20090629-NEWS--0001-NAT-CCI-CD_-- 6/26/2009 6:21 PM Page 1 ® www.crainsdetroit.com Vol. 25, No. 26 JUNE 29 – JULY 12, 2009 $2 a copy; $59 a year ©Entire contents copyright 2009 by Crain Communications Inc. All rights reserved Page 3 Where did plans for Detroit Kroc Center go wrong? Detroit, Ontario ‘angels’ unite New anti-foreclosure law requiring loan modification New public company hopes to raise $20M in seed money may increase lender jobs BY TOM HENDERSON The company has started the navigate the rules of the stock ex- economic times, it may well find a CRAIN’S DETROIT BUSINESS process of being listed on the ven- change. group of interested investors.” ture exchange Nouveau’s founders think it is Nouveau’s founders hope their Inside The pool of investment money of the Toronto the first public company in the cross-border alliance will be repli- available to local startups and HOW IT WORKS Stock Ex- U.S. or Canada to facilitate angel cated in the Toronto-Niagara Hendrix and young high-tech companies is Canada’s way: A change and investing, and so does Jim Jaffe, Falls-Buffalo and Seattle-Vancou- Bing team about to get larger. different approach hopes to be president and CEO of the National ver regions. Detroit-based Great Lakes Angels to public funding, trading by the Association of Seed and Venture Angel investors, generally of probe Detroit has joined forces with angel Page 21 end of the Funds. high net worth, usually fund very problems, groups in Toronto and London, year. It grew “There are some angel groups early-stage companies and are Ontario, and with the University of out of a meeting the Great Lakes that have formed private funds termed angels because they help Page 4 Windsor to form Nouveau Angel Capi- Angels held last June at the Grosse that operate like mutual funds, but keep companies alive until they tal Corp., which hopes to raise $20 Pointe home of Canadian Consul I’m not aware of any public compa- grow to the point where they can Credit crunch forces CDCs million to invest in early-stage General Robert Noble, whose staff nies doing this,” he said. “The con- get funding from venture-capital- companies in Southeast Michigan was instrumental in getting the cept is exciting and unusual. My to scale back, Page 13 and southwestern Ontario. parties together and helping them guess is that even in these difficult See Angels, Page 21 Leadership Detroit asks alumni to help tackle regional issues, Page 18 State’s wind energy biz gets big lift Budget bill would cut Medicaid reimbursement. $100 million GE investment Capitol Briefings, GOING WITH THE WIND Investment by General Electric Co. in high-tech manufacturing and clean Page 19 energy R&D brings North America’s largest wind-turbine manufacturer to key to building supply chain Southeast Michigan, adding to a series of recent investments by companies involved in wind energy: BY DANIEL DUGGAN Specialists in the wind energy ‘Holiday edition’ AND RYAN BEENE field say Michigan still lags other Ⅲ Turbines: Global Wind Systems Inc., Novi. Assembles turbines, CRAIN’S DETROIT BUSINESS states, especially those with wind blades and towers. Danotek Motion Technologies L.L.C., Plymouth. Special online issue coming energy OEM operations. Produces generators for use in turbines. With General Electric Co. making But a research and development This week’s print edition of a $100 million investment in Van facility from GE is a major build- Crain’s Detroit Business will Buren Township, the region will ing block, said Wallace Hopp, a Ⅲ Blades: A potential venture cover the weeks of June 29 have the largest wind turbine and July 6, and a special supply chain expert and professor between MAG Industrial Automation manufacturer in North America digital “holiday edition” will be of manufacturing, operations and Systems L.L.C., Sterling Heights, available online beginning the as a presence. management at the University of and Dowding Machining Inc., Eaton evening of July 4. The digital The proposed facility marks an- Michigan’s Ross School of Business. Rapids. Would also build machine issue will be in a format that other key component of Southeast “The modern world of the sup- tools for manufacturing turbine readers can print for portability Michigan’s growing wind energy ply chain is that the suppliers, par- components. and will resemble the print supply chain, which now includes ticularly the top-tier suppliers, edition, including advertising. companies that plan to specialize aren’t just material providers, If you are a paid subscriber in manufacturing of blades, tur- they’re also co-developers,” he Ⅲ Towers: Ventower (formerly Great who is already registered on bines, generators and towers in ad- said. lakes Towers L.L.C.), Monroe our Web site, you don’t need dition to the tools needed to manu- ISTOCKPHOTO.COM to do anything more. You will facture the components. See Wind, Page 18 automatically receive an e-mail link. Paid subscribers who have not registered can go to crainsdetroit.com/digitaledition to get set up. At the same time, you’ll be able to subscribe to our free daily, weekly and specialty e-mail Wings’ quest for new lease a step to new arena? newsletters. For more information about how to do BY BILL SHEA tenants won’t talk about it. itch bought the Tigers for $82 mil- A new hockey venue is estimat- this, see the advertisement on CRAIN’S DETROIT BUSINESS Neither will the city. lion in 1992, and the team was ed to cost $300 million to $400 mil- Page 12. Coy is a polite way of character- worth $200 million in 2000, accord- lion. The Pittsburgh Penguins, who Paid subscribers with Perhaps Detroit’s worst-kept se- izing the public face put on the ne- ing to Forbes.com. Today, it’s val- just vanquished the Red Wings in questions or who want cret is the Red Wings’ desire for a gotiations over city-owned Joe ued at $371 million. the Stanley Cup finals, move next assistance in the process may new hockey arena. Louis Arena and the master lease New stadiums, with numerous season into the $321 million Consol call (888) 909-9111 for help. The team’s owners, Mike and held by the Ilitches. modern suites and naming rights Energy Center after 48 years at Marian Ilitch, and their lieu- To get a sense of the prevailing deal, offer revenue streams that Mellon Arena — a fact not lost on winds, however, all one has to do old facilities cannot. the Wings. is look from Joe Louis across town So what’s good for the Tigers is The team, bought for $8 million to Comerica Park, where Mike Il- certainly good for the Red Wings, by the Ilitches in 1982 from former itch’s Detroit Tigers play. The stadi- says conventional wisdom. After owner Bruce Norris, is worth $303 um opened in April 2000 at a cost of all, hockey insiders say 30-year-old million today, according to Forbes. $300 million financed by Ilitch, the Joe Louis would require $150 mil- Joe Louis was built by the city for city, Wayne County and corporate lion in renovations to get it within $30.3 million in 1979 and financed investors. sniffing distance of the revenue- with municipal bonds. NEWSPAPER The new venue had a positive ef- generators that dot the National fect on the team’s bottom line: Il- Hockey League. See Arena, Page 18 20090629-NEWS--0002-NAT-CCI-CD_-- 6/26/2009 5:48 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS June 29, 2009 House Bill 4183, sponsored by able use. Hison as chairman in 2010. now occupies the former head- THIS JUST IN Richard Ball, R-Laingsburg, and — Nancy Kaffer Hison has served on the Shores quarters of bus components mak- House Bill 4476, sponsored by City Council since 1984, and has er Transpec Worldwide Inc. Parsons Brinckerhoff wins Kathy Angerer, D-Dundee, GM to end Auburn Hills lease been mayor since 2004. He is a The incubator’s first two ten- $3M highway contract amend insurance laws to require A hearing is set for Tuesday for member of SEMCOG’s executive ants — Lighthouse Molding Inc. and coverage in group policies for the General Motors Corp. to terminate committee and a past chair of the GeoTech L.L.C. — acquired leases The Michigan Department of diagnosis and treatment of a 43,000-square-foot lease in SEMCOG Finance and Budget within the past several weeks to Transportation awarded Detroit- autism spectrum disorder. Auburn Hills as part of a move to Committee. occupy nearly 4,000 square feet based Parsons Brinckerhoff the The bills, passed last week, have end 41 leases around the country. The SEMCOG General Assem- between them at the new site. $3 million design contract for the been referred to the Senate Eco- The lease is held by GMAC L.L.C. bly also made one addition to its Spencer said the incubator reconstruction of the I-69 and I-94 nomic Development and Regulato- at 900 North Squirrel in Auburn annual slate of officers: Schoolcraft should move out of the former interchange as part of the ry Reform Committee, chaired by Hills, according to a schedule of College Trustee Joan Gebhardt. Venture Industries building by $533 million new Blue Water Alan Sanborn, R-Richmond. leases to be terminated, filed in — Chad Halcom the end of the month. Bridge plaza in Port Huron. — Amy Lane bankruptcy court. Ron Lamparter, president and The project involves four miles The building is owned by owner of Transpec, recently sold Macomb-OU biz incubator the business to a buyer who relo- of roadway and eight bridges.