State rushes for share of recovery plan

Transcription

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6:47 PM
Page 1
®
www.crainsdetroit.com Vol. 25, No. 4
JANUARY 26 – FEBRUARY 1, 2009
$2 a copy; $59 a year
©Entire contents copyright 2009 by Crain Communications Inc. All rights reserved
State rushes
for share of
recovery plan
Inside
Who’s Aretha’s hat-maker?
Page 3
Casinos try to deal
with bad hands of debt,
Page 6
NEWSCOM
While GM isn’t buying a television ad this year, it still will have a major presence
at the Super Bowl in Tampa, Fla. Cadillacs will be on display at the stadium, as
in years past, and the brand will also sponsor the post-game show and the MVP
Award.
Emphasis being placed
on job creation, training
BY AMY LANE
CAPITOL CORRESPONDENT
News and information to
help with career transitions,
Pages 22, 23
Find a job, discover a hire,
at crainsdetroit.com/
careerworks
This Just In
MIS to be marketed as test
lab for auto electronics
A plan to market Michigan
International Speedway in the
city of Brooklyn as a research and testing facility for
“connected vehicle technologies” is scheduled to be announced today by track and
state officials.
The goal is to have the
track help the state become a
“lab-to-assembly line” of
such technology, which a
2007 study from Michigan
State University and Ann Arbor’s Center for Automotive Research said could create
16,000 to 41,000 high-tech jobs
and contribute between $177
million and $448 million in
state income tax revenues.
The wireless communication of information between
vehicles, and between vehicles and road infrastructure,
pNEWSPAPER
See This Just In, Page 2
Detroit sits
on ad sidelines
Super Bowl too pricey amid cost cutting
BY BILL SHEA
CRAIN’S DETROIT BUSINESS
For perhaps the first time, the
Super Bowl telecast won’t include
advertisements from Detroit’s automakers and their ad agencies.
When the Arizona Cardinals and
Pittsburgh Steelers square off in
Tampa for Super Bowl XLIII on
Feb. 1, the only car ads during the
game on NBC will be from Germany’s Audi and South Korea’s
Hyundai.
Detroit-based General Motors
Corp., Dearborn-based Ford Motor
Co. and Auburn Hills-based
Chrysler L.L.C. all have said they
will forgo the annual NFL title
game — 30-second ads are going
for a record $3 million — amid efforts to cut costs.
“GM’s decision not to buy an ingame ad was made back in September, and was primarily driven by
the fact that we did not have a major vehicle launch that aligned
with (the Super Bowl),” GM communications manager Kelly Cusinato said in an e-mail to Crain’s.
“This made it hard to justify the
DETROIT-FREE BOWL
No Michigan-based company
has bought ad time.
No Michigan ad agency is
doing work on this year’s 67
spots.
No Michigan NFL team has
played in the Super Bowl.
Leo Burnett Detroit did the
2008 Super Bowl’s lone local
spot, for the GMC Yukon hybrid.
ROI for an ad this year, especially
as we continue to reduce budgets
and scrutinize all our promotions.”
Ford confirmed it was bypassing
the game, and New York agency
BBDO, whose Detroit office handles
all of Chrysler’s ad work, said the
same thing. (BBDO clients
handled in New York, including
monster.com and General Electric,
will have Super Bowl spots.)
It’s unclear when, if ever, all the
major domestic car companies
have skipped advertising during
the Super Bowl, which was first
played in January 1967.
None of the region’s agencies
that do nonautomotive advertising
work will have Super Bowl ads, either.
Local advertising industry insiders have mixed views on the Super Bowl, which is the one time of
year viewers (and the game gets
more than 100 million of them) actively seek commercials, which
See Super Bowl, Page 29
LANSING — As a federal infrastructure investment and economic recovery plan rapidly
takes shape, Michigan officials
are undertaking a giant internal
sweep to inventory projects, flag
potential barriers and position
the state to readily distribute
whatever federal funds come its
way.
A blueprint, initiated by Gov.
Jennifer Granholm, entails a
governmentwide effort in which
teams of state officials are scouring thousands of potential projects in five different categories.
In addressing state needs related to the five areas, emphasis
is being placed on job creation
and training, especially in regions with the highest unem-
ployment rates.
The categories: infrastructure,
such as roads, water and sewer;
schools; information technology
and broadband; buildings; and
“greening,” which includes energy efficiency and alternative-energy projects.
The teams are looking at proposed federal funds, which projects are priorities, legislative or
administrative changes needed
to ensure money can be quickly
spent, and logistics for carrying
out projects, such as permits
that might be needed and the
availability of contractors to do
the work.
They are racing against a fastmoving economic stimulus plan
and a desire by President Barack
Obama and others to target projects that can be started and comSee Recovery, Page 29
Some fear Medicaid funding
increase will be insufficient
BY JAY GREENE
Michigan’s
Medicaid
providers were relieved last
week when the U.S. House of Representatives promised to increase
Medicaid funding to the states
by $87 billion as part of an $825
billion fiscal recovery package.
The additional revenue — as
much as $1 billion to $1.5 billion
for Michigan — could stave off
possible budget cuts to the
state’s biggest source of medical
safety-net funding.
Michigan health care executives said, however, that the
federal bailout might not be
enough to offset higher costs to
care for the increasing numbers of Medicaid recipients.
“We are optimistic that there
will be a good amount of money
that will go to Medicaid and we
won’t see any diminished access
to care,” said Dr. Michael Sandler, president of the Michigan
State Medical
Society.
Without
the
additionDown: HMO net
al
federal
income.
Medicaid
Up: Uninsured
dollars, Sanranks, charity
care.
dler said he
Page 28
fears
that
more
doctors will drop out of the Medicaid program.
“As of now it covers 61 cents
on the dollar,” said Sandler, a diagnostic radiologist at Henry Ford
Health System in Detroit. “Doctors lose money on every Medic-
HEALTH NEWS
See Medicaid, Page 28
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Page 2
January 26, 2009
THIS JUST IN
■ From Page 1
is aimed at improving safety and
traffic flow.
Behind the effort to market the
track for such technology work
are the Michigan Department of
Transportation, CAR’s Connected
Vehicle Proving Center and Michigan Economic Development Corp.
Those agencies are scheduled to
jointly unveil the MIS plan during a press conference Monday at
MDOT’s Michigan Intelligent
Transportation Service Center in
Detroit.
MDOT is using the race track to
test the technology it plans to deploy this year along the Telegraph
Road corridor in Oakland County.
Under the marketing proposal,
automakers and aftermarket
providers will be able to test and
develop connected vehicle systems and other technologies in a
protected, closed, safe and convenient environment, MIS and
MDOT said.
— Bill Shea
Wine.com can’t sell in state
Online wine retailer wine.com
announced Friday it must exit
Michigan as a sales market due to
a recent law banning wine from
being shipped to state residents.
The San Francisco-based com-
pany had $40 million to $50 million in revenue this fiscal year —
which ends in March — with
roughly 4 percent of its business
coming from Michigan.
CEO Richard Bergsund said in a
statement Friday that Michigan
residents are missing out on a
large array of wine that is not
currently available in stores. He
urged residents to contact Gov.
Jennifer Granholm, who signed the
bill on Jan 9. Under the new law,
wine can be delivered by an employee of a retailer, but not
shipped through a third-party
service such as UPS.
— Daniel Duggan
ed $2 million in damages.
C-4 handled Chrysler L.L.C.’s
events for six years and was responsible for the popular Firehouse charity event for media
and industry executives during
the auto show. The struggling carmaker said last spring it was dropping C-4 in favor of Royal Oakbased O2 and a New York firm.
C-4’s final event was this year’s
General Motors Corp. auto show
press conference. It also did work
for Audi.
— Bill Shea
C-4 Communications closing
A Chesterfield Township real
estate office has given up its
Re/Max franchise after 20 years
to spend more of its money on local advertising.
Formerly Re/Max Advantage,
the newly named firm is Advantage Realty Inc. The firm was rated 19th in the Crain’s Book of
Lists with 2007 sales of $127.5 million.
Tom Figlan said he and the other two owners decided that marketing money would be better
spent on local advertising rather
than spending it with Re/Max,
which markets the network of
broker-owned offices. Money was
also spent on a “stimulus” for
employees to help them through
times in the slow real estate market.
Birmingham-based event-marketing firm C-4 Communications is
going out of business — the victim of automaker cutbacks, a
lawsuit defeat and loss of bank financing.
Founder Todd Smith is wrapping up C-4’s business and
preparing a new venture, which
he isn’t ready to unveil yet.
Formerly known as Clear!Blue
Communications until a federal
judge in North Carolina in November said a company there
had the right to the name, C-4 is
finalizing accounts and will
close its doors and lay off its 32
employees in the next two
months.
The court decision also includ-
ÅO
Real estate office drops Re/Max
franchise, changes name
ÅO
The firm still has roughly 50
agents, he said, though 10 decided to stay with Re/Max.
— Daniel Duggan
Advanced Photonix wins
2 Air Force contracts
Ann Arbor-based Advanced
Photonix Inc. (NYSE: API) announced Friday that it won two
contracts with the U.S. Air Force.
The contracts are a $100,000
small-business innovative-research grant to develop semiconductor material capable of increasing terahertz power, and a
$750,000 contract to develop a
higher-power terahertz transmitter for surface and gas spectroscopy.
The company’s terahertzbased imaging systems are used
in quality control and as inspection devices with applications for
homeland security.
— Tom Henderson
Michigan First Credit Union wins
lawsuit against former insurer
After just two and a half hours
of deliberation, a federal jury
awarded Lathrup-based Michigan
First Credit Union $5 million in
damages against its former insurer, Wisconsin-based Credit
Union Mutual Insurance Society, in
a case growing out of a series of
bad loans in 2003.
The jury found that the insurer breached its contract when it
refused to pay for losses resulting from hundreds of defaulted
auto loans approved under the
supervision of a former credit
union vice president, Michael
Lewis.
The jury held that the loans
were made in violation of credit
union policy.
Chuck Holzman of the law firm
of Southfield-based Holzman, Ritter & Leduc P.L.L.C., which represented the credit union, said with
interest and penalties under
Michigan’s Unfair Trade Practice Act, the final award could be
more than $9 million.
In October, the firm won a
judgment of $415,000 from Al Long
Ford Inc. for its participation in
the loans. Holzman said no one
has been charged criminally.
— Tom Henderson
CORRECTIONS
䡲 A calendar item on Page 20 of the Jan. 19 edition and on Page 24 of
today’s issue included an incorrect date for the Detroit Regional
Chamber’s “Nonsensical Marketing — Moosejaw’s Madness” program.
The correct date for the event is Feb. 9, from noon to 1:30 p.m. at the
Detroit Zoo in Royal Oak. Contact: (313) 596-0392 or
www.detroitchamber.com.
ÅO
Shark
Pit Bull
Winner
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[ Attornicus Victorious Howardice ]
Noun. A species of lawyer trained
to attack at the scent of divorce
(and fresh blood). A predator that
can, to the untrained handler,
be dangerous to humans.
Noun. An aggressive breed of
lawyer often trained for useless
ÅOP\QVO8ZWVM\WKPI[QVO
ambulances, hunting and often
harming their victims.
Noun. A special variety of attorney
focused on understanding client’s
goals and getting results. Noted
for ability to help improve the
client’s bottom line.
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20090126-NEWS--0003-NAT-CCI-CD_--
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6:47 PM
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January 26, 2009
Page 3
Macomb job losses spread
First in attack plan is economic outlook meeting
BY CHAD HALCOM
Macomb County may feel the
economic pain spread beyond its
heavy manufacturing sectors in
2009, with job losses creeping further into the service and professional fields and greater need for
working capital to keep businesses
afloat.
The county’s unemployment
rate for November was 9.6 percent,
with 39,463 of Macomb’s total labor
force of 411,154 unemployed.
That’s compared with 7.5 percent or 31,299 unemployed in a
workforce of 416,223 the same
month a year earlier, according to
the Michigan Department of Energy,
Labor and Economic Growth.
The figure is expected to climb
again when the state releases county employment figures this week,
marking Macomb’s highest monthly jobless rate in at least 17 years.
Last week, the statewide unemployment rate reached 10 percent
for the first time since 1984.
A regional DELEG figure for the
Detroit Metropolitan Statistical
Area, including Macomb, showed
233,000, or 11.1 percent, jobless in
December compared with 10 percent, or 209,000, in November.
County officials and business
leaders expect to tackle the chalSee Macomb, Page 27
ECONOMIC FORECAST
䡲 Presenter: Jim Jacobs,
president, Macomb Community
College
䡲 Place: Zuccaro’s Country
House, 46601 Gratiot Ave.,
Chesterfield Twp.
䡲 Date: Feb. 3, 11:30 a.m.
䡲 Sponsor: The Chamber Alliance
of Macomb County
䡲 Cost: $25 for members, $40
for nonmembers
䡲 Web site: macombcounty
chamber.com.
Finance Monthly: Big Deals
M&A activity
drops by 48% in
number of deals,
80% in value
from 2007 to
2008,
$40.1
billion
$8.1
billion
Page 11.
2007 2008
Company index
These organizations appear in this week’s Crain’s
Detroit Business:
Amherst Partners . . . . . . . . . . . . . . . . . . . . . . . . . 12
Ass’n. for Corporate Growth . . . . . . . . . . . . . . . . . 11
BlackEagle Partners . . . . . . . . . . . . . . . . . . . . . . . 11
Suppliers:
Federal help
needed to
avert disaster
Blue Care Network . . . . . . . . . . . . . . . . . . . . . . . . 28
Borders Group . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Campbell-Ewald . . . . . . . . . . . . . . . . . . . . . . . . . . 29
CCM Merger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Center for Healthcare Research . . . . . . . . . . . . . . 28
Chrysler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Citizens Republic Bancorp . . . . . . . . . . . . . . . . . . . 4
Clark Hill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Conway MacKenzie & Dunleavy . . . . . . . . . . . . . . . 13
Corporate Analytics . . . . . . . . . . . . . . . . . . . . . . . 12
Detroit Metropolitan Airport . . . . . . . . . . . . . . . . . 25
Detroit Regional Chamber . . . . . . . . . . . . . . . . . . . . 7
Dura Automotive Systems . . . . . . . . . . . . . . . . . . . . 3
Drive Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Foley & Lardner . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Ford Motor Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
General Motors Corp. . . . . . . . . . . . . . . . . . . . . . . . 1
General Sports and Entertainment . . . . . . . . . . . . 25
BY DAVID BARKHOLZ
AND ROBERT SHEREFKIN
Greektown Holdings . . . . . . . . . . . . . . . . . . . . . . . . 6
CRAIN NEWS SERVICE
Health Alliance Plan of Michigan . . . . . . . . . . . . . 28
Greenpath . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
HealthPlus of Michigan . . . . . . . . . . . . . . . . . . . . 28
year customer.)
The shop also has received calls and orders
from department stores, boutiques, even from
biannual trade show Women’s Wear In Nevada.
Things were already going well at the familyowned business. The last six months saw business grow by 50 percent, an uptick Song attributes to the economic downturn: “People are
buying fewer clothes, so they’re shopping for
accessories,” he said.
Mr. Song is still crunching year-end numbers, but manager Lillian Song (Luke and Lillian Song are the children of store founders
Hahn and Jin Song) said the label’s 2008 revenue may exceed $1 million, up from the more
typical high six figures.
Expansion was already under discussion,
Luke Song said, simply to meet the demands of
Auto suppliers are bracing for the worst
February payday in decades.
Without emergency federal help in the
next few weeks, hundreds of suppliers may
face bankruptcy or liquidation, said Neil
De Koker, CEO of the Original Equipment
Suppliers Association in Troy.
“Suppliers’ problems
are exactly the same
problems that General
Motors and Chrysler
had in December,” De
Koker said, referring to
the cash-flow woes that
led to the two automakers receiving approval
for $17.4 billion in federal loans. “Barring a loan
De Koker
from the government,
they would be liquidating today. And that’s
what’s going to happen to some suppliers
unless we get help.”
February and March are critical to suppliers because that is when the effects from
vehicle output cuts in December and January will be felt, said Tim Leuliette, CEO of
supplier Dura Automotive Systems Inc. in
Rochester Hills.
The Detroit 3 typically pay about $15 billion to suppliers on the second Tuesday of
every month for parts delivered in the previous 45 to 47 days. February’s payday will
be closer to $5 billion to $7 billion, Leuliette
said.
The output cuts will leave distressed
suppliers short of cash. Some may be unable to borrow working capital from banks
using their receivables as collateral, he
said.
De Koker said supplier executives are fi-
See Hat, Page 26
See Suppliers, Page 26
NATHAN SKID/CRAIN’S DETROIT BUSINESS
Luke Song of Mr. Song’s Millinery says the business was already doing well — and then Aretha Franklin
went to the inauguration wearing one of his hats, and the phone started ringing off the hook.
Aretha’s
hat is hot
Orders pour in at Detroit’s Mr. Song’s after inauguration
BY NANCY KAFFER
For the Song family, President Barack Obama’s Jan. 20 inauguration ended when legendary performer Aretha Franklin sang.
That’s when the phones at Detroit-based Mr.
Song’s Millinery started ringing off the hook.
And they haven’t stopped, said Luke Song,
Mr. Song designer and CEO of Moza Inc., the
corporation that owns the Mr. Song brand.
“I expected it would be big, but not this big,”
a bemused Song said last week. “I thought
maybe (local papers) would cover it. But I have
fan sites now.”
Hundreds of individual orders have been
placed for a $179 hat that pays homage to
Franklin’s pricier model. (Song won’t sell an
exact copy, out of respect for the singer, a 20-
Health Plan of Michigan . . . . . . . . . . . . . . . . . . . . 28
Henry Ford Health System . . . . . . . . . . . . . . . . . . . . 1
Huron Capital Partners . . . . . . . . . . . . . . . . . . . . . 11
Ilitch Holdings . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Jaffe Raitt Heuer & Weiss . . . . . . . . . . . . . . . . . . . 13
Kelly Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Lawrence Gardner Assoc. . . . . . . . . . . . . . . . . . . . 11
Leo Burnett Detroit . . . . . . . . . . . . . . . . . . . . . . . . 29
Mic. Dept. of Energy, Labor & Econ. Growth . . . . . . . 3
Mich. Health and Hospital Ass’n. . . . . . . . . . . . . . 28
Mich. Infrastructure and Transportation Assn. . . . . 29
Mich. Municipal League . . . . . . . . . . . . . . . . . . . . 29
Mich. State Medical Society . . . . . . . . . . . . . . . . . . 1
Molina Healthcare of Michigan . . . . . . . . . . . . . . . 28
MotorCity Casino . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Moza . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Mr. Song . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Newmark Knight Frank . . . . . . . . . . . . . . . . . . . . . 24
Northwest Airlines . . . . . . . . . . . . . . . . . . . . . . . . 12
Original Equipment Suppliers Ass’n. . . . . . . . . . . . . 3
Palace Sports and Entertainment . . . . . . . . . . . . . 25
Peninsula Capital Partners . . . . . . . . . . . . . . . . . . 11
Priority Health . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Somanetics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Team Detroit . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Total Health Care . . . . . . . . . . . . . . . . . . . . . . . . . 28
Virchow Krause & Co. . . . . . . . . . . . . . . . . . . . . . . 13
Walsh College . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Wayne County Airport Authority . . . . . . . . . . . . . . . 25
Welk & Assoc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Wind Point Partners . . . . . . . . . . . . . . . . . . . . . . . 11
Department index
BANKRUPTCIES . . . . . . . . . . . . . . . . . . 4
BUSINESS DIARY . . . . . . . . . . . . . . . . 21
CALENDAR . . . . . . . . . . . . . . . . . . . . 24
CAPITOL BRIEFINGS. . . . . . . . . . . . . . . 7
CLASSIFIED ADS . . . . . . . . . . . . . . . . 22
KEITH CRAIN . . . . . . . . . . . . . . . . . . . . 8
LETTERS . . . . . . . . . . . . . . . . . . . . . . . 9
THIS WEEK @
WWW.CRAINSDETROIT.COM
Bloggers are coming
Gain new insight and perspective as
Crain’s reporters begin blogging. More
details in Web World, Page 30.
Coming Wednesday: SmallTalk
Small businesses are making a
dramatic shft — laying off workers
and hiring contractors.
OPINION . . . . . . . . . . . . . . . . . . . . . . . 8
PEOPLE . . . . . . . . . . . . . . . . . . . . . . 23
RUMBLINGS . . . . . . . . . . . . . . . . . . . 30
WEEK IN REVIEW . . . . . . . . . . . . . . . . 30
20090126-NEWS--0004-NAT-CCI-CD_--
1/23/2009
6:17 PM
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Page 4
January 26, 2009
TAKING STOCK
NEWS ABOUT DETROIT AREA PUBLIC COMPANIES
Despite good ’08 news, price
falls for Somanetics on ’09 talk
BY TOM HENDERSON
On Wednesday, Troy-based Somanetics Inc. (Nasdaq: SMTS) reported record quarterly net revenue
of $13.7 million for the fourth quarter that ended Nov. 30 and record
net annual revenue for the year of
$47.5 million.
Net income in the quarter was
$3.3 million, or 25 cents a share,
beating Wall Street estimates by 3
cents a share and up from $2.8 million in the same quarter of 2007. Net
income for the year was $10.4 million, up from $9.7 million in 2007.
The company had good news
about the market’s reception of its
oxygen sensor for infants in neonatal intensive care units.
But the share price for Somanetics’ stock price dropped, finishing
at $14.02 a share after starting the
day at $15.31.
What happened?
Analysts liked fiscal 2008, but
not what President and CEO
Bruce Roberts said about fiscal
2009 ina conference call.
Somanetics’ customers — hospitals — are hoarding cash and are expected to do so for the foreseeable
future, bad news when you’re trying to sell them medical devices
that cost upward of $30,000.
“It was a great quarter, but guidance for next year was significantly
below the Street’s estimates.
They’re talking after-tax earnings
of 57 to 60 cents a share, and the
Street had been expecting 80 cents,”
Anthony Petrone, vice president of
equity research for New York-based
Maxim Group L.L.C., told Crain’s.
The company predicted net revenue of $54.6 million this year, an
increase of 15 percent, and pretax
income of $13 million.
Petrone continued to rate the
stock a buy in a report he issued
Thursday, with a 12-month target
price of $18.
Petrone told Crain’s what he
liked in the teleconference was
hearing that Roberts, whose com-
pany has $70 million in cash and
no debt, plans to boost spending on
marketing.
Roberts said the company would
boost its marketing budget by $1
million and target an educational
campaign to the medical community about the trial results of its
neonatal devices.
“We’ve done a lot of clinical research on our neonatal product
with good results, and we will be
presenting that in ’09. That will
pay off,” he said.
Jonathan Block, an analyst with
New York-based SunTrust Robinson
Humphrey Inc., rated Somanetics a reduce in the report Thursday, writing that “a strong balance sheet and
the stock’s recent share decline lead
us to believe that for now, most risk
is out of the name. However, uncertainties still lie ahead.”
The stock has a 12-month high of
$29.53 and a low of $10.01. It closed
Friday at $14.05.
Tom Henderson: (313) 446-0337,
[email protected]
Citizens Republic announces losses, CEO’s retirement
BY TOM HENDERSON
Academy of the Sacred Heart
Leaders of Conscience Speaker Series
Keynote Speaker Cokie Roberts
Journalist and Bestselling Author
Friday, February 13, 2009
Luncheon and Program 11:30 a.m. - 1:00 p.m.
The speaker series is part of the Academy of the Sacred
Heart’s Golden Anniversary celebrating 50 years at its
Bloomfield Hills campus and 158 years of education
and outreach in the metropolitan Detroit area. The
Leaders of Conscience Speaker Series aims to provide
ethical guidance and real-life testimonials from
internationally-known personalities whose lives and
works inspire students and the larger community with messages of hope
and optimism.
Main Sponsors
Media Partners
THE NICOLA ANTAKLI FAMILY
On Thursday, Flint-based Citizens Republic Bancorp Inc. (Nasdaq:
CRBC) said it lost $195.4 million in
the fourth quarter ending Dec. 31,
compared to net income of $28 million for the same quarter of 2007,
and that it lost $393.1 million for
the year, compared to net income
of $100.8 million in 2007.
Friday morning, the bank holding company said that President
and CEO William Hartman, 60,
was retiring effective Jan. 31 and
will be replaced by Cathleen Nash,
46, currently executive vice president and head of regional banking.
Was he eased into retirement?
For reservations, visit www.ashmi.org/speakerseries
or call 248-646-8900 x 170
The Academy of the Sacred Heart was founded in 1851 and is Michigan’s oldest independent school. Located at
1250 Kensington Road in Bloomfield Hills, it is a Catholic, college-preparatory school for girls (Age 3-Grade
12) and boys (Age 3-Grade 8) of many cultures and faiths. The Academy is a member of the Network of Sacred
Heart Schools, which includes 21 schools in the U. S. and affiliation with the Society of the Sacred Heart in 44
countries around the world. For more information call 248-646-8900 or visit us on the Web at www.ashmi.org.
BANKRUPTCIES
The following businesses filed
for Chapter 7 or 11 protection in
U.S. Bankruptcy Court in Detroit
Jan. 9-15. Under Chapter 11, a company files for reorganization.
Chapter 7 involves total liquidation.
Fashion Foods Inc., 45754 Pentwater, Macomb Township, voluntary
Chapter 7. Assets: $551; liabilities:
$115,681.
Woodward Gardens L.L.C., 33779
Woodward Ave., Birmingham, voluntary Chapter 11. Assets and liabilities not available.
Northstar Dining Inc., 32680 Northwestern Highway, Farmington
Hills, voluntary Chapter 11. Assets
and liabilities not available.
— Compiled by Mark Lewis
“My retirement has been
planned and is voluntary and is
something I’ve been thinking
about. ... I’ve been looking for the
right time to step aside, and I feel
we’ve put together a balance sheet
with a strong capital position and
a strong liquidity position and
have a team in place to take the
bank forward,” he told Crain’s.
The bank’s liquidity was helped
last year by a $200 million stock issue to institutional investors and,
in December, by $300 million from
the U.S. Treasury Department’s Trouble Asset Relief Program. It was one
of just two Michigan-based banks to
get TARP funding last year.
[email protected]
STREET TALK
THIS WEEK’S STOCK TOTALS: 21 GAINERS, 41 LOSERS, 9 UNCHANGED
01/23
CLOSE
01/16
CLOSE
PERCENT
CHANGE
Oxford Bank Corp./MI
Domino's Pizza Inc.
Agree Realty Corp.
CMS Energy Corp.
Compuware Corp.
Sun Communities Inc.
TechTeam Global Inc.
Federal Mogul Corp.
Pulte Homes Inc.
Taubman Centers Inc.
$9.49
6.65
15.45
12.02
7.19
12.73
5.11
4.25
10.74
21.68
$5.05
5.90
14.21
11.15
6.84
12.21
5.02
4.19
10.66
21.63
87.92
12.71
8.73
7.80
5.12
4.26
1.79
1.43
0.75
0.23
CDB’S LOW PERFORMERS
01/23
CLOSE
01/16
CLOSE
PERCENT
CHANGE
$3.81
8.14
3.77
21.90
10.17
14.05
4.98
9.04
3.49
3.13
$4.95
10.46
4.66
26.16
11.92
16.31
5.70
10.24
3.92
3.50
CDB’S TOP PERFORMERS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Asset Acceptance Capital Corp.
Tecumseh Products Co.
Rockwell Medical Tech. Inc.
Syntel Inc.
Kelly Services Inc.
Somanetics Corp.
Ramco-Gershenson Prop. Trust
Masco Corp.
General Motors Corp.
Amerigon Inc.
-23.03
-22.18
-19.00
-16.28
-14.68
-13.86
-12.63
-11.72
-10.97
-10.57
Source: Bloomberg News. From a list of publicly owned companies with headquarters
in Wayne, Oakland, Macomb, Washtenaw or Livingston counties.
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1/16/2009
2:46 PM
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74385
20090126-NEWS--0006-NAT-CCI-CD_--
1/23/2009
5:43 PM
Page 1
Page 6
January 26, 2009
MotorCity, Greektown deal with bad hands of debt
BY CHAD HALCOM
AND NANCY KAFFER
Two Detroit casinos are rolling
snake eyes in the debt market.
A top ratings service downgraded its outlook for MotorCity Casino’s
parent company, citing a host of financial concerns. Greektown Holdings L.L.C. has until the end of this
week to submit a reorganization
plan that can resolve its swelling
debts without need for a sale.
An agreement entered in U.S.
Bankruptcy Court last month be-
tween the troubled Greektown
Casino owners and its creditors
gives the parties until Feb. 1 to
submit a “co-exclusive” plan to restructure and settle its debts.
In other words, if the casino
company doesn’t submit a plan —
with the consent of as many bondholders and other litigants as possible — by the deadline, creditors
can submit restructuring plans of
their own.
The Detroit City Council expects to
meet today in a closed session with
its Law Department and Chicagobased law firm Shefsky & Froelich
Ltd. to review confidential new
documents in the ongoing bankruptcy case, in which Detroit is a
party.
A deputy press secretary for
Detroit Mayor Ken Cockrel Jr.
said he believes Greektown will
submit a plan by week’s end, but
an attorney for the casino’s creditors said there it might be “difficult” to craft a complete plan with
all parties’ consent by the deadline.
As late as last week, involved
parties were discussing the shape
of a reorganization plan, said
Robert Gordon
of Detroit-based
Clark Hill P.L.C.
and attorney for
Greektown’s unsecured creditors’ committee.
Greektown,
majority-owned
by the Sault Ste.
Marie Tribe of
Gordon
Chippewa
Indians, and the creditors have also
had to discuss a few preliminary
offers to buy the casino and its assets, which came in earlier this
For some real muscle on your next deal, call Dykema.
The Hanover
Insurance
Group, Inc.
Barton Malow
Company
Shared Imaging, LLC
Sale of 50% membership
interest to
Lubar Equity Fund LLC
Acquisition of
Verlan Holdings, Inc.
Acquisition of L.C. Gaskins
Construction Company
(Jacksonville, FL)
March 2008
October 2008
March 2008
ITC Holdings Corp.
and Its Affiliates
Richard Smykal, Inc.
Sale of 100%
of the stock of
Richard Smykal, Inc. to
RS Acquisitions, LLC
Strategic Development
Projects
2008-2009
August 2008
Sircon
Corporation
Sale of Company to
Vertafore, Inc.
July 2008
Palace Sports &
Entertainment, Inc.
Automotive
Components
Holdings, LLC
$205,000,000
Sale of Tampa Bay Lightning
Sale of Driveshaft
and Glass Businesses
June 2008
January and April 2008
Michigan Tobacco
Settlement Finance
Authority
$202,408,464.40
Tobacco Settlement
Asset-Backed Bonds
Perrigo Company
Merger of
J.B. Laboratories, Inc.
with and into
Perrigo Company
September 2008
July 2008
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month as part of the proceedings,
Gordon said.
“There still has to be some digestion of the proposals that have
come in,” he said. “That’s why I
think there’s going to be some
possible difficulty or delay in
crafting a full plan before the
deadline.”
Marian Ilitch-owned MotorCity’s fiscal woes were enumerated
in a statement posted on Moody’s Investors Services’ Web site, announcing the downgrade of parent company CCM Merger Inc.’s outlook to
negative.
Last fall, CCM owners contributed $25 million in cash equity to enable the business to meet
its September debt-to-EBITDA
(earnings before interest, taxes,
depreciation and amortization)
ratio. Moody’s analysts warn that
another equity infusion might be
required for CCM to meet its
year-end debt-to-EBITDA ratio.
CCM’s debt limit is currently
seven times EBITDA, according to
Moody’s, but that ratio could increase in 2009 because of a drop in
gaming revenue — down 11 percent in December — that could offset earnings from the casino’s expansion and lead to negative cash
flow.
CCM’s owners would have to
ask to amend its lending covenants
to increase its debt-to-EBITDA ratio or risk becoming noncompliant, according to Moody’s.
Greektown may have its work
cut out in proving it can resolve
debts as it faces falling revenue
and lost market share. A 2008 revenue and tax collection report
prepared by the Michigan Gaming
Control Board shows that revenue
fell for all three casinos in December, with Greektown’s dropping
12 percent.
MotorCity ended 2008 with $464
million in revenue, compared
with $480 million in 2007. Greektown finished with $316 million
compared with $341 million last
year.
“Nothing before us suggests the
industry isn’t still solvent. The
casinos as a whole showed 1.8 percent revenue growth over the previous year,” said Rick Kalm, the
Gaming Control Board’s executive
director.
Edward Gudeman, president
and managing partner of bankruptcy law firm Weik & Associates
P.C. in Royal Oak, said Greektown’s ability to control its own future likely comes down to showing
an ability to make a profit on operations — exclusive of debt.
“If they can’t show that in the
plan, or the plan fails to execute,
the case could be converted to
Chapter 7 and be forced to sell,” he
said.
Greektown sought bankruptcy
protection in May, citing at least
$243 million in unsecured debt to
40 unsecured creditors, and has
since gained regulatory approval
from the Gaming Board to borrow
another $100 million more.
A new hotel is expected to open
in a newly built tower along Monroe Street next month.
Chad Halcom: (313) 446-6796,
[email protected]
Nancy Kaffer: (313) 446-0412,
[email protected]
20090126-NEWS--0007-NAT-CCI-CD_--
1/23/2009
5:56 PM
Page 1
January 26, 2009
Page 7
Biz backs Cox’s call for refund from surplus
worsen the state’s struc- ing it easier for local governments
“We think that they should be Transportation Association is getting
LANSING — Here’s a
tural deficit.
enacting the reforms and ideas a new leader.
to share services.
question: If you pay more
After 30 years representing the
Last week, the Detroit
They cited an extra $339 million that we’ve given them for savings
in taxes to help the state
chamber and other busi- in potential savings from reforms and not just plowing (surplus mon- heavy construction industry,
budget, and the state has
ness
organizations suggested by state audit reports.
ey) back into the hole and then MITA executive vice president
leftover money when it
ramped up pressure on
Leaders from the chamber, De- wait for President Obama to fill Bob Patzer plans to retire early
closes the annual books,
Granholm and lawmak- troit Renaissance Inc., the Michigan the rest of the hole,” Hubbard said. next year. Patzer previously was
should you get some
ers to tackle long-term Chamber of Commerce, the Grand
Fritz said the governor’s 2010 head of the Associated Underground
back?
structural budget re- Rapids Area Chamber of Commerce budget will include significant Contractors, which merged with the
Some in the business
forms and spending and the Center for Michigan empha- cuts and reforms, and Granholm Michigan Road Builders Association
community — and Michicuts.
sized the need for immediate ac- agrees that “to simply take the to become MITA in 2005.
gan Attorney General
Mike Nystrom, MITA’s vice
stimulus money and do nothing
The groups presented tion.
Mike Cox — say yes.
They also rejected any use of the but patch holes in the budget with president of government and puba list of nearly $1.3 bilThat issue, over the
Amy Lane
lic relations, will succeed Patzer
lion in cost-saving ideas federal economic stimulus pack- it, doesn’t serve our purposes.”
$713 million left over in
March 1, 2010, as executive vice
for corrections, Medic- age to patch holes in the state budthe state budget from fiscal 2008,
president.
aid, schools, consolidation of state get, and said the state needs to
flared up last week.
Amy Lane: (517) 371-5355,
Republican gubernatorial hope- government departments, local make tough choices to permanentThe Michigan Infrastructure and [email protected].
ful Cox called for a tax refund in an government contracting and mak- ly solve its budget problems.
opinion column, and at a Detroit Regional Chamber meeting.
The total amount of last year’s
$713 million surplus — which state
officials are applying to the current-year budget — approaches the
size of the $722 million Michigan
Business Tax surcharge that business has targeted for elimination.
The surcharge was added onto
the new MBT in 2007, enabling the
state to replace a widely unpopular tax on services that was enacted as part of a budget solution.
“Some of our members said,
‘Why don’t we suspend the surcharge for a year?’ The surcharge
is really weighing heavily on a lot
of people,” said Sarah Hubbard,
vice president of government relations at the chamber.
She said businesspeople feel the
surplus is “their money that they
paid to get Michigan out of a bind
in 2007.”
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nation of stronger-than-expected
revenues and unspent money in
departments, resulting from costcontainment measures.
Of the surplus, $458 million is
general fund money, and $255 million is School Aid Fund money.
Fritz said putting the money toward this year’s deficit made
sense, and helped avoid significant
cuts to schools, universities, police, fire and other core services.
Even after a December cost-cutting executive order by Gov. Jennifer Granholm, the state still
faces a roughly $300 million budget
shortfall in the current year and a
potential deficit of $1.4 billion in
fiscal 2010. That’s based on state
budget office projections earlier
this month that factored in new
revenue estimates from a Jan. 9
revenue-estimating conference.
Fritz said the state cannot legally refund money from the School
Aid Fund, and even if it refunded
the general fund portion of the surplus, the state would need to identify a corresponding amount of
cuts.
Fritz called Cox’s comments
“political grandstanding.”
John Sellek, Cox’s press secretary said, “If there’s a will to refund the people’s money there’s a
way to do it, and so they can come
up with a plan.”
Mercedes-Benz of Bloomfield Hills
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putting one-time money toward
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20090126-NEWS--0008-NAT-CCI-CD_--
1/23/2009
5:44 PM
Page 1
Page 8
January 26, 2009
OPINION
Chambers agree:
Cut state spending
ast week, business groups across the state carried a united message to Lansing: Cut millions of dollars in spending through substantive structural reform.
The groups — Detroit Regional Chamber, Detroit Renaissance Inc., Grand Rapids Area Chamber of Commerce and
Michigan Chamber of Commerce — want to meet with Gov.
Granholm and state House and Senate leadership to lobby for
the nearly $1.3 billion cost-saving ideas they presented.
Case in point: The Justice Center at the Council of State
Governments released its study last week that found Michigan
could save $262 million a year by releasing prison inmates after they’ve served 120 percent of their minimum sentence.
Pressure for change — and impatience — is building within the business community because state budget figures now
show a budget surplus of more than $700 million from fiscal
year 2008 will be carried into the state’s next fiscal year.
For businesses paying a 22 percent surcharge on the Michigan Business Tax, this is bitter news, indeed. How much of
that surcharge was really needed?
Unfortunately, too many people in Lansing hear the cavalry bugle and think the state will be saved by dollars from
Washington.
The worst thing that could happen to Michigan is Washington dumping a couple of billion dollars in stimulus money into
Lansing. That would prolong the status quo and delay what
must be inevitable: structural government reform.
L
A ‘new’ Cobo needs new rules
A highlight of the auto show festivities in Detroit this
month was a ceremonial signing by Gov. Granholm of the law
that will pave the way for expanding Cobo Center.
The legislation also creates a new five-member authority
board to run it.
Let’s hope all five yet-to-be-appointed members agree on one
thing: Cobo must be competitive with other major conference
centers.
Dutch Mandel, editor of sister publication AutoWeek, wrote
that one automaker saved $2 million in show-floor costs alone
by pulling out of the Detroit show. The same exhibit at the auto
show in Los Angeles cost about $700,000. “The price differential,” wrote Mandel, “is pure Detroit labor and service costs.”
Another problem: Automakers that want to wine and dine
guests with their own chefs and cuisine have to pay the official
Cobo supplier anyway.
The new authority is a chance for a fresh start — but only
if the authority decides we can no longer afford “business as
usual.”
OTHER VOICES
A tale from the front of the
Michigan unemployment line
BY JENNIFER KNIGHSTEP
Michigan has the highest unemployment rate in the nation. If you
still have a job, that unemployment rate is just
a number. You
probably don’t
know how frustrating it is to
work within our
state’s system to
find another job.
I do.
On Oct. 2, I
lost my contract Knighstep
position as an archivist-historian
at the General Motors Design Center along with dozens of my colleagues.
Like hundreds of thousands of
others, I turned to the Michigan
Unemployment Insurance Agency
and Michigan Works, while at the
same time sending out dozens of
résumés.
I thought you might want to
know what it’s like on the front
lines of the unemployment battle,
should you lose your job.
The state’s unemployment filing
system is surprisingly user-friendly: I have the option of filing my
claim by phone or over the Internet. I chose the Internet and filed
my claim easily within a few minutes. Once I visit an unemployment office to validate that I have
also posted my résumé on the
Michigan Talent Bank Web site, I
can call an automated phone system on my appointed day, every
two weeks, to certify that I am eligible to collect unemployment, and
receive my direct-deposit payment
of $292 per week, after taxes.
I’ve been fortunate. My payment
is always in the correct amount,
and there has never been a delay.
There is another program called
No Worker Left Behind, part of
Michigan Works. NWLB provides
training to displaced workers, giving them the education they need
to pursue a new career. Unemployed machinists can become
truck drivers, ex-librarians can
learn medical transcription. I review the qualification guidelines
on the Michigan Works Web site
and call the Clinton Township office for more information. The re-
ceptionist is helpful, informed and
The next day, after I drop off the
friendly. She registers me for the paperwork with Mary, I visit Manext NWLB orientation.
comb’s south campus. I meet Barb,
At the orientation, my instruc- the Special Populations counselor.
tor gives me an appointment with She is competent, pleasant and eaa caseworker. Though the orienta- ger to help. Over the next few days,
tion is mid-October, my appoint- we choose another NWLB-apment is Dec. 2, six weeks away. In proved program from the online
the interim, I am instructed to list — communications — and
gather paperwork to prove eligibil- make my schedule. Barb generousity and to select a few areas of ly pushes the tuition due date back
study that interest me from an on- for me, from Dec. 9 to Jan. 12, only
line list of approved careers and two days before classes begin, to
give NWLB time to process me. A
programs.
After the six weeks pass, I arrive month, she is confident, is more
than
enough
a little early for
time.
my appointment
I call Mary to
with my caselet her know that
worker and join
I was able to get
the fray at the
everything on my
Clinton Township
end completed.
office. The chaos
She immediately
is
frightening,
calls me back and
and the din deasks
why
I
pressing. People
haven’t provided
come here bethe
paperwork
cause their payshe
requested.
ment has been deI’m puzzled. I did
nied or delayed,
leave the paperor for a myriad of
Jennifer Knighstep
work for her,
other
reasons.
The receptionist handles them all days ago, but I recall the bustle of
the office and the state of her desk
with grace and patience.
My caseworker, Mary, fetches and am doubtful she knows she
me half an hour late and guides me has it. She asks me to bring it to
to her desk. It is piled high with her again, and gives me a specific
file folders, loose papers, sticky time to arrive at her office. I gather
notes. It takes her more than 10 the paperwork, rush to the office,
minutes to locate my file. She fills and she is not there. I reluctantly
out a couple of paper forms, makes leave it with the receptionist.
For the next month, I don’t hear
copies of my eligibility documents,
back from Mary. I leave two, somethen asks for others that I didn’t
times three messages every busiknow she would need. I promise to
ness day, and still no phone call.
drop them off with the receptionist
My messages are courteous, but
the next day.
urgent. I need to know the status of
Then Mary and I discuss my camy case. I will lose my classes and
reer options. She declines two of my
will not be able to start unless she
three choices, although they were
calls me back. I can’t pay my tuboth on the online list. She doesn’t
ition. I can’t buy books. I can’t
have a clear explanation of why, she
arrange for child care. I can’t do
just tells me that some programs on
anything until she calls me back.
the list aren’t actually approved.
But she will not call me back.
She tells me to go back to the list and
In the third week of my meschoose something else. Mary tells
sages, Mary changes her outgoing
me that if I hurry, I can probably begin my education at Macomb Com- voice message to say that she will
munity College the upcoming se- return all calls within 24 hours,
mester. I am motivated, and she is and to please not leave multiple
encouraging. “Bring me that paper- messages. I grow increasingly
work,” Mary says, “and we’ll get it frustrated and disappointed. Barb
I am exactly the
“person
for whom
this program was
designed, and it is,
in important ways,
failing me.
”
done.”
See Letters, Page 9
KEITH CRAIN: Has democracy run amok in Detroit?
I just heard that there have been
well over 300 individuals who have
picked up applications for the City
Council primary this summer.
Three hundred people who will
need just 428 signatures apiece to
qualify for the Aug. 4 primary election.
Think of the poor voter. Can you
imagine anyone trying to understand a ballot with more than 300
possible choices? Voters will
choose nine, and the top 18 votegetters will be on the ballot for a
runoff in November.
Now I am just as staunch a sup-
porter of a representative democracy as the
next guy, but I have to
tell you — when that
many people decide
that they are going to
get an application and
run for elected office, it
may explain why the
lottery is so popular in
Michigan.
Meanwhile,
next
month, Detroit voters
will decide which two of
the 15 candidates vying for mayor
will survive the special primary
on Feb. 24 and run
again on May 5.
Then the process will
start all over again with
the Aug. 4 primary and
Nov. 3 general election
to select a mayor to
serve for four years.
The sad part is that
they tell me that the
first mayoral primary
in February might have
a turnout of about 15
percent, or 70,000 voters. It’s anyone’s guess how many
voters will turn out for the Council
primary in August.
It’s no wonder that few if any
people vote in the city of Detroit.
We need to make democracy a bit
more manageable. I sure don’t
know the answer; it’s a challenge
to increase participation without
making it so burdensome that it
becomes a disincentive to vote and
participate. There is no easy answer.
There is something wrong with
this system that requires only 400plus signatures to get your name
on the ballot and yet it takes something like 30,000 signatures to get a
ballot proposal before voters to
change the way Council members
are elected.
And Detroit needs to change the
at-large election system. Perhaps,
like the District of Columbia, Detroit could have a combination of
members elected by wards or districts and some elected citywide.
That might be a workable compromise.
Meanwhile we can only watch
sausage being made, or call it
democracy. It’s not always pretty,
but it sure beats what’s in second
place.
20090126-NEWS--0009-NAT-CCI-CD_--
1/22/2009
3:09 PM
Page 1
January 26, 2009
Page 9
LETTERS: Economic storm tests us as a community
■ From Page 8
Executive director
South Oakland Shelter
Royal Oak
Ankeny praised
Editor:
With the reported retirement of
your stalwart reporter Robert
Ankeny (Rumblings, Jan. 12),
Crain’s will have difficulty filling
his shoes simply because of his expansive knowledge of Detroit’s
Market
How does an
business environment and sterling reputation as a fair, informative reporter. Thankfully for
Crain’s and your readers, he has
elected to remain available for special projects.
Unlike so many high-minded reporters with our print-media
dailies, Ankeny actually responds
to e-mails and comments made by
readers. And I doubt that Crain’s
has had to backtrack on statements attributed to his countless
interviews of newsmakers or contributors to his columns. What a
fantastic reputation he has built.
With regard to his “questionable
limericks and atrocious puns,” let
he who is without sin not know
what he is missing.
Robert Thibodeau
Detroit
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: [email protected]
Market
DOWN
at Macomb e-mails me and pushes
my tuition due date back again,
tells me to go ahead and start the
classes, but I still can’t buy books
or arrange child care.
I am afraid to begin classes, although I do, because I might lose
my unemployment eligibility.
Mary had mentioned a waiver,
which she will have to issue, but
when I leave a message asking
about the waiver, she will not call
back. I visit the office and am told
that Mary doesn’t see anyone without an appointment. To schedule
an appointment, I have to call her.
I ask for a supervisor’s name, and
they will not provide one.
Finally, the day after my classes
start, I receive a phone call from
Michigan Works telling me that my
file has been approved, my tuition is
on its way, and I have an account at
the Macomb bookstore to cover the
cost of books and supplies.
But there is still no word from
Mary about the waiver that would
allow me to continue to collect unemployment while in school. I
leave two more messages for her
and hope that she, or anyone, will
phone me back before my next
class, but I won’t hold my breath.
I am exactly the person for whom
this program was designed, and it is,
in important ways, failing me.
The unemployment system
seems to work; I can collect just
enough money to meet my obligations until my eligibility runs out.
And that’s the rut I am stuck in.
The most frustrating part? My future is in the hands of someone either so overwhelmed she can’t respond or who simply doesn’t care.
The countless hours I spend in
dogged pursuit of employment or
education are negated by a system
ill-equipped to handle the hundreds
of thousands of people who need it.
The Detroit area has some of the
highest unemployment rates in
the state. In November, the Detroit-Warren-Livonia unemployment rate crept up to 9.5 percent,
up from 8.8 percent in October.
And right now there are about
850,000 résumés posted on the
Michigan talent bank Web site, but
only 26,500 or so jobs available.
With odds like that, is it any
wonder, then, that people are leaving the state in record numbers?
Jennifer Knighstep lives in Shelby Township.
munity rallies behind those most
affected. Likewise, the test of our
community is how we rally behind
the victims of the greatest economic storm of our lives.
Kevin Roach
UP
OTHER VOICES
More and more face the brutal reality of becoming homeless due to circumstances beyond their control.
At South Oakland Shelter, more
than half our clients are experiencing homelessness for the first time.
Armed with their degrees, their résumés and their dignity, they suck
up their pride and ask for help.
Something that any one of us would
do; something that any one of us
may have to do some day.
As unemployment continues to
rise and more families are displaced from home, places like SOS
are needed now more than ever.
As with any natural disaster, we
watch to see how quickly the com-
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well as payments to stockholders’ or bondholders’ of the insurance companies.
Editor:
If a family loses its home to foreclosure, are they no longer part of
the community? If a mother loses
her job and requires unemployment benefits, is she now just another drain on society? If a child
loses his dad to the war in Iraq and
his mother loses everything,
should he also lose his desk at
school? If a retiree loses her pension because she worked for a major automotive company, do we tell
her to “just get a job?” These are
the victims of the new “natural”
disaster: the economic hurricane.
More and more people are becoming homeless for the first time.
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DBpageAD.qxd
1/22/2009
11:45 AM
Page 1
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20090126-NEWS--0011-NAT-CCI-CD_--
1/22/2009
4:50 PM
Page 1
January 26, 2009
Page 11
Monthly
REPORTER’S NOTEBOOK
Delta-Northwest
merger is one of the
deals that will make
an impact this year.
Page 12.
Tom Henderson
covers banking,
finance and
technology. Call
(313) 446-0337
or write
thenderson
@crain.
com.
Tom Henderson
Few foretold
this downturn
When the bottom fell out of what
seemed to have been a slowly
sinking economy last September, it
fell hard and fast. Not many
experts saw it coming. Consider
these local prognostications made
earlier in 2008:
In February, Dana Johnson,
the chief
economist for
Comerica
Bank, was the
keynote
speaker at a
breakfast of
the Detroit
chapter of the
Association for
Corporate
Growth.
Johnson
Johnson
batted .500 that day. He told the
crowd that although national
figures didn’t show it, yet, he was
convinced the U.S. had already
entered a recession that probably
began in January. But he predicted
that it would be relatively short and
shallow compared to the six other
U.S. recessions over the past 60
years, lasting about eight months
and perhaps ending in September.
“The federal policy apparatus is
really working hard to offset the
recessionary dynamic,” he said.
In March, a quarterly report
issued by the University of
Michigan Research Seminar in
Quantitative Economics predicted
a decline in national economic
output of 1.5 percent for the first
quarter of 2008 and a no-growth
second quarter, followed by thirdquarter growth of 2.5 percent and
fourth-quarter growth of 2.9
percent.
In May, at the ACG’s second
annual conference in West
Bloomfield Township on mergers
and acquisitions, the message
was that hedge funds would keep
middle-market M&A strong. One
panel’s title was: “Middle Market
M&A: The Reports of My Death Are
Greatly Exaggerated.”
All along, though, Larry Gardner,
the local ACG
president and
founder of
Troy-based
Lawrence
Gardner
Associates
Inc., a
consulting firm
that helps find
financing for
troubled
Gardner
companies,
was less sanguine.
He told Crain’s at an award night
last March honoring the local stars
of M&A that he thought the
national economy was far worse off
than the experts were
acknowledging and that it would
get a lot worse before it got better.
Now?
“There will be a light at the end
of the tunnel,” says Gardner. “Will
it be 2009? I don’t think so. If it’s
2010, it will be a blessing.”
M&A deals dry up
Fear of the unknown, lack of financing bench many players
BY TOM HENDERSON
THE M&A CRASH OF 2008
here’s a saying that family fortunes aren’t made
in bull markets, they’re made in bear markets.
And while this likely will hold true in this bear
market, experts say fear and worry will rule in coming
months as things sort themselves out.
M&A activity in metro Detroit plummeted last year
— by 48 percent in number of deals and 80 percent in
deal value. And a noticeable number of 2008 deals were
from sales out of Chapter 11 and other distress situations.
“The worst possible environment for the private sector is uncertainty, and the uncertainty in 2009 is unlike
anything I’ve seen. It’s historic. Everyone’s flying
blind,” said Scott Reilly, president and chief investment officer of Detroit-based Peninsula Capital Partners
L.L.C., a provider of equity and
debt to companies in need of capital.
Here’s how local M&A experts
see things playing out as they
M&A list
live through the Chinese curse of
Page 15
interesting times. They tell a tale
of the good, the banks and the
ugly.
Real estate sales
T
$40.1
billion
$36.1
billion
MORE DEALS
The good
Page 17
Jason Runco, a partner at
Office leases*
Bloomfield Hills-based BlackEaPage 19
gle Partners L.L.C., describes the
investing environment for his
Industrial leases*
private-equity company, which
specializes in distressed compaPage 20
nies in need of turnaround, as
“Halloween and Christmas
*Extended list at www.crains
rolled into one.”
detroit.com/finance
In addition to strong market
opportunities, BlackEagle,
which finished raising $200 million in July 2007, has
plenty of money left to do deals.
Wind Point Partners, a private-equity firm co-based in
Southfield and Chicago, also has plenty of money, having raised $900 million of its new $1 billion fund VII
and with more than a third left to invest of its previous
fund of $715 million.
“We feel very enthused and fortunate that we got the
fund raised. That’s a big pile of dry powder for one of
the best investing environments we’ve had. When we
look back in 10 years, 2009 will be a good vintage year
for us,” said managing director Jim TenBroek.
“This is a good time to get deals done because there
are a lot of private-equity guys on the sideline. Even for
good companies, it’s tough to raise money now,” he
said.
Detroit-based Huron Capital Partners L.L.C. announced
last January that it had finished raising its latest fund
of $350 million, and the firm, named the Crain’s dealmaker of the year for 2007, had a strong 2008, too, completing nine transactions.
Managing director Brian Demkowicz said the company has more than $300 million left to invest, and with
deal values off 35 percent to 40 percent in the last year,
he, too, says it’s a good time to buy.
See M&As, Page 12
$8.1
billion
123 deals
119 deals
62 deals
2006
2007
2008
20090126-NEWS--0012,0013-NAT-CCI-CD_--
1/22/2009
4:13 PM
Page 1
Page 12
January 26, 2009
Finance Monthly: Big Deals 2008
Deals that will make an impact,
two that ended up as wannabes
There were two 2008 deals involving nonlocal companies that
will have a noticeable effect on
Southeast Michigan, and two notable deals that didn’t happen
Delta and Northwest
Delta Air Lines Inc. and Northwest
Airlines Corp. inked a $2.8 billion
merger in October that is now
taking effect.
Northwest is the largest carrier
at Detroit Metropolitan Airport
with more than 500 daily flights.
The new airline eventually will
operate under just the Delta
name, with its headquarters in
Atlanta, and will feature Delta
food and flight attendant uniforms this quarter. Northwest’s
jets are being painted in Delta’s
colors.
The combined carriers will have
75,000 employees to serve customers in 66 countries and more
than 375 cities across the globe,
more than any other airline.
However, the economic downturn recently forced Northwest to
delay the start of its much-touted
Detroit-Shanghai nonstop service
from March 25 to June 3.
PNC and National City
The announced sale in October
of Cleveland-based National City
Corp. to Pittsburgh-based PNC Financial Services Group for almost
$5.6 billion in stock and cash was
regarded as an early success of
the Troubled Asset Relief Program.
While the deal didn’t directly
pump any liquidity into the local
credit market, it shored up one of
the largest banks in the state.
NatCity, beleaguered by its
affinity for subprime debt, was on
the block for months. The good
news to its Michigan employees
was that it was bought by a bank
with no Michigan presence, ensuring most, if not all, of its
branches would stay open.
The deal, which has since
closed, created the fifth-largest
U.S. bank in terms of deposits,
with $180 billion.
There were also two would-be
deals that didn’t happen:
Greektown Casino and EIG
Much-discussed in the first
part of 2008 was the potential sale
of a 40 percent stake in Greektown
Casino L.L.C. to Bloomfield Hillsbased Entertainment Interests
Group, a partnership headed by
Pinnacle Racetrack owner Jerry
Campbell.
But as the year progressed —
and Greektown filed for Chapter
11 bankruptcy protection — the
sale didn’t happen.
Roger Martin of Lansing-based
Martin Waymire Advocacy Communications, who represents Greektown, said that any discussions of
a sale were now under the aegis of
the bankruptcy court.
“The casino moved into Chapter 11 protection, and those discussions are now there,” he said.
Sale of Borders Group Inc.
Ann Arbor-based Borders Group
Inc. (NYSE: BGP) grabbed headlines in March when the nation’s
second-largest bookseller announced it was for sale. From the
start, analysts and industry insiders had questions. A merger with
New York-based Barnes and Noble,
the nation’s largest bookseller,
was discussed, and the Wall
Street Journal reported that the
company had formed a review
team to evaluate a purchase.
Analysts had questioned the
wisdom of a Borders-Barnes and
Noble deal, noting that the booksellers’ stores have overlapping
service areas.
By October, Borders announced
that it was off the market.
— Nancy Kaffer, Bill Shea, Tom
Henderson
M&As: Deals dry up
■ From Page 11
“Funds have
10-year life cycles. You buy for
five years and
sell for five
years. Expectations are high.
We’ll look back
at 2009 and 2010
as very good
times to buy
Demkowicz
companies.
“We’ll continue to be very active. We’ve mapped out a program
over the next year, we’ve identified the cities we’ll be in and we’ve
lined up executives and are looking for platform companies for
them to run.”
The key will be to replace the
portion of a deal typically taken up
by banks. He said if in the past it
took $10 million of cash flow to get
$35 million or $40 million in bank
funding, it might take double that,
now.
“There are lots of ways to get a
deal done. You just have to be creative,” said Demkowicz. That
might include Huron putting in
more than the 40 percent of equity
it traditionally puts into a deal,
and finding other nonbank
lenders.
“People who have money are in
the catbird’s seat,” said Walter
“Bud” Aspatore, chairman of the
Birmingham-based investment
banking firm of Amherst Partners
L.L.C. “They will drive hard bargains. A lot of people they see will
be in distressed situations and that
will drive prices lower. So 2009
could end up being a very good
year for private-equity firms with
capital.”
Peninsula Capital
raising new fund
Detroit-based Peninsula Capital Partners L.L.C. is bucking a
national trend. While most private-equity and venture-capital
firms
have
delayed
fundraising during the current
credit crunch, Peninsula is
raising a new fund of $400 million, which it hopes to close by
midyear.
“We’ve got quite a bit of enthusiasm from our limited
partners,” said Scott Reilly,
president and chief investment
officer, referring to his institutional and high-net-worth investors. “Subordinated debt is
considered a good place to be,
now.”
Peninsula provides mezzanine financing, including equity and subordinated debt, for
middle-market companies, typically those with revenue between $10 million and $250 million, seeking capital.
Its last fund, of $315 million,
was raised in 2005.
— Tom Henderson
ruptcy.
“We’re hearing from those companies every day. These are profitable companies that are having a
decrease in revenue and are still
profitable, but the banks are desperate to clean up their balance
sheet moving forward. …
“If banks won’t restrain themselves from their worst instincts,
we face a pandemic meltdown.”
Garrett Kanehann, a BlackEagle
co-founder, says that over the next
Community
banks,
credit
12-18 months, deals will be eventunions, asset-based lenders and
driven, as opposed to opportunityprivate-equity firms all say they’re
driven, and he says a big cause of
inundated with calls from local
those events is banks cutting off
business owners who have been
credit.
cut loose by large banks eliminatCompounding the problem, said
ing lines of credit or calling in
Kanehann, is that banks that have
loans, in many
traditionally procases
forcing
vided the senior
even healthy comdebt that is the
panies to the
backbone
of
brink of insolvenputting an M&A
cy.
deal
together,
For their
have
either
part,
the
stopped their deal
banks say
lending or are
they continasking for such
ue to lend, a
high returns that
claim that
dealmakers are
rings hollow
looking
elseto much of
where for much of
the rest of
their financing.
the local fiSeb Coppola,
nancial commupresident
of
nity.
Rochester HillsPeninsula Capibased Corporate
tal Partners has
Analytics Inc., a
been a direct benGarrett Kanehann, BlackEagle
boutique
M&A
eficiary of banks
and corporate rereducing commercial lending, but
financing firm, said he has two
Reilly is angry at major local
deals he thought were near combanks, nonetheless.
pletion now on hold because of
“They’re taking companies that
trouble finding a senior lender.
have never been late with payHe said companies can replace
ments and running them out of
senior debt with subordinated
business. If a company isn’t makdebt or asset-based lending, “but
ing its budget numbers, they’re
it’s expensive debt. If your bank is
driving them into insolvency, and
once they’re insolvent, into bankSee M&As, Page 13
The banks
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won’t
“ If banks
restrain
themselves
from their
worst
instincts,
we face a
pandemic
meltdown.
”
20090126-NEWS--0012,0013-NAT-CCI-CD_--
1/22/2009
4:13 PM
Page 2
January 26, 2009
Page 13
Graduate students compete for
M&A award from ACG Detroit
BY TOM HENDERSON
The winner of the second annual
ACG Detroit Cup will be announced at
the annual Crain’s Detroit Business/Association for Corporate Growth mergers
and acquisitions awards night March 19
at Meadow Brook Hall.
The event, open to teams of graduate
students from business schools, has
grown, but it will be hard to top the drama of last year’s contest, when a team
from Walsh College eked out a win — and
first prize of $10,000 in scholarship money — over a team from the Stephen M.
Ross School of Business at the University of
Michigan.
The five teams of finalists were given
a case study on mergers and acquisitions by ACG members to develop solutions to problems in the study and present their findings to a panel of judges.
The Walsh team won by seven-tenths
of 1 percent.
Fourteen teams entered the competition last year. Eighteen entered this
year from five schools.
Round-one eliminations will be held
Jan. 23-31 at UM, Walsh, the University of
Detroit Mercy, Wayne State University and
the Eli Broad College of Business at Michigan State University. Teams will make 30minute presentations.
The winner at each venue will advance to the finals on Feb. 21 at Walsh
College in Troy. On Feb. 7, ACG members will again distribute a case study
for the finalists to analyze, with teams
of three to five students submitting
their executive summaries by e-mail on
Feb. 18.
They will present 40-minute summations before a panel of judges at Walsh
three days later.
First prize will again be a $10,000
scholarship, with the runner-up team
getting $5,000 and the other three finalists getting $1,000 each.
M&As: ‘Doom and gloom’
■ From Page 12
saying either find a new lender or
liquidate, you have no choice.
With all the money the Feds are
stuffing into banks, at some point,
they’ll start lending. But it looks
quite dark, right now.”
hold off.”
He said as bank financing remains tight, there will be a lot
more seller financing and a lot
more deferred payments.
“It’s going to be ugly,” said Van
Conway, co-founder and senior
managing director of Conway
MacKenzie & Dunleavy, a turn“It was certainly doom and around and consulting firm. “In
gloom the last half of 2008,” said other bad times, like 1980 or 1991,
Jay Edwards, a partner specializ- you could always finance good
ing in audit and busicompanies.
ness transition at
Now we can’t.
Southfield-based acI’ve
never
counting and consultseen that being firm Virchow
fore.”
Krause & Co.
Pete Sugar,
L.L.P.
a member of
He said he
the Southfieldsaw quite a few
based law firm
deals
fall
of Jaffe Raitt
through either
Heuer & Weiss
because of fiP.C. and a spenancing or lowcialist in corer valuations,
porate financ“and I don’t see
ing, said he
credit markets healrecently
ing themselves any
closed
one
time soon. Deals will
deal for a
be hard to put togethtriple A-rated
Van Conway,
er. If deals happen,
company, but
Conway MacKenzie & Dunleavy
they’ll likely be with
even then only
distressed
compaafter the deal
nies. Companies buying assets out was restructured for the seller to
of bankruptcy, for example. There put in a larger chunk of financing.
will be lots of troubled companies
“Deals will get done where a
on the block.”
seller is highly motivated, either
Steven Hilfinger, partner in the the owner is close to retirement or
Detroit office of Foley & Lardner there’s a death of a principal or
L.L.P. and co-chair of its automo- some other motivation. Those
tive industry team, said “the near deals that get done will be
term remains pretty bleak. I’ve through a combination of lower
been doing mergers and acquisi- prices and lots of paper. Not bank
tions for 21 years and I’ve never paper, seller paper. It’s not going
seen anything like this. If you are to be a vibrant market for ownerthinking of trying to sell your busi- ship changes on a voluntary baness, you better try to push on sis.”
through 2009, first. If you don’t
have to sell this year, you better [email protected]
The ugly
In other bad
times ...
you could
always
finance
good
companies.
Now we can’t.
“
”
M&A AWARD NOMINEES SOUGHT
Leslie Sheidler, senior director of
strategic initiatives at Troy-based Kelly
Services Inc., a board member at ACG
and chair of the cup event, said the
goals of the competition, in addition to
doling out scholarship money, include
providing networking opportunities to
the graduate students with their exposure to ACG members, and to serve as a
recruiting tool for ACG.
“It’s a chance to get exposure for
ACG, and it’s a way to show students
how to do a deal and what’s going on
with us. It’s a grassroots initiative,” she
said.
Last year, Detroit became the third
ACG chapter to sponsor a cup competition, following Los Angeles and
Philadelphia. This year, a second state
competition was added, in western
Michigan.
Tom Henderson: (313) 446-0337, [email protected]
Involved in a merger, acquisition or expansion in 2008?
You may be eligible for the second annual Crain’s M&A
Awards contest.
Crain’s Detroit Business and the Detroit chapter of the
Association for Corporate Growth will honor companies
and individuals in the following categories:
Best Deal of the Year: Under $100 million and $100
million or more.
Dealmaker of the Year: M&A
experts, lenders, CPAs, consultants
and attorneys, among others, are
eligible.
Best Woman or Minority Enterprise
Deal.
Best Expansions. This is a new
category and can include physical plant expansions,
new product lines, diversification of client base and
other similar activities that lead to job creation and/or
economic growth. Two categories: Investments of less
than $50 million and $50 million or more.
Lifetime Achievement: Senior-level executive who has
been involved in significant transactions and has made
a significant impact on the community.
Applications for the M&A awards can be found at
www.crainsdetroit.com/nominate. The deadline for
entering is Jan. 30. Winners will be announced at a
strolling dinner to be scheduled in March.
The Detroit chapter of the Association for Corporate
Growth is part of a global association of professionals
involved in corporate growth, development and mergers
and acquisitions. The local chapter was formed in 1984
and has about 270 members. For more information,
see chapters.acg.org/Detroit.
2008: A Proper Mix of Platforms,
Add-Ons, Exits and a New Fund
Acquisition of the assets of
Southern Classic Stairs, Inc.
by Southern Staircase
Holdings, Inc.
January 2008
Exit via sale of all of the
stock of NorthernCap
Holdings, Inc. to
totes-Isotoner Corp.
Purchase of all of the stock of
Berman Printing Company
by TouchPoint
Print Solutions Corp.
February 2008
Acquisition of the assets
of Koch’s Orthopedic/
Prosthetic Services, Inc.
by MOS Holdings, LLC
March 2008
April 2008
Purchase of all of the stock of
Commercial Communications,
Inc. by TouchPoint
Print Solutions Corp.
Purchase of all of the assets
of M.E.D., Inc. by Ross
Education LLC
May 2008
Purchase of all of the
securities of RME, LLC d/b/a
Response Mail Express
June 2008
$350,000,000
Purchase of all of the assets
of Creative Products, Inc.
by The Olon Group, Inc.
The Huron Fund III LP
January 2008
July 2008
December 2008
We Look Forward To Investing With You In 2009!
H U R O N C A P I TA L PA R T N E R S L L C
PLATFORM INVESTMENT CRITERIA
Revenues
EBITDA
Equity per Deal
$20 million to $200 million
TRANSACTION TYPES
Buyouts
Recapitalizations
Family Successions
Buy & Build
Growth Initiatives
Corporate Spin-offs
www.huroncapital.com
500 Griswold, Suite 2700 I Detroit, Michigan 48226 I Tel: 313.962.5800
225 Ross Street, 4th Floor I Pittsburgh, Pennsylvania 15219 I Tel: 412.201.7040
DBpageAD.qxd
1/13/2009
2:49 PM
Page 1
One team.
One focus.
Your success.
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CRAIN'S LIST: MERGERS & ACQUISITIONS
Rank
Annual
revenue
($000,000)
Value of
transaction
($000,000)
Date
effective
Description
June
Ford agreed to pay $600 million into the Jaguar and Land
Rover pension funds after the deal closes.
$2,300.0
$540.0
Acquirer name
Target
Acquirer advisers
Target advisers
Tata Motors Ltd., Mumbai, India
Jaguar Ltd.; and Land Rover
Ltd. units of Ford Motor Co.
Citigroup; J.P. Morgan;
Allen & Overy; Arnold &
Porter; AZB & Partners;
Cuatrecasas, Goncalves
Pereira; Delphi & Co;
Herbert Smith/Gleiss Lutz/
Stibbe; Stikeman Elliott;
Webber Wentzel
Kim & Chang
2.
Consortium: Mazda Motor Corp.; Investor
group
20.4% of Ford Motor Co.'s
33.4% stake in Mazda
Daiwa Secs SMBC
J.P. Morgan
$30,398.0
Pending
Ford reduced its 33.4% stake to about 13% by selling
20.4% to Mazda and an investor group.
3.
Platinum Equity L.L.C., Beverly Hills, Calif.
Steering business, Delphi
Corp., Troy
Kirkland & Ellis
Skadden, Arps; FTI
Consulting; Rothschild
$2,700.0
Pending
Deal includes assumption of $190 million in debt; GM will $440.0
pay $250 million to Delphi when the sale closes.
4.
Morgan Stanley Private Equity
Learning Care Group Inc.
Morgan Stanley; Clayton
(60% stake), Farmington Hills Utz; Skadden Arps Slate
Meagher & Flom
Freehills
$800.0
June
Remaining 40% stake is owned by ABC Learning Centres
Ltd. In Australia.
JCIM L.L.C., formed by Johnson Controls,
Milwaukee
Plastech (underhood and
interiors units)
Dickinson Wright
Skadden Arps
$1,000.0
July
JCIM is a joint-venture between Johnson Controls Inc. and $400.0
some of Plastech's term lenders. JCIM purchased Plastech's
interiors assets on July 1 after being named the lead bidder
in Plastech's Ch.11 sale of its business units. JCIM is about
70% owned by JCI, and 30%-owned by some of Plastech's
term lenders.
Advantage Partners L.L.P., Japan
GST AutoLeather Inc.,
Southfield
Goldman Sachs; Allen &
Overy; Kirkland & Ellis;
Nagashima Ohno &
Tsunematsu
Dechert; Lazard L.L.C.
MP Thrift Investments L.P., New York
Flagstar Bancorp Inc., Troy
Sullivan & Cromwell;
Kutak Rock; Skadden
Sandler O'Neill & Partners Arps Slate Meagher &
Flom; Keefe Bruyette &
Woods
8.
Range Resources Corp., Ft. Worth, Texas
DTE Energy Co. gas
properties in Texas
8.
ProQuest Co., Ann Arbor
Dialog, Cary, N.C.
1.
5.
6.
7.
Cambridge Information
Group
Plans to sell 70% stake to affiliate of MatlinPatterson
$266.0
Glaobal Advisors L.L.C. Deal dependent on Flagstar getting
TARP money from the federal government.
J.P. Morgan
Jan. 2008
Sale of portion of Barnett shale gas properties near Dallas.
$250.0
Chiomenti Studio Legale $42.6
July
Acquired company is online information-retrieval-system
firm previously owned by Thomson Reuters. Value is
estimated.
$250.0
June
Odyssey is part of a mullti-target deal, currently worth
$234.7 million ($213 cash and 14.87 million shares of
stock)
$234.7
Hampson Industries US Inc., Grand Prairie, Odyssey Industries Inc., Lake Pilsbury Winthrop Shaw
Texas
Orion
Pittman; KPMG
Williams, Williams,
Rattner & Plunkett;
Doeren Mayhew
11.
Suzuki Motor Corp.
General Motors Corp.'s
3% stake of Suzuki
J.P. Morgan
Meadowbrook Insurance Group Inc.,
Southfield
ProCentury Corp., Columbus, Bodman; Howard &
Ohio
Howard; Paracap Group
Baker & Hostetler;
Friedman Billings
Ramsey Group
13.
Jos. Vaessen, Brussels, Belgium
The Heating Co., Dilsen,
Belgium
14.
QBE Holdings Inc., Australia
North Pointe Holdings Corp., Internal
Southfield
15.
Plastipak Packaging Inc., Plymouth
Township
Europa Preforme Srl; and
Preforme Sud Srl
16.
Wind Point Partners, Detroit
Ryt-Way Industries Inc.,
Lakeville, Minn.
17.
Fiat SpA, Italy
Tritec Motors Ltd., a
Chrysler-owned engine plant
in Brazil
$30,600.0
November GM sold its 3% percent stake in Suzuki Motor Co.
back to the Japanese company.
$230.0
July
Paid $20 per share in cash and stock. Combined operation $227.2
will operate under Meadowbrook name; two ProCentury
board members joined Meadowbrook's board. Acquired
company insures agencies, professional and trade
associations and small to midsize businesses.
April
Sold by Masco Corp., Taylor
$155.0
Honigman Miller
$94.2 (net
Schwartz and Cohn; J.P. premiums)
Morgan; MWW Group
May
Acquired company is a property and casualty insurer that
makes specialty commercial and personal insurance
products.
$146.0
Grant Thornton; Seyburn
Kahn
KPMG
$220.0
February
Producers of plastic containers in Rome and Verbania, Italy. $135.0
Became subsidiary of Plastipak.
Kaye Scholer; Deloitte
Macquairie
$130.0
August
Blends soups, cereals and salad garnishes for retail sale.
$120.0
Pending
Fiat agreed to buy Chrysler's Tritec enginer plant in Brazil
for $250 million Brazilian Reais
$107.0
March
Sale included entire business line including: book of
business, manufacturing operations, intellectual property,
personnel, supplier contracts and share of joint ventures.
Relaunched as Inteva Products.
$106.0
Arts, Cleeren & Vennoten;
Deloitte; Fortis; ING; KBC
Securities
$177.0
18.
The Renco Group Inc., New York (assets
Global Interiors and Closures Cadwalader Wickersham & Beiten Burkhardt;
going to Inteva Products L.L.C., Renco is PE business of Delphi Corp.,
Taft; Kim & Chang
Rothschild; Skadden
firm)
Troy
19.
A & R Whitcoulls Group Holdings PTY Ltd., Borders Group Inc.
Melbourne, Australia
(Australia/New Zealand/
Singapore businesses)
UBS; Allen & Gledhill;
Clayton Utz
20.
General Sports Derby Partners, Rochester
Derby County Football Club
Ltd., Derby, England
Internal
Johnson & Johnson, Langhorne, Pa.
Health Media Inc., Ann Arbor Internal
20.
$300.0
Pending
10.
12.
April
$420.0
$1,300.0
June
$105.0
Internal
$100.0
Jan. 2008
Deal was for the Derby County Rams soccer team of the
Football League Championship, and included 33,000-seat
Pride Park Stadium.
$100.0
Harris Williams;
Goodwin Proctor;
Pricewaterhouse
Coopers
$23.0 (2007)
October
Provides online wellness programs for large employers and $100.0
HMOs. Sale price is more than $100 million. Acquired
from Chrysalis Ventures.
Bought in concert with Odyssey Industries.
22.
Hampson Industries US Inc., Grand Prairie, Global Tooling Systems Inc., Pilsbury Winthrop Shaw
Texas
Utica
Pittman; KPMG
Williams, Williams,
Rattner & Plunkett;
Doeren Mayhew
June
23.
One Equity Partners L.L.C., New York
Precision Gear Holdings,
Rochester Hills
Latham & Watkins
Kirkland & Ellis;
Houlihan Lokey;
Rothschild
June
24.
DTE Energy Services, Ann Arbor
Shenango Group Inc.,
Pittsburgh
K&L Gates; Hunton &
Williams
25.
Bulk Moldings Compounds
Inc., West Chicago, Ill.
Reed Smith; Ernst & Young Holland & Knight
26.
Micros Systems Inc., Columbia, Md.
Fry Inc., Ann Arbor
27.
Long Point Capital Inc., Royal Oak
Clough, Harbour &
Associates, Albany, N.Y.
Internal
Internal
$100.0+
December Engineering services firm. Deal estimated at more than $50 $50.0
million.
27.
WeisnerMedia Financial
Group of Colorado
Sonnenschein Nath &
Rosenthal
Media Resource Group
$50.0
July
Publishes four magazines targeting financial industry. Add- $50.0
on for Summit Business Media portfolio company.
27.
UMA Enterprises Inc.,
Compton, Calif.
Dickinson Wright
$50.0+
Jan. 2008
Maker of decorative accessories. Deal estimated at more
than $50 million.
27.
ESOP, Atlantic Plywood Corp., Woburn,
Mass.
Atlantic Plywood Corp.,
portfolio company of Long
Point Capital, Royal Oak
$50.0
June
Distributor of plywood products and interior specialty panel $50.0
products. Deal estimated at larger than $50 million.
$116.0
Latham & Watkins
$84.0
$80.0
April
Acquired operation produces coke used in iron-making
blast furnaces.
$75.0
June
Provides bulk materials for auto and consumer products.
Add-on for Pennsylvania-based Citadel Plastics Holdings
Inc. Value is estimated.
$70.0
August
$67.0
$50.0
20090126-NEWS--0016-NAT-CCI-CD_--
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4:14 PM
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Page 16
January 26, 2009
CRAIN'S
LIST: MERGERS & ACQUISITIONS
Continued from page 15
Annual
revenue
($000,000)
Date
effective
Value of
transaction
($000,000)
Rank
Acquirer name
Target
Acquirer advisers
31.
Affinia Group Inc., Ann Arbor
HBM Investment Limited
(85% stake)
Dorsey & Whitney
32.
Hephaestus Holdings Inc.
Global bearings business,
Delphi Corp., Troy
Jenner & Block
33.
York Insurance Services Group Inc.,
Parsippany, N.J.
American Risk Pooling
Consultants Inc., Southfield
Jones Day
34.
TRW Integrated Chassis Systems L.L.C.,
Saginaw
Certain North American
braking machining and
module assembly assets of
Delphi Corp., Troy
Honigan Miller Schwartz
and Cohn
35.
MH Equity Investors, Indianapolis
Entertainment Publications
Inc., Troy
Greenberg Traurig; internal Evercore Group
36.
Ener1 Inc., Fort Lauderdale, Fla.
Remaining 19.5 percent stake Cowen & Co.
of EnerDel battery joint
venture with Delphi Corp.,
Troy
37.
Decoma International of America Inc.,
Concord, Ontario; Goldman Sachs Credit
partners L.P.
Exterior parts division of
Varnum Rittering
Plastech Engineered Products
Inc., Dearborn
September Decoma, a unit of Canadian auto supplier Magna
International Inc., bought target in Chapter 11 bankruptcy
sale. Unknown whether debt was assumed.
$24.8
38.
IGI SGR SpA, Milan, Italy
Glass Idromassaggio SRL,
Oderzo, Italy
Samory Fabbrini e Associati Internal
August
$23.0
39.
Atlas Oil, Taylor
23 Indiana gas station
transaction with BP
Internal
40.
Anderson Merchandisers L.P., Amarillo,
Texas
Certain U.S. music inventory
and fixed assets owned by
Handleman Co., Troy
AP Services
41.
Tenneco Inc., Lake Forest, Ill.
Ride control assets of Delphi Mayer Brown
Corp., Troy
Skadden, Arps
42.
Ruth's Chris Restaurants
Three Detroit-area Mitchell's Piper Jaffray
Fish Markets and one
Cameron's Steakhouse
43.
Bienes Turgon SA de CV, Mexico
Delphi Corp., Troy (global
exhaust business)
44.
Tesco Plc, Hertfordshire, England
Certain fixed assets of the UK
subsidiary of Handleman Co.,
Troy
45.
American Capital Assurance Corp., Florida
Unit of North Pointe
Holdings Corp., Southfield
46.
MP Pumps Acquisition Corp., affiliate of
Lionheart Ventures, Tampa
MP Pumps unit of Tecumseh Jaeckle Fleischmann &
Products, Ann Arbor
Mugel
47.
Unnamed U.S. private equity firm
Gyro International, London,
portfolio company of
Beringea L.L.C., Farmington
Hills
48.
Anderson Merchandisers L.P., Amarillo,
Texas
Inventory, fixed assets and
operations of Handleman
Co.'s Canadian subsidiary.
49.
Gale, Cengage Learning, Farmington Hills
HighBeam Research, Chicago Internal
Berkery, Noyes & Co.
L.L.C.
50.
Strategic Staffing Solutions Inc., Detroit
National Technical Systems Honigman Miller
Inc., San Francisco, contracts
and technical resources
information technology assets
Dan Schasteen, Lagunaa $20.0
Niguel, Calif.
50.
Huron Capital Partners L.L.C., Detroit
Response Mail Express L.L.C., Crowe Horwath; Honigman Gornto & Gornto
Tampa
Miller
50.
Berman Printing Co.,
Cincinnati
50.
Commercial Communications Crowe Horwath; Honigman von Briesen & Roper
Inc., Hartland, Wisc.
Miller
50.
GE Analytical Instruments, Colorado
Sensicore Inc., Ann Arbor
Internal
50.
Strength Capital Partners L.L.C.,
Birmingham
Underground Construction
Inc., Knoxville, Tenn.
Jaffe Raitt
50.
BlackEagle Partners L.L.C., Bloomfield Hills Eurodesign Cabinets, Chino,
Calif.
Honigman Miller
50.
Rockbridge Growth Equity L.L.C., Livonia
Berkery Noyes
50.
BlackEagle Partners L.L.C., Bloomfield Hills InStar Services Group, Ft.
Worth
Honigman Miller
Morgan Keegan
$82.0
August
National provider of disaster response, insurance restoration $10.0
and reconstruction services. Deal estimated at more than
$10 million.
50.
MidOcean Partners, New York
Northern Cap & Glove
portfolio company of Huron
Capital Partners L.L.C.
Kirkland & Ellis
Honigman Miller
$26.2
February
Maker of apparel and accessories. Deal is estimated at more $10.0
than $10 million.
50.
Southern Management
Group, Columbia, S.C.
Internal
Internal
$10.0+
May
Cost and project management. Bought for portfolio
$10.0
company Cummin Group. Deal estimated at more than $10
million.
50.
Roger Newton
Esperion Therapeutics Inc.,
Ann Arbor
Honigman Miller
April
Newton took company public in $54 million IPO in 2004,
then sold 2004. Bought back from Pfizer in the wake of a
Pfizer downsizing. Deal is estimated at more than $10
million.
50.
Construction Controls Group Internal
Inc., California
Jan. 2008
Bought for portfolio company, Cummin Group Inc., also in $10.0
California. Sale estimated at more than $10 million.
Northcentral University of
Prescott Valley, Ariz.
Butzel Long; Stellar
Alliance
Target advisers
Skadden, Arps; Keybanc
Capital Markets
Skadden, Arps
$295.0
Internal
Osler Hoskin & Harcourt
$49.0
May
Sale included machinery and equipment, intellectual
property, assignment and assumption of certain customers
and supplier contracts, and Sandusky, Ohio, production
and engineering facility.
$46.0
June
Sold by First Mercury Financial Corp., Southfield
$43.0
Jan. 2008
Sales includes equipment from Delphi plants in Saginaw,
$40.0
Springhill, Tenn., and Oshawa, Ont. TRW will also enter a
five-year lease of Delphi's facility in Saginaw.
August
$191.0
Mary Ann Rivers remained CEO following the acquisition.
$34.9
Ener1 paid Delphi $8 million cash and 2.86 million shares $27.6
of stock in return for the remaining stake in the joint
venture. Annual revenue was unavailable as the EnerDel
venture had not begun to deliver product.
Maker of glass bathroom fixtures. Sold by Taylor-based
Masco Corp.
September 11 retail sites, distribution rights to seven sites, assets to five $22.0
Indiana tool road gas stations. Value is estimated.
June
Part of Handleman liquidation
$19.5
$100.0
May
Tenneco paid $10 million for parts inventory and $9
million for machinery and equipment. Tenneco company
will also lease part of Delphi's Kettering, Ohio, plant.
$19.0
Piper Jaffray
$90.0
February
Restaurants are part of a 21-restaurant acquisition valued at $18.0
$94 million. Value of local acquisitions is estimated.
Lincoln International
$300.0
Pending
Front exhaust module; included catalytic converters and
$17.0
exhaust manifolds; manufacturing sites in Poland, Australia,
India, South Africa; JVs in China and Mexico; technical
centers in United States and Luxembourg
AP Services
Internal
November Asset acquried was 85% stake in HBM-owned Longkou
Haimeng Machining Co. Ltd., a brake drum and rotor
manufacturing company in China.
$182.7 (2007) May
Skadden, Arps
Description
September Part of Handleman liquidation
$16.7
Internal
$20.0 (gross
premiums)
May
Sold Home Pointe Insurance Co., Florida.
$15.3
Rothschild North
America
$16.6
June
Target was Fraser-based maker of centrifugal pumps.
$14.6
February
Returned $9.5 million to Beringea investors on an
investment of $3.5 million. Total sales price was $97
million.
$13.0
AP Services
Crowe Horwath; Honigman Katz Teller
Miller
September Part of Handleman liquidation
$12.6
December Purchase includes library business as well as
encyclopedia.com
$10.5
November Expanded Strategic Staffing's footprint to the West Coast
and added 180 employees.
$10.0
$27.1
July
Direct marketing services. Deal is estimated at more than
$10 million.
$10.0
$29.4
March
Commercial print and document management services.
Deal is estimated at more than $10 million.
$10.0
$34.5
June
Commercial print and document management services.
Deal is estimated at more than $10 million.
$10.0
April
Company produces handheld sensors for water-quality
monitoring. Deal estimated at more than $10 million.
$10.0
$7.0
Internal
Duff & Phelps
$20.0
November Add-on for Inland Pipe Rehabilitation. Acquied company
does trenchless rehab of sewer pipelines.
$10.0
$21.0
June
$10.0
Makes and installs semi-custom and custom cabinets for
homes in California. Deal estimated at more than $10
million.
December Acquired from Donald Hecht. Online school that offers
advanced degrees with 7,500 students. Price estimated at
$10 million-plus.
Internal
$10.0+
Source: Company submissions, Crain's research, Bloomberg News and Mergerstat L.L.C. Many transactions had multiple sources of information. In some cases, more than one estimated value of a transaction exists. In those cases, Crain's has chosen the value it
believes to be most accurate. The list does not include all 2007 transactions, only transactions valued at $10 million or more are included.
$10.0
$10.0
20090126-NEWS--0017-NAT-CCI-CD_--
1/22/2009
4:49 PM
Page 1
January 26, 2009
Page 17
CRAIN'S LIST: LOCAL SALES Ranked by price
Buyer
Seller
Broker/advisers
Square feet
number of units
Renaissance Center, Detroit
General Motors, Detroit
Consortuim of lenders
NA
2,300,000
$626.0
Liberty Portfolio of 25 properties, Metropolitan
Craven Walk L.L.C., NJ
Liberty Property Trust, PA
CB Richard Ellis
952,000
$63.0
Orlo Fund, MD
Metropolitan Southfield Partners, Southfield
NA
827,970
1,135 units
$42.9
Rank
Building
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
11.
13.
14.
14.
16.
17.
18.
19.
20.
Price
($000,000)
Detroit
Lexington Apartments, Southfield
Ashkenazy Acquisition Corp., NY
Jager Management Inc., PA
Marcus & Millichap
663,000
$32.0 B
American Campus Communities, Texas
GMH Communities Trust, PA
NA
312 units
$30.3
DS Partners L.P., Bloomfield Hills
Regency Centers L.P., Fla.
CB Richard Ellis
185,184
$25.0 B
The Hamptons of Cloverlane, Ypsilanti
Sterling Equities, NY; Timberland Partners, MN
Apartment Investment Management Co., Denver
CB Richard Ellis
390,000
440 units
$22.0
National City Building, Royal Oak
Howard & Howard Attornyes P.C., Royal Oak
National City Bank
Signature Associates
152,562
$21.0
Northland Center, Southfield
Willowtree, Ann Arbor
5990 Sashabaw Road & 5105-5217 Highland
Road, Independence and Waterford
1700 Fairlane (3 properties), Dearborn, Allen Park
977 E. 14 Mile, Troy
Lafayette Towers, Detroit
40600 Plymouth Road & 31077 Durr Drive,
Elangate Investments, Bingham Farms
Beneson Strategy Group, NY
Grubb & Ellis
205,000
$19.7
Investment Grade Loans, CA
Allegra Development, Grosse Pointe Farms
173,000
$19.0
Northern Group, NY
Habitat Co., Chicago
Hendricks & Partners
483,916
584 units
$16.0
Wixom Durr Plymouth L.L.C., East Lansing
Durr Systems Inc., Warren
377,060
$16.0
Plymouth Township and Wixom
Willowtree Towers, Ann Arbor
ThyssenKrupp Materials NA Headquarters,
American Campus Communities, Texas
GMH Communities Trust, PA
NA
163 units
$15.8
Eleven Mile Road L.L.C., Oak Park
Lincolnshire Development, Troy
Marcus & Millichap
64,607
$15.4
Eleven Mile Road L.L.C., Miami Beach
Kirco Management Co., Troy
Marcus & Millichap
64,607
$15.4
SG Technologies, Troy
Lexington Drake L.P.
116,824
$15.0
Southfield
22355 W. 11 Mile, Southfield
27404 Drake Road, Farmington Hills
40 Oak Hollow (2 properties), Southfield
20501 Ford Road, Dearborn
Copart Auto Auction, Woodhaven
250 Stephenson Highway, Troy
Ashley Capital, NY
Transwestern, IL
NA
159,974
$12.4
Henry Ford Community College, Dearborn
Society of Manufacturing Engineers, Dearborn
Grubb & Ellis
136,000
$11.0
Copart of Conneticut, CT
Woodmich L.L.C., Williamsburg
Marcus & Millichap
64,250
$10.5
250 Associates L.L.C.
Axium International, CA
104,449
$10.4
List is based on information from CoStar Group Inc., Real Capital Analytics, Crain's research, from published information or as submitted by brokers, advisers or property owners. Crain's has tried to list all brokers involved in a transaction, but in some cases
brokers may have been omitted.
B Crain's estimate.
LIST RESEARCHED BY DANIEL DUGGAN
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CRAIN'S LIST: OFFICE LEASES Ranked by square feet
For an expanded list, go to www.crainsdetroit.com/finance
Rank
Building
Asking
rate
Owner
Tenant
Broker
1.
2.
3.
4.
5.
6.
7.
7.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
2211 Old Earhart Road, Ann Arbor
$19.50
Kojaian Management Co.
Con-way Freight Inc.
Bluestone Realty Advisors L.L.C.
132,247
1401 Crooks Road, Troy
$5.95 B
Etkin Management
Inteva
Jones Lang LaSalle
125,138
Dearborn Town Center, Dearborn
$26.00
Redico
Oakwood Healthcare Inc.
Redico
103,106
Midwest Paper, Detroit
$7.90
The Realty Co.
City of Detroit
Grubb & Ellis
100,000
Comerica Tower, Detroit
$24.50
iStar Financial
CB Richard Ellis
98,676
17380 Laurel Park Drive North, Livonia
$21.75
Schostak Brothers & Co. Inc.
CB Richard Ellis, Signature Associates
76,017
3290 W. Big Beaver, Troy
$17.25
Sheffield Owner L.L.C .
NAI Farbman
75,000
45000 Helm St., Plymouth Township
$19.01 B
CB Richard Ellis
75,000
Farmington Officenter I, Farmington Hills
$15.00
Allstate Insurance C
CB Richard Ellis
71,900
2301 Green Road, Ann Arbor
$19.11
Corporate Realty
Blue Cross Blue Shield of Michigan C
UGL Equis, First Martin Realty
67,000
151 W. Fort St., Detriot
$12.00
151 West Fort Street Associates L.L.C.
TWW & Associates
Exclusive Realty
66,000
Troy Officentre, Troy
$17.85
Osprey
General Physics
Colliers, CB Richard Ellis
61,114
39001 W. 12 Mile, Farmington Hills
$18.00
Mountain View Partners L.L.C.
60,000
300 E. Big Beaver, Troy
$16.45
Lear Corp.
General Physics Corp.
CB Richard Ellis
59,998
2601 Cambridge Court, Auburn Hills
$23.50
University Development Co.
Plante & Moran
Plante Moran Cresa, Stuart Frankel
Development
57,750
3155 W. Big Beaver Road, Troy
$18.50
ThyssenKrupp Budd Co.
BAE Systems Land & Armaments
Plante Moran Cresa, Nemer Property
Group
56,445
Columbia Center II, Troy
$28.00
Kirco Management Services
Giarmarco, Mullins, Horton P.C.
Grubb & Ellis
52,142
LaSalle Technology Centre South, Novi
$15.25
Northern Equities Group
Harman Becker Automotive Systems Inc.
51,536
Thatcher Center, Troy
$16.58
Emmes Co.
Siemens Product Lifecycle Management
Software Inc.
CB Richard Ellis
51,000
Farmington Hills Corp. Campus, Farmington Hills
$8.08
Henniges Automotive
50,286
Dickinson Wright P.L.L.C. C
Tower Automotive
Leo Burnett Detroit C
Visteon Corp.
JCIM L.L.C.
Harman Becker Automotive Systems Inc. C
Square
feet
List is based on information from CoStar Group Inc., Crain's research, from published information or as submitted by brokers, advisers or property owners. Crain's has tried to list all brokers involved in a transaction, but in some cases brokers may have been
omitted. Some leases were omitted because of a lack of complete information.
B Crain's estimate.
C Lease renewal.
Academy of the Sacred Heart
Leaders of Conscience Speaker Series
Keynote Speaker Cokie Roberts
Friday, February 13, 2009
Luncheon and Program 11:30 a.m. - 1:00 p.m.
A Window to the World
A Golden Celebration
Discover a world of leadership and educational excellence
Where service to community and faith prepare us for tomorrow
Where milestones are not destinations, but starting points
Where character is both developed and revealed
Welcome to Academy of the Sacred Heart
Where Learning is a Window to the World
MAIN SPONSORS
The speaker series is part of the Academy
of the Sacred Heart’s Golden Anniversary
celebrating 50 years at its Bloomfield Hills
campus and 158 years of education and
outreach in the metropolitan Detroit area.
The Leaders of Conscience Speaker Series
aims to provide ethical guidance and reallife testimonials from internationally-known personalities whose
lives and works inspire students and the larger community with
messages of hope and optimism.
For reservations, visit www.ashmi.org/speakerseries
or call 248-646-8900 x 170
MEDIA PARTNERS
THE NICOLA ANTAKLI FAMILY
The Academy of the Sacred Heart was founded in 1851 and is Michigan’s oldest independent school. Located at 1250 Kensington Road in Bloomfield Hills, it is
a Catholic, college-preparatory school for girls (Age 3-Grade 12) and boys (Age 3-Grade 8) of many cultures and faiths. The Academy is a member of the Network
of Sacred Heart Schools, which includes 21 schools in the U. S. and affiliation with the Society of the Sacred Heart in 44 countries around the world. For more
information call 248-646-8900 or visit us on the Web at www.ashmi.org.
20090126-NEWS--0020-NAT-CCI-CD_--
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January 26, 2009
CRAIN'S LIST: INDUSTRIAL LEASES Ranked by square feet
For an expanded list, go to www.crainsdetroit.com/finance
Rank
Building
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
Northline Industrial Center, Romulus
$2.85
Northline
Comprehensive Logistics Co. B
CB Richard Ellis, Colliers
718,684
28301 Schoolcraft Road, Livonia
$4.75
Ashley Capital
Technicolor Videocassette of Michigan B
Ashley Capital
715,096
151 Lafayette, Mt. Clemens
$2.00
Steel Pro
674,432
7900 N. Haggerty Road, Canton
$4.15
Levco
Bay Logistics Co. B
Signature Associates, Equity Industrial
L.P.
442,500
36501 Van Born Road, Romulus
$4.15
Ashley Capital
Bay Logistics Co. B
416,487
Pinnacle Logistics Park, Redford
$3.95
General Development Co.
Technicolor Videocassette of Michigan B
Signature Associates, Friedman Real
Estate Group
393,940
Interchange West Business Center, Van Buren
$4.75
Neapco Driveline L.L.C.
CB Richard Ellis, Grubb & Ellis
342,856
13600 Fullerton St., Detroit
$3.85
Ashley Capital
Progressive Distribution Centers Inc.
315,356
4815 Cabot St., Detroit
$3.25
Industrial Realty Group
Metro International Trade Services
313,388
26195 Bunert Road, Warren
$4.75
Ashley Capital
Modular Automotive Systems L.L.C.
Ashley Capital
276,790
$4.15
Ashley Capital
Plastipak Packaging Inc.
274,007
36667 Schoolcraft Road, Livonia
$2.00 C
Kin Properties Inc.
NYX Inc.
Principal Associates, CB Richard Ellis
252,262
17800 Dix-Toledo Road, Brownstown Township
$4.50
Ashley Capital
Syncreon US Inc.
CB Richard Ellis
224,388
Asking rate
Owner
Tenant
Metro International Trade Services
Broker
Square feet
Township
1400 Rochester Road, Troy
$3.25
EDAG Inc.
Bostick Enterprises
189,000
19771 Brownstown Center Drive, Brownstown
$4.50
Ashley Capital
Serco Inc.
Ashley Capital
175,270
Crossroads Distribution Building I, Van Buren
$4.50
Ashley Capital
Exel Logistics
Grubb & Ellis
159,504
12601 Southfield Road, Detroit
$2.76
Hagar Pacific Properties & 12601 ASSOC.L
Budco
CB Richard Ellis
150,000
2627 Clark, Detroit
$7.50
Clark Street Redevelopment One L.L.C.
147,000
$4.15
Ashley Capital
Ashley Capital
146,733
18640 Dix-Toledo Road, Brownstown Township
$4.50
Ashley Capital
Transfreight L.L.C.
CB Richard Ellis
144,447
23400 Haggerty Road, Farmington Hills
$4.00
Diamond Associates Ltd. Partnership
Diamond Automations Inc.
144,000
32500 Van Born Road, Wayne
$4.00
Metro Commerce Center L.L.C.
28330 Plymouth Road, Livonia
$4.35
Ashley Capital
Township
Township
Vitec L.L.C. B
Archway Marketing Services Inc.
Plastipak Packaging Inc. B
NAI Farbman
140,000
CLM Pallet Recycling Inc.
Ashley Capital
139,748
20495 Pennsylvania Road, Brownstown Township
$4.50
Ashley Capital
TDS/US Inc.
CB Richard Ellis
139,080
Warren Business Center, Warren
$4.75
Ashley Warren L.L.C.
International Automotive Components
Grubb & Ellis
138,268
Comprehensive Logistics Co.
1515 Newburgh Road, Westland
$3.25
Insite Westland L.L.C.
7000 19 Mile, Sterling Heights
$6.10
Ledds Development Co.
25295 Guenther Drive, Warren
$4.25
Welsh Cos.
Key Safety Systems B
Oakley Industries
CB Richard Ellis
136,800
UGL Equis, Grubb & Ellis
135,754
Grubb & Ellis, Plante Moran Cresa,
Butzel Long
134,805
28320 Plymouth Road, Livonia
$4.35
Ashley Capital
Virginia Tile Co.
Ashley Capital
127,218
2727 Beech Daly Road, Dearborn Heights
$2.95
Pacifica Capital Corp.
International Shipping Co.
124,000
41873 Ecorse Road, Belleville
$4.50
Ashley Capital
Redford Trade Center, Redford Township
$3.95
Redford Trade Center
Distriplex Metro I, Romulus
$4.95
Distriplex Metro One L.L.C.
51400 Bellestri Court, Shelby Township
$4.95
C & Son L.L.C.
1199 Austin Court, Howell
$6.50
CFM Inc.
Anheuser-Busch
9800 General Drive, Plymouth
$4.75
Falcon Center Properties II
Allied Commerce Center, Livonia
$3.75
DJS Holdings
1515-1625 Newburgh Road, Westland
$3.25
5775 E. 10 Mile Road, Warren
$5.05 C
49800 Martin Drive, Wixom
$4.25
Kimbal & Russell
Comcast
101,833
30220 Oak Creek Drive, Wixom
$4.50
US Real Property L.L.C.
Eberspacher North America Inc.
Plante Moran Cresa, Signature
Associates
101,250
11800 Sears Drive, Livonia
$3.95
FR Sears Drive L.L.C.
West Win Ltd.
Friedman Real Estate Group, Colliers
99,930
1515 Newburg Road, Westland
$4.00
CEVA Logistics US Inc.
CB Richard Ellis
97,200
25295 Guenther Drive, Warren
$5.25
Welsh Warren L.L.C.
Brose Jefferson Inc.
Signature Associates, CB Richard Ellis
96,250
Interchange West Business Center, Van Buren
$6.50
Vistar
94,200
12200 Tech Center Drive, Livonia
$4.94 C
Stuart Frankel Development
Kelsey-Hayes Co.
Colliers
94,012
42315 Mancini Drive, Sterling Heights
$4.95
Sterling Properties L.L.C.
Kelsey-Hayes Co.
Grubb & Ellis, Colliers
93,000
27007 Fort St., Brownstown Township
$4.72 C
Rainwater Realty
PSC Containers Services
Colliers
91,484
Van Buren Business Center, Van Buren Township
$4.95
Van Buren Business Park Associates
Panalpna North America
Grubb & Ellis, Signature Associates
89,846
1515 Newburg Road, Westland
$4.00
CEVA Logistics US Inc.
CB Richard Ellis
87,800
Warren Business Center, Warren
$4.50
Ashley Warren L.L.C.
Lipari Deli Foods Inc.
Grubb & Ellis
84,732
Orion Commerce Center, Lake Orion
$5.80
Ashley Capital
Fuyao Automotive
GVA Detroit, Signature Associates
82,648
2805 Bellingham Drive, Troy
$12.50
SECO Tools Inc.
CB Richard Ellis
81,600
Sons Industrial Park, Chesterfield Township
$2.95
Chesterfield 5 L.L.C.
Offsite Manufacturing
Grubb & Ellis
72,572
28000 Five M Drive, Romulus
$8.00
Monmouth Real Estate Investment Corp.
71,933
Ashley Capital
121,480
120,160
Nippon Express
Colliers, Signature Associates
115,000
Models & Tools Inc.
Kwekel Cos., Grubb & Ellis
114,995
112,500
110,000
Crown Group Livonia
Plante Moran Cresa, Grubb & Ellis
106,014
V.V.P. Auto Glass Inc.
104,000
N.L. Ventures
PT Inc.
L. Mason Capitani
102,000
ABX Logistics
American Bottling Co. B
Plastipak Packaging Inc. B
Township
FedEx B
List is based on information from CoStar Group Inc., Crain's research, from published information or as submitted by brokers, advisers or property owners. Crain's has tried to list all brokers involved in a transaction, but in some cases brokers may have been
omitted. Some leases were omitted because of a lack of complete information.
B Lease renewal.
C Crain's estimate.
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BUSINESS DIARY
ACQUISITIONS
TRW Automotive U.S. L.L.C., Livonia, a
subsidiary of TRW Automotive Holdings Corp., has acquired Michelin
North America Inc.’s stake in the EnTire Solutions L.L.C. joint venture.
CALL FOR NOMINATIONS
The Michigan Council of Women in
Technology Foundation, Detroit, announces its annual university scholarship, research grant and laptop
stipend program, aimed at encouraging deserving female students to pursue information-technology and technical careers. The competition is open
to women pursuing technology degrees and certifications at the college
level. Deadline for submission is Feb.
27. More information and applications are available at www.mcwtf.org.
The Michigan Women’s Historical
Center and Hall of Fame, Lansing, is
accepting nominations for the 2009
class of the Michigan Women’s Hall of
Fame, which commemorates women
who have distinguished themselves in
one or more fields. A nominated
woman may be living or deceased.
Women’s organizations may also be
nominated. All nominations must be
submitted by mail on approved nomination forms, found online at
www.michiganwomenshalloffame.org
/pages/nomination.htm. Printed versions may be obtained by calling the
Michigan Women’s Historical Center
and Hall of Fame at (517) 484-1880 or at
[email protected]. Deadline is March 21.
CONTRACTS
Helm Inc., Highland Park, was selected by Toyota Motor Sales U.S.A., Torrance, Calif., to provide a marketing
channel for selected vehicle owner
and
service
publications
on
www.helminc.com.
Rubicon Genomics, Ann Arbor, has
announced a licensing agreement
with Abbott Laboratories, Abbott
Park, Ill. Abbott receives a nonexclusive license to MethylPlex for in vitro
molecular diagnostics to detect the
presence or risk of prostate, bladder
and colon cancer for screening and
nonscreening indications. Abbott also
has obtained a nonexclusive license
for nonscreening applications with
other diseases and options to colon
cancer biomarkers developed in collaboration with Rubicon.
Servant Systems Inc., Ann Arbor, announced a contract for development
work for The Dwyer Group, Waco,
Texas, a holding company of six franchise businesses.
DesignHub Inc., a Saline-based creative services and marketing firm,
has designed and developed the new
Web site for the Multi-institutional
Study of Leadership (www.leadership
study.net), a project of the National
Clearinghouse for Leadership Programs and Center for Student Studies.
Tomball Regional Medical Center,
Ann Arbor, has selected the Clinical
Xpert suite of products from the
health care business of Thomson
Reuters, New York.
Altair Engineering Inc., Troy, a global
provider of technology and services,
announced that the UK gas turbine division of Assystem, Paris, an engineering services and consultancy
provider, has selected Altair HyperWorks to be included in future engineering service projects.
Portfolio Solutions L.L.C., Troy, has
DIARY GUIDELINES
Send news releases for Business
Diary to Departments, Crain’s
Detroit Business, 1155 Gratiot
Ave., Detroit, MI 48207-2997 or
send e-mail to cdbdepartments@
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.
hired Impact Communications Inc.,
Leawood, Kan., to promote its low advisor fee message.
Hile Design L.L.C., Ann Arbor, has
been selected to redesign the Web site
of Surgitel, Ann Arbor.
Bluerock Real Estate, Southfield, selected Qualitech, Bingham Farms, to
upgrade its computer network.
www.chase.com.
MERGERS
Adayana Inc., Indianapolis, and Gradepoint, Detroit, have finalized an agreement to merge. Gradepoint operations
will form the basis of the new Adayana
Healthcare Group.
NEW PRODUCTS
EXPANSIONS
Ideal Shield, Detroit, offers pyramid
Biggby Coffee, Lansing, opened a 24hour café inside Children’s Hospital of
Michigan, Detroit.
American Community Mutual Insurance Co., Livonia, announced that
and octagon sign bases that provide
convenient, portable or permanent options for signage needs. Web site:
www.idealshield.com.
Telephone:
(888) 769-8887.
Community Flex is now available for
quoting in Arizona and Indiana.
Chase, Detroit, has opened a branch at
3989 Crooks Road, Rochester Hills.
Telephone: (248) 844-4810. Web site:
Creative Solutions Group, Clawson,
NEW SERVICES
has launched a new Web site, www.
csgnow.com.
PWB Marketing Communications,
Ann Arbor, has launched its Demand
Generation focus, designed to help
clients effectively integrate marketing
communication efforts to target and
convert prospects into buyers.
Medical Network One, Rochester, a
physician services organization and
interactive health management service provider, announces the formation of the Mackinac Learning Collaborative. Contact: Ewa Matuszewski at
(248) 475-4702 or ematuszewski@
mednetone.net.
Qualitech, Bingham Farms, a technology integrator and software reseller
announces formation of its newest division, Qualitech Managed Services.
This division will be responsible for
full-time monitoring of client network
infrastructure. Telephone: (248) 6460093, ext. 475.
Baker College, Clinton Township, is
offering a new five-year bachelor-toMBA program that will let students
complete both bachelor of business administration and the master of business administration degrees in five
years of full-time study. This program
is available to undergraduate students in several different majors. Contact:
Jill
Langen,
jill.langen
@baker.edu. Telephone: (888) 211-8915.
Henry Business Solutions, Birmingham, is the exclusive provider of the
One Page Planning and Performance
System, an Internet-based business
planning process.
The Michigan Association of Certified
Public Accountants, Troy, is one of
nine early adopters of the American
Institute of Certified Public Accountants Peer Review Facilitated State
Board Access.
20090126-NEWS--0022-NAT-CCI-CD_--
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January 26, 2009
CareerWorks online
Visit www.crainsdetroit.com
/careerworks to search for jobs,
post a résumé or find talent.
EMPLOYMENT NEWS
Help for
job-seekers
Health care expands workforce
While the rest of the economy
posted rates of joblessness not seen
since 1993, health care continued
to expand its workforce in December, adding 31,600 positions in a
month in which the overall American workforce shrunk by 524,000
jobs.
“The only major private industry sector that continued to add a
significant number of jobs was
health care,” Keith Hall, commissioner of the Bureau of Labor Statistics, said in a written statement accompanying the latest preliminary
statistics. In the last four months
of 2008, the national nonfarm economy lost 1.9 million jobs, while
health care added 93,200 jobs in
that time, according to the seasonally adjusted statistics.
Overall in 2008, the health care
workforce grew by 2.8 percent,
ending the year with 371,600 more
jobs than the year before. Hospitals added 11,900 workers in December to bring the total hospital
workforce to about 4.71 million,
while physician offices added 5,600
workers to bring the workforce to
about 2.3 million. Both sectors
posted monthly job growth of 0.2
percent, a rate that has held steady
since at least September.
The one area in health care that
lost jobs in December was in outpatient-care centers, where 1,100
T
his issue marks the introduction of CareerWorks, a weekly collection of advertising, news and information geared toward
readers in career transition or looking for
new jobs.
Included in our coverage: “CareerTransition,” highlighting a person who has made a
successful leap from one profession to another;
a calendar of job- and training-related events;
and news stories affecting the job market.
CareerWorks is also online.
On our Web site, at www.crainsdetroit.com/
careerworks, you can post an anonymous
résumé and attract employers. You can scan
the newest jobs from our area or all of Michigan. You can set up e-mail alerts so whenever a
job that interests you is posted, you’ll know
about it.
Employers can post jobs or search résumés
for talent they seek.
jobs vanished, a loss of 0.2 percent
for the month. But outpatient centers ended 2008 with a workforce of
521,700 — 1.7 percent more than
the year before.
— Modern Healthcare
Web helps sort applications
The tough economy is driving
an increase in job applications
and, in turn, demand for evaluations to help employers select the
cream of the crop.
As layoffs increase, companies
that still have openings are being
inundated with résumés from outof-work job-seekers.
“One client opened a sales position, and three hours later had 250
applications,” says Russ Becker, a
managing partner at Kenexa, an
applicant tracking and assessments provider.
Companies like Becker’s client
are using assessments to make
shorter work of processing all
those applications. And in recent
times, more are opting for assessments that can be given directly on
their Web-based career centers
and with the results funneled to an
CareerTransition
CAREER MOVES
GENERAL
GENERAL
Lottery Marketing Specialist
Located in Ingham Co./Lansing, Mon.-Fri.,
7:45 a.m. - 4:45 p.m. This position serves
as a program specialist managing Club
Game activities for the Marketing Division
of the Michigan Lottery.
To apply see civil Service web site for details at http://www.state.mi.us/mdcs, select
Employment Information, and then select
View all Vacancies. Resumes must be received in the Human Resources Office no
later than 4:45 p.m. Friday, January 30,
2009. Application materials received after
the closing date will not be considered.
Melissa Belanger
Langnes
Former career:
Training and
development
coordinator
New career:
Registered nurse
and CCU clinical
coordinator
LEARN WHY OWNING A RECESSION
RESISTANT SPEED QUEEN COIN LAUNDRY
IS SO PROFITABLE
Financing & Locations
Free Informational profit seminar held Saturdays
10 am -12 noon. Call for details & reservations.
UNIVERSAL COIN LAUNDRY MACHINERY
www.universal-laundry.com
248-435-6200
MANAGEMENT
Mercy High School, a Catholic college preparatory
school for young women in Farmington Hills, is
seeking a Director of Institutional Advancement. Visit
mhsmi.org for job description.
TELECOMMUNICATIONS
Want to live and work where you play?
Petoskey is a pristine resort area of
northern
Michigan
where skiing,
snowmobiling, golfing, boating and
fishing are Optimum. Petoskey is also
home to Odawa Casino Resort which is
currently searching for superior talent
to compliment our leadership team for
our spectacular property.
Visit:
odawacasino.com/
directorplayerdevelopment.html
as well as
odawacasino.com/financedirector.html
for all the details on your best
opportunity for 2009.
Call Us For Personalized
Service: (313) 446-6068
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Please call us for holiday closing times.
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applicant tracking system or talent management suite, according
to HR executives, vendor representatives and industry analysts.
Insiders also predict that in
2009 interest will pick up in simulation-type assessments that use
Web-based interactive media,
role-playing and even video
games to make tests more fun and
interesting for job applicants.
They also predict that, as with
other aspects of their recruiting,
companies will look to make assessments an extension of their
corporate culture, so job applicants get a glimpse of what it’s
like to work there from the get-go.
Certain types of assessments are
more popular because of the downturn, HR sources say. Companies
are looking for top-tier sales representatives to help bump up revenue, and they’re buying behavioral assessments to do a better job
of identifying those individuals,
according to test vendors.
This year, look for more simulation-based assessments as well as
tests that use Flash and other interactive media.
— Workforce
Name: Melissa Belanger Langnes, 33
Education: Bachelor’s degrees in business administration and Spanish from Western Michigan University, master’s degree in organizational management from the University of Phoenix,
associate’s degree in nursing from Oakland
Community College.
Last career: Training and development coordinator (a technical writing position) at the
former DCT Inc. for two-and-a-half years. She
was laid off when the company declared bankruptcy.
New career: Registered nurse and clinical coordinator for the critical care unit at POH Regional Medical Center.
Why she decided to make the switch: “I have always felt a calling toward a nursing career,
but I did not have the courage and self-confidence to pursue a nursing degree when I graduated from high school. I went into human resources originally, thinking I would be helping
people. Unfortunately, HR was not what I had
expected, and the career outlook was poor.”
How she made the transition: Obtained associate’s degree in nursing from Oakland Community
College.
Obstacles overcome: Langnes was six weeks
before the due date for the first of her two children in early 2002 when she was laid off. She
had to balance work and family life and continue to work a part-time job while she went back
to school and completed a year of prerequisites
and the two-year nursing program at OCC.
Advice for others: Get a network of supportive
friends and family you’ll be able to call on if
you do have other responsibilities like a job
you’re trying to hold down and a family. Surround yourself with helpful, goal-oriented people, such as those in a study group, and pick a
career you will not only enjoy but one that will
also pay the bills.
If you have made a similar change in your career, or know someone who has made an interesting career transition, contact Andy Chapelle,
managing editor at Crain’s Detroit Business, at
[email protected]
20090126-NEWS--0023-NAT-CCI-CD_--
1/22/2009
3:04 PM
Page 1
January 26, 2009
PEOPLE
EMPLOYMENT
CALENDAR
Tech entrepreneur seminar at LTU
Lawrence Technological University
will host a workshop Feb. 27 on
technology entrepreneurship.
The workshop will also cover
how to turn an innovative product
idea into a new technology venture
as well as a networking opportunity. There also will be an “elevator
pitch” contest with cash prizes.
The workshop runs 8 a.m.-5:30
p.m. at the university’s UTLC
Gallery. Free to all students (registration required), $25 for faculty
and staff at institutions of higher
learning and LTU alumni, $50 general admission.
For more information and to register,
visit
www.invention2
venture.org/ltu2009/.
CONSULTING
Larry Zagata to
director of business intelligence
practice, MiPro,
Milford,
from
practice director,
Business Objects,
Saginaw.
Sarab Atal, Tom
Clarke,
Randy
Fike, Dan Frich,
Suraj Krishnan,
Jason
Marx,
Zagata
Michael Osment and Colin Smith to director, Alix Partners, Southfield, from
vice president.
FINANCE
Cori Crane to vice president of national payroll operations, Work Life Financial, Troy, from director of operations for the southeast region; also,
Robin Carp to national director of
client human sources, from human
resources manager.
LAW
Educational workshops at Walsh
Workers in transition can attend
free educational workshops offered
by Walsh College in January, February, and March. The workshops,
some not listed here, range from
one day to six-week sessions. Each
attendee receives a certificate of attendance. Space is limited and registration is required.
The workshops include:
Job search strategies. 1:30-4:30
p.m., Wednesday, Jeffery W. Barry
Center, Troy.
Leadership assessment. 9 a.m.noon, Feb. 5. Troy.
Starting a consulting business. 9
a.m.-noon, March 5, 12, 19. Novi.
How to start your own business. 9
a.m.-noon, March 13, 20, 27. Novi.
Space is limited, and registration
is
required.
Visit
www.
walshcollege.edu/takecharge to
register and for details on all the
workshops. For information, e-mail
[email protected].
Jackie Romagnoli
to human resources manager,
Rader, Fishman &
Grauer
PLLC,
Bloomfield Hills,
from vice president of human resources, Michigan First Credit
Union, Lathrup
Village.
Romagnoli
MANUFACTURING
Ted Amyuni to president of Europe,
Middle East and African operations,
Energy Conversion Devices Inc.,
Rochester Hills, from president, Carrier Transicold, Carrier Corp., Lincoln
Park.
MARKETING
Other events
Alternative Careers for Engineers
and Technical Professionals. Wednesday. More than 20 presenters from
various industries and careers will
inform attendees what it takes to
make a transition; the skills and
training required; job titles to look
for; typical salary ranges; and
where to find important resources.
Schools and training institutes will
be present to provide program information. Cost is $30 for Engineering Society of Detroit members, $35 for others. 8-11 a.m., Rock Financial
Showplace, Novi. For information
or to register, visit www.esd.org or
call (248) 353-0735, ext. 112.
Gray Hair Management Networking Breakfast. Wednesday. Networking group for professionals seeking
their next job opportunity.
Meets the fourth Wednesday of
every month. $25 for preregistration; $30 at the door. 7:30-9:30 a.m.,
Four Points Sheraton, 3200 Boardwalk, Ann Arbor. To register, visit
www.grayhairmanagement.com;
for information, call Kendra Kerr,
(734) 369-6145.
Page 23
Alioto
Sanders
Michael Alioto to vice president of
analytics, Gongos Research, Auburn
Hills, from senior vice president and
head of the automotive, manufacturing and telecommunications practice division, Market Probe, Inc.,
Troy; and Mitch Sanders to supervisor of the management and strategic
PEOPLE GUIDELINES
Announcements are limited to
management positions. Nonprofit
and industry group board
appointments can be found at
www.crainsdetroit.com. Send
submissions to Departments,
Crain’s Detroit Business, 1155
Gratiot Ave., Detroit, MI 482072997, or send e-mail to
[email protected].
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.
IN THE SPOTLIGHT
Leuliette
Tim Leuliette
has accepted
the role of
chairman of
Rochester
Hills-based
auto supplier
Dura
Automotive
Systems Inc.,
retaining his
position as
president and
CEO.
Leuliette, 59, succeeds Steven
Gilbert, senior managing director
and chairman of Sun Group and
chairman of Gilbert Global Equity
Partners L.P.
Leuliette had been chair of Dura
when it emerged from bankruptcy
in June, but he relinquished the
role when he became president
and CEO.
Also, Tom
Chambers, 64,
has joined
Dura as
executive vice
president and
COO. He was
most recently
president and
COO of
Plymouthbased
Chambers
Metaldyne
Corp., where Leuliette had been
president and CEO before leaving
in January 2008.
oversight of Consumer Village, Gongos Research’s online research community, remaining research director
of analytics.
PUBLIC RELATIONS
Michelle Culver and Emily Palsrok to
senior vice president, John Bailey &
Associates, Inc., Troy and Lansing,
from senior counsel.
SERVICES
John Schneider to vice president, GZA
GeoEnvironmental Inc., Walled Lake,
from principal, Vision Environmental
Inc. subsidiary.
Daniel Hamburg to design director,
Scarcello Associates Inc., Bingham
Farms, from senior designer, Redico,
Southfield.
YOUR DIRT
IS OUR
OBSESSION
GEOTECHNICAL
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CONSTRUCTION
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Brighton, MI: 810.224.4330
Chicago, IL: 847.353.8740
www.g2consultinggroup.com
UNEARTHING POSSIBILITIES
20090126-NEWS--0024-NAT-CCI-CD_--
1/22/2009
3:03 PM
Page 1
Page 24
January 26, 2009
Credit crunch stalls expansion of
credit counseling agency Greenpath
BY SHERRI BEGIN WELCH
In six months’ time, nonprofit
credit counseling agency Greenpath Inc., which is adding new employees monthly, will have
outgrown office
space at its
Farmington
Hills headquarters and leased
space nearby.
But it plans to
sit tight — at
least until 2010
McNamara
— hoping credit markets improve, enabling it to build a space
large enough to accommodate 600
employees or double its current
number in the same area, said
CEO Jane McNamara.
That likely will mean adding a
second shift of degreed employees
to field the rising number of incoming telephone calls from
around the country for bankruptcy and foreclosure-prevention
counseling.
“There’s a perception there’s
lots of space to lease in Farmington Hills and this general area …
that space is cheap to lease and
there’s all kinds of available real
estate” for purchase, McNamara
said.
“But … we’ve not been able to
find a location that meets our requirements” for parking spaces
large enough to accommodate the
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service vehicles. Turn key 650K. Reply to:
[email protected]
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EQUIPMENT &
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FAX: (313) 446-1757
E-MAIL: [email protected]
INTERNET:
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for more classified advertisements
LEGAL SERVICES
EXECUTIVE SEPARATION PACKAGE REVIEW
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vehicles of up to 600 employees
and the fiber optics needed to
allow them to help people
around the country, she said.
Greenpath expects to add 110
employees this year — most of
them locally — after adding 100
new employees here last year to
meet rising demand for counseling.
Nationally, its employee
ranks have risen from 180 in
Michigan, Indiana, Wisconsin,
Illinois, New York and Arizona
at the end of 2005 to 485 total at
the end of last year.
Before financial markets
crashed last fall, Greenpath had
been looking at available properties for purchase and considering an expansion of its corporate headquarters.
It became obvious there was
no available land around its
headquarters to expand parking because it had been acquired by Nissan Technology Center North America, she said.
Greenpath began looking at
available properties in the area,
near the homes of two-thirds of
its local workforce and central
to expressways to give easy access to visiting employees from
other parts of the country.
When the financial markets
fell apart, “We pulled back to reevaluate,” McNamara said.
Greenpath is projecting revenue of close to $42.5 million
this year, up from $34 million
last year, she said.
While it owns its headquarters on Country Club in Farmington Hills, its lease for space
at 12 Mile and Farmington
roads ends in March 2011, McNamara said. It hopes to sell its
headquarters and be in a new
location by then.
Greenpath’s call center operation is very dense with employees and atypical when compared
with
other
local
employers, said Steve Morris,
executive managing director
and principal of Newmark Knight
Frank in Farmington Hills, a
commercial real estate advisory and brokerage firm.
That makes its needs for very
large parking areas unique, he
said.
Most of the existing buildings
in that area “are not designed
for that kind of density,” Morris
said.
He estimates Greenpath
would need at least 100,000
square feet, and there aren’t
many available buildings that
size in the northwest corridor
of metro Detroit, he said.
“Yes it’s a slow economy and
there are some foreclosures, but
not many as you would think.”
Sherri Begin Welch: (313) 4461694, [email protected]
CALENDAR
TUESDAY
JAN. 27
Employer Forum on Internships. 811:30 a.m. Detroit Regional Chamber.
Learn how internships can be a successful talent-management strategy
for your company. Engineering Society of Detroit, Southfield. Free. Contact:
(313)
596-0432
or
www.
detroitchamber.com.
Transportation Riders United Annual
Meeting. 6:30-8:30
p.m. Guest speaker:
Regional
Transportation
Coordinating
Council Director
John Hertel. Ecumenical Theological Seminary, Detroit.
Light
refreshments.
Free.
Contact:
Hertel
(313) 963-8872 or
www.detroittransit.org.
WEDNESDAY
JAN. 28
Do It Yourself Marketing for Small
Businesses , 11:30 a.m.-1:30 p.m. This
workshop will provide you with ideas
and techniques on how your marketing dollars can work twice as hard for
you. You will leave with a toolbox
that equips entrepreneurs with the
ability to do their own public relations and marketing. Detroit Entrepreneurship Institute Inc., Detroit.
$15, includes lunch and training materials. Contact: (313) 877-9060 or
www.deibus.org.
Fiscal Management Tools for the NonFinancial Manager, 1 p.m. Fifth Third
Bank, Michigan Small Business &
Technology Development Center. For
CEOs of businesses with at least three
years of financial history who want to
have a better understanding of how financial statements can inform their
business decisions. Oakland County
Business Center, Waterford Township. $25. Contact: www.misbtdc.org/
region9.
THURSDAY
JAN. 29
Inforum Networking & New Member
Welcome. 7:30 a.m. A networking and
welcome breakfast with Inforum
board and staff members. Come
ready with a 30-second “elevator”
speech to introduce yourself. Westin
Book Cadillac Hotel, Detroit. Members $30, nonmembers $35. Those who
join Inforum at this event or who became members in the last six months
can contact Inforum to attend this
event for free. Contact: (877) 633-3500
or www.inforummichigan.org.
COMING EVENTS
Maverick Marketing Mondays. Noon1:30 p.m. Feb. 2. Detroit Regional
Chamber. With: Robert Wolfe, president, Moosejaw Mountaineering and
Backcountry Travel Inc. A discussion
on
how
the
company became successful at building an online community that fosters
sales. Detroit Zoo, Royal Oak. $20 Detroit Regional Chamber members, $40
nonmembers, $65 for a Maverick Marketing season one pass (available to
chamber members only). Contact:
(313)
596-0392
or
www.
detroitchamber.com.
Thriving in Uncertain Times with Cultural Competence. 5:30-8:30 p.m. Feb.
18. Asian Pacific American Chamber
of Commerce Entrepreneurship Educational Series. This seminar will ad-
ENTREPRENEURSHIP IS ON THE
MENU FOR BUSINESS OVER
BREAKFAST FEB. 10 IN DETROIT
Join Crain’s Detroit Business for
our next Business Over Breakfast,
as we discuss how entrepreneurship can be
increased in
Michigan.
The event
takes place
7:30-9:30 a.m.
Feb. 10, and is
to feature
Robert Fowler,
president and
CEO, Small
Fowler
Business
Association of Michigan; and Mark
Clevey, vice president for
entrepreneurship, Small
Business
Association of
Michigan and
executive
director, Small
Business
Foundation of
Michigan.
It all happens
Clevey
at the
DoubleTree Guest Suites Fort
Shelby in Detroit. Admission is
$35, and the registration deadline
is Feb. 6. For more information,
contact: (313) 446-0300 or
www.crainsdetroit.com/events.
dress the urgency to understand, effectively interact and communicate
with people in an evolving Asian business environment. Embassy Suites
Hotel, Southfield. $50 members, $60
others. Contact: (248) 844-4100 or
www.apacc.net.
Fundamentals of Writing a Business
Plan. 6-9 p.m. Feb. 25. Eastern Michigan University College of Business;
U.S. Small Business Administration.
Designed for individuals who want to
increase their chances for successful
self-employment, the course covers
business planning in detail, including
a list of resources available to help
launch new business ventures in
Michigan. One Stop Business Resource Center, Detroit. $40. Contact:
(313) 967-9295 or www.waynecounty.
com/onestop.
CHANGES TO CDB CALENDAR
Crain’s Detroit Business can no
longer guarantee that we will use
telephone, mail or e-mail
contributions for our weekly
calendar print and online calendar
listings.
If you want to ensure listing online
and be considered for print
publication, please use the online
calendar listings section of
www.crainsdetroit.com. Here’s
how to submit your events:
From the Crain’s home page, click
“Detroit Events” in the red bar
near the top of the page. Then,
click “Submit Your Events” from
the drop-down menu that will
appear and you’ll be taken to our
online submission form. Fill out
the form as instructed, and then
click the “Submit event” button at
the bottom of the page. That’s all
there is to it.
More Calendar items can be found
on the Web at www.crainsdetroit.
com.
20090126-NEWS--0025-NAT-CCI-CD_--
1/23/2009
5:45 PM
Page 1
January 26, 2009
Page 25
Slow economy stalls naming deal for new Metro terminal
BY BILL SHEA
Any corporate naming-rights
deal for the new terminal at Detroit
Metropolitan Airport is at least six
months to a year away, those involved in the effort say.
That’s a departure from a September prediction that a deal
would be done by the end of 2008,
and can be viewed as another
symptom of the economic crisis
that has affected the naming-rights
market.
The Wayne County Airport Authority in March awarded a 10-year contract to Rochester-based General
Sports and Entertainment L.L.C. to
sell the name, sponsorships and related marketing for the new $431
million north terminal, which
opened in September.
The contract calls for General
Sports to get a 12 percent to 15 percent commission and up to $75,000
for asset valuation. The authority,
which oversees airport operations, would have to approve any
name deal for the 26-gate, 824,000square-foot concourse that replaced the aging Smith and Berry
terminals.
Those involved in selling the
name have backed off previous
statements that a deal could be
done by the end of last year.
“Even in a good economy, it
takes 12 to 18 months to put together a naming-rights deal,” Michael
Conway, the airport’s director of
public affairs, said in an e-mail to
Crain’s. “(General Sports) has
been working on this for less than
a year. Something to keep in mind
is that (the airport authority) is
breaking new ground here. It’s
never been done for an airport terminal before.”
General Sports owner Andy Appleby said in August that five local
corporations were interested, and
in September he said he expected
to have an agreement within 45
days. He now believes a deal could
be done by midyear.
None of the companies interested in buying the terminal name
were at the point that they could
be considered as having dropped
out, Conway said.
General Sports has a three-yearold Denver-based subsidiary, General Sports Alliances, L.L.C., which
handles naming rights deals,
mainly in sports.
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Earlier predictions were that a naming-rights deal for the north terminal would
happen by 2009. Now, insiders think one might be inked by midyear.
“We have no shortage of properties and sponsorships to sell, but
finding buyers has been very challenging,” Appleby said.
Chris Foy, president of General
Sports Alliances, said talks continue on the terminal naming rights,
and interested companies are in
the financial and consumer products sectors and are headquartered here or have a significant local presence. He declined to be
more specific.
While Foy is bullish on the naming-rights industry, saying the
limited numbers of venue opportunities somewhat shields the business, the economic crisis earlier
this month forced another Denverbased naming-rights company,
Bonham Group, to close its doors after 20 years.
Bonham was widely considered
among the major naming-rights
dealmakers, and the company
blamed a credit squeeze by Merrill
Lynch for its closing. Its most re-
cent major deal was a 15-year, $60
million transaction in 2006 that
put Honda’s name on the Anaheim
Ducks’ hockey venue.
Local marketing insiders expect
the airport naming-rights deal to
rival that of sports stadiums, such
as the $40 million Ford Motor Co.
paid in 2002 for a 40-year deal for
the Detroit Lions’ home venue.
The Detroit Red Wings and Detroit
Pistons, don’t have corporate
names on their venues.
The Ilitch Holdings Inc.-owned
Red Wings play at city-owned Joe
Louis Arena and have the right to
sell the venue name but won’t, said
Karen Cullen, Ilitch’s vice president of corporate communications.
That’s because the team’s lease
predates the trend of namingrights deals, which began in
earnest in the 1990s, and the realization fans are very unlikely to
call the facility anything but the
Joe Louis Arena, making a name
deal unattractive to companies.
The Ilitches continue to consider renovating Joe Louis or building a new stadium, and any new
venue would likely include a name
deal — just as with the Ilitchowned Detroit Tigers and Comerica
Park. The company must tell the
city by June 30 if it plans to renew
the Joe Louis lease, but may be
seeking an extension.
Pistons owner William Davidson, on the other hand, has refused
to sell the name of the Palace of
Auburn Hills, which he privately
financed in 1988.
“He feels a great deal of affinity
for the name,” said Jeff Corey, director of public relations for Palace
Sports & Entertainment Inc. “Back
20-some years ago, when the plans
for the arena were announced, he
took a great deal of criticism on it
from people who felt there was no
way it could succeed way out in
Oakland County when there are
other arenas in the area. Obviously, he proved them wrong.”
Nationally, fewer and fewer corporations are in a position to shell
out millions to put their names on
stadiums or buildings — especially the financially battered banks
and airlines.
Dallas Cowboys owner Jerry
Jones has expressed concern
about any deal for the name on his
new $1.3 billion stadium opening
this fall, telling the Dallas Morning News recently, “It would be
naive to think that our economy
isn’t impacting commitments.”
Bill Shea: (313) 446-1626,
[email protected]
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20090126-NEWS--0026-NAT-CCI-CD_--
1/23/2009
5:44 PM
Page 1
Page 26
January 26, 2009
Hat: Orders hot at Song’s
leaders
decisions
results
It’s time to make better plans.
As a CEO, you can’t always turn to colleagues and friends for opinions and advice.
When you become a TEC member, you tap into unbiased insight from someone
who shares your experience, or who has been there before. It’s like having a team
of your own professional advisors to help guide the way. You don’t have to go it
alone. Start the right conversation today, call us at 586.443.5880 x201.
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■ From Page 3
the growing business. And that
was before the Franklin stepped
up to the inaugural mike, wearing
the instantly iconic chapeau.
“With this kind of fame and this
kind of attention, the potential is
really big, but we’re not the ones to
explode so big we can’t account for
it later,” he said.
Mr. Song’s immediate needs are
more workers, an additional production facility and a larger retail
space, Luke Song said.
Mr. Song produces more than a
hundred hats a day, all in-house
designs, at a 5,000-square-foot
Ferndale manufacturing facility
that Lillian Song says the business
has outgrown.
About 10 percent of the label’s
hats are sold at the Mr. Song showroom in Detroit’s New Center
area, with the bulk of the business
in wholesale. Roughly 500 retailers nationwide carry Mr. Song
hats that retail from $79 to $899.
But the Songs say they’re not
rushing into irresponsible growth.
Mr. Song employs 11 workers,
Luke Song said, a number that
could grow to 19 or 20.
“We read that Detroit’s unemployment rate is up to 10 percent,”
Lillian Song said. “We’d like to decrease that number by eight.”
Luke Song said he expects to add
employees slowly, a plan that
aligns with the difficulty of finding
skilled hat-makers.
The Mr. Song showroom occupies about 1,500 square feet of a
Woodward Avenue storefront, but
the space encompasses an additional 2,500 square feet currently
used for shipping and some design
and construction work.
Adding a new production site
would allow the Songs to transfer
shipping out of the storefront, increasing retail space without abandoning a longstanding location.
Mr. Song’s founders Hahn and
Jin Song emigrated from South
Korea in 1982.
At first, the shop carried designer labels, Lillian Song said. But Jin
Song, with an artistic eye and a
knack for handwork, rarely saw a
hat she couldn’t improve.
“She started tweaking the hats,
and soon customers realized she
had a talent,” Lillian Song said.
And the Mr. Song label was
born.
Ask Lillian Song when she
joined the family business and the
answer is “always” — both siblings grew up in and around the
shop. Luke Song joined the business full time about eight years
ago, after a stint at Parsons The New
School of Design in New York City.
About 90 percent of the store’s
customers are church-going black
or Jewish women, Luke Song said.
They comprise an informed clientele, avidly following hat and fashion trends. Orders are coming in for
hats in pink and pistachio, spring’s
hot colors; and a “mad hatter” style,
in which the top of the hat is larger
than the base, is popular.
Classic hat styles are steady sellers, but the label must offer a new
slate of hats every six months for
the Women’s Wear trade show.
This February, Mr. Song’s designs will be displayed at a better
booth, and Luke Song already has
appointments with two department store chains interested in
carrying Mr. Song hats.
“The future is very bright for
us,” he said.
Nancy Kaffer: (313) 446-0412,
[email protected].
Suppliers: Fed aid urgent
■ From Page 3
nalizing what they will seek in federal assistance. His association
planned to convene more than a
dozen CEOs and CFOs today.
Suppliers may have to wait,
though, until President Obama appoints a so-called car czar to oversee federal assistance to the industry, De Koker said. A number of
representatives from parts organizations met this month with officials from the U.S. Treasury Department and the Obama transition
team to discuss the situation, he
said.
They are exploring a “quick
pay” option, by which the au-
tomakers could borrow more
Troubled Asset Relief Program
money to pay suppliers for parts in
10 days instead of the typical 45
days, De Koker said.
TARP funds also might be
tapped to guarantee supplier receivables so suppliers can continue to borrow working capital from
private banks.
Suppliers are taking extreme
steps to conserve cash. “Everyone’s scrambling,” Leuliette said.
“At Dura, I laid everybody off the
first week of January, including
myself.”
From Automotive News
CRAIN’S SEEKS NOMINATIONS FOR TOP CFOS
Crain’s Detroit Business is seeking nominations
for its third annual CFO awards to recognize
financial leaders. To nominate someone, visit
www.crainsdetroit.com/nominate. Nominations
must be received by Jan. 30.
Nominees must be CFOs or hold an equivalent
job. Judges will select winners based on
excellence in financial or other operational
management. Nominees will be considered for
public and private companies, and nonprofits.
Questions? Contact Jennette Smith, assistant managing editor, at
[email protected].
20090126-NEWS--0027-NAT-CCI-CD_--
1/23/2009
5:58 PM
Page 1
January 26, 2009
Page 27
Macomb: Job losses spread; officials devise a counterattack
■ From Page 3
lenges in several ways during 2009.
First on the calendar is a Feb. 3
economic outlook forecast by Macomb Community College President
Jim Jacobs, to brief the local business community on what lies
ahead.
“For years, the primary mover in
state and local unemployment figures was industrial, manufacturing, construction and warehousing
job losses that just hit particularly
hard here. Not anymore,” said DELEG Economic Analyst Jim Rhein.
“Now it’s affecting everybody.
In (the course of) 2008 it switched
over to all industries (getting) impacted by the larger economic
trend. Retail and trade, professional and technical services, environmental — everything except a few
industries like health care, which
has really just maintained.”
Macomb also saw the largest
percentage increase in unemployment for the five-county region
compared with a year earlier. The
region includes Wayne, Oakland,
Livingston, Washtenaw and Macomb counties.
According to November figures,
Wayne and Oakland both saw
greater increases in raw unemployment totals, but smaller percentage
changes in jobless rates.
Grace Shore, CEO-COO of the
Macomb County Chamber of Commerce, said the county’s largest
chamber organization managed
net growth of nine businesses, or
just less than 1 percent of its
roughly 950 members, during 2008.
That was about 129 new members
joining the organization, to offset
about 120 members lost, and Shore
estimates 40 percent of its lost
members are companies that are
no longer in business.
About 35 percent of its new members are businesses in their first few
years of operation, she added, and
she expects 2009 might show a similar turnover and casualty rate.
“We are just slightly bigger in
(membership) than we were a year
ago, and we consider that an
achievement. In an economic environment like this, that is good
enough for me,” Shore said. “Because I’ve been working within the
business community for 30 years,
and I’ve never seen it like this.”
Shore said she also expects 2009
will be a difficult year to maintain
or grow the chamber, based on the
predictions of local and national
economists. Staff reports to the
Federal Reserve Board of Governors
last month called for the economy
to continue shrinking through at
least the first half of the year, with
a “moderate recovery” in 2010.
“Most of what we hear is that
2009 will be another tough year.
There’s a chance we’ll see things
start to pick up in the fourth quarter, but it will remain challenging
until then,” she said. “Still, despite
the overall trend, we’ve managed
to do fairly well.”
For 2008, the county Planning
and Economic Development Department reports a total of 42 companies pledging to invest a total of
$228 million in business attraction
or expansion deals. These investments will retain a total of 2,364
jobs and add 1,842 new jobs, said
Don Morandini, deputy director of
the department.
But in the same year, eight employers issued notices of layoffs or
plant closings to 1,893 employees
in Macomb County and to the state
under the Worker Adjustment and
Retraining Notification Act. The
federal act requires companies
with 100 or more employees to issue 60-day notice in advance of any
planned closings or layoffs that
eliminate 50 or more jobs.
At least 1,200 of these jobs belonged to Troy-based automotive
supplier Cadence Innovation, which
announced plans to shutter plants
in Fraser and Chesterfield Township in late October.
“Some of the latest efforts we’ve
made can help us become a defense
industry hub and help some our
current automotive suppliers and
companies to diversify,” said Paul
Gieleghem, chairman of the Macomb County Board of Commissioners.
“But it’s hard to offset the (traditional) automotive job losses, when
some of those are pretty staggering.”
David Widlak, president and
CEO of Mt. Clemens-based Community Central Bank, said the county’s
business community is “blessed
with a lot of entrepreneurship,”
and he predicts the coming year
will see many younger companies
weather hardships and grow in the
coming months.
“Residential will remain flat
and linger there a while. You just
have the problem of fewer people
than there are houses,” he said.
“But on the commercial side, I
think Macomb County is going to
prove more vibrant and economically stable than some of the areas
around us.”
Chad Halcom: (313) 446-6796,
[email protected]
Turnaround plans: Funding help, green expo
Several turnaround plans are
already in motion for 2009 to
help Macomb County bounce
back from the fallout of the recession.
Paul Gieleghem, newly appointed chairman of the Macomb
County Board of Commissioners,
said last week he is making economic development a top priority. He plans to visit at least one
local business per week to discuss local assistance to help
companies with expansion.
“About 85 percent of all economic development originates
locally,” he said. “The other 15
percent, I think, lies for us in attracting foreign companies to
look at our assets here.”
To that end, Gieleghem said
the county hopes to join with the
Detroit Regional Chamber and Automation Alley on regional economic attraction to draw overseas investment during 2009.
Macomb hosts U.S. operations
for 75 companies based outside
the country, compared with
about 200 such companies for
Wayne County and 500 for Oakland County, he said.
Other Macomb County economic strategies:
䡲 Gieleghem said he and a
group of county leaders will
meet today with executives at
TRW Automotive Holdings Corp. in
Washington Township and
Chrysler L.L.C. at its Warren
Truck Plant to discuss local government assistance to the automotive industry.
䡲 The Macomb County Chamber
of Commerce expects to host a
green expo in late April for all local businesses interested in diversifying into green technology. An exact date and place
haven’t been determined, but
Chamber CEO and COO Grace
Shore said 22 business represen-
tatives volunteered for the organizational committee and dozens
of companies likely will participate.
䡲 The Macomb-Oakland University Incubator at the former Venture Industries manufacturing
site in Sterling Heights could
have new startup businesses
moving in as tenants by July,
said Don Morandini, deputy director of Macomb County Planning
and
Economic
Development.
Gieleghem said the county is applying for additional funding
from the Michigan Economic Development Corp. and the federal
government, to make the operation viable before tenants come.
When complete, the 80,000square-foot incubator site could
host up to 12-15 businesses, primarily in the defense and homeland security industries.
— Chad Halcom
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Paul Gieleghem (left), chairman of the Macomb County Board of Commissioners,
and Don Morandini, deputy director of Planning and Economic Development, are
working on several turnaround projects for the county.
MotorCity Casino Hotel and MotorCity Casino Hotel design
are trademarks of Detroit Entertainment, L.L.C. ©2009
Detroit Entertainment, L.L.C. All rights reserved.
20090126-NEWS--0028-NAT-CCI-CD_--
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5:42 PM
Page 1
Page 28
January 26, 2009
Net income down for most HMOs through 3rd quarter
BY JAY GREENE
HMO NET INCOME THROUGH THIRD QUARTER
Just two of the nine largest
Financial results for the first nine months ending Sept. 30:
commercial and Medicaid health
maintenance organizations in
HMO
2008
2007
Change
Southeast Michigan posted highAetna Health Inc.
$182,000
$109,000
67%
er net income for the first nine
Blue Care Network
37.9M
35.9M
6%
months of 2008 than during the
same period in 2007, according to
Great Lakes Health Plan
1.7M
1.7M
0%
data from the state Office of FinanHealth Alliance Plan
14.2M
27.2M
-48%
cial and Insurance Regulation.
HealthPlus of Michigan
12.3M
16.4M
-25%
Blue Care Network of Southfield
Health Plan of Michigan
5.5M
3.8M
45%
led the pack, earning net income of
$37.9 million for the first nine
Molina Healthcare of Michigan
7.6M
2.7M
181%
months of 2008 compared with
Priority Health
6.2M
25.9M
-76%
$35.9 million for the same period in
Total
Health
Care
Inc.
929,000
2.3M
-60%
2007.
Total
$86.5M
$116M
-25%
Troy-based Molina Healthcare of
Michigan also increased net income
by 181 percent to $7.6 million for
Source: Michigan Office of Financial and Insurance Regulation
the first nine months of 2008, compared with $2.7 million for the
same time period in 2007.
“Health insurers all over are un- turmoil of the fourth quarter,”
While all are profitable, HMOs der pressure for pricing and med- said Rob Pocock, Priority Health’s
that posted lower net income for the ical costs,” said Baumgarten, who associate vice president of commualso
monitors nications.
first nine months
Priority Health, which has ofHMOs in several
of 2008 included
states, including fices in Farmington Hills and
Health Alliance Plan
Ohio, Illinois and Grand Rapids, earned net income
of Michigan, Priority
Wisconsin.
“It of $6.2 million for the first nine
Health, HealthPlus
will be a very months of 2008, down by 76 percent
of Michigan, Health
stressful time for from $25.9 million for the same pePlan of Michigan,
the health insur- riod in 2007.
Total Health Care
As is the case for many HMOs,
ers until the econInc. and Aetna
Blue
Care’s profitability was asomy
turns
around
Health Inc., said
and
employers sisted through $24.5 million in inOFIR.
can
take
a vestment income for the first nine
Fourth quarter
months of 2008, a slight increase of
breath.”
figures won’t be
$24.3 million for the same period in
Other
insuravailable
until
Allan Baumgarten, Michigan
ance executives 2007.
late February.
Managed Care Review
“We don’t have a lot of long-term
also blamed the
“Southeast
Michigan was harder hit by eco- economic recession and the ane- investments in stocks and equity,”
nomic distress than any other lo- mic stock market for profitability said Sue Kluge, Blue Care’s CFO.
“We haven’t seen a huge change in
cal market” in the nation, said Al- declines.
“Not only are third-quarter re- investments in the fourth quarlan
Baumgarten,
editor
of
Michigan Managed Care Review sults old news but, more impor- ter.”
The region’s second most profand a Minneapolis-based health tantly, they basically became irrelevant based on the economic itable HMO was Detroit-based
policy consultant.
Southeast
“
Michigan was
harder hit by
economic distress
than any other local
market.
”
HAP, which earned $14.2 million
in net income for the first nine
months of 2008. However, those
numbers represented a 48 percent
decline from $27.2 million for the
same period in 2007.
The only reason HAP’s income
declined for the first three quarters of 2008 was a 385 percent drop
in investment income to $2.4 million compared with $11.7 million
for the same period in 2007, said
Ronald Berry, HAP’s CFO.
“We remain profitable with a
fairly strong balance sheet, but
2008 is our lowest level of profitability in a while,” Berry said.
When fourth-quarter numbers
are included, HAP concluded 2008
with investment losses of $3 million, Berry said. HAP had projected an investment gain of $15 million for the year, he said.
Other HMOs posted the following results:
䡲 HealthPlus, Flint, earned net
income of $12.3 million for the first
nine months of 2008 compared
with $16.4 million for the same period in 2007.
䡲 Health Plan of Michigan, Detroit, earned net income of $5.5
million for the first nine months of
2008 compared with $3.8 million
for the same period in 2007.
䡲 Great Lakes, Southfield, earned
net income of $1.7 million for the
first nine months of 2008 and 2007.
䡲 Total Health Care, Detroit,
earned net income of $929,000 for
the first nine months of 2008 compared with $2.3 million for the
same period in 2007.
䡲 Aetna, Southfield, earned net
income of $182,000 for the first nine
months of 2008 compared with
$109,000 for the same period in 2007.
Jay Greene: (313) 446-0325,
[email protected]
Report: State’s uninsured ranks, charity care rise
BY JAY GREENE
Michigan is losing ground as a
national leader in providing
health insurance to its residents
while its hospitals are suffering
from the effects of delivering hundreds of millions of dollars in uncompensated care, according to a
new report by the Center for Healthcare Research and Transformation in
Ann Arbor.
In the 92-page Cover Michigan
report, which was released today,
the authors confirm widely held
opinions that as the percentage of
the population covered by private
insurance has slipped in Michigan, the numbers of uninsured and
underinsured have risen, weakening an already stressed safety net
of hospitals, doctors and health
clinics.
“The issue is not just that there
are more uninsured, but that people with private insurance are facing problems because of rising deductibles, and access for people
with (Medicaid) also is becoming a
problem,” said Marianne UdowPhillips, CHRT’s director.
“2008 will be even more dramatic and worse” as the unemployment rate in Michigan reached
10.6 percent in
December and
the
economy
took a dramatic
nosedive after
Labor Day, she
said.
The
Cover
Michigan report
will be handed
off to MichiUdow-Phillips
gan’s congressional delegation, which includes
Rep. John Dingell and Sen. Debbie
Stabenow, for use during upcoming hearings on anticipated health
care reform legislation, UdowPhillips said.
“The report is very timely because all of these trends in some
way are being addressed by the
president’s stimulus package,”
said Doug Halladay, director of
Michigan Cover the Uninsured Network, a Detroit-based group.
Under the U.S. House of Representatives’ proposed $825 billion economic recovery plan, $20 billion is
designated to fund health care information technology, $1.1 billion
for research, $1.5 billion for clinics, $600 million to train physicians and medical students, $30
billion to extend COBRA, $87 billion for Medicaid and another $8.6
billion for unemployment benefits
for the poor.
Because of unions, Michigan’s
uninsured rate has been lower
than national averages, said the
report. But that is changing as
more companies drop health coverage for their workers.
Since 2000, when 64 percent of
the state’s private employers offered health coverage to their
workers, now only 53 percent of
companies offer health insurance,
the report said. Michigan now is
28th in the nation in employerbased health insurance.
Although the percentage of
Michigan’s population with private health coverage declined to 73
percent in 2007, the state was still
higher than the 68 percent national average.
As employers dropped coverage,
however, the uninsured rate has
grown. In 2007, 11.6 percent of
Michigan’s total population, or 1.1
million, were uninsured, up from
10.5 percent in 2006. The U.S. uninsured rate was 15.3 percent in 2007.
Another troubling statistic is
that the number of uninsured children in Michigan grew in 2007, rising to 6.2 percent from 4.7 percent
in 2006, the report showed. Nationally, 11 percent of children are
uninsured.
Those who are insured also are
paying higher premiums.
For employment-based coverage,
average family premiums increased 68 percent from 2000 to 2006.
Family premiums in Michigan averaged $11,452 in 2006, only slightly
higher than the national average of
$11,381. The average individual premium in Michigan was $4,446 in
2006, compared with the national
average of $4,118. Average family
deductibles also increased 25 percent from 2002 to 2007.
With deductibles and the uninsured on the rise, uncompensated
care at Michigan hospitals
climbed 68 percent over three
years to $1.8 billion in 2007.
Hospitals in Wayne County incurred the highest amount of uncompensated care at $689 million
in 2007, a 57 percent increase from
2006. Uncompensated care totals
are based on hospital charges, not
costs, the report said.
The Center for Healthcare Research was formed in 2007 through
a joint venture by the University of
Michigan and Blue Cross Blue Shield
of Michigan. To read the report,
visit www.chrt.org
Jay Greene: (313) 446-0325,
[email protected]
Medicaid
Stimulus
■ From Page 1
aid patient they treat.”
To keep pace with rising unemployment and health care
costs, Michigan has been spending a larger percentage of its
budget on Medicaid. In 2007, the
state spent 21.4 percent of its
budget on Medicaid, up from 18.9
percent in 1999, said the Michigan
Department of Community Health.
If Congress approves the
stimulus package in mid-February, the additional funding
could help plug a hole in the
state’s projected budget deficit
of $1.4 billion for fiscal 2010 that
begins Oct. 1.
Gov. Jennifer Granholm is
expected to present her proposed 2010 budget by Feb. 13.
She gives a state-of-the-state address on Feb. 3.
“It is too soon to say with certainty what will be cut from the
budget,” said Leslee Fritz, communications director for the
state budget office. “The final
stimulus package will have additional dollars for Medicaid. It
will come with the requirement
that (states) not reduce services
or access to clients.”
Fritz said the state expects to
receive $1 billion to $1.5 billion
for Medicaid over the next 15 to
17 months that could span part of
fiscal 2009, 2010 and 2011.
But Fritz said it is possible
that Granholm’s budget proposal could include cuts for the
Department of Community
Health, which oversees the
Medicaid program.
At least 22 states have proposed or implemented Medicaid budget cuts this year.
In 2008, the federal government provided a 60 percent
matching share to fund Michigan’s Medicaid program. In 2009,
the amount rose to 63 percent.
“Under discussion is that
every state would get 3 percent
to 4 percent, with the hardesthit states getting another 4 percent to 5 percent,” Fritz said. If
those numbers play out, Michigan’s federal matching share
for Medicaid could rise as high
as 72 percent, she said.
The increases in Medicaid
would be welcome, said Peter
Schonfeld, senior vice president,
policy and data services with the
Michigan Health and Hospital Association. “Hospitals and doctors
would say we have been cut
every year because there has
been no cost-of-living increases”
for Medicaid.
A soon-to-be released study,
Schonfeld said, shows total hospital profit margins declined in
Michigan to a negative 2.9 percent for the first nine months of
2008 compared with a 2.2 percent margin for the same period in 2007. Nationally, hospital
margins declined to a negative
1.6 percent in 2008, compared
with 6 percent in 2007, he said.
“Michigan has higher quality,
lower costs but also lower margins because of the poor economy and high unemployment.”
Jay Greene: (313) 446-0325,
[email protected]
20090126-NEWS--0029-NAT-CCI-CD_--
1/23/2009
6:46 PM
Page 1
January 26, 2009
Page 29
Recovery: State rushes to get a share of D.C. funds
■ From Page 1
pleted quickly.
For example, an $825 billion stimulus bill proposed earlier this
month by U.S. House Democrats envisioned using at least 50 percent of
the roads, bridges, water and sewer
funds on projects that can be started
in 120 days within the state’s receipt
of the money, said Leslee Fritz, director of communications in the
state budget office.
At Crain’s press time, a 180-day
timeline was in play.
Teams are to report to
Granholm on Friday, and there
are expectations that some form of
a federal stimulus package could
be passed by mid- or late February.
“I think from the governor to
her cabinet directors to staff
throughout the administration, we
all recognize that this recovery
package — however it looks in its
final form — holds tremendous opportunity to create jobs and stimulate Michigan’s economy. And we
want to be absolutely sure that
we’re ready to take advantage of
the opportunities,” Fritz said.
“The scope of what we’re talking
about is enormous. And so the
scope of work that’s required to
prepare is also significant. Some
people are spending significant
portions of their day; some people
are spending small portions of
their day. It’s a gigantic undertaking for every state.”
One example, for the state to tap
into $14 billion that’s been proposed for a K-12 school program involving renovation and modernization — including technology
upgrades and energy-efficiency
improvements — the state must
quickly create a database listing
all public school buildings and
their needs, energy use and environmental impact.
“That alone is going to be a significant undertaking to compile,
and that’s just one” of the many
pieces of the broad bill that was proposed in the U.S. House, Fritz said.
The proposed $825 billion American Recovery and Reinvestment
bill encompasses $550 billion in
spending that ranges from Medicaid, food stamps and unemployment benefits to infrastructure
that includes $32 billion in national energy transmission, distribution and production system improvements, $30 billion in
highway construction, $19 billion
for clean water and environmental
projects, and $10 billion for mass
transit and rail.
The plan also would provide
$275 billion in tax cuts.
Congressional
Republicans
have criticized the proposal, with
House Republican Leader John
Boehner, R-Ohio, saying it calls for
“questionable new government
spending on programs and projects” while providing insufficient
tax relief.
The proposal is a response to
Obama’s call for a massive economic stimulus plan.
But even so, some critics say it
falls short of what’s needed.
Mike Nystrom, vice president of
government and public relations
for the Michigan Infrastructure and
Transportation Association, said that
spending $30 billion nationally on
roads and bridges, out of $550 billion, is inadequate.
And based on highway funding
formulas, Michigan’s share of that
$30 billion is estimated at $900 mil- it will “be difficult for communilion over two years.
ties to access that given the fiscal
By comparison, Michigan spent problems on the local level. I think
about $1.5 billion on roads and a grant program would be prebridges in 2008, and will spend ferred to a loan program.”
about $1.2 billion in 2009. Of those
The league has compiled a list of
amounts, the federal share aver- 1,200 proposed Michigan commuages a little less
nity infrastructhan $1 billion anture projects that
nually.
would take more
“It isn’t even
than $3.4 billion
one year’s road
to complete. The
and bridge proleague plans to
gram,” Nystrom
share the list with
said. “It isn’t as
the governor’s ofbig as people
fice as well as
thought it was goWashington offiing to be.”
Mike Nystrom, Michigan
cials and says the
He said the proInfrastructure and Transportation
need is urgent for
posal, as currentAssociation
repairs and uply drafted, isn’t
grades to roads,
enough to help
bridges,
water
Michigan meet annual needs, and and sewer systems, utility lines,
it means that Michigan lawmakers public safety operations, lighting
must resume looking at ways to systems and other items.
boost state transportation funding.
Fritz said Michigan eventually
“We were optimistic, and based
will have to prioritize its list, but
on the estimates that are out there
at present, the federal package’s
today, we are underwhelmed. And
composition and funding remain
it again puts the pressure back on
fluid as negotiations continue in
our state elected officials that
something needs to be done,” Nys- Washington.
She said the state inventory curtrom said.
Arnold Weinfeld, director of rently “contains thousands of propublic policy and federal affairs jects, far more than we know we
for the Michigan Municipal League, would be able to fund.”
But the goal is to be as inclusive
said it appears money that becomes available for roads, bridges, as possible so that as the final
water and sewer will run through package emerges, Michigan can select projects that become eligible
current programs and laws.
Weinfeld said one concern the or strike those that become ineligileague has is that funds discussed ble, she said.
“We just want to be as nimble as
to help communities upgrade
wastewater treatment systems and we can,” Fritz said.
Amy Lane: (517) 371-5355,
drinking water infrastructure
would be in the form of loans, and [email protected]
(The proposal)
“
isn’t even one year’s
road and bridge
program.
”
Super Bowl: Detroit sitting on the ad sidelines
■ From Page 1
traditionally are the marquee
spots for brands.
“The Super Bowl is still a very
relevant way to tell a big story,
launch a new product or debut a
new strategy. But even the Super
Bowl is not immune from these
tough economic times, and for
most advertisers, $3 million is a lot
to invest for 30 seconds of very distributed eyeballs who primarily
want to be entertained,” said
George Rogers, president of Dearborn-based advertising consortium Team Detroit, which handles
Ford’s advertising.
Even Super Bowl advertising
veterans are wary of the pricey
spots this year.
“I don’t think the Super Bowl is
the be-all, end-all. It’s fun for the
candy bars and beers, but a car is a
sexy, emotional, high-ticket item.
There are better ways to get your
message out,” said Gary Topolewski, who was instrumental in creating the wildly successful Led Zeppelin-themed
campaign
for
Cadillac launched during the 2003
Super Bowl.
Topolewski, who has his own
eponymous agency today in Ferndale and does some work for the
carmakers, did the Cadillac campaign while with Leo Burnett Detroit predecessor D’Arcy Masius
Benton & Bowles.
Because of the sagging economy ble-digit marketing budget cuts for
and the intense scrutiny on De- 2009. Ford and Chrysler are spendtroit in the wake of the govern- ing less, too.
ment loans to General Motors and
The marketing cutbacks have
Chrysler, skipping the Super Bowl resulted in repeated rounds of job
isn’t a bad idea this year, losses at most of the region’s autoTopolewski said.
motive advertis“I think it’s
ing agencies.
probably a good
On the bright
thing conside,
skipping
sidering
the Super Bowl
where they
eliminates the
are
right
chances of an adnow. They
vertisement
have to be
backfiring and
smarter in
generating more
how
they
bad news for
Gary Topolewski,
communiboth a carmaker
Topolewski Group
cate,”
he
and its agency.
said.
General MoIt’s unclear if any car spots were tors, for example, could ill-afford
in the works and then pulled. The today the bad publicity generated
carmakers and ad houses aren’t by its $5 million, 60-second spot
talking about that.
from the 2007 Super Bowl.
Typically, Super Bowl ads take
The commercial, done by Los Ansix to eight months to prepare, geles agency Deutsch, touted GM’s
meaning they would have been in commitment to quality by showing
production prior to the current an anthropomorphic assembly-line
economic crisis.
robot laid off for dropping a part and
General Motors (whose primary then later leaping off a bridge in a
local agencies are Warren-based suicidal dream sequence.
Campbell-Ewald, Leo Burnett Detroit
GM stripped its corporate acin Troy and the Detroit office of count from Deutsch not long after
McCann Worldgroup) said in Sep- that ad campaign, which culminattember it wouldn’t air any Super ed in the suicide being trimmed
Bowl ads, and announced two from the commercials, and remonths later it was planning dou- turned the work to McCann’s De-
think the
“ I don’tSuper
Bowl
is the be-all,
end-all.
”
troit office after a year’s absence.
Another misfire was Cadillac’s
2006 spot by Leo Burnett Detroit
that had an Escalade on a fashion
runway — a commercial that displeased GM executives and reportedly led to the $225 million account
being given to a Boston agency.
While absent from the game’s TV
commercials this year, General Motors will continue to have a major
presence at the game. The company
is one of the NFL’s 22 corporate
sponsors, and Cadillac sponsors the
post-game show and MVP award,
GM’s Cusinato wrote.
Others in the local ad industry
speak wistfully of the Super Bowl.
“If you work at an agency as a
creative person on a car account in
Detroit, hearing the words ‘Super
Bowl commercial’ is enough to
keep you working days and nights
to come up with the big idea for
weeks, even months on end,” said
Brian Cusac, a principal and chief
creative officer at growing Royal
Oak boutique agency Drive Solutions Inc., who once worked on Super Bowl ads for Ford while at J.
Walter Thompson.
“It’s one of the biggest carrots in
the industry. So from an agency
standpoint, that’s going to be
something that’s missed.”
Bill Shea: (313) 446-1626,
[email protected]
www.crainsdetroit.com
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20090126-NEWS--0030-NAT-CCI-CD_--
1/23/2009
6:49 PM
Page 30
Page 1
January 26, 2009
RUMBLINGS
WEEK IN REVIEW
FROM WWW.CRAINSDETROIT.COM, WEEK OF JAN. 17-23
Car dealer
longs for return
of the ‘Alfistis’
he idea of Italy’s Fiat
SpA taking a 35 percent stake in Chrysler
L.L.C. is welcome news to
Gina Russo.
General Manager of
Lochmoor Chrysler Jeep in Detroit, Russo’s father, Gus,
picked up the first metro Detroit franchise for Fiatowned Alfa Romeo in 1990. He
sold the cars until 1995,
when Fiat stopped exporting
them to the United States.
Among many things, Russo misses the dedicated
group of Alfa Romeo-lovers,
who call themselves “Alfistis.”
“They have an owners
club; they’d take them to
the tracks,” she said. “They
love that car.”
Having a Chrysler and
Jeep franchise for her dealership, Russo hopes to grab
a Fiat franchise if it works
out. Lochmoor even has a
mechanic on the payroll
from the Alfa Romeo days
specifically trained to work
on Italian cars.
“I don’t know how it will
all work out, but we’re excited to be part of it,” Russo
said.
T
How much for the doorman?
While putting together a
list of items for the charity
auction at the 20th anniversary celebration for the RitzCarlton in Dearborn, organizers thought it would get
some chuckles to auction
the services of the hotel’s
well-known doorman.
They didn’t think it
would get $40,000.
It was the lion’s share, in
fact, for the entire evening’s
fundraising: $105,000 for
Bidding for the services of
“Marty the Doorman” was
brisk at the Ritz-Carlton
charity auction.
Hospice of Michigan.
The 400 people in attendance at the event earlier
this month reportedly went
crazy when Marty Premtaj
paraded back and forth on
the stage in his top hat. The
winning bidder was to receive dinner for 10 prepared
by the hotel’s executive
chef, and “Marty the Doorman” to greet guests.
Bidding quickly reached
$20,000. The hotel quickly
added a second offering of
Premtaj, with that drawing
an additional $20,000.
“With all the bad things
people say about Detroit,
there’s still so much generosity here,” said Linda
Jennings, president of Good
News Ink L.L.C., a PR firm
representing the hotel.
Awards rain on Dingell
U.S. Rep. John Dingell is
cleaning up in the awards de-
partment.
After being named Crain’s
Detroit Business 2008 Newsmaker of the Year last week,
Dingell will be honored with
the inaugural Keith Crain/Automotive News Award next
week at the Washington Auto
Show in Washington, D.C.
The award recognizes Dingell’s 53 years of service to
the automotive industry and
its workers.
Keith Crain, Crain Communications Inc. chairman, Automotive News publisher and
editor-in-chief and Crain’s
Detroit Business, will present the award to Dingell on
Feb. 3. during the show’s
Preview Reception. The
award ceremony caps off the
show’s Public Policy Day,
where automakers will present their latest products
and technologies to federal
officials, policymakers, legislators and members of the
Obama administration.
Crain said he was honored that the auto show and
its dealers considered his
contributions important
enough to create the award.
“John Dingell was an obvious choice this year for the
inaugural honor for everything he has done for the
auto industry, its dealers
and consumers,” he said.
Meanwhile, Dingell’s
Newsmaker award will be
presented during a luncheon
at the Ritz-Carlton in Dearborn from noon-1:30 p.m.
Feb. 18.
On top of being the
longest-serving current
member of the House, Dingell will be the longest-serving U.S. representative in
history on Feb. 14.
BITS & PIECES
Frank Stella, founder and
CEO of The F.D. Stella Products Co., Detroit, is to be honored with the 2009 Humanitarian Award from the
Detroit Medical Center Rehabilitation Institute of Michigan
Feb. 14.
Get more of the story from our reporters’ blogs
Blog
could ever put in a story.
Pronunciations: \’blo- g, ‘bläg\
Now we have a channel for it.
Function: noun
Starting today, Crain’s reporters
Nancy Kaffer and Bill Shea will
Definition: Short for Weblog, a Web
begin blogging on their respective
site that contains an online
areas of expertise: small business
personal journal with reflections,
and marketing media and sports.
comments, and often hyperlinks
We’ll add more staff bloggers in
provided by the writer.
the weeks to come.
Crain’s blogs
It’s yet another reason to set your
Pronunciation: \’kra- ns blogs\
Web browser to
Function: plural noun
www.crainsdetroit.com to read this
exclusive content, then join in the
Definition: What we’re launching
discussion, leaving your own
today, a Web site that contains
WEB WORLD
comments or links.
online personal journals from
Alan Baker
Find the new blogs under “blogs”
Crain’s reporters.
Web General Manager in our main red navigation bar at
It’s the constant struggle of
the top of the page.
reporting. There’s always more information,
Happy blogging!
insight and perspective out there than we
Fiat, Chrysler
sign alliance
plan; UAW
backs deal
iat S.p.A. and Cerberus
Capital Management
L.P., the private-equity
owner of Chrysler L.L.C., confirmed that the Italian company intends to acquire an
initial 35 percent stake in the
U.S. carmaker, Automotive
News Europe reported.
Fiat would make available its distribution network
in key growth markets.
United Auto Workers President Ron Gettelfinger said the
union supports the deal.
Also, the UAW has agreed
to let Chrysler end its Jobs
Bank today as it seeks to
help the automaker meet
the terms of its federal
bailout before a Feb. 17,
deadline, Automotive News
reported. Workers will be
laid off and have to go on
state unemployment and
supplemental pay.
F
Palace embezzlement
suspects are arrested
Auburn Hills police Lt.
Casimir Miarka said U.S.
marshals arrested Erik McDonald and Amy McDonald in
New Orleans on Jan. 16 on
charges of embezzling more
than $1.5 million from
Palace Sports & Entertainment Inc., the Detroit Free
Press reported.
Police say Amy McDonald, a former Palace Sports
employee, fraudulently
used company credit cards
to buy electronics, vehicles
and even pay child support
owed by her husband.
ON THE MOVE
James Steward, director
of the University of Michigan
Museum of Art, will become
director of the Princeton University Art Museum in April.
OTHER NEWS
The University of Michigan said Monday it plans to
build a $23.2 million, 50,000square-foot development
center for its men’s and
women’s basketball program next to Crisler Arena.
■ The Michigan Economic
Development Corp. rescinded
Friday three loan offers it
had made in October as part
of a 21st Century Jobs Fund
business plan competition:
$1.95 million to Accuri Cytometers Inc.; $2 million for Ann
Arbor-based Cielo MedSolutions; and $2.46 million for
Ann Arbor-based Avidimer
Therapeutics Inc.
Accuri declined the state’s
terms. Cielo did not have
matching funds and asked
that its bid be withdrawn. It
is not known why Avidimer
also asked to have its bid
withdrawn.
The board voted to offer a
$1.25 million loan to Ann Arbor-based Incept BioSystems
and $2.6 million to Livoniabased Fisher Coachworks
L.L.C. Both must agree to
terms and have matching
funds.
Most of the staff of
WDFN-AM 1130 lost their jobs
Tuesday as part of a layoff of
more than 1,800 people nationwide by Clear Channel
Communications Inc., the Associated Press reported.
General Motors Corp. said
it received Wednesday $5.4
billion from the U.S. Treasury
Department, the second installment of its federal loan
package, the AP reported.
Troy-based staffing
firm Kelly Services Inc. reported a net loss of $88.8 million
for 2008, following a 13 percent decline in fourth-quarter revenue and a 3 percent
decline in full-year revenue.
Dearborn Bancorp Inc.
said it lost $29.4 million or
$3.77 a share on revenue of
$13.5 million in fourth quarter 2008, compared to net income of $398,000 or 5 cents on
$17.5 million revenue in the
same quarter last year.
The 24grille restaurant
opened in the Westin Book
Cadillac Detroit Wednesday.
Also, John Ferchill, developer of the renovated property,
and the Detroit Investment
Fund are completing a deal to
make money available to
condo buyers, The Detroit
News reported. Only 16 of 50
buyers have closed deals.
Philip Thomas, attorney
for Kwame Kilpatrick, said
Tuesday that the Michigan Attorney Discipline Board decided it doesn’t have the authority to lift a judge’s order
revoking the jailed ex-mayor’s license, the AP reported.
Also, Kilpatrick could be
released from jail Feb. 3. He
had been sentenced Oct. 28
to four months in jail, but
his sentence was shortened
because of good behavior.
Attorneys for the city and
Detroit’s two daily newspapers will meet next month to
try to settle a lawsuit seeking documents and text messages in Kilpatrick’s whistle-blowers’ case.
Detroit City Council
member Alberta Tinsley-Talabi; DeDan Milton, former
chief of staff for Kwame
Kilpatrick; and ex-city
Treasurer Jeff Beasley must
repay nearly $14,400 for
travel advances they got
while trustees of the Detroit
Police and Fire Retirement
System but never submitted receipts for, the Detroit
Free Press reported.
Also, the general retirees’
pension board voted
Wednesday to ask Council
President and former board
member Monica Conyers to
repay more than $5,600 for
undocumented hotel stays,
AP reported. Conyers paid
$3,000 Friday; the board says
she still owes $2,600.
Taylor-based Atlas Oil
Co. acquired and will begin
to supply 57 BP Products
North America Inc. locations
in suburban Chicago.
■ Madonna University in
Livonia said Thursday it received a $1.5 million grant
from the Kresge Foundation to
support a $20 million Science and Media building.
Dura Automotive Systems
Inc., which emerged from
Chapter 11 bankruptcy protection last summer, is taking the first step to becoming a private company,
according to regulatory documents filed Wednesday.
Enrollment at Wayne
State University dipped 4.1
percent in the winter semester over the same period last
year, from 30,280 to 29,057,
The Detroit News reported.
Ann Arbor-based Tecumseh Products Corp. requested
that the Michigan Court of Appeals reverse a lower court
decision and allow the issuance of new stock that
would diminish the influence of ex- company Chairman Todd Herrick.
The city of Dearborn
filed a lawsuit against Burton-Katzman Development Co.,
accusing the company of
breach of contract for not
completing phases of the
mixed-use West Village Commons project.
Auburn Hills-based
Chrysler L.L.C. shifted the
Jeep brand advertising account back to the Detroit office of New York City-based
BBDO, from Cutwater, San
Francisco.
Visteon Corp. said it
would resume a five-day
workweek in February after
shifting to a four-day week,
but would cut the pay of
workers making more than
$75,000.
The city of Pontiac received two proposals for the
Silverdome: a resubmitted
offer of $12.5 million from
Allen Park-based Smart Park
International L.L.C.; and a $25
million bid from Californiabased Super Marching Bands
Classic and Hall of Fame, The
News reported.
The Salvation Army Eastern Michigan Division plans
to buy and reopen a 17,000square-foot community center in Pontiac for $645,000.
International Paper Co.
says it’s shuttering its corrugated container plant in
Howell, resulting in the loss
of 95 jobs.
OBITUARIES
Dell Warner, broadcaster and journalist, died of
cancer Jan. 21. She was 84.
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State rushes for share of recovery plan

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