DETROIT BUSINESS MAIN 03-17-08 A 1 CDB
3/14/2008
6:13 PM
Page 1
®
www.crainsdetroit.com Vol. 24, No. 11
MARCH 17 – 23, 2008
$2 a copy; $59 a year
©Entire contents copyright 2008 by Crain Communications Inc. All rights reserved
THIS JUST IN
Vote expected on Metro
Airport improvement plan
The Wayne County Airport
Authority board is expected
to vote Thursday on a controversial $1 billion master
improvement plan for Detroit Metropolitan Airport.
The vote is scheduled for
1:30 p.m. at the Westin Hotel in the airport’s McNamara Terminal.
If approved, the longterm plan will be submitted to the Federal Aviation
Administration for consideration. The FAA would vote,
likely within 90 days, on
whether to accept the plan.
If accepted, the airport
then has to apply for FAA
funding for the individual
projects in the plan.
The plan includes a seventh runway, which has
drawn opposition from Romulus because up to 15 percent of its population and
dozens of businesses would
be displaced by the new
landing strip.
Other major elements of
the plan include terminal
expansions, parking deck
work, cargo facility expansion and a monorail system that would connect the
terminals to rental car lots,
which would be moved
north of I-94. Northwest Airlines Corp., the airport’s
largest carrier with 500 daily flights, objects to the
monorail because executives believe it is cost-prohibitive and unnecessary.
The plan would be funded by a combination of
state and federal funds and
a congressionally mandated increase in a fee on airline tickets.
Authority CEO Lester
Robinson and others are
pushing the plan because
estimates show passenger
use rising from 36 million
in recent years to nearly 60
million by 2025. The plan is
also required by the FAA
to secure funding.
— Bill Shea
See This Just In, Page 2
JOHN F. MARTIN
Kerry Doman, who started the Web site
After5Detroit.com, says she’s happy
Metromix is coming to the area.
Web sites
to tangle over
young, hip
Detroiters
Metromix challenges
After5Detroit, others
Reaction? ‘You can’t print it,’ owner says
BY AMY LANE
CAPITOL CORRESPONDENT
LANSING — Jerry Grubb, treasurer and coowner of Wee Discover Child Daycare & Learning Center, had expected that Michigan’s switch to a new
tax structure would increase his business taxes.
But not by more than 324 percent.
His reaction when he learned his taxes were
rising from $1,990 under the former Single Business Tax to $8,440 under the new Michigan Business Tax?
“You can’t print it,” said Grubb, who with his
wife owns the 28-employee Waterford Township
business. “I’m not very happy about it. That is an
amount I could have given as raises, used to retain key people with a higher wage rate. It’s certainly going to impact the bottom line.”
The MBT is hitting many companies with unexpected large increases as they run projections
and prepare for their first
quarterly estimated payments
due April 15.
The SBT, a “value-added”
levy designed to reflect total
business activity, used a company’s federal taxable income
as a starting point and then
added various costs, including
employee compensation, interest and royalties, and depreciGrubb
ation. The tax was criticized
for its complexity, for coming due even in years
when a business might lose money, and for
See MBT, Page 27
BY BILL SHEA
CRAIN’S DETROIT BUSINESS
When Kerry Doman started After5Detroit.com two years ago, she modeled it in
part after a popular Web site in Chicago
aimed at showcasing the city’s nightlife.
That was Metromix.com, a site owned
by Chicago-based newspaper giant Tribune Co. Doman worked in the city as an
event planner and used Metromix to
help map out her social life.
It’s her professional life that Metromix may affect when its Detroit-specific
version goes online later this month.
Doman has run After5Detroit full time
since June 2006, and Metromix will target a similar audience.
Both sites offer up-to-date event, entertainment, bar, club and restaurant
information, news and user reviews.
Doman stays politically correct when
asked about the competition.
“We are happy that Metromix is coming,” she said. “I’m certainly familiar
with their Web site. It’s a positive thing
for the city.”
After5Detroit is unique because its
audience is young professionals, she
said, while Metromix is geared toward a
broader young crowd.
“There’s room for both of us in the
city,” Doman said. “We’re connecting
young professionals with one another
and their companies. We have a little bit
tighter niche in that we target young
professionals 25 to 35.”
See Web, Page 28
NEWSPAPER
MBT ‘sticker shock’
surprises business
After the speech, what’s next?
Penske says move
ahead; others seethe
BY ROBERT ANKENY
CRAIN’S DETROIT BUSINESS
Mayor Kwame Kilpatrick’s attack on critics
and the media at the end of his State of the City address last Tuesday left Detroit business leaders
voicing growing concern about whether he can
maintain business as usual in leading the city.
Penske Corp. Chairman Roger Penske, who
worked closely with the mayor when he headed
preparations for Super Bowl XL in 2006, voiced
concern about the storm swirling around Kilpatrick but resolved not to let it distract from ongoing improvement efforts.
“While the current situation is unfortunate, it
has been a great year for Detroit and, as chairman
of the Downtown Detroit Partnership, it’s my role to
help grow the downtown Detroit region,” Penske
said in a statement.
“We have established a lot of positive momentum, and it’s our job to keep that momentum movSee Kwame, Page 29
ASSOCIATED PRESS
Kwame Kilpatrick: On the offensive against critics.
Fantasy sports at the
office: A business
builder? Page 11
CRAIN’S LIST
Largest professional sports
teams, Page 16
DETROIT BUSINESS MAIN 03-17-08 A 2 CDB
3/14/2008
5:47 PM
Page 1
Page 2
THIS JUST IN
■ From Page 1
Miller, Canfield applies
to open office in Shanghai
Miller, Canfield, Paddock and
Stone P.L.C. has filed an application with the Ministry of Justice of
the People’s Republic of China for
approval to open a Shanghai office.
If approved, two American
lawyers will staff the office, starting in the last quarter of 2008,
firm CEO Michael Hartmann said.
Thomas Appleman, a corporate
and securities attorney, will lead
the new office, joined by life sciences attorney Weisun Rao, a Chinese national fluent in Mandarin
and English, who specializes in
patent law and intellectual property.
The office will serve the firm’s
North American and European
clients in sectors such as life sciences, automotive and other manufacturing, Hartmann said.
—Robert Ankeny
Huron Capital Partners to
announce sale of company
Detroit-based Huron Capital Partners L.L.C., Southeast Michigan’s
most active private-equity firm in
2007 with 11 acquisitions and
March 17, 2008
CRAIN’S DETROIT BUSINESS
three divestitures, was expected
to announce today that it has sold
one of its portfolio companies,
Minneapolis-based Northern Cap
Holdings Inc., to Cincinnati-based
Totes-Isotoner Corp.
Huron declined to release specific financial details but said it
doubled its investment. A typical
investment for the firm in 2004
was $10 million.
—Tom Henderson
GlobalHue jettisons airline
After eight years, Southfieldbased multicultural advertising
and marketing agency GlobalHue
last week severed its relationship
with client Fort Worth-based
American Airlines Inc. No reason for
the action was given.
Lloryn Love, GlobalHue’s public
relations manager, said the company would not provide any additional details about the decision,
which took effect March 12. GlobalHue, which began work for the
airline in 2000, was responsible
for American’s brand marketing
initiatives aimed at black fliers.
It’s unclear what the size of the
American Airlines account was
for GlobalHue.
— Bill Shea
Wayne State medical school
announces first round of layoffs
Layoffs will start today at the
Wayne State University School of
Medicine in Detroit.
Some 26 employees, including
faculty physicians, will be given
pink slips, according to WSU officials.
Over the next four to five
weeks, further layoffs will be announced, said Kenneth Lee, WSU’s
associate dean for administration
and finance, in excerpts of a statement to employees that was provided to Crain’s Friday. Through
a spokesperson, he declined to
comment further. The school employs about 1,951 people, including 784 doctors. (See www.crainsdetroit.com for a longer version of
this story.)
— Jay Greene
House, Senate pass film bills
The state House and Senate
have exchanged bills to stimulate
Michigan filmmaking and are
moving toward final action.
Each chamber last week passed
bill packages that contain a mixture of tax rebates, loan incentives, workforce development
credits and other measures to
boost the industry.
The packages are House Bills
5841-5856 and Senate Bills 11681183.
—Amy Lane
State board may set up
business plan competition
The state’s Strategic Economic In-
vestment and Commercialization
Board voted Wednesday to approve a draft proposal to spend
the next round of $30 million from
the 21st Century Jobs Fund on a
business plan competition for existing for-profit companies.
The money is earmarked for
companies that can demonstrate
the ability to create jobs during
the next five years.
There will be a March 26 public
meeting in Lansing, with the
SEIC likely to vote on the proposal at its April 9 meeting. Grants
would be in the form of loans —
straight or convertible to equity.
If the board approves the competition, which was recommended by the Michigan Economic Development Corp., funding will end for
the current Michigan Pre-Seed Capital Fund, a low-cost loan program
for young companies.
The pre-seed fund is administered by Ann Arbor Spark, which expects to finish making loans from
the fund by the end of April.
—Tom Henderson
UAW demands job guarantees
at American Axle
The United Auto Workers is demanding job guarantees from
American Axle & Manufacturing Holdings Inc. to end a three-week-old
strike.
General Motors Corp. has contracted hundreds of millions of
dollars of new business with Detroit-based American Axle. The
union wants those axles and other
parts built in UAW-represented
plants, not in Mexico, said a
source close to the situation.
The UAW demanded similar
commitments to end strikes at
GM and Ford Motor Co. last autumn.
American Axle CEO Richard E.
Dauch is demanding that the
workers agree to cuts that would
halve wages to about $14 an hour.
American Axle supplies axles
for all GM pickups and SUVs built
in North America. The strike has
idled seven GM assembly plants.
— Automotive News
CORRECTION
The Largest Conventions and Events list on Page 14 of the Feb. 11 is-
sue should have ranked the 2008 America @ Work AFL-CIO Union Industries Show at No. 2, with expected attendance of 150,000. The event
will be held May 16-18 at Cobo Center.
A This Just In item on Page 1 of the March 10 edition misidentified
the judge in the civil court case between Jerome-Duncan Inc. founder
Richard Duncan and daughter Gail Duncan. The case was actually
heard by Macomb Circuit Judge David Viviano, the son of Antonio Viviano, who is also a judge at the same court.
DETROIT BUSINESS MAIN 03-17-08 A 3 CDB
3/14/2008
6:03 PM
Page 1
CRAIN’S DETROIT BUSINESS
March 17, 2008
Page 3
Oakland County sues the Blues
Hidden ‘access fees’ have cost it millions, it says
BY CHAD HALCOM
CRAIN’S DETROIT BUSINESS
Oakland County is suing Blue
Cross Blue Shield of Michigan to recover potentially millions of dollars in
fees it says were hidden, in a case
that could set a precedent for other
self-insured employers.
The county brought the lawsuit in
Oakland County Circuit Court in October, claiming it only became aware
of the so-called “access fees” that
have been part of Blues administrative services contracts since the
1990s and has been secretly billed
more than $10 million dating to 2001.
“They were taking in all our patient and administrative charges
and adding in a factor to that charge
for things like its network maintenance and billing us and not explaining that to us,” said Keith Lermini-
aux, Oakland County deputy corporation counsel, who is working on
the case. William Horton, partner in
Troy-based Giarmarco, Mullins & Horton P.C., is co-counsel.
Last week, Oakland County Circuit Judge Daniel O’Brien ruled the
company must pay sanctions and
comply with a document request by
Wednesday in a lawsuit alleging it
has billed Oakland County for mil-
lions of dollars in hidden “access
fees.”
O’Brien also ruled last week the
nonprofit insurer must furnish
records that explain how it calculates the access fees and ordered it to
pay $3,000 in sanctions for procedural delays. The Blues also must supply some accounting information
from Deloitte & Touche USA L.L.P. and
limit the number of documents labeled “confidential.”
See Fees, Page 29
Nonprofits
fume; plan
proposed to
resume grants
BY SHERRI BEGIN
CRAIN’S DETROIT BUSINESS
NATHAN SKID/CRAIN’S DETROIT BUSINESS
James Spear, president of King Coffee Tea Services, expects sales of Mokarabia coffee to more than double.
Brewed to succeed
Mokarabia perks up sales for King Coffee
Spear said he sought a distribution contract with
Mokarabia after losing a contract he had in the U.S.
for coffee from Trieste, Italy-based Illy.
For James Spear, landing a distribution deal with
“We interviewed and tasted 200 coffees out of 800
high-end Italian coffee maker Mokarabia has helped coffees in Italy,” Spear said. “We started out quietly in
him keep his sales perking.
Michigan about three years ago and then
Spear, president of Royal Oak-based
rolled it out in other markets. We are in
King Coffee Tea Services and managing
about 80 cities now.”
partner of Mokarabia USA, began distribMokarabia S.p.A. was established in Miuting Mokarabia coffee in 2005 through On the Grow is a
lan, Italy, in 1950 as a coffee-roasting coma 50-50 joint venture with Scottsdale, feature that will
pany with the aim of creating high-quality
appear in most issues
blends for coffee bars.
Ariz.-based China Mist Tea Co.
highlighting growing
Mokarabia USA distributes coffee to loLast year, U.S. sales of Mokarabia ex- companies, large and
cal restaurants, hotels and gourmet groceeded $1.2 million, Spear said. This year, small. Know of a
cery stores throughout metro Detroit, inhe expects sales to exceed $2.5 million.
company you think
cluding Townsend Hotel, Royal Park Hotel,
King Coffee generated an additional Crain’s should write
Bacco Ristorante, Il Posto Ristorante, the De$2.2 million in 2007 sales. It imports and about? Contact
troit Athletic Club and Holiday Market.
distributes coffee under the King Coffee Managing Editor
Tony Gioutsos, owner of Il Posto in
brand to hotels, restaurants and country Andrew Chapelle at
achapelle@crain.com.
Southfield, said Mokarabia’s coffee is as
clubs and also sells coffee-brewing
good as it gets, and said Spear does a great
equipment.
Spear took over King Coffee from his father, Ernest, job as a vendor.
Nick Becharas, president of Becharas Brothers Coffee
in 1988. But several years ago, he realized he needed
BY BRENT SNAVELY
CRAIN’S DETROIT BUSINESS
OntheGrow
to form a relationship with a premium brand.
See Mokarabia, Page 28
The Detroit Planning and Development
Department thinks it may have found a
way to restore nonprofit eligibility for
Community Development Block Grant
funds.
More than 100 nonprofits were
stunned last week when they were notified by the department that they were
ineligible for the block grants because
they did not meet a new requirement
that more than half of the boards of directors be Detroit residents. The Detroit
City Council passed the requirement last
July by a 9-0 vote.
Organizations that stand to lose funding include Detroit Rescue Mission Ministries, Gleaners Community Food Bank, the
Coalition on Temporary Shelter, Focus:
Hope, the Greening of Detroit, the Detroit
Urban League and Goodwill Industries.
The decision was widely discussed
last week among volunteers and nonprofit executives, who were angry and
worried about the prospect of having to
cut services and possibly make layoffs.
Chad Audi, CEO of the Detroit Rescue
Mission, said he’s nearly to the point of
moving his headquarters elsewhere,
even though services would continue to
be delivered in Detroit.
Rescue Mission employees who live
in Detroit pay about $100,000 in city taxes each year, and nonresident employees pay another $21,000, Audi said. Getting the block grant funds was the only
benefit it received for basing its administrative offices and 30 employees in Detroit.
After cutting its block grant in half to
$100,000 two years ago, the city now is
taking that away and its ability to leverage another $300,000 in federal funds
from the block grant money, Audi said.
“If (the city is) going to keep pressure
on us, then we probably … will start
thinking of moving our headquarters
from the city of Detroit to somewhere
where they will not want us to pay (employee) taxes.”
See Grants, Page 28
CRAIN’S
INDEX
Taking stock: TriMas
loses $158 million for
2007. Page 4.
Small-biz solutions:
Companies get creative
to retain their workers.
Page 21.
Round three: Silverdome
bidders offer seven plans
for the vacant property.
Page 23.
SBAM sets plan:
Entrepreneurial agenda
calls for increased
capital, education and tax
breaks. Page 25.
These organizations appear in this
week’s Crain’s Detroit Business:
ACLU of Michigan . . . . . . . . . . . . . 11
After5Detroit.com . . . . . . . . . . . . . . 1
Amherst Capital Partners L.L.C. . . . 26
Bank of America Corp. . . . . . . . . . 26
Blue Cross Blue Shield . . . . . . . . . . 3
Bodman L.L.P. . . . . . . . . . . . . . . . . 14
Bonanni Enterprises Inc. . . . . . . . . 27
Champion Enterprises . . . . . . . . . . . 4
Detroit City Council . . . . . . . . . . . . . 3
Detroit Free Press . . . . . . . . . . . . . 29
Detroit Media Partnership . . . . . . . 29
Detroit Metropolitan Airport . . . . . . 1
Detroit Pistons . . . . . . . . . . . . . . . 14
Detroit Planning Department . . . . . . 3
Detroit Tigers . . . . . . . . . . . . . . . . 14
Fantasy Sports Trade Association . . 11
Farbman Group . . . . . . . . . . . . . . . 27
Gannett Co. Inc. . . . . . . . . . . . . . . 29
Giarmarco, Mullins & Horton P.C. . . 3
Global Baseball Inc. . . . . . . . . . . . 23
Harley Ellis Deveraux . . . . . . . . . . . 23
Honigman Miller . . . . . . . . . . . . . . 29
Kerry Steel Inc. . . . . . . . . . . . . . . . 26
King Coffee Tea Services . . . . . . . . . 3
Metro Times . . . . . . . . . . . . . . . . . 29
Metromix.com . . . . . . . . . . . . . . . . . 1
Michigan Business and
Professional Association . . . . . . . 21
Michigan Institute of Urology . . . . . 27
MindShare . . . . . . . . . . . . . . . . . . 12
MJC Enterprises Inc. . . . . . . . . . . . 27
Paulus Group Inc. . . . . . . . . . . . . . 12
Real Detroit Weekly . . . . . . . . . . . . 29
Road Commission, Oakland . . . . . . 29
Sam Hodges & Associates L.L.C. . . 27
Silver Stallion . . . . . . . . . . . . . . . . . 2
SBAM . . . . . . . . . . . . . . . . . . . . . . 25
Stuart Frankel Development Co. . . . 23
The Detroit News . . . . . . . . . . . . . . 29
3Sixty Interactive . . . . . . . . . . . . . 21
Tribune Co. . . . . . . . . . . . . . . . . . . . 3
TriMas Corp. . . . . . . . . . . . . . . . . . . 4
United Assurance Co. . . . . . . . . . . 23
University of Michigan . . . . . . . . . . 14
United Way . . . . . . . . . . . . . . . . . . 26
U.S. Hospitality Inc. . . . . . . . . . . . . 23
Walbridge Aldinger . . . . . . . . . . . . 23
Wayne County Airport Authority . . . . 1
BANKRUPTCIES . . . . . . . . . 6
BRIEFLY . . . . . . . . . . . . . 25
BUSINESS DIARY . . . . . . . 19
CALENDAR . . . . . . . . . . . . 20
CAPITOL BRIEFINGS . . . . . . 6
CLASSIFIED ADS . . . . . . . . 22
KEITH CRAIN . . . . . . . . . . . 8
LETTERS . . . . . . . . . . . . . . 8
MARY KRAMER. . . . . . . . . . 9
OPINION . . . . . . . . . . . . . . 8
PEOPLE . . . . . . . . . . . . . . 18
RUMBLINGS . . . . . . . . . . . 30
SMALL BIZ SOLUTIONS . . . 21
WEEK IN REVIEW . . . . . . . 30
DETROIT BUSINESS MAIN 03-17-08 A 4 CDB
3/14/2008
5:23 PM
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Page 4
March 17, 2008
CRAIN’S DETROIT BUSINESS
TAKING STOCK
NEWS ABOUT DETROIT AREA PUBLIC COMPANIES
TriMas loses $158.4M for year;
RV, trailer segments lead losses
BY CHAD HALCOM
CRAIN’S DETROIT BUSINESS
We are pleased to announce
the affiliation of
Steven R. Wujczyk
First Vice President, Investments
with our
Dearborn Branch
330 Town Center Drive | Suite 100
Dearborn, MI 48126
800-962-9531
steven.wujczyk@raymondjames.com
©2008 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC 08-BR35K-0003 EN 3/08
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C
.
n
e
t
Shares slid to their lowest price
yet, and a change of financial strategy may be in the offing, after
Bloomfield Hills-based TriMas Corp.
released earnings for its first year
as a publicly traded company late
last week.
The manufacturer of industrial
and consumer products reported a
loss of $168.9 million or $5.05 per
share on revenue of $237.5 million
for the fourth quarter, from a
$121.9 million loss or $5.87 per
share on revenue of $221.9 million
for the last three months of 2006.
For 2007 as a whole, TriMas lost
$158.4 million or $5.56 a share on
revenue of $1.07 billion, from a loss
of $128.9 million or $6.37 a share on
revenue of $1.01 billion in 2006.
TriMas (NYSE: TRS) went public with an initial public offering
on May 18. Since then its price has
dropped from an initial $11 to $5.63
Thursday afternoon, following the
earnings report, and was $5.66 by
week’s end.
“We will use
our free cash
flow to reduce
debt, we will
take advantage
of small product
line
acquisitions that enhance our future growth but
do not further
Beard
burden our balance sheet,” CEO Grant Beard said
Thursday in a conference call
about his company’s future. “Our
view of 2008 is one of balance.”
The company finished the year
with $657.5 million in total debt,
down $96.6 million from roughly
$754 million when the year began.
TriMas had allocated a substantial portion of its IPO proceeds toward debt retirement in 2007 and
said part of its yearly loss was attributable to “one-time costs and
Champion Enterprises
buys UK company
Troy-based Champion Enterprises
has continued its expansion outside the United States with the acquisition last week of United Kingdom-based ModularUK Building
Systems Ltd., a steel-frame modular
manufacturer.
Champion (NYSE: CHB) acquired the company for a nominal
initial cash payment and the assumption of approximately $4 million of debt, according to a press
release.
In December, Champion acquired Canadian builder SRI
Homes Inc. for $114 (Canadian).
— Daniel Duggan
expenses related to the use of initial public offering proceeds” as
well as an accounting “impairment” of its assets during the year.
“First and foremost, we have to
be prudent. That’s why we want to
focus on organic growth,” Beard
said. “If we were going to deploy
capital (now), it would be in a very
small product line where we get
immediate strategic benefit.”
It’s a slight change of tune from
last summer, when Beard discussed
debt reduction but also mentioned a
“huge market” in both acquisitions
and overseas expansion following
the IPO. Recent changes in the debt
market have caused the company to
think more strategically and focus
its future buys on high-performing
segments that are less driven by
consumer spending, such as aerospace, packaging and the medical
industry, said Sherry Lauderback,
vice president of investor relations
for TriMas.
The company did make two significant acquisition expenses totaling $13.5 million in 2007 — the purchase of Fairborn, Ohio-based
medical-devices maker Dew Technologies Inc. in August and the sale
of a “Fifth Gear” product line from
Quest Technologies to TriMas’ Cequent Towing Products group in
July.
While the company reported
substantial income in medical devices and strong growth in Australia and southeast Asia, it grappled with a 10 percent decline in its
North American market for recreational vehicle accessories and
trailer products during 2007. It anticipates a similar slide in 2008.
Those two segments make up
more than 40 percent of revenue at
TriMas, and analysts expected
them to take a hit this year from
signs of an oncoming recession.
“This is a consumer-led recession, and the consumer is feeling a
pretty tight pinch on his ability to
spend right now,” said Walter Liptak, a CPA in investment research
at Chicago-based Barrington Research Associates Inc., which tracks
TriMas.
“In a company where more than
40 percent of its sales are consumer-driven (in recreational vehicle accessories), it’s a question of
how long the recession lasts and if
the consumer goes back to spending (in this area) right away.”
Liptak has given the stock an
“outperform” rating, which was
unchanged after the earnings report last week.
In addition to the two acquisitions, the company in December
sold part of its California-based NI
Industries, which makes rocket
launchers, and is currently negotiating the sale of real estate connected with that venture this year.
The company reported increased sales in all five of its business segments — packaging systems, energy products, industrial
specialties, RV and trailer products, and recreational accessories
— although the last two saw declining North American sales offset by overseas growth, and most
of the growth was offset by onetime “special items” related to the
IPO and accounting charges.
Chad Halcom: (313) 446-6796,
chalcom@crain.com
STREET TALK
THIS WEEK’S STOCK TOTALS: 25 GAINERS, 27 LOSERS, 3 UNCHANGED
CDB’S TOP PERFORMERS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Community Central Bank Corp.
Dearborn Bancorp Inc.
Credit Acceptance Corp.
Champion Enterprises Inc.
Citizens Republic Bancorp Inc.
TRW Automotive Holdings Corp.
Kelly Services Inc.
Ramco-Gershenson Properties
PSB Group Inc.
TechTeam Global Inc.
CDB’S LOW PERFORMERS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Somanetics Corp.
Clarkston Financial Corp.
Noble Intl. Ltd./United States
General Motors Corp.
Ford Motor Co.
Lear Corp.
ArvinMeritor Inc.
Flagstar Bancorp Inc.
Energy Conversion Devices Inc.
Federal Screw Works
03/14
CLOSE
03/07
CLOSE
PERCENT
CHANGE
$6.39
7.81
16.09
8.97
12.06
23.73
19.19
21.64
8.30
9.39
$5.50
7.04
14.66
8.27
11.29
22.38
18.40
20.85
8.00
9.08
16.18
10.94
9.75
8.46
6.82
6.03
4.29
3.79
3.75
3.41
03/14
CLOSE
03/07
CLOSE
PERCENT
CHANGE
$18.77
7.00
6.57
19.22
5.29
25.11
10.20
5.60
25.77
8.20
$25.14
8.10
7.58
21.96
5.78
27.16
10.93
6.00
27.25
8.60
-25.34
-13.58
-13.33
-12.48
-8.48
-7.55
-6.68
-6.67
-5.43
-4.65
Source: Bloomberg News. From a list of publicly owned companies with headquarters
in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading
at less than $5 are not included.
DBpageAD.qxd
3/7/2008
2:42 PM
Page 1
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200866
DETROIT BUSINESS MAIN 03-17-08 A 6 CDB
3/14/2008
5:24 PM
Page 1
Page 6
March 17, 2008
CRAIN’S DETROIT BUSINESS
State promotion budget could get $60M boost
LANSING — If it heads
take its Pure Michigan
down a fast track in the
campaign national.
Legislature, some $60 mil“The timing is fairly
lion in new funding for
crucial for us,” said
Michigan tourism and
George Zimmermann,
business promotion could
vice president of Travel
bring benefits to the state
Michigan, the tourismas early as summer.
marketing agency for
Bills to provide the
the state. “The big picmoney passed unaniture is that Michigan’s
mously out of a House
best opportunity for atcommittee last week, and
tracting visitors from
tourism officials are hopmore distant places … is
Amy Lane
ing they’ll move rapidly
summer.
through the Legislature, in time
“In order for the money to be
for the state to place a landmark $5 used for the 2008 summer season,
million cable TV buy that would that (national ad) would have to be
Capitol
B r i e fi ng s
on the air the first week of May.
Which means that we would need
the money by the first week of
April, because the agency would
need to make the buy.”
House Bills 5865-5867 make $60
million available for state promotion by refinancing tobacco-settlement bonds. Zimmermann said the
state is looking at spending $40
million for tourism and $20 million
for business marketing over a
span of at least two years.
The money would be on top of
the $10 million the state is already
spending this year on tourism and
$11.35 million designated this year
for business marketing.
Zimmermann said the tourism
money would enable Travel Michigan to reverse reductions it
planned in the wake of an otherwise 24 percent cut in state
tourism funding this year.
Crain’s reported in January that
the state was shaving in-state
tourism promotion and putting
more of its money toward attracting out-of-state visitors because of
the need to re-evaluate priorities
for limited marketing dollars.
Zimmermann said that the new
money would enable the state to
beef up fall and winter promotion,
and this summer the state could do
the cable TV buy and also enter
three new markets: Columbus and
Dayton, Ohio; and St. Louis.
He said that if the money isn’t
approved in time for the national
TV buy, that purchase would need
to wait until 2009.
“If we don’t get that money authorized, the risk is that we would
lose an entire season,” Zimmermann said. “Given what’s going on
with the state’s economy and the
tourism industry … we could all
use a boost.”
New food stamp bill praised
Members of Michigan’s retail
food industry are hailing last
week’s Senate passage of a bill that
would move the state to issuing
food stamps twice each month, instead of once.
The Farmington Hills-based Associated Food & Petroleum Dealers
said Senate Bill 120, sponsored by
Martha Scott, D-Highland Park,
would help grocery stores with inventory and make fresh food more
readily available to food stamp recipients throughout the month.
Retailers say recipients currently spend their stamp allotment early and usually all at once, resulting
in a high demand for groceries early in a month and then a slowdown. Grocers say that causes
problems with staffing, cash flow
and inventory.
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Zoo bill passes Senate
A bill aimed at allowing Wayne,
Oakland and Macomb counties to
form bodies that could support the
Detroit Zoo last week saw rapid
Senate passage.
Senate Bill 1135, sponsored by
Gilda
Jacobs,
D-Huntington
Woods, enables any of the state’s
counties to form individual zoo authorities that, with local voter approval, could levy a tax of up to 0.1
mill on property in the county.
Jonathon Younkman, Jacobs’
legislative director, said even
though the legislation applies to
all counties, it’s targeted toward
making a funding mechanism
available for the Detroit Zoo to secure its future.
Each county authority could
levy a tax for up to 20 years to provide revenue that would go to the
zoo. Participating counties would
receive preferences or benefits for
residents, such as discounted admission and membership fees and
access to educational programs.
Amy Lane: (517) 371-5355,
alane@crain.com
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BANKRUPTCIES
The following businesses filed for
Chapter 7 or 11 protection in U.S.
Bankruptcy Court in Detroit March 713. Under Chapter 11, a company files
for reorganization. Chapter 7 involves
total liquidation.
Sandusky, Ohio
R
NEW FO
2008
Maynard’s Mufflers & Brakes, 1535 Ecorse
Road, Ypsilanti, voluntary Chapter 7. Assets: $6,000; liabilities: $112,066.
Real Estate Solutions Services Inc., 255 E.
Brown St., No. 101, Birmingham, voluntary Chapter 7. Assets and liabilities not
available.
— Compiled by Nancy Kaffer
© 2008 United Parcel Service of America, Inc. UPS, the UPS Brandmark and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.
Avery, Marks-A-Lot, the Crown Cap Design, and all other Avery brands are trademarks of, and used here under license from, Avery Dennison Corporation.
DBpageAD.qxd
3/10/2008
12:15 PM
Page 1
DETROIT BUSINESS MAIN 03-17-08 A 8 CDB
3/14/2008
4:54 PM
Page 1
Page 8
March 17, 2008
CRAIN’S DETROIT BUSINESS
OPINION
Expansion will help
airport and region
his week, the Wayne County Airport Authority will vote
on a $1 billion master plan for Detroit Metropolitan Airport. (See This Just In, Page 1.)
The plan is not without controversy, particularly for proposing a seventh runway that would require some homes and businesses in Romulus to be displaced.
At first blush, displacing homes seems almost, well, un-American. And clearly recent court rulings have made it more difficult
to use condemnation to secure private property.
But some home owners have told local news media they are
actually ready to leave. After all, how many of us would like to
live next door to such a busy air hub? Northwest Airlines alone
has 500 flights per day at Metro.
In the big picture, Metro has what many cities and regions
covet: land to expand. Airports are our new superhighways.
Metro Airport is critical to this region’s long-term economic
strategy, and this plan is a big step to enhance this enviable asset.
T
City Council’s new foolishness
There may be a reason business voices are holding back from
urging Detroit Mayor Kwame Kilpatrick to resign: They could be
holding their collective breath in fear of what may follow.
Consider the latest from Detroit City Council. More than 100
nonprofits recently — and belatedly — learned that council now
requires that nonprofits seeking federal community block grants
from the city must have boards dominated by Detroit residents.
(See story, Page 3.)
Clearly, no one on council has tried to recruit nonprofit board
members lately. It’s tough because people are busy and companies are stretched thin and can’t always spare people for board
work.
Good boards already know they need diversity of all types, including geographic. But most of the affected agencies are regional, offering programs in and outside of Detroit. That matters not
to Councilwoman Barbara Rose Collins. According to the Detroit
Free Press, she defended the rule by saying that the old grantmaking system created a “slave-master mentality” with non-Detroiters deciding how federal dollars will be spent in the city.
“I don’t think community block grants were created to provide jobs and salaries for people who live in the suburbs,” the
Free Press account of Collins’ comments continued. “They were
created to benefit people who live in Detroit.”
Who should tell her that nonprofit board members are volunteers, not paid staff? And wouldn’t the block grant dollars be
spent in the city for city residents?
This policy begs for a legal challenge. We hope a nonprofit alliance will file suit in federal court — and quickly.
LETTERS
Keep mayor’s feet to the fire
Editor:
I read Robert Ankeny’s article
about “Distractions” and the mayor of Detroit. (“Distractions hang
over State of the City speech,”
March 10) It was well-done.
Like so many others, I have
been shocked by the mayor’s antics and his utter disregard for the
city and its people.
The entire career of Kilpatrick as
mayor reminds me of a giant cake.
Somehow the mayor, the City
Council, some of the city lawyers
and the mayor’s friends, like Christine Beatty and Bobby Ferguson
(I’ll bet there are dozens like them),
believe that they have been given a
license to cut up and eat the city
cake as only they see fit. To hell
with the people of Detroit, they say!
They are so brazen that apparently
even the city dust is too much for
the people in Detroit.
I hope that you will keep the
pressure up on the mayor. Somehow we have to get him to resign
Crain’s Detroit Business
welcomes letters to the editor.
All letters will be considered for
publication, provided they are
signed and do not defame
individuals or organizations.
Letters may be edited for length
and clarity.
Write: Editor, Crain’s Detroit
Business, 1155 Gratiot Ave.,
Detroit, MI 48207-2997.
E-mail: cgoodaker@crain.com
and then have that followed by the
resignation of so many of his cityemployed cronies — especially the
lawyers who participated in the
cover-up of the secret settlement.
Donald M. Borsand, O.D.
Southfield
Spend money at home
Editor:
I found it interesting in Crain’s
listing of Largest Construction
Projects (March 10) that the University of Michigan, a publicly fi-
nanced university, finds it necessary to send a chunk of our tax dollars out of state to design some
very nice projects.
In this state’s economic climate,
and with the constant bemoaning
of our young educated youth fleeing our state, wouldn’t it be wise
to encourage my talented colleagues with UM architectural
pedigrees to stay put and create
jobs in the state that helps fund
these projects?
Steve Auger
Principal
Stephen Auger + Associates Architects Inc.
Lake Orion
State needs new
cancer technology
Editor:
Re: “Cancer therapy raises debate over shared technology,”
March 10.
I was a patient at the Harvard
Proton Cyclotron in Boston in 1983
See Letters, Page 9
KEITH CRAIN: The country is catching up with us
Gasoline is heading for $4 a gallon; it’s already closer to that than
$3 in much of the nation.
Economists fear our country is
heading into a recession. Big deal.
We’ve been in a one-state recession
for the last couple of years.
I’m not sure it’s true that misery
loves company, but if it is, we have
plenty of misery to spread around.
I don’t know if our economy is
heading into a recession. What I do
know is that Michigan, particularly Southeast Michigan, has had a
very tough time — but it’s almost
completely due to the
malaise of the Detroit 3
automobile companies.
They are all hurting
badly and, regardless of
what folks say, I sure
don’t see any light at the
end of the tunnel anytime soon.
Right now, the biggest
visible problem we have
is an oversupply of housing all over our region.
It’s not so much a mortgage problem as a jobs problem. Too many
folks have lost their jobs
and can’t afford their
houses. A whole bunch
of them have even left
the state looking for
work in other parts of
the country that seem to
be prospering.
It’s going to be a
tough, long road back
for our area. Anyone
who thinks there is
some silver bullet out
there that’s going to turn things
around overnight is simply wrong.
We’re seeing a basic watershed of
change and it’s going to take a
decade or more before the whole
community ends up right-sized.
We’re going to have to hope that
there are other industries that will
come into Southeast Michigan and
grow their businesses. Whether
it’s health care or computers, they
all are certainly welcome.
We can’t hold our breath hoping
that the Detroit 3 are going
through another cycle and will return to their previous glory. It’s
not going to happen. So we all bet-
ter get used to a different economy.
Pittsburgh used to be the steel capital of the country. Today, it’s rebuilt itself and seems to be doing
quite well.
We have a great base with the
auto industry, but it’s not going to
allow us to survive with just automotive. We have to develop other
industries, and that’s going to take
a lot of hard work and time.
It used to be when the nation
had a cold, Detroit got pneumonia.
Today when Michigan has a cold,
the nation is catching pneumonia.
DETROIT BUSINESS MAIN 03-17-08 A 9 CDB
3/14/2008
11:54 AM
Page 1
CRAIN’S DETROIT BUSINESS
March 17, 2008
Page 9
MARY KRAMER: The mayor, not the media, is the problem
So it has come to this.
Detroit Mayor Kwame Kilpatrick
is reframing his credibility problems so he becomes the victim, not
the creator, of his own crisis.
It was simple, really.
All he had to do was end his
State of the City speech last week
by adopting an indignant, angry
pose, denounce a “lynch mob”
mentality within the news media,
use an ugly racial slur to show
how vicious his attackers are and
refer to vague death threats.
Presto! In his playbook, the story is now about the news media
fanning racist flames in Southeast
Michigan.
I am sure that the
mayor
has
gotten
nasty, vicious and
racist e-mail and letters, probably all or
mostly anonymous.
But public figures are
often accosted by ugly
words. I wonder what
Barack Obama’s or
Hillary Clinton’s e-mail
inbox is like? I can only
imagine what kind of
mail Coleman Young received from know-nothing yahoos.
Most newspapers get their share of
hate mail, too, with nasty words in
capital letters for emphasis.
LETTERS CONTINUED
I can remember the
sting when I learned
that someone was using an ugly genderbased epithet to describe me (Hint: The
word begins with “c”
and ends in “t.”) Another woman, an elected
official, told me to take
it in stride and think of
it as “competent” instead of its awful meaning.
If the mayor thinks the media
here have been unkind and unfair,
perhaps he would like to trade
notes with Eliot Spitzer, who re-
signed as governor of New York on
Wednesday, just three days after
his sex scandal broke.
The Detroit print news media
coverage of the mayor’s problems
has been tame by New York standards. In the scandal that led, in
just THREE days of news coverage, to the resignation of Gov.
Spitzer, just consider these headlines:
New York Post: “HO NO.” “Disgrace: And don’t let the door hit
you on the way out.” “Bully gets
his comeuppance.” “Gov’s gal
identified.” “The gal who laid gov
low.”
New York Daily News: “Spitzer
goes from sex gov to ex gov.” “Mr.
Clean mired in dirt.”
If Kilpatrick is successful in reframing his own mess in racial
terms, it can set the region back
about 40 years. It could also persuade anyone under 30 that they
should flee this region because,
like a weird, political version of
“Groundhog Day,” it’s condemned
to reliving its racially divisive
past.
Mary Kramer is publisher of
Crain's Detroit Business. Her weekly
take on the latest business news airs
at 6:50 a.m. Mondays on the Paul W.
Smith show on WJR AM 760. E-mail
her at mkramer@crain.com.
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Are you a Power Seller? Do you
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14 issue.
If you’re a sales manager, nominate
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Crain’s also is seeking nominations
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We will honor top-notch medical
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Winners are in four categories:
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Health care judges will choose the
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The deadline is May 19. For both
programs, visit
www.crainsdetroit.com/nominate.
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Questions? Contact Jennette
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or Jennifer Dunn at
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DETROIT BUSINESS MAIN 03-17-08 A 11 CDB
3/14/2008
9:59 AM
Page 1
CRAIN’S DETROIT BUSINESS
March 17, 2008
A CONVERSATION WITH
A banner year
Electronic banner ads and
other high-tech marketing
products help professional
and college sports arenas
tap new revenue. Page 14.
Bob
Raymond,
Detroit
Tigers
Page 11
Business of sports
The Detroit Tigers’ season tickets
sales are through the roof as
Opening Day on March 31
approaches. Bob Raymond, the
Tigers’ vice president of marketing
and ticket sales, talked with
reporter Bill Shea about sales.
Where are you at with season ticket
sales? It’s a pretty hectic time for
us. We’ve sold 2.5 million tickets
in advance sales compared to 1.7
million in 2007. That’s 47 percent
better. Before we sell another
ticket, we have 27,044 fans for
every home game.
Are those sales for every game?
Yes. We have a variety of plans.
Is that the most in team history? I
believe so. The high in Comerica
Park was 16,300 pre-sold for every
game, which was the first year
coming out of Tiger Stadium
(2002). We beat that last year with
19,030. It could be an all-time high
even at Tiger Stadium. In 1984, we
had 2.7 million fans, and last year
we went over 3 million.
What tickets are sold out? The
$180 season tickets — a 15-game
plan — those are sold out. The
most expensive full-season ticket
is $4,860 for the first seven rows
from the field. Those are sold out.
All tickets for Opening Day and
nearly all tickets for May 11
against the Yankees are sold out,
too.
What’s left? We have 300 fullseason season tickets left and a
few hundred partial plans of 27and 41-games. There are 215,000
single-game tickets and another
230,000 standing-room-only
tickets available.
Did you raise ticket prices? We
raised the tickets $2 in several
areas, but not all areas. In this
economy, we offer the best value
for the dollar. Last year, we ranked
18th in ticket prices out of 30
teams.
How are corporate suite sales? The
suites are virtually sold out. They
have one half-suite remaining for
the full season. And 90 percent of
300,000 group tickets are spoken
for.
Why more excitement after a year
the team didn’t get to the series?
Obviously, people are very excited
about the product. We saw a
tremendous upswing in sales when
the trade (for all-star third baseman
Miguel Cabrera and starting pitcher
Dontrelle Willis from the Florida
Marlins) happened. We sold
$600,000 worth of season tickets
the next day. I thought we’d seen
the best day we’d see when we
signed Pudge Rodriguez (in
February 2004). We sold $250,000
the next day.
If you know
someone
interesting you
would like
Bill Shea to
interview, call
(313)
446-1626 or
write bshea
@crain.com.
NATHAN SKID/CRAIN’S DETROIT BUSINESS
For Melissa Combs,
fantasy sports have
not only helped her
build relationships
with donors to the
ACLU of Michigan,
but they also were
key to her finding her
husband, Tom, who
is a full-time fantasy
sportswriter in Ann
Arbor. Their son
turns 1 on April 1.
Reality of fantasy
Yes, they’re playing fantasy sports at work,
but is that bad? Some executives bet not
BY BILL SHEA
CRAIN’S DETROIT BUSINESS
W
ith baseball’s Opening Day just
two weeks away, offices
around the country soon will
face a serious dilemma: Trade that Tiger
or type that TPS report?
Fantasy baseball has become an annual staple of American workplaces, and
it’s played — quite often on a few minutes of company time — by executives
and office gofers alike. Fantasy baseball
and other sport fantasy leagues have become a tool used by some business folks
to actually get a leg up in their jobs.
It can be the relationship-builder that
leads to a new contract or simply connects like-minded Detroit sports fiends.
Melissa Combs is one of the 19 million
people estimated to be active in fantasy
sports. The fantasy addict for more than
a decade is in charge of soliciting major
donations for the Detroit-based ACLU of
Michigan.
“I met a donor for the first time at an
event, and we were making small talk
when I discovered that he was in a pretty serious football league,” said Combs,
major gifts officer. “From that point on,
whenever I contacted him for a gift, we
spent two minutes chatting about that
and what the organization was doing
and 20 talking about fantasy sports.”
Combs’ story is similar to others —
FANTASY SPORTS PLAYERS
䡲 19.4 million people play in the U.S.
and Canada.
䡲 34.4 million have played at some
point.
䡲 80 percent play fantasy football.
䡲 30 percent play fantasy baseball.
䡲 86 percent are male.
䡲 63 percent are under age 40.
䡲 51 percent use the Internet every day.
Source: Fantasy Sports Trade Association, Pew
Internet & American Life Project
but few seem to be as immersed in fantasy sports as she is. She even made a winning pick in her love life through fantasy sports.
Her husband Tom is a full-time fantasy sportswriter in Ann Arbor, and she
met him through an online fantasy
sports league. Tom writes mainly about
basketball, football, baseball and hockey
for fantasy sports site rototimes.com, and
he’s a member of several fantasy leagues
made up of industry professionals.
“ESPN randomly merged a hockey
league I joined with a league his good
friends were in,” she said. “They liked
me and asked me to join their hoops
league because they needed a 10th person. That is how I met Tom. We’re now
married and have a son, who will turn 1
on April 1.”
The object of the game
Fantasy sports are games in which
participants assemble teams of professional players, usually online but sometimes on paper, and use the statistics of
those players to earn points.
Leagues are legal, but those who combine sports picks with wagers of money
are venturing into sports gambling.
In the last decade, fantasy sports have
exploded in popularity as the Internet
has made it far simpler to track statistics and manage teams and leagues. According to some trade group and industry publication estimates, fantasy sports
is between a $200 million to $1.5 billion
industry. Fantasy sports services
abound, some free and some not. Bookstores have dozens of fantasy publications, and major corporations such as
General Motors Corp. advertise on fantasy
Web sites.
More than 19 million people actively
play fantasy sports, according to the Fantasy Sports Trade Association, a trade
group representing 120 of the industry’s
major companies. The association estimates that more than 34 million people
have played fantasy sports at some
point.
The numbers are based on an August
2007 study by the association and ParisSee Fantasy, Page 12
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Page 12
March 17, 2008
CRAIN’S DETROIT BUSINESS
FOCUS: BUSINESS OF SPORTS
PARTY PLATTERS
EXECUTIVE BOX LUNCHES
DELIVERED
Y O U R C AT E R I N G S O L U T I O N
JIMMYJOHNS.COM
©2004 JIMMY JOHN’S FRANCHISE, LLC
Fantasy: Sports leagues
managed at the office
■ From Page 11
based Ipsos S.A., a market research
firm.
The association questions another study that estimates how
much productivity is lost by employees spending time on their fantasy football teams while at work.
That number is crunched each
year by Chicago-based outplacement consultant firm Challenger,
Gray & Christmas Inc.
The latest estimate is $275 million to $435 million during football
season. The formula is based on a
midpoint salary estimate of $80,000
for fantasy players, meaning that
10 minutes of company time spent
on fantasy sports equals $6.40.
The study isn’t against fantasy
sports. In fact, it cautions that
“trying to stop workers from managing their fantasy teams from the
office would be futile and may actually backfire in the form of decreased morale.”
Some dismiss the study’s estimate because of its profile of the
average fantasy player earning between $60,000 to $100,000 annually.
“We just write it off as them having fun and getting publicity,” said
Jeff Thomas, president of the Fantasy Sports Trade Association.
He said fantasy sports have benefits for employers.
“It’s a very positive community
feature in the workplace,” he said.
“Does it make it unproductive, or
does it help morale?”
Its conversation-starter qualities make fantasy sports a business booster for some. Consultant
Kenneth Paulus has used fantasy
sports to help land new business.
He owns Grosse Pointe Farmsbased Paulus Group Inc. and manages eight fantasy teams in baseball, football, basketball, hockey
and auto racing.
Networking is a useful tool for
Paulus, and fantasy sports provide
him a common interest with potential clients, he said.
“The ability to talk sports with
just about anyone in any city has
its perks,” he said. “I just landed a
new account with a company down
in Charlotte who happens to represent (NASCAR’s) Ryan Newman
and the No. 12 Alltel car. Without
fantasy NASCAR, I would have no
idea who he was or that he won the
Daytona 500 (last month).
“It’s not as if I rely on it for my
core business strategy. Far from
it,” he said. “But it’s a heck of a lot
of fun and keeps me in the loop
with a topic that connects just
about every American throughout
the U.S.”
Fantasy job?
Scott Brown, director of U.S.
broadcast promotions for the
Dearborn office of MindShare, a media-buying agency, has made fantasy sports part of his job. MindShare counts Ford Motor Co. and
Domino’s Pizza Inc. among its major
clients.
“We’ve had promotions on radio
stations where winners would receive a weekly prize for putting together the best fantasy team of the
BIRTH OF THE FANTASY
While a variety of people over the
years have developed statisticsbased sports games, including
famed Beat Generation author
Jack Kerouac, fantasy sports, as
it’s known today, traces its roots
to a game invented by William
Gamson while he was a professor
at Harvard University in 1960.
Two years later, he brought the
game, called the Baseball
Seminar, to the University of
Michigan, where he spent 20 years
teaching, and the game got noticed
around the country. It’s still played
today by Gamson and a select
handful of others.
“I’d been doing this kind of thing
from childhood on,” said Gamson,
now an adjunct professor of
sociology at Boston College. “It
evolved into its current form while
we were at Michigan.”
Gamson’s game, played by several
professors, was discovered by UM
student (and later editor and
author) Daniel Okrent, who in 1980
invented the more statistically
heavy game called Rotisserie
League Baseball (named for the La
Rôtisserie Française restaurant in
New York City, where Okrent and
friends met to play).
Gamson doesn’t lament — too
much — not patenting his game.
He didn’t initially realize what he
had spawned.
“It’s more just amusing to me,” he
said. “It’s fun, and I’ve had many
interesting conversations and so
forth about it. It’s fun to see how
it’s evolved.”
— Bill Shea
week, either just picking specific
position players or using a salary
cap,” he said, noting that such contests have been done for Burger
King and Ford dealer groups.
He also has a number of fantasy
teams himself, which he said is
helpful in assembling promotions
for clients.
“I would use it more in brainstorming sessions when we are
trying to put together a broadcast
promotion which has contest elements featuring a fantasy sport angle,” he said. “As a player, I can
give them firsthand experience
about how listeners or viewers
would participate in an online fantasy sports contest and what might
entice them into joining.”
Even for those without a business reason for their fantasy
sports fix, many bosses sign off on
the pastime.
Matt Friedman has just a handful of employees at the public-relations agency he and partner Don
Tanner founded last year, Farmington Hills-based Tanner Friedman.
Friedman said he doesn’t mind if
his staff spends a few minutes fiddling with fantasy sports.
“Work-life balance is really important. Take a few minutes during the day to do something you
enjoy,” he said.
Friedman enjoys it; he’s been a
fantasy sports player since the
1980s, when statistics were done by
hand and deals were made by
See Fantasy, Page 13
DETROIT BUSINESS MAIN 03-17-08 A 12,13 CDB
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Page 2
CRAIN’S DETROIT BUSINESS
March 17, 2008
Page 13
FOCUS: BUSINESS OF SPORTS
Fantasy:
Sports at
work
■ From Page 12
phone or through the mail. Today,
it’s all online, and Friedman’s fantasy league includes a co-worker
and a client.
Keeping the game simple is critical, Friedman said. He describes
his league as low-maintenance and
spends only a small amount of
time on his team. “If I have a few
minutes during the workday, I’ll
jump online,” he said.
Friedman also uses fantasy
sports as an ice-breaker with
clients.
“It’s a great way to make an instant connection,” he said.
“There’s an upside there maybe a
nonfan might not even notice.”
The ACLU’s Combs has a simple
philosophy on tinkering with her
fantasy team at work. “As long as
you get your work done, who cares
if you do it?” she said with a laugh.
“It’s the ACLU. They don’t restrict
what we do here.”
Bill Shea: (313) 446-1626,
bshea@crain.com
RULES OF PLAY
Some offices might restrict
company time spent on fantasy
sports, but the law carves out a
niche for the habit. The federal
Unlawful Internet Gambling
Enforcement Act of 2006
specifically exempts fantasy sports
— as long as there’s no waging
involved.
So, joining an online fantasy
league through Yahoo Inc. or
espn.com is legal. Fees for such
“premium content” as expert
analysis and additional statistics
also are legal.
Trouble arises when players create
a pot of money to go to the winner.
That makes it sports gambling,
which is illegal in the U.S. outside
Las Vegas.
That said, the casual office
leagues generally are not the main
priority of law enforcement
agencies, just like NCAA
basketball tournament pools are
almost universally ignored.
Apart from busts of major gambling
rings, there’s scant evidence
investigators spend much time on
fantasy sports leagues. State
officials give the impression they
have bigger fish to fry.
“Typically, local law enforcement is
in the best position to investigate
gambling,” said Matt Frendewey,
communications adviser to
Michigan Attorney General Mike
Cox.
— Bill Shea
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Team Michigan’s inaugural season
on hold; league scrambles for funds
Brand-new helmets, pads and
footballs will remain on the shelf
for Team Michigan after the fledgling All American Football League’s
scramble to find $30 million forced
a one-year delay in the start of the
season.
The
six-team
professional
league said March 6 it needed the
money to fund its inaugural season, and it delayed the start of its
training camps originally set to begin March 12. On Thursday, it
postponed the season until 2009.
Team Michigan, scheduled to
play its five home games beginning April 19 at Ford Field, is believed to have sold fewer than 3,000
tickets for the 65,000-seat stadium.
The money is being refunded.
The league owns and operates
all the teams, and was believed to
be leasing Ford Field for about
$250,000 per game. The AAFL also
has bought some metro Detroit radio time and billboard space to
market the team.
“We are aware of the delay and
prepared to move forward without the AAFL,” said Shavannia
Williams, Ford Field’s director of
marketing and public relations.
She said it’s not yet known what
will become of the lease deal.
The league’s sole investor and
CEO is Marcus Katz, who made
his money starting a series of student loan companies in the 1990s.
He spent $30 million to start the
league but saw the cash he set
aside for the AAFL evaporate as
the
subprime
mortgage crisis
spilled last year
into the student
loan
market.
He’s searching
for
investors
while hailing a
national television broadcast
Katz
deal for the
AAFL — but he won’t reveal the
network.
Single-game tickets ranged from
$13 to $53. The priciest season ticket is $265.
Team Michigan has an office in
Livonia and has a deal to hold a 21day training camp in Wixom. Sixty
players are on the camp roster.
The fate of the players and office
is unclear.
Former University of Michigan
football player Stan Edwards, father of Cleveland Browns’ wide receiver Braylon Edwards, is team
president
Fitz Ollison, the team’s director
of communication, could not be
reached for comment.
Other teams in the league,
which was targeting cities near
major colleges, are Alabama,
Arkansas, Florida, Tennessee and
Texas.
— Bill Shea
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DETROIT BUSINESS MAIN 03-17-08 A 14 CDB
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March 17, 2008
CRAIN’S DETROIT BUSINESS
FOCUS: BUSINESS OF SPORTS
High-tech, niche options change sports marketing
BY LEAH BOYD
SPECIAL TO CRAIN’S DETROIT BUSINESS
In the old days of sports-arena advertising, a static sign was the standard.
Now advertisers have options,
from having an electronic banner
ad to bestowing the company name
and logo on a luxury-suite zone. Detroit venues have an ever-increasing menu of high-tech or niche marketing options.
“The change has been incredible,” said Dan Hauser, executive
vice president of
the Detroit Pistons. “In the last
five years, there
has kind of been
a revolution in
how advertisements are presented.”
Hauser said
much of the
Hauser
change comes
from advertisers’ desire to convey
their messages via the latest technology.
Electronic banner screens that
span arenas have become extremely popular. Of the Pistons’ 500 advertising clients, about 20 of them
each game can promote their products and services on the banner
screen, changing their messages
with little effort.
“It provides them with exclusivity while their signs are up and
dominance in the building versus
being one of many,” Hauser said.
Jay Colvin, a Bodman L.L.P. partner who has been involved in negotiating naming rights and advertis-
ing contracts for Ford Field and the
Detroit Lions, said banner screen advertisements usually aren’t sold a
la carte and depend on the type of
contract sponsors have with a
sports organization.
He said marketing packages
range from hundreds of thousands
of dollars to millions, meaning
sponsors could pay from $2,500 to
$8,000 a game for banner ads. Contracts are negotiated based on the
amount of exposure offered.
During televised Pistons games,
Hauser said, sponsored elements,
such as the player of the game and
polls that pop up on-screen sending
viewers to pistons.com, are incorporated into broadcasts, allowing advertisers a “TiVo proof” way of
reaching viewers, Hauser said.
Marketers in college sports arenas are taking advantage of hightech trends, too. Mark Riordan, assistant athletic director of
marketing and promotions at the
University of Michigan, said the
prevalence of cell phones and
video boards has spurred more interactive promotions at UM’s
sports venues.
During a game, fans might be
asked to send a text message to vote
for a song they’d like to hear at halftime or attempt to answer a trivia
question. The question is posted on
a video board. The promotions all
carry a sponsor’s name.
“We try to make it relevant to the
game,” Riordan said. “More interactive things are nonintrusive because they keep the fans engaged
while keeping products in front of
people.”
The UM athletics Web site,
www.mgoblue.com, is an interactive
tool for advertisers, with sponsored
fan polls, special sections and banner ads. Riordan said the outcome
has been the ability to offer comprehensive packages.
“We provide a combination of
exposure through tickets, signage,
promotions and our Web site,” he
said.
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Naming-rights deals remain a
huge moneymaker for sports teams.
Corporate names on sports arenas
aren’t a new trend: Comerica Park
and Ford Field each carry corporate
names. But the amount of money
companies are willing to pay has
grown tremendously, said Colvin.
“The trend isn’t in the naming,”
he said. “It’s the sheer escalation in
dollars. It’s not just your name on a
building anymore; it gives you access to players, suites, product
placement in the stadium and exclusivity. You’re not going to see a
Chevy sponsorship at Ford Field.”
Colvin said that at the lower end,
corporations pay no less than $5
million to $10 million a year for arena naming rights, with some paying more than $20 million a year.
About 10 or 15 years ago, $1 million
to $1.5 million a year was the norm,
Colvin said.
Steve Harms, vice president of
corporate sales for the Detroit Tigers,
said sponsorships and naming
rights of luxury suites and clubs,
such as the Chevrolet Champion’s
Club at Comerica Park, attract interest because the arrangements
provide visibility to a specific affluent demographic group.
Some sports venues even name
seating sections, something that isn’t done at Comerica Park now but
may be done in the future.
“Sponsors are starting to grab
those too,” Harms said. “Advertisers are looking for the best ways to
reach people, and sports teams are
looking for the best ways to give
them what they want.”
DBpageAD.qxd
2/19/2008
12:19 PM
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March 17, 2008
CRAIN’S DETROIT BUSINESS
CRAIN'S LIST: MICHIGAN'S PROFESSIONAL SPORTS TEAMS Ranked by 2007 attendance
Rank
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
Address
Phone, Web site
Venue
Head coach
Team ownership
2007
Attendance
Detroit Tigers
Jim Leyland
Michael Ilitch
3,047,139
81
88-74
PepsiCo, General Motors, Wal-Mart, Verizon Wireless,
Anheuser-Busch B
Major League Baseball
Detroit Pistons
Flip Saunders
William Davidson
905,116
41
53-29
Chevrolet, Meijer, Rock Financial
National Basketball
Association
Detroit Red Wings
Mike Babcock
Mike and Marian Ilitch
822,706
41
51-17-10
AT&T, Miller Lite, Little Caesars, Allstar Wireless, Health
Alliance Plan, Allstate Insurance, Henry Ford Health
Systems, Big Boy, Blue Cross Blue Shield, Kroger, Motor
City Casino, Comerica, Northwest Airlines
National Hockey League
Detroit Lions
Rod Marinelli
William Clay Ford
528,555
8
7-9
Anheuser-Busch, Comerica, MasterCard, Burger King B
National Football League
West Michigan Whitecaps
Joe DiPastino
Private
377,000
69
83-57
Fifth Third Bank, PepsiCo, Miller Lite, Farm Bureau
Insurance
Minor League Baseball,
Midwest League
Lansing Lugnuts
Clayton McCullough
Professional Sports Marketing
341,746
66
78-61
Lansing Area Credit Union, Farm Bureau Insurance, Auto
Owners Insurance, PepsiCo, Dan Henry Distributing, Meijer
Minor League Baseball,
Midwest League
Great Lakes Loons
Juan Bustabad
Michigan Baseball Foundation, a
501(c)(3) nonprofit organization
324,564
69
57-82
Dow Chemical Co., Dow Corning Corp., Chemical Bank,
Farm Bureau Insurance, MidMichigan Health
Minor League Baseball,
Midwest League
Grand Rapids Griffins
Mike Stothers
Dan DeVos, David Van Andel
274,657
40
37-32
Comcast, Comerica Bank, Davenport University, Douglas J.
Aveda Institute, Fox Motors, Gatorade, GP Sports-Amway
Grand Plaza, Independent Bank, Labatt USA
American Hockey League
Traverse City Beach Bums
Jonathan Cahill
John and Leslye Wuerfel
206,102
51
46-50
PepsiCo, Farm Bureau Insurance, Traverse City State Bank,
Auto Owners Insurance
Frontier League
Professional Baseball
Detroit Shock
Bill Laimbeer
William Davidson
165,738
17
24-10
Meijer, Detroit Medical Center, Big Boy, T&C Federal
Credit Union
Women's National
Basketball Association
Saginaw Spirit
Todd Watson
Dick Garber, Craig Goslin
154,362
34
44-21
Meijer
Ontario Hockey League
Plymouth Whalers
Greg Stefan
Peter Karmanos Jr.
132,000
34
49-14
Compuware Corp., Meijer, Jack Demmer Automotive
Group, Zubor Buick, Telcom Credit Union, Pepsi, Labatt
USA, BD's Mongolian Grill, Hertz
Ontario Hockey League
Kalamazoo Wings
Brian Curran
Bill Johnston
125,894
38
47-23
Burger King, Fifth Third Bank, Little Caesars, National City,
Re/Max of Michigan, MC Sports
International Hockey
League
Muskegon Fury
Bruce Ramsay
Tony Lisman
115,109
38
49-21-6
DTE Energy, Verizon, Next IT
International Hockey
League C
Flint Generals
Peter South, Steve Pronger, and
Jason Muzzatti D
The Perani Group
86,960
38
33-34-9
AmericInn-Flint, Yellow Book
International Hockey
League C
Detroit Ignition
Bob Lilley
Hantz Group
64,800
18
20-14
Hantz Group, The Bittinger Team at Re/Max Classic, Henry
Ford Medical Group
Major Indoor Soccer
League
Kalamazoo Kings
Fran Riordan
Bill Wright, Ed Bernard, Mike
Seelye, Pat Seelye, Joe
Rosenhagen, Scott Hocevar
54,734
48
51-45
National City, Meijer, Coke, Anheuser-Busch
Frontier League
Professional Baseball
Grand Rapids Rampage
Steve Thonn
Dan DeVos
52,392
8
4-12
Huntington, U.S. Army, Centennial Wireless, Comcast, Fox
Motors Group
Arena Football League
Muskegon Thunder
Shane Fairfield
MVP Fortress
15,000
6
4-9
Budweiser, Adams Sports
Continental Indoor
Football League
Kalamazoo Xplosion
Mike Sparks
Mike Johnson, Esteban Rivera,
Mike Trumbell
13,200
6
11-3
The Soccer Zone, Kalamazoo County Visitors and
Convention Bureau, Little Caesars Pizza, Old Burdics Bar
and Grill, Brann's Steakhouse
Continental Indoor
Football League
Battle Creek Knights
Logan Vander Velden
Scott Niecko, James King, Mike
Beck, Mike Lee
12,729
10
14-9
Kellogg's, Keebler, Hungry Howie's Pizza, Budweiser, Bud
Light, Worgess Insurance, Jetco Signs
International Basketball
League
Grand Rapids Flight
David Fox
Mikal Duilio
10,000 E
10
5-18
Kent Beverage, Buiten Insurance, Radisson Hotels, Murpro
Windows & Siding, United States Air Force, Blue Cross Blue
Shield, Afendoulis, Xtreme Performance, Darlene Cress Raymond James, GP Sports
International Basketball
League
Holland Blast
Mike Ahrens
Tom Moore
7,500
NA
10-12
Macatawa Bank, D&W, Grooters Produce, Blue Cross Blue
Shield, Mills Benefit Group
International Basketball
League
2100 Woodward Ave., Detroit 48220
(313) 471-2000; www.tigers.com
Comerica Park
5 Championship Drive, Auburn Hills 48326
(248) 377-0100; www.nba.com/pistons
The Palace of Auburn Hills
600 Civic Center Drive, Detroit 48226
(313) 983-6606; www.detroitredwings.com
Joe Louis Arena
222 Republic Drive, Allen Park 48101
(313) 216-4000; www.detroitlions.com
Ford Field
4500 W. River Drive, Comstock Park 49321
(616) 784-4131; www.whitecapsbaseball.com
Fifth Third Ballpark
505 E. Michigan Ave., Lansing 48912
(517) 485-4500; www.lansinglugnuts.com
Oldsmobile Park
825 E. Main St., Midland 48640
(989) 837-2255; www.loons.com
Dow Diamond
130 W. Fulton, Suite 111, Grand Rapids 49503
(616) 774-4585; www.griffinshockey.com
Van Andel Arena
333 Stadium Drive, Traverse City 49684
(231) 943-0100; www.traversecitybeachbums.com
Wuerfel Park
5 Championship Drive, Auburn Hills 48326
(248) 377-0100; www.wnba.com
The Palace of Auburn Hills
5789 State St., Saginaw 48603
(989) 497-7747; www.saginawspirit.com
Dow Event Center
14900 Beck Road, Plymouth 48170
(734) 453-8400; www.plymouthwhalers.com
Compuware Arena
3600 Vanrick Drive, Kalamazoo 49001
(269) 349-9772; www.wingsstadium.com
Wings Stadium
470 W. Western Ave., Muskegon 49440
(231) 726-3879; www.furyhockey.com
L.C. Walker Arena
3501 Lapeer Road, Flint 48503
(810) 742-9422; www.flintgenerals.com
Perani Arena and Event Center
24901 Northwestern Highway, Suite 710
Southfield 48075
(888) 436-4625; www.detroitignition.com
Compuware Arena
251 Mills St., Kalamazoo 49048
(269) 388-8326; www.kalamazookings.com
Homer Stryker Field
130 W. Fulton, Grand Rapids 49503
(616) 559-1871; www.rampagefootball.com
Van Andel Arena
955 Fourth St., Muskegon 49441
(231) 722-5040; www.muskegonthunder.com
L.C. Walker Arena
18999 U.S. Highway 27 North, Marshall 49068
(866) 975-6331; www.kzooxplosion.com
Wings Stadium
McCamly Place, 50 Capital Ave. SW
Battle Creek 49017
(269) 965-5001; www.bcknights.com
Kellogg Arena
PO Box 1563, Grand Rapids 49501
(616) 824-2255; www.grflight.com
DeltaPlex Arena
P.O. Box 1474, Holland 49422
(616) 836-1618; www.hollandblast.com
Holland Civic Center
2007 Number
of home
2007
games
Wins-Losses-Ties 2007 Major corporate sponsors
Professional league
This list of Michigan's professional sports teams is a compilation of the largest such teams. The following teams are not included because they are in their inaugural season: Port Huron Ice Hawks, IHL; Saginaw Sting, CIFL; and Flint Phantoms, CIFL. It is not a complete
listing but the most comprehensive available.
B From Forbes.com.
C Played in the United Hockey League during the 2006-07 season.
D Interim coaches.
E Team estimate.
LIST RESEARCHED BY ANNE MARKS, JOANNE SCHARICH AND BILL SHEA
DBpageAD.qxd
3/11/2008
11:40 AM
Page 1
Any volunteers? At DTE Energy, you better believe it.
Every year, thousands of DTE Energy employees and retirees volunteer their time to make their communities a better place.
They have our heartfelt thanks. Since thanks just doesn’t seem to be enough, the DTE Energy Foundation honors many of them
with a special award recognizing their contributions and providing grants to the organizations they serve.
The DTE Energy Foundation proudly announces the recipients of the 2007 Walter J. McCarthy Jr. Awards
for Volunteer Leadership and the organizations that benefit from their good work:
ALLEN PARK
Geraldine Downes, Alzheimer’s Disease
and Related Disorders Association
BIG RAPIDS
Lawrence Bourke, National Little Britches
Rodeo Association of Michigan
BYRON CENTER
Laura Brown, Wyoming Public Schools
Educational Foundation
CANTON
Alfred Ciantar, Salem High School
CARLETON
Gary Breitner, Monroe County Library System
Kristine Durkin, St. Patrick’s Church
Virginia Oliver, River Raisin Centre for the Arts
CASS CITY
James Heiser, United Way of Tuscola County
CLAWSON
Joseph Bedford, City of Clawson
CLINTON TWP.
Brian Thomas, Boy Scouts of America Clinton Valley Council
GROSSE POINTE FARMS
Frederick Curto, Student Mentor Partners
GROSSE POINTE PARK
Marsha Ennis, Arts & Scraps
HOWELL
Michael Schlaack, Boy Scouts of America Great Sauk Trail Council
MT. PLEASANT
Daniel Thering, Jacob Michael Davis
Foundation, Inc.
Mark Jubas, Akiva Hebrew Day School Yeshivat Akiva
MUSKEGON
Kenneth Bowlin, Eastside Extravaganza, Inc.
Ray Parker, Amateur Athletic Union of the U.S., Inc.
Keven Carroll, Big Brothers Big Sisters
of the Lakeshore, Inc.
HUNTINGTON WOODS
Roberta Urbani, International Wildlife Refuge
Alliance; City of Detroit Recreation Department;
Community Foundation of Greater Rochester
Laneta Paskel, Muskegon Heat
IDA
Matthew Kirkland, Boy Scouts of America Great Sauk Trail Council
Anne Smith, Grand Rapids Community
College Foundation
INKSTER
Douglas LaRowe, Lymphoma Research Foundation
Thomas Rapson, North Muskegon Public Schools
Tiffany Scott, Muskegon Heat
N. MUSKEGON
Kurt Edenburn, American Cancer Society
Artie Norwood, Community Service Community
Development Corporation
NEWPORT
Cynthia Cody, American Red Cross Monroe County Chapter
KINDE
Stephen Harmon, Greater Huron County United Way
George Teribery, Jefferson Schools Jefferson High School
KINGSLEY
Steve Rawlings, Michigan 4-H Foundation
NORTH STREET
Nancy White, Michigan Elks Association
Dennis White, Michigan Elks Association
DEARBORN
Korin Sharp, Looking for My Sister
LASALLE
Donald Pearce, Mason Consolidated Schools
DETROIT
Leon Burke, Community Service Community
Development Corporation
Cornelia Butler, Wings of Truth Gospel Church
Henrietta Robinson, Leukemia & Lymphoma Society
SPRING LAKE
Vince Duca, West Michigan Society for Protection
and Care of Animals
Janie Duca, West Michigan Society for Protection
and Care of Animals
ST. CLAIR SHORES
Sharon Cloud, Boy Scouts of America Detroit Area Council
Charles Jackson, Boy Scouts of America Detroit Area Council
STERLING HEIGHTS
Shelley Murphy-Wolocko, American Cancer
Society, Inc.
William Schrodt, Boy Scouts of America Clinton Valley Council
TEMPERANCE
Kimberly Harsley, American Heart Association
Barry Thomas, Bedford Public Schools
Dennis Reincke, Mason Consolidated Schools
NOVI
Donald Goshorn, Boy Scouts of America Clinton Valley Council
TRENTON
William Jasman, Trenton Rotary Foundation, Inc.;
St. Timothy’s Church-Trenton Food Pantry
LINCOLN PARK
Daniel Meyers, Trenton Firefighters Charities
Michael Kotyk, Boy Scouts of America Clinton Valley Council
TROY
Satyendra Basu, Troy Community Foundation
LIVONIA
Don Bramlett, Boy Scouts of America Detroit Area Council
Raymond Seidl, Novi High School Band Boosters
Bichitra Pathbhaban, Troy Community Foundation
Karla Hall, Michigan Nonprofit Association;
Motown Historical Museum, Inc.
Jim Cyrulewski, Troy Community Foundation
Donald McSwain, Optimist Club Foundation
of Central Detroit
William Clemens, Livonia Public Schools Stevenson High
OAK PARK
Salim Mumin, Community Service Community
Development Corporation
Leslie Nolan, Detroit Institute for Children
Charlotte Mahoney, YMCA of Metropolitan Detroit
PLEASANT RIDGE
Rajan Telang, Accounting Aid Society
Michael Palchesko, Rebuilding Together
Oakland County, Inc.
Esther Porter, City of River Rouge
Winom Mahoney, Habitat for Humanity
of Monroe County
ROCHESTER HILLS
Ron May, Warren/Conner Development Coalition
Doyle McKay, Boy Scouts of America Detroit Area Council
ROCKWOOD
Stephen Chapman, Boy Scouts of America Detroit Area Council
Mitchell Shamsud-Din, Community Service
Community Development Corporation
DUNDEE
Michael Drummond, Monroe County
Library System
Tim Sampson, American Cancer Society
E. TAWAS
Tim Kolnitys, Tawas Area Schools
ECORSE
Cassandra Marbury, Great Faith Ministries, Inc.
ERIE
William Dempsey, Mason Consolidated Schools
FARMINGTON HILLS
Keith Abbott, Boy Scouts of America Clinton Valley Council
Marc Zupmore, Michigan Roundtable for
Diversity and Inclusion
FLAT ROCK
Bonnie Fitzgerald, American Cancer Society, Inc.
FORT GRATIOT
Terry Hall, Port Huron Scholarship Assistance
Program of St. Clair County
Mark VanderHeuvel, March of Dimes Birth
Defects Foundation
Joseph Robach, Accounting Aid Society
Reed Romain, National Multiple Sclerosis Society
Matthew Shackelford, Friends of the Detroit River
MARYSVILLE
Steven Down, Marysville Viking Regiment
Boosters Club, Inc.
John Goulet, Marysville Viking Regiment
Boosters Club, Inc.
MONROE
Dennis Bergmooser, Pheasants Forever - Monroe
Peter Burkit, Monroe Hockey Association, Inc.
Doug Diroff, Monroe Hockey Association, Inc.
Jeffery Hensley, Monroe Public Schools;
Arthur Lesow Community Center
Rodney Johnson, Monroe County Intermediate
School District
LaToya Billingsley, Cass Tech High School
Alumni Association
Mary Catherine Robinson,
The Parade Company
WATERFORD
Fred Bond, Boy Scouts of America Clinton Valley Council
SALINE
Molly Luempert-Coy, Community Foundation
of Monroe County; March of Dimes; Monroe
County Chamber of Commerce Foundation; Bureau
Foundation; YMCA of Monroe County; Foundation
at Monroe County Community College; Michigan
Duck Hunters Tournament, Inc.; American Red
Cross - Monroe County Chapter; Mercy Memorial
Hospital Corporation; First Step - Western Wayne
County on Domestic Assault
WAYNE
Angela Acosta, Accounting Aid Society
SOUTH ROCKWOOD
Timothy Walsh, Village of South Rockwood
WYOMING
Mary Jo Rozek, Crash’s Landing
SOUTHFIELD
Suzanne Dibble, Detroit Dance Collective
YALE
Raymond Bollaert, Michigan 4-H Foundation
WEIDMAN
Derek Snyder, Chippewa Hills High School
WEST BLOOMFIELD
Anthony Targan, American Lung Association
of Michigan
WYANDOTTE
Thomas Wilson, Female Alumni Athletic Boosters
Linda Schmidt, Monroe County 4-H Council
Myron Smolinski, YMCA of Monroe County
Edward Stehulak, Monroe Public Schools Monroe High School
Niurka Diaz, Down Syndrome Association
of Western Michigan
Kathleen Stiefel, Airport Community Schools
GREENWOOD
David Asselin, Pheasants Forever-St. Clair County
WARREN
Kathleen LeCompte, U.S. Fish and Wildlife Service;
International Wildlife Refuge Alliance
GRAND RAPIDS
Kellee Alcook, Boxer Haven Rescue
GRANDVILLE
Mary Conner, Wyoming Public Schools
Educational Foundation
ROGERS CITY
Dennis Meredith, Little League Baseball, Inc.
Ignatius Fadanelli, American Heart Association
William Terrasi, Foundation at Monroe County
Community College
Nancy Williams, The Education Foundation
of the Monroe Public Schools
Marsha Wilson, Monroe Public Schools Raisinville Elementary School
5 I F 1 P X F S P G :P V S $ P N N V O J U Z e =DTE®
DETROIT BUSINESS MAIN 03-17-08 A 18 CDB
3/14/2008
10:11 AM
Page 18
Page 1
March 17, 2008
CRAIN’S DETROIT BUSINESS
PEOPLE
ARCHITECTURE
World-Class Services in Detroit
Steve Jacobson to
associate principal and senior
vice
president,
HKS Inc., Detroit,
from vice president. Also, John
Avdoulos and Gordon Peck to vice
president, from
associate;
and
Dave Carpenter,
Dan Connelly, Bill
Filip, Paul Fisher,
Bob Miller and
John Pypa to associate, from forum
member.
Initial Public Offerings
Mergers and Acquisitions
SEC compliance
Virtual Data Rooms
eProxy
SEC thought leadership
Jacobson
XBRL
Christy Summers
to
principal,
Beckett & Raeder
Inc., Ann Arbor,
remaining as senior project manager and landAvdoulos
scape architect.
Also, Cynthia Czubko to principal, remaining as marketing director.
perfection
Financial communications delivered
by advanced technology, personal
service and industry insight.
IN THE SPOTLIGHT
Sharyn Johnson has been
promoted to the new position of
COO of the Detroit-based Coalition
on Temporary Shelter. She had
been deputy director of programs.
Johnson earned a bachelor’s
degree in social work from Ohio
University in Athens and an MBA
from the University of Phoenix in
Detroit.
Johnson also sits on the board of
the Wellness Group.
Detroit Receiving Hospital, Detroit.
Danielle Olekszyk to CFO and treasurer, The Skillman Foundation, Detroit,
from controller.
REAL ESTATE
H. Dane Hooks to executive vice president of development, Larson Realty
Group, Bloomfield Hills, from principal, CFO of Interim Consulting Services, Los Angeles.
CONSTRUCTION
Doug Meyers to project manager, The
Dailey Co., Lake Orion, from project
engineer.
CONSULTING
Valerie Kozikowski to managing director, U.S. operations, Pacific Rim Alliance, Ann Arbor and Grand Rapids,
VISIT BOWNE.COM/SERVICES
DEALMAKERS AND COMPLIANCE PROFESSIONALS TURN TO BOWNE FOR SPEED AND ACCURACY AROUND THE WORLD
Bowne Financial Communications
7#ONGRESSs$ETROIT-)s0HONE
from national partner and leader of
the Business Resource Network program, BDO Seidman L.L.P.,Troy.
ENVIRONMENTAL
Glen Schwartz to COO, KCOM Environmental, Detroit, from general manager, EQ Industrial Service Transfer
and Processing Operations, EQ Detroit Inc., Detroit.
Lowry
Smith
John Lowry to vice president, Acquest
Development Inc., Bloomfield Hills,
from project manager. Also, Doug
Smith to vice president, Acquest Realty Advisors Inc., Bloomfield Hills, from
associate.
John Dinsmore to principal, Lee & Associates of Michigan, Brighton, from
T.C. Yih, vice provost for research,
Oakland University, Rochester Hills,
to the advisory board, Octillion Corp.,
Auburn Hills.
associate broker, Friedman Real Estate Group, Farmington Hills. Also,
Guy Scavone II to associate broker,
Novi, from industrial professional,
Signature Associates, Southfield.
Nicole Collier to director of corporate
accounting
and
administration,
MARKETING
Broder & Sachse Real Estate Services
Inc., Birmingham, from corporate ac-
INFO/TECHNOLOGY
Neil
Master to
vice
president
strategic weapons
and tactics director, Fresh Fuel,
Farmington Hills,
from president,
Master Advertising, Detroit.
Scott Werner to
managing partner, Brogan &
Master
Partners Convergence Marketing, Birmingham, from
partner.
countant.
RETAIL
Gary Baker to vice president, information technology delivery services, Borders Group Inc., Ann Arbor, from director, IT transformation services,
AlixPartners L.L.P., Southfield.
SUPPLIERS
John Smail to vice president, North
America commercial group, International Automotive Components Group
North America, Dearborn, from vice
NONPROFITS
president of IAC’s General Motors
commercial unit.
Donna West to senior vice president
and CFO, Visiting Nurse Association of
Southeast Michigan, Oak Park, from
Ruth Shaw, past president and CEO,
controller and finance director, Trinity Health Plans, Farmington Hills.
Tom Friesen to director, The Architectural Salvage Warehouse of Detroit,
Detroit, from volunteer with the organization and owner, The Laundry
Mart, Warren.
Paula Gangopadhyay to director of education, The Henry Ford, Dearborn,
from executive director, the Plymouth
Community Arts Council, Plymouth.
Kappy Pennington
Pennington
to development
manager, Hospice
of Michigan, Detroit, from director of volunteer
services, Arbor
Hospice, Ann Arbor.
Bree Glenn to director of communications, Com-
mon
Ground
Sanctuary, Bloomfield Hills, from pub-
lic relations and marketing manager,
UTILITIES
Duke Power Co., Charlotte, N.C., to
the board of directors, DTE Energy, Detroit.
PEOPLE GUIDELINES
Announcements are limited to
management positions. Nonprofit
and industry group board
appointments can be found at
www.crainsdetroit.com. Send
submissions for People to Joanne
Scharich, Crain’s Detroit Business,
1155 Gratiot Ave., Detroit, MI
48207-2997, or send e-mail to
jscharich@crain.com. Releases
must contain the person’s name,
new title, company, city in which
the person will work, former title,
former company (if not promoted
from within) and former city in
which the person worked. Photos
are welcome, but we cannot
guarantee they will be used.
DETROIT BUSINESS MAIN 03-17-08 A 19 CDB
3/14/2008
10:12 AM
Page 1
CRAIN’S DETROIT BUSINESS
March 17, 2008
Page 19
BUSINESS DIARY
CONTRACTS
MOVES
DeMaria Building Co., Detroit, an-
Rich and Associates, to 26777 North-
nounced it has been hired by the
western Highway, Southfield.
Western Townships Utilities Authority
to complete the $22 million Lower
Rouge Expansion project in Canton
Township, and by Mercy Memorial
Hospital for the $13 million Monroe
Ambulatory Care Center in Monroe.
Meditrina Pharmaceuticals Inc., Ann
Arbor, has completed a global licensing agreement to make, develop and
commercialize products from Wilmington, Del.-based AstraZeneca regarding the use of armotase inhibitors
in combination with estrogen and
progestin to treat endometriosis.
Velcura Therapeutics, an Ann Arbor
biotech company, announced it is to
work with International Discovery
Sourcing Consultants of Chelsea and
former Pfizer scientist Bob Sliskovic
for research into drugs to fight such
bone diseases as multiple myeloma,
metastatic bone disease, rheumatoid
arthritis and osteoporosis.
Chem-Trend, a Howell chemical manufacturer, has selected Rohatynski-Harlow Public Relations, also of Howell,
as its agency of record.
Freedom One Retirement Services,
Clarkston, has been chosen to provide
401(k) consulting services to DPM
Consulting Services Inc., Troy.
VAuto, an Oakbrook Terrace, Ill.based provider of used-car businessand inventory-management systems,
has selected AutoCom Associates,
Bloomfield Hills, as its public-relations agency of record.
Maddalena Design, Birmingham, was
awarded two corporate office design
contracts in New York City and Atlanta for the Birmingham-based turnaround and advisory management
firm Conway MacKenzie & Dunleavy.
GraviKor Inc., Madison Heights, announced a development and licensing
agreement with Detroit-based SpaceForm Inc. to commercialize advanced
vehicle space-frame technology for security and military markets.
Phire Branding Co., an Ann Arborbased design, advertising and brand
consultancy firm, has been named
marketing and branding partner by
Saleen, a Troy performance car manufacturer. Phire also has been named
marketing and branding partner by
MDI Worldwide, a promotional signage and display company based in
Farmington Hills.
R.J. Conlin Marketing and Design,
Ann Arbor, completed work on a nationwide direct marketing campaign
for Hino Motor Sales U.S.A., Bloomfield Hills.
The Agility Group, Grand Rapids, has
selected Western Creative Inc., Redford
Township, to help launch its neural
anti-aging supplement Neurage.
Shazaaam L.L.C., Southfield, was
named public relations agency of
record for TWC Surf and Sport, a
Keego Harbor-based retailer.
GradeCheck Corp., Detroit, has signed
a contract with New York-based Five
Star Basketball to be the exclusive
academic counsel to Five Star student
athletes at its annual summer camps.
Equity, a Columbus, Ohio-based development, construction and property
management company, has retained
the services of Bingham Farms-based
Identity Marketing & Public Relations.
HKO Media, Ann Arbor, has been
hired to provide storytelling and communications services to Albion College and Ozone House of Ann Arbor.
The National Center for Manufacturing Sciences, Ann Arbor, has formed
a three-way partnership with Focus:
HOPE of Detroit and Immersive Engineering of Bloomfield Township to
produce and distribute online training to enhance the skills of student
machinists.
EXPANSIONS
Environmental Quality Co., a Waynebased waste-management company,
announced the opening of a new service center in Baltimore, Md.
NEW PRODUCTS
Motawi Tileworks, Ann Arbor, has introduced Montana de Oro, an art tile
made from a block print by artist
Yoshiko Yamamoto. The tile is part of
Tileworks annual art tile collection
launch. Web site: www.motawi.com.
NEW SERVICES
The Specs Howard School of Broadcast Arts, Southfield, is launching a
one-year program that will offer a
diploma in graphic design.
ReviewWorks, Farmington Hills, now
offers a supplemental PPO plan to its
clients through Three Rivers Provider
Network of San Diego.
Lighthouse Consulting Partners, Troy,
has launched its global outsourcing
learning and development training
program targeting information technology managers and technology organizations embarking on offshore IT
development projects.
STARTUPS
Neuman Anderson P.C., 29100 Northwestern Highway, Suite 260, Southfield, has been formed by Kenneth
Neuman and Leif Anderson. The new
firm specializes in complex commercial litigation law, including commercial contract claims, construction law,
corporate governance, shareholder
and member rights and issues, and
real estate disputes. Telephone: (248)
352-5522.
aeromexico.com
E-IP L.L.C., Bloomfield Hills, is opening a Web portal for the marketing
and licensing of intellectual property
assets. Its Web site is available to universities, research organizations and
large corporations to upload their intellectual property assets. Web site:
www.techtransferonline.com.
The Law Offices of David D. Sprague
P.C. have opened at 29488 Woodward
Ave., Royal Oak. Sprague specializes
in estate planning and corporate, family and real estate law. Telephone:
(248) 310-8880. Web site: www.spraguelawfirm.com.
OTHER
Tradewinds Aviation Inc., Waterford
Township, is changing its name to
Corporate Eagle Management Service
Inc. The company also has decided to
divest its flight training operation, the
Tradewinds Aviation Pilot Center, to
focus solely on providing private
flight services for its members.
DIARY GUIDELINES
Send news releases for Business
Diary to Joanne Scharich, Crain’s
Detroit Business, 1155 Gratiot
Ave., Detroit, MI 48207-2997 or
send e-mail to jscharich@crain.
com. Use any Business Diary item
as a model for your release, and
look for the appropriate category.
Without complete information, your
item will not run. Photos are
welcome, but we cannot guarantee
they will be used.
1 800 237 6639 (aeromex)
Introducing service to Mexico
with emphasis on the word “service.”
Mexico’s largest airline is pleased to announce its new Detroit–Monterrey–Mexico City service,
beginning April 7.
Now you can conduct business in Monterrey and Mexico City with punctual morning flights
that work with your schedule; you can even connect to major gulf and northern cities throughout
Mexico. Also, AeroMexico is the only airline in Mexico that travels to Central America,
South America, Europe, and Asia.
For unsurpassed Mexican hospitality, discover AeroMexico, where all beverages and delicious
meals are complimentary for business and coach passengers.
For more information, contact your travel agent or call us.
DETROIT BUSINESS MAIN 03-17-08 A 20 CDB
3/14/2008
10:12 AM
Page 1
Page 20
March 17, 2008
CRAIN’S DETROIT BUSINESS
CALENDAR
TUESDAY
MARCH 18
Talent: The Fuel of Growth. 11:30 a.m.1:30 p.m. Detroit Economic Club.
Sharon Allen, chairman, Deloitte &
Touche USA L.L.P. Hyatt Regency
Dearborn. $40 members, $50 guests of
members, $75 others. Contact: (313) 9638547.
Lean Principles at Ideal Contracting.
5:30-8:30 p.m. Society of Manufacturing Engineers Chapter One, Engineering Society of Detroit, Macomb Community College, and SME Student
Chapter S071. Greg Sorrentino, vice
president and general manager, Ideal
Contracting. MCC, Warren. Free. Contact: Dan Acciacca, (586) 709-1537.
State of Macomb County Address.
11:30 a.m. Chamber Alliance of Macomb County and Citizens First Bank.
William Crouchman, Macomb County
Board of Commissioners chairman.
Banquet and Events Center at
MacRay Harbor, Harrison Township.
$25 members, $40 others in advance.
At the door: $30 members, $45 others.
Contact: (586) 493-7600.
Women Lawyers Association of Michigan Foundation 2008 Awards Reception. 5:30-7:30 p.m. Denise Ilitch, of
ety of Detroit. Peter Merrill, president
of Construction Dispute Resolution
Services. Detroit Golf Club. $75 members, $95 others. Contact: (248) 3530735, ext. 4112.
Building Character into Your Startup.
5-7 p.m. Ann Arbor Spark. Scott Olson, managing director, entrepre-
ering the Economy. 11:30 a.m.-1 p.m.
The Troy Chamber and Kelly Services. Mary Kramer, publisher of
Crain’s Detroit Business. MSU Management Education Center, Troy. $34
members, $44 others. $5 more day of
event. Contact: Jaimi Tarnow, (248)
641-8151.
Finding Economic
Opportunity in the
Emerging Alternative Energy Sector. 7 p.m. The Mc-
neurial business development, Ann
Arbor Spark. Spark Central, Ann Arbor. $10. Contact: (734) 761-9317.
counsel, Clark Hill P.L.C. Entertainment by the Forumshoppers. St. John
Conference Center, Plymouth. $25.
Contact: (734) 762-7260.
WEDNESDAY
Speedy Solutions to Construction Disputes. 8 a.m.-noon. Engineering Soci-
Shooting the Messenger: Why News
Media Need a New Game Plan for Cov-
MARCH 19
Croce
Manus
Distinguished Business
Lecture Series at
Madonna University. James Croce,
CEO, NextEnergy
Center. Madonna
University, Livo-
nia. Free. Contact: (734) 432-5354.
Sustainable Urbanism in Detroit. Detroit, 5 p.m. Model D, the Detroit
Yacht Club, and the Michigan State
Housing Development Authority. Architect Mark Nickita of the Detroit
firm Archive DS and Robin Boyle,
chair of the geography and urban
planning department at Wayne State
University. Detroit Yacht Club. Free.
Contact: www.modeldmedia.com.
THURSDAY
MARCH 20
Gen Y: We Chose Detroit. 6-8 p.m. After5 L.L.C. and Crain’s Detroit Business. Enjoy an
evening of networking and the
premiere of our
new short panel
series: Gen Y: We
Chose
Detroit,
moderated
by
Crain’s Web-Business Lives Editor
Michelle Darwish.
This panel will
Darwish
showcase three
young entrepreneurs speaking to why and how they
started their businesses in Detroit.
Centaur,
Detroit.
Contact:
after5detroit.com.
MEET NEWSPAPER EXECS AT
POLITICS AND PANCAKES
Connect.
Your business is on your mind all the time. That’s why Huntington business banking comes
with our award-winning Online Banking. With it you can see where your finances stand
anytime and anywhere you happen to be.
“Putting a Face on the D to the
World” is the theme of the first of
the Michigan Chronicle’s Pancakes
and Politics forums Thursday.
The panelists, executives from
three area newspapers, are:
䡲 Kevin Haezebroeck, senior vice
president of operations and
Michigan publisher of The Oakland
Press.
䡲 David Hunke, CEO of the Detroit
Media Partnership.
䡲 Sam Logan, publisher of the
Michigan Chronicle.
The event begins at 7:30 a.m. at
the Detroit Athletic Club. Cost is
$65.
Crain’s Detroit Business is media
sponsor of the forums.
For tickets and more information,
call (877) 979-5500.
— Joanne Scharich
COMING EVENTS
Angels and Venture Capitalists Working Together to Move Michigan Forward. 5:30 p.m. March 26. American
Marketing Association, Detroit chapter. Terry Cross of Windward Associates and Dick Beedon of MacBeedon
Partners. Iroquois Club, Bloomfield
Hills. $35 members, $15 students, $45
guests. Contact: (248) 622-8247.
Hook up with Huntington and stay in better touch with your business.
2007
Michigan Facilities Expo. 8 a.m.-3 p.m.
April 1-2. Engineering Society of Detroit, Metropolitan Detroit Building
Superintendents Association, and other related organizations. Rock Financial Showplace, Novi. Free. Contact:
Sara Vargason, (952) 808-3385.
EXCELLENT
Overall Customer Satisfaction
CALENDAR GUIDELINES
A bank invested in people.®
Find a banking office at huntington.com
1-800-976-1345
Greenwich Associates is a leading worldwide strategic consulting and research firm specializing in financial services. Excellence award selection was based upon the results of the 2007 Business Banking
Study conducted by Greenwich Associates. Banks selected for an award had to have a significantly different percentage of “excellent” ratings than the mean for all banks at a 95% confidence level.
Member FDIC. ,® Huntington® and A bank invested in people® are federally registered service marks of Huntington Bancshares Incorporated. ©2008 Huntington Bancshares Incorporated.
More Calendar items can be found
on the Web at www.crainsdetroit.
com. Please send news releases
for Calendar to Joanne Scharich,
Crain’s Detroit Business, 1155
Gratiot Ave., Detroit, MI 482072997, or e-mail jscharich@
crain.com. You also may submit
Calendar items in the Calendar
section of crainsdetroit.com.
DETROIT BUSINESS MAIN 03-17-08 A 21 CDB
3/14/2008
10:13 AM
Page 1
CRAIN’S DETROIT BUSINESS
March 17, 2008
Page 21
Small businesses get creative to retain workers
With just six employees,
their
employees,
Fenton’s 3Sixty Interactive
workers may find opputs the “small” in small
tions in the smallbusiness.
business world that
The six-year-old interacare absent from the
tive marketing company
corporate world.
can’t compete with corpo“We’re very flexible
rations like Google and
in terms of time,”
Quicken Loans Inc., recently
Keipert said. “We try
named two of the country’s
to be very understand100 best places to work by
ing, whether it’s pickFortune magazine, when it
ing the kids up from
comes to offering employschool or taking the
Nancy Kaffer
ees fringe benefits and
dog to the vet.”
such perks as an in-house chef or a
A small business can also tailor
company gym.
a compensation package in ways
But President Dale Keipert said the big corporations can’t, Bristol
he finds other ways to win workers’ loyalty.
“What we’ve found to be the
greatest success is getting people
to buy into the mission and what
their role is in that,” Keipert said.
“We have staff meetings every
week, and we make sure people understand where sales are at, where
productivity is at … and understand their role in it.”
Retaining employees can be a
challenge when a business can’t offer tangible amenities, but, ultimately, job satisfaction may play a
more prominent role in employee
retention than profit sharing, said
Jennifer Kluge, executive vice president of the Warren-based Michigan
Business and Professional Association.
Small businesses that want to keep
employees must focus on keeping
workers happy, she said.
“The No. 1 reason people feel
satisfied in a job is because they
feel rewarded or like they accomplish something,” she said.
“There’s always the myth that
small businesses can’t compete because of money, but that’s not true,
especially not now.”
The fickle economy, Kluge said,
means that corporate employees
may be frustrated with changes
handed down from on high or fearful of downsizing as big corporations attempt to cut costs.
“Maybe it’s the second time a
big business has had to make a
change and they’ve been caught in
it,” she said. “So a small business
has more security from an employee perspective.”
Small businesses that are family-owned tend to have a long-range
focus that’s appealing to employees, said Neil Bristol, a tax partner
with PricewaterhouseCoopers Private Company Services Detroit
practice.
“I think that’s something that can
be meaningful to a nonfamily member, as opposed to a quarterly result-driven organization,” he said.
Small companies, Kluge said,
should attempt to create a solid
team in which each member is invested in the company’s outcome.
“It’s like a classroom setting —
you can have 500 people or 30; and
when there are 30 employees there
are stronger bonds, and when
there are bonds there is stronger
incentive to work something out,”
Kluge said. “You’ll say ‘Hey, I can’t
pay you what they pay you, but I
can do this — you can see me more
often, you can walk into my office,
you are 30 percent of our workforce, and you will be treated like
30 percent of our workforce.’ ”
Because small-business owners
are more likely to be familiar with
Small
Biz
Solutions
said, offering an employee a choice
of benefits rather than a standard
complement.
Health care benefits may be a
deal-breaker for an employee who’s
deciding to stay or jump ship, but
Kluge says that many small businesses are able to offer employees a
rich array of health care options —
and those that don’t may find the
expense worthwhile.
“If the company is healthy, get
insurance, get life insurance, get
disability, do it as a voluntary program,” she said. “If the employee
wants it, they will take it at their
cost.”
The MBPA, Kluge says, offers
members a Blue Cross Blue Shield of
Michigan group coverage plan.
Inexpensive gestures like providing food or organizing events
can go a long way toward keeping
employees happy, she said.
“There’s one small business that
has Friday barbecues in the summer,” Kluge said. “Every Friday the
president goes out and starts
grilling, and they end the week with
a summer barbecue. Offering free
sodas, free food — these little things
go a long way to create culture.”
Nancy Kaffer: (313) 446-0412,
nkaffer@crain.com
HOW TO KEEP EMPLOYEES
䡲 Offer employees flex time and
other perks that might not be
available in a larger, corporate
setting.
䡲 Offer health care. For some
employees, it’s a deal-breaker.
䡲 The way to an employee’s heart
is through the stomach. Try
inexpensive, thoughtful gestures
such as free food to create a
business culture.
䡲 When you have only 10
employees, every worker matters.
Let them know.
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Page 22
March 17, 2008
CRAIN’S DETROIT BUSINESS
CRAIN’S CLASSIFIED
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Personalized Service:
(313) 446-6068
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ANNOUNCEMENTS &
SERVICES
CRAIN’S REAL ESTATE
3 MONTH LOANS ON WORTHWHILE JEWELRY
Jason Silver
Lew Silver Diamond Brokers
9 Mile at Greenfield
248-559-5323
Been there. Dunitz.
TRAVEL SERVICES
Writing & Production
Marketing Campaigns
Professional Speaking
734 • 330 • 6266
TURN YOUR FREQUENT FLYER MILES INTO CASH
Buying All Airline Miles/Awards/Vouchers.
American Express and all credit card points,
Starwood and hotel points. - Local 800-266-7290
HISTORIC
Apartment
commercial
L/C Terms.
DOWNTOWN RICHMOND - Six unit
all 1 bedroom plus 1,100 sq. ft.
ideal for office or storefront. $249,900.
Call Tom 586-295-9060.
PART TIME CONTROLLER. Make or keep your
business financially profitable at less than half the
cost. marchgroup@comcast.net.
CONSTRUCTION
BUSINESS &
INVESTMENTS
Construction Administrator
Florida - Michigan
Experience with all phases of commercial build-outs,
remodeling and alterations. Estimating, cost controls,
contracts, customer contact.
Part Time, Full Time or Per Diem
Phone: 239.292.2771
Email: e.viazanko@comcast.net
CONSULTANTS
BUSINESSES FOR SALE
BUSINESS FOR SALE-Check Cashing Store established 20+ yrs in S.W. Detroit. Western Union, Utility
Bill Payment Center. Revenue $150K
Call Michael 313.682.7638
1144 ACRES 4 SEASON RESORT & HUNTING
RANCH. Near Gladwin, MI. Riverfront location
w/restaurant, motel, banquet, trophy whitetail hunting.
Turnkey sale. Call Pat @ MI Outdoor 616-862-4838.
Peak Sourcing Strategies, LLC
30 years experience in Asia including product
sourcing, factory verification, and work practices.
Royal Oak, MI. 248-549-6667
DOWNTOWN ROYAL OAK
PRIME OFFICE/RETAIL
AUCTIONS
VIDEOCONFERENCE SERVICES
Complete Videoconference Services
Job Interviews, Legal Depositions, Business Meetings
Convenient Troy Location, 3 Rooms, 1-200 Capacity
Midwest Video 248-583-3632 www.midwestvideo.com
COMMERCIAL PROPERTIES
APARTMENT BUILDINGS
Carol Dunitz,Ph.D.
BUSINESS SERVICES
PAYMENT: All classified ads must be prepaid.
Checks, money order or Crain’s credit approval
accepted. Credit cards accepted.
CLOSING TIMES: Monday 3 p.m.,
one week prior to publication date.
Please call us for holiday closing times.
MISCELLANEOUS
ADVERTISING SERVICES
www.DrCarolDunitz.com
MAIL: Classified Advertising, Crain’s Detroit Business,
1155 Gratiot Ave., Detroit, MI 48207-2997.
Include name, company, address and phone number.
400 sq. ft. – 5,200+ sq. ft.
Commercial Real Estate
Historic Washington Square Plaza
Auction: Tues, Mar 25, 11am
2345 Jarco Dr, Holt, MI
Located in Downtown Royal Oak
Oakland County’s Most Vibrant
Retail – Restaurant – Business Destination
20,063± sf Warehouse
2IÀFH)DFLOLW\
•
•
•
•
•
•
17,119± sf warehouse, climate
controlled, 20+ ft ceiling height.
“VIRIÀFHV.
1,800± sf detached shed.
Open House Dates:
Wednesday, March 12 6-7pm
Thursday, March 20, 1-2pm
Architectural Excellence
Walkable
High-visibility Retail Location
Conference Center
Outdoor Deck
Many Amenities
Chrysos Development & Management Co. (248) 548-9900
FRANCHISE OPPORTUNITIES
TWO MEN AND A TRUCK
Franchise Available
• Metro Detroit & Surrounding Communities
• Turn key operation • Great support Staff
• Terrific opportunity
EVENT TICKETS
PRIME TICKET SERVICE Tigers all locations.
All Events Buy / Sell
www.primeseat.com 248-865-6000
Call Peter
313-724-6683
or tmtone@aol.com
FINANCIAL SERVICES
(517) 676-9800
sheridanauctionservice.com
INDUSTRIAL PROPERTY
INDUSTRIAL PROPERTY
ROSEVILLE - Groesbeck N. of I-696
34,000 sq. ft. bldg., 2400 sq. ft. office,
2 truckwells, $650,000.
LaHood Realty 313-885-5950
FOR LEASE or SUBLEASE
Premier Hi-Tech/Industrial Building
COMMERCIAL PROPERTIES
FOR SALE
EQUIPMENT &
MERCHANDISE
CAPITAL AVAILABLE
If you have an opportunity that requires
funding but does not fit traditional banking parameters - contact us. We do not
fund
normal
start-ups
or
senior/mezzanine debt. Investment size
ranges from $500k to $20 million. Total
committed capital of $100 million. We
have an in-house legal team, can think
"outside of the box" and act quickly.
Please refer to Etccapital.com or contact
ETC Capital, LLC, 46570 Humboldt
Drive, Novi, MI 48377.
MISCELLANEOUS
COMPLETE KITCHENS AVAILABLE
VIKING APPLIANCES
MUST SELL
(248) 568 3077
OFFICE FURNITURE
MUST SELL, OFFICE CLOSED
Desks $99, Chairs $39, Files $49, Partitions $50,
Lateral Files $99, Cubicles, Office Phone Systems
Call (248) 548-6404 or (248) 474-3375.
LEGAL SERVICES - IMMIGRATION
N. Peter Antone
AV-rated Immigration Attorney
Adjunct Professor Immigration Law at MSU
Antone, Casagrande & Adwers, P.C.
31555 W. 14 Mile Road, Suite 100
Farmington Hills, MI 48334
Phone (248) 406-4100, www.antone.com
TELECOMMUNICATIONS
LUCENT . . . AVAYA. . . PARTNER. . .
MAGIX. . . VOIP. . .LEGEND . . .
MERLIN. . .SPIRIT Systems/Parts New/refurbished.
Omnicall Equipment Corp. (248) 848-9282
WE HAVE USED PHONES
Nortel, Lucent, phone systems. Almost any new or
used phone available. Expert installation available.
Call (248)548-6404
Crain’s Detroit Business
Executive Recruiter gets results
Buy One Ad
Get the second at
50% off
*
• Over 83% of Crain’s subscribers read
the classified section
• 96% of our subscribers attended college
• 77% are college graduates**
* • Available on 3 inch or larger ads
• Both ads must be placed on a single consecutive order
• No copy changes
** Erdos & Morgan 2005
Unique 76 acre development
opportunity offering 1,100 feet of
frontage along I-75 at a major exit.
Has 300,000 SF existing building.
Excellent site for a multitude of uses.
Please Contact: Harry Cohn or Greg Hornby
248.324.2000
(313) 446-6068
Bonus
All Classified ads
run on our
Web site
for one month
45,000 sq. ft.
With Rail
83,700
sq. ft.
With 4 Docks
Quality Tenants
Exceptional Value
www.friedmanrealestate.com
SHOPPING CENTER & OFFICE BLDG. FOR SALE
Everett Plaza, Lansing, MI, 62,000 sq. ft. total, good
location, tenant base and income. Call Tom LeBlanc.
DTN Mgmt Co. 517-371-5300
DOWNTOWN FERNDALE MULTI-USE BUILDING
For sale or lease. 4,950 sq. ft. Office/Warehouse,
Retail or Restaurant. Loading dock, private parking.
Call 248-388-3333
RESTAURANT FOR LEASE OKEMOS, MICH
Former restaurant Villegas, 4,031 sq. ft., partially
equipped incl. hoods, Class C license available. Call
Tom LeBlanc, DTN Mgmt. 517-371-5300
Catellus Group, LLC
810-695-7700
Real Estate Advisors - Call us
Planning to
Buy
•
Sell
•
Lease
f multiple Commercial
We’re linked to
Networks and we create results for you
“Incredible deals are being Negotiated”
Call us Now!
from 200 to 2,500 sq. ft.
Shared Reception
Conference Room
Kitchen
Broadband Internet
NOW LEASING
34935 Schoolcraft, Livonia
Erwin Tonch, CCIM
TONCH
Properties
www.tonch.com (734) 522-1200
INDUSTRIAL PROPERTY
FOR LEASE:
Romulus Warehouse, Near I-275 & VanBorn Rd.
20,000 to 60,000 sq. ft. available, 9 truck wells,
Call 248-821-5522
44747 Helm Court • Plymouth, MI
•24,091 SqFt
•Fully Renovated Free Standing Building
•Prestigious Metro West Industrial Park
•Fully Air Conditioned
•Triple Truckwell
•Great Access to All Major Freeways
•Heavy Parking
For More Info Please Contact:
Phil Konopitski
phil.konopitski@freg.com
MADISON HEIGHTS
STEPHENSON HIGHWAY
27,500 sf., distribution bldg. 32’ ceiling,
sprinklered, multiple truck wells, 20’ x
25’ OH truck door, heavy power. Below
market rates. Lease or sale.
248.848.4127
34975 W Twelve Mile Rd
Farmington Hills, MI 48331
www.friedmanrealestate.com
RETAIL SPACE
Call Mel Stern, Broker
248-626-9400
AVAILABLE NOW
Custom Office Suites
Call today for
more information
or to place your ad.
South Genesee’s Premier Warehouse
4,000 to 100,000 sq. ft.
Also 10,000 & 25,000 sq. ft.
Free Standing Bldgs w/truckwells.
1 Mile from Metro Airport
New 6,000 sq. ft. retail space for rent.
Premier location in Mid-Town on Forest
Ave., between Cass and Woodward. Surrounded by residential apartments, lofts
and condominiums on WSU Campus. Excellent for a market or similar business.
Contact 313-577-2313
REA CONSTRUCTION
(734) 946-8730
VACANT LAND
Also Heavy Industrial
Land Available
www.reaconstruction.net
LYON TOWNSHIP/BANK OWNED
12-unit rental townhouse project available.
Get a great deal on this investment opportunity.
Contact Herb Lawson at 248-290-5300 ext. 302
MISCELLANEOUS
Golf Course, 23 Hole, 144 acres including Extra
Land, Club House with pro Shop, and Bar,
Banquet Room and Executive Offices.
Call Tom Hyek & Company 586-726-7616
OFFICE SPACE
Bloomfield Hills "A" Office -- Window office(s)
available in existing law firm suite; optional secretarial
station; includes library/conference room and kitchen;
optional use of internet, fax, copier and scanner 248-645-1450
Milford Village Office Space Available
New Construction, move in immediately, excellent
parking, build out included, walking distance to shops
and restaurants. Suites from 400 sf to 9000 sf
248-343-6487
WAREHOUSE STORAGE SPACE
Heated Storage For Big Boy Toys
Motor Homes, Classic Cars,Industrial Equip.,
Individual Units 700-5000 sq.ft, Oversize
Doors. Located on Van Dyke Fwy Near
31 Mile Rd In Washington Twp.
Call 1-586-336-9999
Turnkey Storage
Advertise your
goods and services in
Crain’s Detroit Business
DETROIT BUSINESS MAIN 03-17-08 A 23 CDB
3/14/2008
10:15 AM
Page 1
CRAIN’S DETROIT BUSINESS
March 17, 2008
CRAIN’S REAL ESTATE
CRAIN’S EXECUTIVE RECRUITER
INDUSTRIAL PROPERTY
ECONOMIC DEVELOPMENT
ALLIANCE OF
ST. CLAIR COUNTY
PUBLISHING
FREE LAND OFFER
Reporter
St. Clair County
Where
Blue
Meets
Green
735 Erie Street, Suite 250
Port Huron, MI. 48060
Phone 877-982-9511 (Toll Free)
Fax: 810-982-9531
www.edascc.com
105 acres fully serviced ɿ Rail Access ɿ 4 mile direct
access to I-94 ɿ 45 minute drive to downtown Detroit ɿ
Sites 2 to 50 acres ɿ Broker protected
Additional Properties & Land for Sale or Lease:
Fully viewable property list on our website www.edascc.com
OFFICE BUILDING
FOR SALE or LEASE
Crain’s Detroit Business has an
immediate opening for a
REPORTER to cover automotive
suppliers and another beat to be
determined. Job requirements
include: Reporting experience in
print and/or Web, and the ability to
think and write fast. To apply for
this position please visit our website
at www.crain.com and search under
the employment section. We thank
you for your interest in Crain
Communications and invite you to
visit our website as positions are
updated regularly.
Crain Communications is an Equal
Opportunity Employer.
LEGAL
46001 Grand River
Novi, MI
46035 Grand River
Novi, MI
•12,552 SqFt Available
•Great Small Building with
Grand River Frontage
•Owner Will Renovate to Suit
•Possible Retail or Industrial
Use
•Adjacent to the Rock
Financial Showplace
•2,000 -13,300 SqFt Available
•Condo Sale Possible
•Possible Retail, Office or
Tech User Space
•Office Built to Suit
•Frontage on Grand River
•Available Fall 2008
248.848.4127
ATTORNEY POSITION
46039 Grand River
Novi , MI
•32,225 SqFt Available
•Great Multi-User Building
•Clear Span Space
•Possible Indoor Activity
Center
•Adjacent to the Rock
Financial Showplace
•Near I-96 Interchanges
For More Info Please Contact:
Phil Konopitski
phil.konopitski@freg.com
34975 W Twelve Mile Rd •Farmington Hills • Michigan • 48331 • www.friedmanrealestate.com
Attorney wanted for small Ann Arbor, Michigan firm specializing in commercial transactions and litigation. Ideal candidate will
have three or more years experience in
transactions with some experience in commercial litigation and commercial transactions primarily aviation related. Experience
in the aviation industry and/or international
law a plus; Competitive salary and benefits
package. Please submit resume to:
Box#10048 CDB
1155 Gratiot Avenue
Detroit, MI 48207
CRAIN’S RESIDENTIAL PROPERTIES
AUCTIONS
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ONLINE REAL
ESTATE AUCTIONS
Bank Orders
335 Properties
29 States
March 14th - 21st
FREE BIDDING
williamsauction.com
800.801.8003
RESIDENTIAL PROPERTY
HOMES FOR RENT - Fraser-New colonial & split level homes approx. 2,100 sq. ft. 4 bedrooms, 2.5 bath,
attached garage, basement, fireplace & a/c.
$2,000.mo. Call 810-499-2300
WATERFRONT PROPERTY
AUCTION
Armada Township, Bruce Township, Metamora, Hartland,
Lapeer, Northville, St. Clair, Washington Township
New Homes and Condos!
Originally priced from
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opening bids from
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A Great Reason to Live in Michigan!
Come home to your new custom home (your plans or
ours). Enjoy water sports and stunning sunsets.
In Brighton at HiltonPointeEstates.com
18597 Steep Hollow Ct, Northville, MI
plus
Page 23
7 Subdivisions
with 273 Homesites
BUY ONE, SOME OR ALL
SATURDAY APRIL 19, 2008
800.747.3342 X806
www.nrc.com/806
In cooperation with Michigan Real Estate Services
3719 Westnedge Ave, Kalamazoo, MI Broker’s Lic.#6505265388
LEGAL
General Counsel
Small MI based commercial construction
company w/business interests in 26 states
East of the Mississippi is looking for an
in-house attorney to handle contracts,
subcontracts & claim resolution. Must be
able to practice in MI and FL & have 5
yrs. exp. in a supervisory/management ca pacity, commercial negotiations, contracts
& litigation. Send resumes and salary his tory to: hr1975@netzero.com.
SALES
SUPERSTARS ONLY 50K to 300K
Don’t even call unless you are an
overachiever and can prove it. Come
build an empire within our fine, progressive company. We are in the
boating industry and don’t hire
backgrounds, we hire top producers.
If you are average you can earn 50K
with us. If you are a star you can
earn 300K plus. Young or old if you
have what it takes we’ll know. Must
have a valid, clear driver’s license
and pass a drug/alcohol screen. Visit
our website for an application
www.LakesideMarine.com
to
be
faxed to 419-798-4089.
FINANCE
ACCOUNTING MANAGER
The Detroit Symphony Orchestra,
one of the nation’s leading orchestras, is
seeking an experienced Accounting Manager to join our Finance team. In this highly visible role, this energetic and motivating
professional will be responsible for the
monthly accounting and financial reporting
process in our fast-paced, results oriented
environment.
Reporting to the Controller, you will be responsible for: Accurate maintenance of financial data and reconcile systems appropriately. Maintain comprehensive technical
and functional knowledge of general ledger
system and all other financial systems used
by DSO. Prepare journal entries, including
all support detail to accurately record financial transactions. Assist with coordination
of internal controls, cash management and
general ledger accounting. Be an active
participant in the preparation and completion of all financial statements, schedules
and analysis as part of the external annual
audit process. Identify and develop process improvements to enhance overall accuracy and efficiency of internal systems and
processes. Function as an internal resource
for all DSO staff at all levels to coordinate
procedures and respond to interdepartmental accounting issues. Develop and maintain all necessary manuals associated with
accounting process at DSO.
REQUIREMENTS
You must have 5+ years of broad accounting experience and a Bachelor’s degree in
accounting/finance or higher. CPA desired, but not required. We are seeking individuals with excellent organizational and
analytical skills; demonstrated ability to
handle
and
resolve
complex
problems/tasks with minimal supervision
and the ability to prioritize and manage
multiple projects and assignments. Additional requirements include strong interpersonal and communication skills and computer proficiency in Microsoft Office Suite, including Excel and Word. Not-for-profit experience is desired, but not required.
For immediate consideration, please e-mail
your resume and cover letter to
jobs@dso.org.
Silverdome
bidders
bring new
proposals
BY DANIEL DUGGAN
CRAIN’S DETROIT BUSINESS
Seven plans for the Pontiac Silverdome have been proposed as
part of the third round of bidding
for the vacant property.
Three of the proposals are new;
however, documents released by
the city of Pontiac indicate two likely won’t qualify. One entity did not
give the $100,000 earnest money,
and the other won’t buy the site.
One group proposes a baseball
league that would pit a team from
every country against one another
— similar to the Olympics — with
each game at the Silverdome.
Called Global Baseball Inc., the operation hopes to draw $30 million per
year in naming rights, said President and CFO Curtis Henderson.
However, his company plans to
lease the facility.
“We don’t want to weaken the
city’s financial structure by buying it,” Henderson said. “We want
to utilize it to build revenue.”
Pontiac has been looking for a
buyer, so the lease plan doesn’t fit
the parameters, according to documents released under a Freedom of
Information Act request.
An affiliate of Uganda-based insurance company United Assurance
Co. has proposed a musical “hall of
fame,” but it did not give the city a
$100,000 deposit, according to city
documents. Local representative
Chuck Marlin did not respond to
two messages requesting comment.
Also new is a proposal by Center
Line-based U.S. Hospitality Inc.,
which would pay $32 million for
the site, contingent on securing a
casino license.
Pontiac-based
developers
Robert and James Slade are still
proposing an Indian casino, and
Bloomfield Hills-based Silver Stallion is planning a horse-racing
track along with a casino.
Allen Park-based developer
Samir Danou resubmitted his proposal for a $91 million indoor water park, a $40 million soccer field,
a $60 million horse track, a $28 million hotel and a $45 million convention center.
He has said the project would go
forward if the horse-racing and
gambling components are not approved by state regulators.
Danou has retained Southfieldbased architecture firm Harley Ellis
Deveraux and Detroit-based construction company Walbridge
Aldinger.
In the latest bidding, Troy-based
Stuart Frankel Development Co. raised
its offer from $9.4 million to $12.3
million with plans for a convention
center, mixed-use office and research park and retail center.
The bidding process started in
2002.
Daniel Duggan: (313) 446-0414;
dduggan@crain.com
DBpageAD.qxd
3/13/2008
8:54 AM
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DETROIT BUSINESS MAIN 03-17-08 A 25 CDB
3/14/2008
4:54 PM
Page 1
CRAIN’S DETROIT BUSINESS
March 17, 2008
Page 25
Small-business agenda: Increase
capital, education, tax breaks
BY NANCY KAFFER
CRAIN’S DETROIT BUSINESS
Increase capital, promote entrepreneurial education and provide tax incentives for startups and
would-be investors — those are among the policy suggestions detailed in the Small Business Association of
Michigan’s entrepreneurial agenda, released today.
The agenda arose naturally from the entrepreneurial scorecard the group has produced for the past five
years, said Todd Anderson, vice president of government relations. The scorecard uses 130 metrics to rate
the state’s small-business climate; and though Michigan has improved, it’s still lagging some states, according to this year’s report.
“As we put the scorecard out, people would say,
‘What do you think we should do?’ ” Anderson said.
“The agenda says, ‘Here’s what we think you should
do.’ ”
The agenda focuses on five main categories:
Increasing capital available to entrepreneurs.
Making entrepreneurial education a higher state
priority.
Getting university research from the lab to the
market.
Using the state’s tax structure as an incentive for
entrepreneurial growth.
Limiting government regulation that’s burdensome to small businesses and getting legislative support of entrepreneurial assistance efforts.
“There isn’t one item that turns our economy
around, but there are a lot of significant things in
there,” Anderson said.
“A part of it is to keep the dialogue alive. … Elected
officials are pro-entrepreneur like they’re anticrime,” but the agenda, he said, is an attempt to create
a pervasive awareness of business needs.
Some agenda recommendations require legislation,
Anderson said. Others, such as an endorsement of a
one-stop entrepreneurial resource Web site proposed
by Gov. Jennifer Granholm in her State of the State
address, only need to be implemented.
One goal of the agenda, Anderson said, is to broaden
the state’s economic-development scope. Business
growth programs such as the 21st Century Jobs Fund, an
initiative aimed at diversifying the state’s economy, focus on four sectors: life sciences, advanced manufacturing, alternative energy and homeland security.
“We think (the strategy is) unnecessarily limiting,” he said. “It almost begs one to look back over a
hundred years ago. Would the state have predicted
automobiles would have become so important? We set
up these programs like the 21st Century Jobs Fund,
but who knows what the next Microsoft is, what the
next automobile is?”
Rather, Anderson said, state investment should
hinge on commercialization and on how many jobs
can be created in the short term.
Also key is entrepreneurial education, he said.
“You clearly can’t make someone have the charisma of a successful entrepreneur any more than you
can give someone musical talent,” he said. “But you
can give them the tools.”
Anderson said that legislators with whom SBAM
has met have been supportive of the agenda.
State Rep. Andy Meisner, D-Ferndale, said the legislative agenda mirrors some bills
he crafted as part of a pro-entrepreneurship legislative package —
some of which he’s already seen
pass the House Commerce Committee, of which he is chair.
Revitalizing the economy, he
said, is the Legislature’s most important work.
“This is a real bootstrap strategy,” Meisner said. “The private secMeisner
tor is disinvesting in Michigan. If
we’re going to turn this economy around, we’ve got to
do it ourselves. We’ve got to repopulate the economy
one business at a time.”
Improving entrepreneurial education, he said,
should include exposing students to the concept in
high school.
Health care figures large on SBAM’s and Meisner’s
horizons. Many workers are reluctant to consider
self-employment because of the daunting cost of private insurance. The agenda proposes a health care tax
credit that would ease some costs for early startup
owners.
The agenda also suggests tax credits for angel investors.
And then there’s money.
The greatest idea in the world isn’t worth much,
Meisner said, if there’s no money to bring it to market, and state-backed funding can help entrepreneurs
who might not be ideal targets for traditional lending.
The agenda, Anderson said, will be distributed to
legislators this week.
Nancy Kaffer: (313) 446-0412, nkaffer@crain.com
Senior Director, Tax
STERIS Corporation, a $1.2B, publicly
traded, global, medical device company
located near Cleveland, Ohio is seeking
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BRIEFLY
NanoBio receives funding
to continue product trials
Ann Arbor-based NanoBio Corp.,
having met the required developmental milestones for its topical
lotions to treat cold sores and nail
fungus, has received the third $10
million installment of an investment of $30 million announced in
2006 by the Washington, D.C.based private-equity firm of
Perseus L.L.C.
Phase II FDA studies of the
treatment for cold sores are complete, while Phase II trials continue on the treatment for nail fungus. The third round from Perseus
will fund Phase III trials, according to Dr. James Baker, founder and
chairman.
— Tom Henderson
Pre-seed fund aids 3 companies
Three more Michigan startups
have received funding from the
Michigan Pre-Seed Capital Fund.
ERT Systems L.L.C. of Ann Arbor,
which tracks the location of firstresponders at emergencies, received a loan of $126,000; Afid Therapeutics Inc. of Lansing, which helps
pharmaceutical companies design
new drugs, got $200,000; and Emiliem Inc. of Kalamazoo, which
makes cancer drugs, got $250,000.
— Tom Henderson
New law lets nonprofits
communicate electronically
Gov. Jennifer Granholm on Feb.
29 signed into law an act that will
allow nonprofits to use electronic
communication for board of directors dealings.
Public Act 9 of 2008 allows nonprofits to use electronic communication such as faxing, e-mail and
Web seminars to provide notice of
meetings to board members, hold
board meetings and hold board
votes, the Michigan Nonprofit Association said in an electronic newsletter sent to its members.
The act also enables nonprofits
to change their bylaws to allow for
electronic communication and
meetings, and amends the Nonprofit Corporation Act, which did
not previously allow those activities, the Lansing-based association
said.
— Sherri Begin
Lions Charities gives $509,000
Detroit Lions Charities said it
awarded nearly $509,000 in grants
in the fiscal year that ended Feb.
29, up from just over $500,000 the
year before. Its total contributions
over the past 18 years are more
than $4.8 million.
Detroit Lions Charities was
founded primarily to support programs that benefit Detroit youth,
administered by nonprofits such
as Think Detroit PAL, Communities in
Schools and the National Football
League/Youth Education Town Boys &
Girls Club in Detroit.
— Sherri Begin
Your next
Client
Boss
Job
Opportunity
Employee
lives here.
Click on www.econclub.org for
upcoming meetings.
DETROIT BUSINESS MAIN 03-17-08 A 26 CDB
3/14/2008
Page 26
5:18 PM
Page 1
March 17, 2008
CRAIN’S DETROIT BUSINESS
Kerry Steel to sell inventory,
close business after 30 years
BY BRENT SNAVELY
CRAIN’S DETROIT BUSINESS
Kerry Steel Inc., once one of the largest steel service
centers in the Midwest, confirmed last week that it
is selling all of its inventory and equipment and is
going out of business.
Kerry Steel, in a statement sent to Crain’s on
Thursday, said it has sustained financial losses and
is in violation of its loan agreements. It plans to liquidate its assets over the next 60 to 90 days.
“Due, in part, to current problems in the capital
markets generally, the company has been unable to
obtain replacement financing without the unanimous consent and financial support of all of its
shareholders,” the company said in its statement.
Kerry Steel bought steel from steel mills and cut it
and treated it for customers ranging from automotive suppliers to construction companies.
Kerry Steel’s lead lender is Bank of America Corp.
Robert Darmanin, vice president and director of
corporate relations for the bank, declined comment.
Kerry Steel “has determined that to maximize value for its secured and unsecured creditors, it must liquidate its inventory, collect its receivables and sell its
remaining assets,” the company said in its statement.
The company met Feb. 27 to brief creditors about
its financial situation and its liquidation plan.
Amherst Capital Partners L.L.C. of Birmingham is
Kerry Steel’s financial adviser, and Honigman Miller
Schwartz and Cohn L.L.P. of Detroit is legal counsel.
“Everyone on the team was committed to working
hard to keeping this out of bankruptcy,” said Scott
Eisenberg, managing partner with Amherst Capital
Partners.
About 60 people attended the meeting for creditors, according to one person who was present. That
person praised Kerry Steel for the way it is handling
its liquidation, but wished to remain anonymous because information at the meeting was confidential.
“I do believe that this is the best solution to maximize recovery for the secured creditors and unsecured creditors,” he said. “To go though a formal
bankruptcy — it would tie up a lot of funds and it
would delay distribution of funds.”
Founded in 1978 by Kerry Nagle, Farmington
Hills-based Kerry Steel suffered from steep sales declines in recent years.
According to its Web site, Kerry Steel enjoyed
sales of more than $800 million in 2004. Sales fell to
$625 million in 2005 and then to $500 million in 2006,
according to Crain’s list of the largest local privately
held companies. Last year, sales were less than $500
million, said CFO Thomas Bonk.
Kerry Steel was likely the victim of the consolidation of the global steel industry, according to one local
steel industry executive who wished to remain anonymous because his company does business with Kerry.
For years, the U.S. steel industry had too many
companies with too many plants producing too
much steel. Prices were low, and many companies
filed for Chapter 11 bankruptcy.
Kerry Steel, according to the executive, frequently purchased excess steel at low prices, processed it,
and then resold it to customers such as automotive
stamping companies.
But Bonk said that’s not true. While Kerry Steel
did buy some excess steel, it also purchased “primary” steel, which is an order of steel manufactured to
specifications requested by Kerry’s customers, as
well as “secondary steel,” which is steel with some
imperfections.
Still, Bonk agreed that consolidation resulted in
fewer mills and higher prices, which hurt Kerry.
“The thing that the company feels bad about is
that there were a lot of good, loyal employees,” Bonk
said. “And that we had to lay them off and close the
company.”
Today, Kerry Steel employs fewer than 100, down
from 185 in 2006.
United Way launches patrols
to find, help the homeless
BY CHAD HALCOM
CRAIN’S DETROIT BUSINESS
Downtown Detroit’s homeless
population will be the customer
base of a new roving patrol of drivers seeking to connect them with
various social service programs.
The United Way for Southeastern
Michigan plans a formal launch of
its 211 On The Go program at the
annual Downtown Detroit Partnership meeting and luncheon today
at the Detroit Marriott.
But a pilot project to quietly
field test the viability of the operation has been in place since October, organizers said. In its first
three months, the service located
and approached 247 homeless people in the city, of which 83 percent,
or 205, accepted help.
“The cars are equipped with
GPS and some industrial-grade
laptops,” said Wanda Brock, director of communications for Detroitbased Strategic Staffing Solutions
Inc., one of the program sponsors.
“Wherever they find a homeless
person, they can assist on the site
with getting a person a state ID,
connect them to a shelter or help
with housing and other needs.”
Like other local United Way
chapters around the country, United Way for Southeastern Michigan
has maintained a local 2-1-1 call
center since late last year as a referral service for residents seeking
groceries or food delivery, mortgage foreclosure assistance, shelter, child care or post-disaster relief.
Brock said Cynthia Pasky,
strategic staffing president and
CEO, who is also a United Way
board member, proposed 211 On
The Go at a Detroit Downtown
Partnership board meeting last
fall because homeless people usually lack phones or addresses to
use the service. Two cars in the
program, driven by United Way social workers John Azoni and Nick
Monterosso, were donated by
Penske Corp. Roger Penske is chairman of the partnership.
Also on Monday, a set of mailboxes donated by United Parcel
Service will become available for
homeless residents on the grounds
of a Detroit Rescue Mission Ministries
site. The agency has recently become a certified commercial mail
recipient in order to provide mailboxes for homeless people in the
211 On The Go program.
Brock and Ann Lang, president
and CEO of the partnership, said
the drivers not only help homeless
people find shelter but also get
them voice mail accounts and
mailing addresses in order to assist employers in contacting them
for jobs, some aid with transportation and rides to local shelters or
community centers.
Some funding for 211 On The Go
has been secured from the Detroitbased McGregor Fund, Compuware
Corp., Charter One Bank, DTE Energy
Co. and United Way, with additional in-kind contributions from
Penske, AT&T, the Michigan secretary of state, UPS and S3. Brock estimates the program needs to
maintain a yearly budget of
$143,000 to remain operational.
Of the 205 homeless people assisted so far, 53 percent were 50
and older, and a majority had a
high school or general equivalency degree, Brock said.
“These usually aren’t the stereotypical images of the drunk, mentally ill or ex-military person who
never got on after the war,” she
said. “A lot of them have some education, or families, some form of
income. But without a phone or address, they disappear and can’t improve their situation.”
Chad Halcom: (313) 446-6796,
chalcom@crain.com.
Urology group adds practice
BY JAY GREENE
CRAIN’S DETROIT BUSINESS
Michigan Institute of Urology, a 27member single specialty group
based in St. Clair Shores, has
agreed in principle to assume the
three-physician Preferred Urology
Consultants in Southfield in a noncash transaction.
Founded in 1991, Preferred Urology includes senior partner Dr.
Michael Lutz, Dr. James Relle and
Dr. Brian Seifman. The group,
which employs 15, also has an office in Rochester Hills.
Already one of the largest independent urology groups in the nation with 220 employees, MIU has
nine offices: in St. Clair Shores,
Utica, Troy, Pontiac, Dearborn,
Clarkston, Commerce Township,
and two in West Bloomfield Township.
“We have known them for some
time and always thought very
highly of them. They share the
same principles of high quality for
our patients as we do,” said Dr.
Alphonse Santino, MIU’s founder,
president and CEO.
In October, Preferred’s Southfield office will close and move to
MIU’s newly renovated West
Bloomfield Township office at the
Beaumont Medical Building, Lutz
said. Renovations on the West
Bloomfield Township clinic will
double its size to about 9,000
square feet, he said.
“We think the future for small
groups is to merge into a larger
practice because it affords us
greater diversity, depth and expertise,” Lutz said.
MIU doctors practice at 16 hospitals, including William Beaumont
Hospital in Royal Oak and several
affiliated with Warren-based St.
John Health and Detroit-based Henry
Ford Health System.
The Preferred Urology doctors
primarily practice at Beaumont’s
Royal Oak and Troy hospitals.
Jay Greene: (313) 446-0325;
jgreene@crain.com
DETROIT BUSINESS MAIN 03-17-08 A 27 CDB
3/14/2008
6:13 PM
Page 1
CRAIN’S DETROIT BUSINESS
March 17, 2008
Page 27
MBT: Biz reacts as quarterly payments take unexpected jump
■ From Page 1
falling disproportionately on man“We want to encourage business
ufacturers.
growth in Michigan and minimize
The MBT includes a base that any negative consequences,” she
has two components: a modified said. But Ladd also said that “for
gross receipts tax of 0.8 percent the most part, businesses are
levied on sales minus purchases of telling us they are still better off
tangible property, and a business- than they were under the SBT.”
income tax of 4.95 percent. The tax
Charlie Owens, NFIB-Michigan
includes credits for in-state busi- director, said the MBT’s impact
ness investment, compensation, varies among businesses. Some
research and development, and a small businesses, for example,
personal-property tax cut of up to benefit from a $350,000 gross-re65 percent for industrial property ceipts threshold below which they
and 23 percent for commercial and don’t have to pay the MBT; the altelecommunicaternative tax caltions firms.
culation equal to
But
there’s
1.8 percent of adalso a nearly 22
justed business inpercent
surcome; and the fact
charge that was
that tax liability on
tacked onto the
gross receipts betax late last year,
tween $350,000 and
which enabled
$700,000 phases in,
the state to reas compared with
place the widely
the SBT.
unpopular tax
“It used to be
on services.
that if you were a
That
surdollar
over
charge adds “in($350,000),
you
Charlie Owens, director,
sult to injury,”
owed the whole
NFIB-Michigan
said John Botax,” Owens said.
nanni, vice presHe said that unident and co-owner of Bonanni En- der the MBT, “the very small do
terprises Inc. and MJC Enterprises OK, the very big do OK. Everybody
Inc., which own five Pet Supplies in between, it’s a mixed bag.”
Plus stores in Macomb County and
When the MBT passed in June,
employ about 120 people.
state officials said that sectors that
His tax bill is going from $26,000 would see an increase include fiunder the SBT to more than nance, insurance, real estate and
$81,900 under the MBT, including a some non-Michigan companies, but
$15,300-plus surcharge.
overall about 75 percent of business“I don’t know where we’re going es in Michigan would pay less.
to come up with the extra money,”
Manufacturers benefit particuBonanni said. “We are cutting larly from personal-property tax
back as much as possible to try to credits against their MBT liability,
make some of it up. But a small
as well as the employment- and inbusiness doesn’t have loads of peovestment-tax credits, said Chuck
ple. You have enough people to sufHadden, vice president of governficiently run your operation.”
ment affairs for the Michigan ManuHe said he may eventually have
facturers
Association.
to raise prices but hasn’t done so
He
said
the personal-property
yet because “things are bad
tax relief, credits and reduced busienough already” for consumers.
“The state has to look at this ness-tax burden were vital “to keep
whole … thing, and come up with a manufacturing here in the state.”
Hadden said he believes that, as a
better idea,” Bonanni said.
He is a member of the Michigan sector, manufacturing will still pay
Business and Professional Associa- a greater share than other sectors,
tion, which is joining with other “but we have less liability under the
groups to seek repeal of the 21.99 MBT than we did under the SBT.”
percent MBT surcharge. Groups
According to a June 2007 Senate
supporting reduction or repeal in- Fiscal Agency analysis, the MBT, as
clude the Michigan Chamber of Com- compared with the SBT, would remerce, the National Federation of In- duce manufacturers’ taxes by
dependent Business-Michigan, the $403.6 million and increase nonDetroit Regional Chamber and the manufacturers’ taxes by $342.3
Michigan Manufacturers Association.
million. Michigan-only firms
Some MBT-related legislation, would see tax increases of $210.5
which has passed the Senate and is million, while multistate firms
in the House, would alter the defin- based outside Michigan would see
ition of gross receipts, make increases of about $125 million.
changes to the income tax base and
Michigan-based
multistate
provisions governing partnerfirms would generally see tax deships, and relax some other recreases of about $434.3 million, the
quirements. Additional Senate legagency said.
islation would allow more
Sam Hodges, owner of Troy taxcompanies to qualify for an alterconsulting
firm Sam Hodges & Assonative tax under the MBT.
Senate Republicans, possibly as ciates L.L.C., said he’s consulted
early as this week, may also intro- with a California-based home
duce legislation that would phase mortgage lender that has offices in
out the surcharge. House Speaker Michigan that will see its MichiAndy Dillon, D-Redford Township, gan tax liability rise from $500,000
has also said he is looking at a re- to more than $2 million.
“This, in effect, would be an induction.
Kristyn Ladd, Senate Republi- centive for them to close down
can associate communications di- shop in Michigan,” he said.
Andy Farbman, president and
rector, said the Senate caucus will
continue to work with businesses CEO of Southfield real estate firm
to address concerns with the new Farbman Group, said one problem
with the MBT is that an investMBT, which took effect Jan. 1.
Under the MBT,
the very small do
OK, the very big do
OK. Everybody in
between, it’s a
mixed bag.
ment tax credit previously available under the SBT is reduced
from a maximum 10 years to two.
In addition, a tax of less than 2
percent under the SBT is now 7
percent including the surcharge,
he said. And a key concern is that
in foreclosures, the general partner is responsible for 100 percent
of the MBT, even if they own only a
small share of the partnership.
“You’re already going under, it
makes it more painful,” Farbman
said. “These are challenging times
here,” and such provisions “hurt
us when we are
already down.”
One
solution
that’s been suggested is to exempt
foreclosures.
Another sector with concerns is the construction
Farbman
industry.
It
thought that a deduction against
gross receipts for building materials such as concrete, steel, and aggregate was going to be part of the
MBT. But state officials are interpreting the law as not allowing the
deduction, a situation industry
members are now hoping to
change through legislation.
“With quarterly filings being
done, this could change a company
from a 40 percent increase from
SBT to MBT, to a 200 percent increase. So it’s significant,” said
Mike Nystrom, vice president of
government and public relations
at the Michigan Infrastructure &
Transportation Association.
Amy Lane: (517) 371-5355,
alane@crain.comp
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DETROIT BUSINESS MAIN 03-17-08 A 28,29 CDB
Page 28
3/14/2008
6:14 PM
Page 1
Grants: Nonprofits fume; will grants resume?
■ From Page 3
Nonprofit applicants submitted proposals collectively seeking $13.4 million
for 2008-09, vying for a pot of block grant
funds expected to total about $5.8 million,
according to the Detroit City Planning Commission.
Some nonprofits were planning to appeal the decision at a City Council meeting Wednesday, but the U.S. Department of
Housing and Urban Development, which disburses the funds, said the requirement
can’t be changed midprocess.
“If you throw out the 51 percent (board
residency) requirement, how do you
know others wouldn’t have applied if that
hadn’t been part of the criteria?” said
Jeanette Harris, director, office of community planning and development for
the HUD office in Detroit.
Those nonprofits would need to be notified that the requirement had been repealed and given a chance to apply for
funding, she said.
The Planning and Development Department, which administers the block
grant program, does not have enough
time to redo the grant proposal and evaluation process, which typically takes several months, before an April 29 deadline
for finalizing its budget, said Thomasina
Tucker, executive manager of financial
and resource management.
But the department plans to offer another option to the Detroit City Council.
“What (we are) proposing is that we
continue with our budget process and we
put in activity categories for funding” for
things such as home repair, public facility rehab and public services, Tucker
said.
Then, if the City Council chooses to
change the residency requirement, requests for proposals from nonprofit agencies could be issued after the budget
process.
The amounts in each category of funding won’t necessarily be based on the proposals that were submitted, Tucker said.
Instead, they would be based on departmental recommendations, which would
take into account the amount of grants
made in each category in the past.
The City Council’s intentions are not
clear. Council President Ken Cockrel did
not return several calls seeking comment, but councilwoman Sheila Cockrel
said she mistakenly voted in favor of the
requirement and believes it should be reviewed.
“I do not believe that the issue for who
provides service should be driven primarily by residency,” she said.
“Local participation on boards is important, but a requirement that puts out
of contention organizations who have for
years provided quality services to Detroit’s neediest is troubling.”
Cockrel said that as part of her review
she plans to compare the list of nonprofits left in contention for the Neighborhood Opportunity Funds block grant
funds to those deemed ineligible by the
new requirement to see if the remaining
nonprofits can meet identified needs.
However, councilwoman Barbara-Rose
Collins told the Detroit Free Press last
week that she saw no need to defend the
council’s decision and said that the idea
that suburban residents are better qualified to judge how money should be spent
in the city reflects a “slave-master mentality.”
Cheryl Johnson, CEO of the Coalition on
Temporary Shelter in Detroit, said she’s
even more worried about the residual effects of Collins’ comments than the block
grant funding the nonprofit is losing.
“We have to call such comments what
they are — racist,” said Johnson, who
said that she lives and works in Detroit.
“If we don’t call them what they are because we’re afraid to
say that really is what
it’s about, we will never deal with the issues,” said Johnson, a
member of New Detroit’s board of directors.
Such comments are
taking steps backwards, she said. “We do
Johnson
realize that in Detroit
we have to have help from everyone …
Ms. Collins does not speak for this
agency, nor for a lot of other people.”
The new requirement for block grant
funding stemmed from criteria included
in grant applications dating back to 1994
that stated an applicant’s board “be representative of the community or neighborhood involved” and that names and
addresses of nonprofit board members
who were residents of Detroit be listed in
the application.
“Regulations from HUD call for greater
participation from the municipalities —
this is what council was trying to do — to
better line up with HUD (regulations,)”
said Marcell Todd, director of Detroit’s
City Planning Commission.
Audi, of the Detroit Rescue Mission,
said the organization has been “trying to
add more Detroit residents, but it’s not always easy.”
“You’ve got to look for specific skills —
board members usually bring awareness
of the organization, financial resources
and connections for us to be able to get
more funding,” he said.
Sherri
Begin:
(313)
446-1694,
sbegin@crain.com
Web: Metromix adds option for Detroiters
■ From Page 1
Metromix targets men and women 18 to
35.
While saying nice things about Metromix, Doman has been trying to carve a
deeper niche in Detroit that could insulate her against competition. She’s
adding events geared toward young professionals such as a monthly short panel
and networking event co-sponsored by
Crain’s Detroit Business, which begins
Wednesday.
Doman declined to reveal her revenue.
The site generates money from banner
advertising from companies such as MGM
Grand Detroit Casino, Wayne State University
and Hard Rock Café.
While Doman believes there’s enough
advertising revenue available to support
her site and Metromix, she’d be amenable
to selling if it had an offer. “Certainly
we’d consider sitting down with them
and opening a discussion,” she said.
Others are skeptical about Metromix’s
potential impact locally.
“In this market, where there seems to
be shrinking budgets, I see them having a
ways to go. I don’t see them having a slam
dunk,” said John Badanjek, publisher of
Ferndale-based Real Detroit Weekly, an alternative entertainment newspaper.
“There are a lot of exceptional Web sites
here already. What are they going to do
that’s so new and unique and different?”
Metro Times, Detroit’s other major alternative entertainment weekly, has a
wait-and-see attitude about Metromix,
said its editor, W. Kim Heron. The paper
has no plans to do anything different online or in print for now.
March 17, 2008
CRAIN’S DETROIT BUSINESS
“You look left, look right, but move
ahead with your own plan,” he said. “It’s
a competitive environment.”
Metromix will rely on the financial
might of its backers and the creation of
the market’s deepest database, along with
professional and user-generated content,
to separate itself from other sites, said
Kara Walsh, CEO of Metromix L.L.C., the
new joint venture rolling the sites out to
new cities.
“Metromix will have a very comprehensive database of local bars, clubs,
restaurants and more,” Walsh said.
In October, Tribune Co. and Gannett
Co. Inc., parent of the Detroit Free Press,
established a partnership to expand the
Metromix network to 25 of the nation’s
top 30 markets by the end of the year. It’s
already in 10 cities with Tribune-owned
newspapers, including Los Angeles, New
York and Baltimore.
Detroit will be the first city to get a
Metromix site under the partnership.
Minneapolis and Denver will follow in
April and May.
Gannett and Tribune are equal partners in Metromix L.L.C., based in Chicago, where the original Metromix site was
launched in 1997. Tara Connell, Gannett’s
vice president of corporate communications, declined to say how much the company was investing in Metromix.
The network of sites claims 1.6 million
unique visitors per month and a database
that includes 10,000 restaurants, 3,000
bars and clubs, 20,000 destinations and
5,000 current events. It also has 45,000
user-generated reviews.
The Los Angeles Metromix operation
recently added a print version. The sites
in other cities are typically tied into established newspaper entertainment supplements.
In Detroit, Metromix and the Free
Press’ Thursday weekly “Play” are expected to share content, said Janet Hasson, senior vice president of circulation
and audience development for the Gannett-dominated Detroit Media Partnership, which oversees joint advertising
and business operations for the Free
Press and The Detroit News.
Detroit Metromix’s revenue model is
based on local and national Web site advertising and co-sponsorship of local
events, she said. Ten staffers are in place
to launch the site, and the Free Press is
providing in-kind support while Gannett
is responsible for marketing.
A specific site launch date isn’t being
made public to guard against technical
delays, Hasson said. Once it does go live,
a launch party in April or May will celebrate Detroit Metromix’s birth, but Hasson declined to reveal details.
Lou Szura moved back to Detroit last
month to take a job with a Troy law firm
after five years in Chicago, where he and
his wife were regular Metromix users.
They plan to use the Detroit version, too.
“We’d refer to Metromix every week to
see what’s going on that weekend. It had
a great interface. It was easy to cruise
around,” he said. “In Detroit, there hasn’t
been anything close that I know of.”
Bill
Shea:
(313)
446-1626,
bshea@crain.com
COFFEE COMPANY FACTS
Who: James Spear
What: President of Royal Oak-based King Coffee
Tea Services, partner in a joint venture with
Mokarabia USA.
King Coffee details:
Founded in 1911.
Purchased by
Spear family in
1954.
Distributes coffee
and tea to corporate
and commercial
customers.
Mokarabia USA:
A 50-50 joint venture formed in 2005 by Spear
and Scottsdale, Ariz.-based China Mist Tea Co.
Wholesale distributor of coffee in the U.S. for
Mokarabia S.p.A., a gourmet, Italian coffee, to
restaurants, hotels and grocery stores.
— Brent Snavely
Mokarabia:
Specialty coffee
perks up sales
■ From Page 3
Co., said Mokarabia is a true premium-quality
Italian coffee and gives Spear credit for bringing
the brand to the U.S. and building a strong client
list.
“I just think with Starbucks kind of being people’s only alternative these days, Mokarabia
brings another product into the mix,” Becharas
said. “I think he has some potential on a national
basis to offer the hotels … another alternative.”
Highland Park-based Becharas Brothers, with
annual sales of about $8 million, roasts coffee for
King Coffee and also competes with King Coffee
for similar corporate, hospitality and restaurant
customers.
Becharas said the biggest challenge facing the
coffee industry today is the rapidly rising price of
green coffee, which has gone from $1.25 per pound
to $1.75 per pound in three weeks.
“It is a concern, and we are watching it closely,” Spear said.
Still, Spear said the price spike only translates
into about a penny per cup for hotels and restaurants that buy his coffee.
Spear recently helped Holiday Market in Royal
Oak set up the first Mokarabia coffee bar in the
United States.
Holiday Market, which just completed a $4 million expansion of its Royal Oak store, opened the
Mokarabia coffee bar Feb. 1.
Holiday Market owner Tom Violante Jr. said
he interviewed several coffee companies, including Starbucks, before settling on Mokarabia.
“One, the coffee is fantastic. Two, the support
has been phenomenal,” Violante said. “It was
promised up-front, and they over-delivered.”
The coffee bar is owned and operated by Holiday Market, while all the products are purchased
from Mokarabia USA.
Bob Goldin, executive vice president of Chicago-based food consulting firm Technomic Inc., said
he isn’t convinced that coffee shops or restaurants inside grocery stores help boost traffic.
“I have never seen any evidence that a coffee
store leads you to shop at one grocery store over
another,” Goldin said.
But Spear says that even with the thousands of
Starbucks and other coffee shops blanketing the
U.S., he sees additional market potential for coffee sales.
In Italy, Spear said, there are 200,000 coffee
bars. Mokarabia, either through dedicated stores
or as a vendor, has a presence in about 20,000 of
those shops.
And Violante said Holiday Market, at 1203 S.
Main St., is drawing additional customers because of the coffee bar.
“As they realize they can park and get a cup of
coffee in downtown Royal Oak on the way to
work, our sales are increasing,” Violante said.
Brent
Snavely:
(313)
446-0405;
bsnavely@crain.com
DETROIT BUSINESS MAIN 03-17-08 A 28,29 CDB
3/14/2008
5:49 PM
Page 2
CRAIN’S DETROIT BUSINESS
March 17, 2008
Page 29
Fees: Oakland County files suit against the Blues
■ From Page 3
“We have provided responses with all of
their requests. We did provide (the county)
with a formula, and an explanation (for it),”
said Blue Cross assistant general counsel Leo
Nouhan. “They don’t feel it’s sufficient. But I
am willing to try to supplement it.”
Oakland County has had an administrative
services contract with the Blues for 20 years to
oversee hospital and health benefit claims for
its roughly 4,000 employees. The county believes the fee was added to employee claims
that were then processed by the Blues. It wants
a full accounting of how the access fees were
computed in its bills and possible reimbursement of fees it paid without its knowledge or
consent.
The case has since spawned another lawsuit
in January in Oakland Circuit Court filed by
the Road Commission for Oakland County, which
Nouhan also is defending. That case involves
similar concerns about access fees but is smaller in scope since the road commission has fewer than 900 employees.
“There are no secret fees in (the county’s)
contract with us,” said Helen Stojic, public-relations director for Blue Cross, who called the
lawsuit claims “outlandish” last week. “The
fees were disclosed, and the county was also
aware of the fees through other communications and acknowledged them.”
Stojic also said the “fee or contract is not unusual” for self-insured employers who have administrative services agreements with Blue
Cross, but she was not aware of anyone else
who has gone to court about it.
Blue Cross has had a master service contract
since 1988 and originally billed an all-inclusive
administrative fee for employee claims, but it
began decoupling the administrative fee in 1993
from a separate access fee that covered a
provider network maintenance fee and a subsidy to offset other coverage plans where the
Blues were losing money, Lerminiaux and
court records state.
Those details were not a part of the county’s
contract language until Blue Cross in late 2006
proposed putting a rider into the 2007 contract
regarding the fees. When the county inquired
about the new language, the lawsuit claims, the
insurer said it had been charging such fees for
years. For the year 2007 alone, the company expected to collect $1.7 million in access fees for
its administrative services contract with the
county.
“(The county) was surprised to learn it was
paying an undisclosed and hidden (yearly) fee
of $1.7 million to (the Blues) in addition to its
disclosed fee of nearly $2.2 million a year,” the
lawsuit states.
Michael Friedman, a partner at Honigman
Miller Schwartz & Cohn L.L.P. who has negotiated
several contracts between self-insured employers and Blue Cross, is not involved in the case
but said a court ruling on access fees could set a
far-reaching precedent affecting other employers, depending on how far it goes in the courts.
“There is a section of the Blue Cross Enabling Act that indicates (the company) is not
allowed to cross-subsidize some sections of its
business using other sections of its business,”
he said. “The question would be whether the
subsidies in access fees count as that kind of
cross-subsidizing. That’s an issue that as far we
know has never been litigated.”
He also said nondisclosure of fees may not
have come to a definitive rule in the courts either, but access fees and various other charges are often
subtly written into contract
language and can be overlooked easily.
“A precedent ruling could
be pretty far-reaching,”
Friedman said. “There are
all kinds of self-employers
with various kinds of (administrative services) conFriedman
tracts. They can vary based
on when they were adopted. But it’s not an insignificant portion of the overall business (Blue
Cross) does.”
Blue Cross states in court filings that it has
not violated its contract with the county, and
Stojic noted that the county recently renewed
an arrangement with the Blues to cover
Medicare-eligible employees.
“(S)ince 2001, Blue Cross saved Oakland
County nearly $170 million in physician and
hospital costs because their employees and
their families used our provider networks,”
Stojic said. “We must be doing something right
or they wouldn’t continue to do business with
us.”
Chad
Halcom:
(313)
446-6796,
chalcom@crain.com.
Kwame: Business complains of ‘distraction’
■ From Page 1
ing forward this year and into the
future.”
Detroit Regional Chamber President Richard Blouse Jr. said that
the Kilpatrick scandal has been “a
tremendous distraction,” drawing
attention away from important
business of the city and region.
“One quarter of every meeting
I’ve attended in the past weeks is
taken up with conversations about
this, and I’m sure it’s a distraction
in City Hall and the mayor’s office
too.
“It just means the business community needs to be more focused
and aggressive than ever, pushing
some of the agendas for bringing
investment to the region, for talent
retention, jobs preparation and
improving the transportation systems,” Blouse said.
Some area executives are joining the call for Kilpatrick to quit.
Neil De Koker, president and
CEO of the Troy-based Original
Equipment Suppliers Association,
said, “The mayor needs to do
the honorable
thing: resign.”
Expanding on
that
e-mailed
comment
to
Crain’s, De Koker said in a telephone
interview, “I think
De Koker
that the last
thing Detroit needs, just as we are
turning around Southeast Michigan and the state, is the burden of
a leader who behaves the way Kilpatrick does.”
Speaking of Kilpatrick’s State of
the City address, De Koker said:
“Except for the last five min-
www.crainsdetroit.com
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LANSING BUREAU
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ADVERTISING
utes, the mayor laid out an enthusiastic and optimistic plan for the
city of Detroit. He blew it all when
he went on a personal tirade
against others while refusing to
look at himself and his deeds.
“The mayor presented a level of
arrogance that is beyond belief.
This kind of behavior will do a
great deal more harm to his sons
than any claims he made about the
harm from the behavior of others.”
In his speech last Tuesday, Kilpatrick gave an hour-long, rousing, uplifting litany of good news
on past accomplishments and future plans.
The mayor then went off-script
to say the media was exhibiting an
“unethical, illegal, lynch-mob
mentality” that had resulted in
him being “called a (n——-) more
times in the past 30 days” than in
his life up until now. He also said
his life and the lives of his wife and
three sons have been threatened.
His outburst drew a standing
ovation among many of the supporters and city appointees invited
to the speech, but there was an immediate backlash too.
On Wednesday, Mike Cox,
Michigan’s Republican attorney
general, called on Kilpatrick to
step down before his second term
ends in 2009. Late Thursday, Democrat Gov. Jennifer Granholm
added her voice to the criticism.
“Gov. Granholm condemns the
use of the n-word and believes it
has no place in public or private
discourse,” the governor’s press
secretary, Liz Boyd, said. “The
governor was shocked that it was
used, because it should never be
used.”
N. Charles Anderson, Detroit Ur-
ban League president and chairman of Health Alliance Plan, a
546,000-member health plan owned
by Henry Ford Health System, said:
“The whole scenario is a terrible
distraction to the city of Detroit.
My feeling is not a lot is getting
done now. There are so many people preoccupied with what has
been done and said.”
William Rustem, of Lansingbased Public Sector Consultants,
said that although the mayor’s
problems may
spill over into
legislative calls
for funding cuts
to Detroit, most
state lawmakers
will continue to
recognize
Detroit’s
importance to Michigan and will
Rustem
work to continue to improve Detroit, regardless
of the outcome of the mayor’s current challenges.
But, he said, most consider Kilpatrick’s problems a separate issue and think he is replaceable.
Many Michigan business and
political leaders said they are being quizzed by others around the
country, regarding how the situation is affecting business in Detroit.
Chad Audi, CEO of Detroit Rescue Mission Ministries, said that
while on business trips in Chicago
two weeks ago and in Washington
last week, he got lots of questions
about what some are calling
“Textgate.”
“Out-of-towners usually ask me
about this situation with the mayor and how we think it’s affecting
the economy ... how we think he
should deal with this. I personally
don’t think it’s affecting the economy. It’s just a story that’s out
there.
“I said when he apologized it became his personal matter and we
were waiting to see. It’s up to him
(whether or not to resign). He
knows how to deal with his own
personal life and situation.
“We, as a provider of services in
the city of Detroit, are not being directly affected, even though we
think he should focus more on
bringing investment and settle the
situation somehow. If he wants to
stay, he needs to outline what he’s
trying to do in the next few
months,” Audi said.
Wayne County Prosecutor Kym
Worthy is expected to announce
whether she will bring charges
against Kilpatrick and others the
week of March 24, Worthy’s aide
Maria Miller said Friday.
Worthy’s office is looking into
possible criminal charges of perjury, obstruction of justice or official misconduct in connection
with last summer’s police whistleblower trial.
In addition, the City Council is
considering a nonbinding resolution advanced by Councilman
Kwame Kenyatta, calling for Kilpatrick’s resignation.
Postponed for two weeks, the
resolution will be brought back to
the council Tuesday, Councilwoman Brenda Jones said.
Robert Ankeny: (313) 446-0404;
bankeny@crain.com
Reporters Sherri Begin, Daniel
Duggan, Jay Greene, Tom Henderson and Brent Snavely also contributed to this report.
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DETROIT BUSINESS MAIN 03-17-08 A 30 CDB
3/14/2008
5:49 PM
Page 30
Page 1
RUMBLINGS
HAP head: It
was time to
‘reinvent myself’
F
rancine Parker, who
resigned suddenly
earlier this month as
president and CEO of Health
Alliance Plan, said in a statement last week that she left
her longtime employer to focus on future endeavors.
In
a
statement
released
to Crain’s
on
Friday, Parker,
53,
Parker
said:
“Last September I took my
first extended vacation in
years and went to Italy. That
trip got me thinking about
how I wanted to spend the
rest of my life. I had devoted
30 years to HAP, and while I
love the organization and its
people, I thought about what
else I might want to do.”
Parker’s statement is due
to appear today in a Henry
Ford Health System newsletter.
HAP, a provider of health
coverage, is a Henry Ford
subsidiary.
Parker added that she may
accept “other career opportunities that may come my
way. I simply wanted to reinvent myself and how I might
serve the community in new
and different ways.”
Henry Ford CEO Nancy
Schlichting could not be
reached for comment, but
HAP board chairman N.
Charles Anderson, president of
the Detroit Urban League, said
Parker “left HAP in great
March 17, 2008
CRAIN’S DETROIT BUSINESS
shape, even with the large
drops in autoworker employment. Fortunately for us,
Fran put in place solid operations with great people. We
don’t have to worry about the
ship. It is steady.”
Parker became CEO in
March 2004 after rising
through the ranks at HAP
over the past 30 years.
In 2006, HAP reported net
income of $48.9 million on total revenue of $1.6 billion. It
transferred $30 million in
dividend payments to Henry
Ford. From 2002 to 2006, HAP
has transferred more than
$120 million in profits to
Henry Ford as ordinary dividends; 2007 results were not
available.
Parker serves on the
boards of Eastern Michigan
University and the Inforum Center for Leadership, among other community involvements.
HAP COO Patricia Richards
is serving as interim CEO
while a national search is
conducted for a successor.
Law firm turns 40,
gives pro bono services
Southfield-based Jaffe Raitt
Heuer & Weiss P.C. will celebrate its 40th year in business by pledging 40 hours of
pro bono legal and other services for each of its 200 attorneys and staff members during 2008, CEO Richard
Zussman said.
Jaffe’s 40 for the 40th initiatives will include 8,000 volunteer hours in programs focused on the homeless,
WEEK IN REVIEW
FROM WWW.CRAINSDETROIT.COM, WEEK OF MARCH 8-14
mentoring, tutoring, military, children, women, and
health and wellness.
Among the projects filling
this docket are Jaffe women
building a Habitat for Humanity home and helping staff the
March 8 Girls Matter Conference at Schoolcraft College.
Expert: Connect with
‘wills’ of the people
Nonprofits have an opportunity to reap millions of dollars in bequests — if they can
persuade more people to remember nonprofits in their
estate planning, Scott
Schropp, vice president, Merrill Lynch-The Iles Group, told
the audience at the fourth
annual Best Practices from
the Best Managed Nonprofits
seminar on March 10, sponsored in part by Crain’s Detroit Business.
Schropp reeled off statistics about wealth transfer
over the coming decades.
The most shocking: Almost
half of Americans with $10
million or more in investable
assets have no will.
Overall, 43 percent of
Americans have wills, but
only 9 percent include a
charity in their planning.
Other seminar sponsors
were the DTE Energy Foundation and Lawrence Technological University’s Center for Nonprofit Management.
Other featured speakers
included Susan Ellis Goodell,
executive director of Forgotten Harvest; Maury Okun, executive director of Detroit Chamber Winds & Strings; and Sally
LePla, executive director of
Habitat for Humanity-Oakland
County. Forgotten Harvest
and Detroit Chamber Winds
were the winner and runnerup, respectively, in the 2007
Crain’s Best Managed Nonprofit Contest. Habitat for
Humanity is a winner of the
DTE Energy Foundation’s
Achieving Excellence
Award.
Looking back at speech, and ahead to conference
The Kwame Kilpatrick roller-coaster ride
Detroit will host the biggest national
has prompted people across the state
conference on brownfield
to weigh in on Internet blogs, forums
redevelopment in May, and Crain’s
and newspaper comment sections.
plans to cover it in a big way — in print
Last week, Crain’s asked its readers via
and on the Web.
e-mail to respond specifically to
Brownfields 2008 will be held May 4-7
Kilpatrick’s controversial State of the
at Cobo Center. Nearly 6,000 people
City address, in which he left the
are expected for the 12th-annual
prepared text to call out his critics and
conference. We’re planning a special
the media.
brownfield redevelopment report May
More than 200 responses rolled in
5, with case studies and a look at the
between Thursday and Friday. Most
major players in the Midwest. We also
were overwhelmingly negative, with
plan extra Web coverage. The
many worrying whether this drawn-out
conference and report will feature
WEB WORLD
“ride” will get in the way of city
topics like green development and
Kevin Hill
business — and those doing business
remediation. There will be live deal
in the city.
making at the event’s May 5
“transaction forum.” Buyers, sellers and
We’ve published selected responses online at
financiers will all be put in a room together. To
www.crainsdetroit.com/webworld. If you’ve got
prepare, conference-goers are adding sites to a
something to say, you can e-mail
database at www. brownfields2008.org. And,
comment@crain.com or join the conversation at
as always, stay tuned to www.crainsdetroit.com
Publisher Mary Kramer’s blog at
for redevelopment news.
www.crainsdetroit.com/kramer.
GM seeks
permission to
seize tooling
from Plastech
n a move to safeguard
production, General Motors Corp. has asked a U.S.
bankruptcy judge for permission to seize tooling from
Plastech Engineered Products
Inc. GM wants access to the
tooling in the event that the
troubled supplier fails to deliver parts to GM, Automotive News reported.
Plastech filed for Chapter
11 protection on Feb. 1.
U.S Bankruptcy Judge
Phillip Shefferly blocked a
similar attempt by Chrysler
L.L.C. last month. Chrysler
is appealing the decision.
GM’s filing differs from
Chrysler’s in that it does
not seek immediate possession. Instead, it wants the
ability to seize the tooling if
Plastech fails to make timely delivery of parts.
Also, a U.S. Bankruptcy
Court judge in Detroit Friday approved a $10 million
increase in a line of credit
that will keep Plastech
afloat, Automotive News reported.
I
Borders’ efforts hit a snag
Borders Group Inc.’s efforts
to divest itself of some international holdings slowed
Wednesday when the bookseller announced negotiations have ended with Australian retailer A&R
Whitcoulls over stores in
Australia and New Zealand.
Borders owns 27 stores in
both countries, said Anne
Roman, Borders public-relations director, who declined further comment.
Panel OKs proton-beam
cancer consortium rules
The state Certificate of
Need Commission on Tuesday
unanimously approved new
draft rules that require hospitals to form a statewide
consortium if they wish to
build and operate a protonbeam therapy center.
The commission also decided to hold a public hearing in the 30 days before the
next scheduled meeting on
June 11, when it would take
a final vote on the rules.
However, commissioners
said they might call a special meeting before June 11,
said Irma Lopez, section
manager for health policy
with the state Department of
Community Health.
Proton-beam therapy has
been suggested to be effective in some prostate and pediatric cancers because it
causes less damage to surrounding tissues while directing high dosages at tumors.
Over the past month,
four hospitals have applied
to the state to build their
own proton-beam centers,
which would cost $120 million to $160 million. Those
hospitals are William Beaumont Hospitals, Royal Oak;
Henry Ford Health System, Detroit; Barbara Ann Karmanos
Cancer Institute, Detroit; and
the University of Michigan
Hospitals, Ann Arbor.
Earlier this month, Beaumont Hospital announced
plans to build a $159 proton
beam center in a joint venture with ProCure Treatment
Centers Inc.
ON THE MOVE
Ronaele Bowman was appointed March 6 by the
Wayne County Board of Commissioners to fill the vacancy
created by the retirement of
Commissioner Kay Beard.
Bowman, D-Westland, will
represent District 12, which
includes Inkster, Westland
and the southern portion of
Livonia until the end of the
current term on Dec. 31.
Agostinho Fernandes Jr.
will step down as president
of Gleaners Community Food
Bank of Southeastern Michigan
July 1,
and said
he plans
to resume
his career
in commercial
food distribution
somewhere in
Fernandes
the Detroit area. In a release,
Gleaners said its executive
committee has launched a
search for a new president.
OTHER NEWS
The University of Michigan settled a case with the
Michigan Paralyzed Veterans
of America over accessibility
issues at Michigan Stadium, agreeing to offer more
wheelchair-accessible
seats, restrooms, parking,
concessions and other
amenities.
Also, Waltraud Prechter,
widow of millionaire auto
parts entrepreneur Heinz
Prechter, has given $1 million to UM to boost research
into bipolar disorder, the
Associated Press reported.
Attorney General Mike
Cox said Thursday he wants
to meet with retired Detroit
police desk clerk Joyce
Rogers, who recently came
forward to say she read a
report filed by stripper
Tamara Greene claiming she
was assaulted by Mayor
Kwame Kilpatrick’s wife
during a party at the
Manoogian Mansion.
Greene later was shot to
death, and the killing remains unsolved.
Delphi Corp. said last
week it will make a second
attempt to get $6.1 billion in
bankruptcy exit loans, the
Associated Press reported.
The company, which has
been in Chapter 11 reorganization for 29 months, also
made several transactions
last week. Delphi sold: its
global interiors and closures business to Renco
Group Inc. for an undisclosed price; ride control
assets and inventory to Tenneco Inc. for about $19 million; and its 49 percent
stake in joint venture Calsonic Harrison Co. to Calsonic
Kansei Europe P.L.C. It also
bought Calsonic Kansei’s 10
percent stake in Delphi Calsonic Hungary Ltd.
Art Van Furniture will
close its Drexel Heritage custom furniture showroom in
Bloomfield Hills after less
than 18 months and convert
it to an Art Van clearance
center by late spring.
Residential sales in
Oakland, Wayne, Macomb
and Livingston counties and
the St. Clair area showed a
12.8 percent uptick for February compared to 2007, according to RealComp.
Citation Corp. said Friday it will move its headquarters from Birmingham,
Ala. to its offices in Novi, effective immediately, Automotive News reported. The
casting and machining supplier said it wants to move
closer to its core customers.
Cranbrook Educational
Community said Thursday it
reached the $150 million
goal in its capital campaign,
two-and-a-half years ahead
of schedule.
Chrysler L.L.C. is giving
all employees worldwide a
mandatory vacation the
weeks of July 7 and 14, the
Associated Press reported.
Some employees may be
asked to stay on to work on
special projects.
Gov. Jennifer Granholm
on Thursday said she has
signed legislation to create
optional Michigan driver’s
licenses enhanced to meet
passport requirements. The
licenses will be available
only for Michigan residents
who also are U.S. citizens.
KLM Royal Dutch Airlines
on March 30 will begin daily
nonstop flights from Detroit
Metropolitan Airport to Amsterdam’s Schiphol Airport.
U.S. Rep. Carolyn Cheeks
Kilpatrick said Friday that
state Democrats are working on plans for a partyfunded June 3 primary, the
Associated Press reported.
OBITUARIES
George Brody, retired
judge of the U.S. Bankruptcy
Court, Eastern District of
Michigan, died March 6.
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