84. who had many other business interests, Sept. Nathan Fink, former owner of the Great Scott Colored People, April 15, 85. Roy O’Brien Jr., retired CEO of Roy O’Brien 27, 91. supermarket chain, Sept. 18, 92. Nelson House, who founded what became Ford in St. Clair Shores, May 10, 81. Jerry York, former Chrysler Corp. finance Robben Fleming, former University of the Woodward Dream Cruise, Aug. 12, 69. C.K. Prahalad, author and professor of chief, March 18, 71. Michigan president, Jan. 11, 93. Florence Eve Karagosian, who helped her management in the University of Michigan Ross Roy Zurkowski, former CEO of Health & Walter Buhl Ford III, a great-grandson of Ford husband, Harry, build Karagosian Jewelers, School of Business, April 16, 68. Tennis Corp. of America, which operated Vic Motor Co. founder Henry Ford, Feb. 16, 66. Feb. 28, 86. Bob Probert, former Detroit Red Wing, July 5, Tanny health clubs in metro Detroit, Nov. 24, Bob Fox, founder of concert promotion Ron Kramer, 75, former Detroit Lion and a 45. 81. DBpageAD.qxd 10/29/2010 10:35 AM Page 1

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