SEPTEMBER 13 â€“ 19, 2010 Path opened for road funds

set of two parking decks with newtax revenue from the developments,is now stuck making payments onthem out of the general fund.

“It’s becoming common to see sit-uations like this where cities tookon a lot of risk and are now stuckholding the bag,” said Robert Gibbs,director of Birmingham-based GibbsPlanning Group, which provides de-velopment consulting servicesacross the country.

BY AMY LANE

CAPITOL CORRESPONDENT

LANSING — Michigan mightyet dodge a road-funding bullet.

A budget agreement being final-ized in the Capitol is designed toproduce the $84 million that Michi-gan needs to avoid leaving $475 million in federal highwayfunds on the table in Washington.

Without the funding, Michiganwould have faced major cuts nextyear in road and bridge projects —and the jobs that go with them.

The agreement could be acted onthis week as lawmakers speed toapprove bills enacting a new statebudget for the fiscal year that be-

gins Oct. 1.As discussed late last week,

nearly half ofthe $84 millionwould comefrom a bond ofaround $40 mil-lion that thestate would is-sue and wouldneed to repay inone year, ac-cording to indi-viduals workingon the Michigan Department of Trans-portation budget.

Additional elements include $12 million from the state trans-portation economic development

fund, cuts at state welcome centersbut no closings, and use of so-called“toll credits,” said state Rep. LeeGonzales, D-Flint, chairman of theHouse Appropriations Committee’ssubcommittee on transportation.

The office of his Senate counter-part on the MDOT budget — Sen.Bill Hardiman, R-Kentwood — con-firmed the details Friday but saidthe bond piece still could change.

Kelly Bartlett, Hardiman’s leg-islative aide, said Hardiman hasbeen “more wary of the bondingproposal and the fact that it’ssomething we have to pay back ina year,” and is exploring greater

NE

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www.crainsdetroit.com Vol. 26, No. 38 S E P T E M B E R 1 3 – 1 9 , 2 0 1 0 $2 a copy; $59 a year

Bill doesn’t unite sideson Detroit River crossing

Yankee Air Museum risesfrom ashes in Ypsilanti

Health care advertisingtailored for ROI, 1

Largest Wayne Countyemployers, Page 16

®

See This Just In, Page 2

Page 3

©Entire contents copyright 2010 by Crain Communications Inc. All rights reserved

GlobalHue CEO takes on new role in two offices

Don Coleman is takingmore direct control of Global-Hue, the Southfield-basedmulticultural advertisingagency he founded in 1988.

Coleman, the company’sCEO, has taken on the newrole of general manager atthe Southfield and New Yorkoffices. He assumes the officeoversight role that was previ-ously that of Vice ChairmanAllen Pugh, who retains thattitle but is now CEO of thesister companies that servicethe agency.

GlobalHue shifted severalother executives as part ofthe changes.

The agency won the entire$50 million Jeep accountfrom Chrysler LLC last yearand is using that victory as aspringboard to seek morefull-assignment work. Otherclients include MGM GrandDetroit, Verizon, Wal-Mart, U.S.Census Bureau and U.S. Navy

This Just In

Health Care Extra

BY DANIEL DUGGAN

CRAIN’S DETROIT BUSINESS

At the 2003 groundbreaking forthe redevelopment of a former Ja-cobson’s store site in Dearborn,city officials saw the project as thefuture of the city.

Now, as lawsuits, bankruptciesand scathing public comments fly,the West Village Commons devel-opment represents yet anotherconflict created by the region’s re-cession.

A court has ordered construc-tion to begin next month on twomidrise buildings planned in Dear-born’s west downtown.

Meanwhile, the developers filedbankruptcy for the business enti-ties involved with the project tocope with mounting court finesand defaulted loans.

And the city of Dearborn, whichset up a deal to pay for a $12 million

Gonzales

See Project, Page 25

See Budget deal, Page 24

It’s becomingcommon to see ...

where cities took on alot of risk and arenow stuck holding

the bag.Robert Gibbs, Gibbs Planning Group

”

“

Path opened for road funds

Crain’s List

Budget deal would yield match for federal money

Dearborn12

Park

How

ard

Tenny

W. Village

Michigan

Parkinggarages

Disputedsite

Startup creates device ‘likea GPS’ for diabetic patientsHygieia asks FDA for sales OK

BY JAY GREENE


Eran Bhashan was an engi-neering doctoral student in2007 at the University of Michiganwhen he learned from UM en-docrinologist Israel Hodish,M.D., that most diabetic pa-tients fail to adequately treatand manage their disease,leading to poorer health andhigher health care costs.

Because blood-sugar levelschange regularly — and some-times dramatically — betweenphysician office visits,Bhashan and Hodish, bothoriginally from Tel Aviv,thought there must be a more

effective way for patients tomanage diabetes.

So in 2008, Hodish andBhashan formed Hygieia Inc., astartup medical device compa-ny based at Spark Central, theAnn Arbor business incuba-tor, to develop an innovativeglucose meter with a calcula-tor for a brain.

Called a Diabetes InsulinGuidance System, the deviceuses innovative software to an-alyze blood-sugar levels andtell patients how much insulinthey should give themselvesbased on body chemistry.

Bhashan, Hygieia’s CEO,

ALAN WARREN

JEFF JOHNSTON/CDB

Israel Hodish, M.D., (left) and EranBhashan of Hygieia Inc. have high hopesfor their Diabetes Insulin Guidance System.

See Hygieia, Page 25

Project unfinished,parties in courtJudge’s order: Construction starts Oct. 1

BUDGET HIGHLIGHTSGov. Jennifer Granholm andlegislative leaders last week strucka fiscal 2011 budget agreement,with many pieces still requiringlegislative approval. Elementsinclude:

� A state worker early retirementpackage that also requiresemployee contributions for retireehealth care costs.

� Budget cuts of 3 percent instate departments.

� A tax amnesty program waivingpenalties for delinquent businessand individual taxes.

� Funding for an $84 million statematch that Michigan needs to draw$475 million in federal highwayfunds.

Railroad tracks

20100913-NEWS--0001-NAT-CCI-CD_-- 9/10/2010 6:34 PM Page 1

Lithium-ion battery developer Sakti3 wins new funding round

Sakti3 Inc., a University of Michi-gan spinoff developing lithium-ion batteries for electric vehicles,announced Friday it has receiveda $4.2 million round of fundingfrom General Motors Ventures andItochu Technology Ventures ofJapan.

The two new investors join twoprevious investors, Kosla Ventures

of California and FarmingtonHills-based Beringea LLC, whichannounced in April they had in-vested $7 million in the company.Beringea’s investment was fromthe $185 million Growth CapitalFund it co-manages with NewYork-based Credit Suisse.

The Growth Capital Fund ispart of the state’s InvestMichiganprogram, which was founded in

2008 with $300 million in statepension fund money.

— Tom Henderson

Small-biz awards seek nomineesNominations for Michigan Cel-

ebrates Small Business awardswill open on Oct. 1.

The contest — founded by theU.S. Small Business Administration,the Small Business Association ofMichigan, the Michigan Economic De-velopment Corp., the Michigan SmallBusiness & Technology DevelopmentCenter and the Edward Lowe Founda-tion — honors Michigan’s smallbusinesses in three broad cate-gories including Small BusinessAwards and Small BusinessChampion Awards. The Michigan50 Companies To Watch, whichrecognizes fast-growing second-stage companies across the state,is also part of the contest.

To learn more about award cat-egories or to sign up for a nomi-nation alert, visit www.michigancelebrates.biz. There is no cost toapply, and companies may self-nominate.

Awards will be presented April28 at a dinner in Lansing.

— Nancy Kaffer

Intern in Michigan director leavesBritany Affolter-Caine, director of

the Detroit Regional Chamber’s In-tern in Michigan program, hasannounced her resignation fromthe post. Her last day is Friday.

Affolter-Caine led the April2009 launch of the websiteinterninmichigan.com, whichsought to connect students with25,000 internship opportunitiesin the state by 2014.

Thelma Castillo, executive vicepresident, will oversee the pro-gram’s day-to-day operations un-til a replacement is found.

The chamber is working withthe program’s grantors, the NewEconomy Initiative and W.K. KelloggFoundation, to determine a time-line for a replacement, said SandyBaruah, the chamber’s presidentand CEO.

Affolter-Caine is seeking op-portunities in higher education,she said.

— Dustin Walsh

8 area banks rated with no starsFlorida-based Bauer Financial

Inc. released its quarterly ratingsof the nation’s banks Friday, andthe eight Southeast Michiganbanks getting the lowest rating ofzero stars remained the same.

They were: Clarkston State Bank,

Community Central Bank in Mt.Clemens, Fidelity Bank of Dearborn,First National Bank in Howell, Michi-gan Commerce Bank in Ann Arbor,Oxford Bank, Paramount Bank inFarmington Hills and Peoples StateBank in Madison Heights.

Twelve of the 137 banks in thestate got zero ratings based ondata filed with federal regulatorsfor the quarter that ended June30, compared to 14 that got zerostars the previous quarter.

Twenty-six banks got five-starratings statewide, up from 25.Three metro Detroit banks gotfive stars, all repeats from lastquarter — Auto Club Trust FSB ofDearborn, First Michigan Bank ofTroy and Shelby State Bank.

Bauer Financial evaluates cap-ital-to-debt ratios, profit and losstrends, delinquent loans andcharge-offs, historical data, liq-uidity, community reinvestmentratings and market versus bookvalue.

Bankers say the ratings aresimplistic and not always a re-flection of health.

— Tom Henderson

CORRECTIONS� A story on 1 of the Aug. 30 edition incorrectly named theHampton Inn Detroit Metro Airport as being behind on its loan and undercontract to be sold. The Lexington Hotel, which previously was namedHampton Inn Detroit Metro Airport, until 2008, should have beennamed instead. � A news brief and a headline published on Page 2 of the Sept. 6 edi-tion contained an error in the name of a logistics company based inRomulus. The company’s name is W.F. Whelan Co.

■ From Page 1

ThreeGreat Events

in Sept.

sponsored by Detroit Creative Corridor with

creative support by the Detroit Design Center

facebook.com/designindetroit

Wednesday, Sept. 29Visit www.regonline.com/2010houseparty to register and to learn more about Detroit House Party and Design in Detroit

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September 13, 2010CRAIN’S DETROIT BUSINESSPage 2

THIS JUST INThroughout our 25th-anniversaryyear, Crain’s will use this spaceto look at interesting items frompast issues.

The expec-tations were

that we’d never

go to a restaurant again. We’d

never buy a car again. We’d be

glued to MSNBC and CNN.

David Sowerby, Loomis, Sayles & Co., Birmingham

From an April 7, 2003, articleabout the local economy being softbut faring better than someexpected since the U.S. had goneto war with Iraq in March. On Aug.31, President Barack Obamamarked the end of U.S. combatoperations in Iraq.

”

“

The way it was: 2003

multicultural accounts.With an estimated $123.8 mil-

lion in 2008 revenue, the agencyis the eighth-largest advertisingand marketing firm in metro De-troit, according to Crain’s annu-al Book of Lists.

In 2007, GlobalHue began a $4 million organizational restruc-turing that includes a 40,000-square-foot office in New YorkCity’s financial district. Global-Hue has become a holding compa-ny for four units aimed at African-American, Hispanic, Asian andemerging youth markets.

Coleman founded the agency asDon Coleman and Associates, anAfrican-American agency. Acqui-sition of two other agencies led tothe creation of GlobalHue in 2000.

— Bill Shea


September 13, 2010 CRAIN’S DETROIT BUSINESS

These organizations appear in this week’s Crain’s

Detroit Business:

B&D Cold Heading . . . . . . . . . . . . . . . . . . . . . . . . 20

Barbara Ann Karmanos Cancer Institute . . . . . . . . 12

Body and Mind Fitness . . . . . . . . . . . . . . . . . . . . . 22

Burton-Katzman Development . . . . . . . . . . . . . . . . 25

CareTech Solutions . . . . . . . . . . . . . . . . . . . . . . . . 12

Children’s Hospital of Michigan . . . . . . . . . . . . . . 13

City Year Detroit . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

CoachMeFit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Communities in Schools of Detroit . . . . . . . . . . . . . 8

Compuware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Covenant House Michigan . . . . . . . . . . . . . . . . . . . 8

Detroit Housing Commission . . . . . . . . . . . . . . . . . . 4

Detroit Medical Center . . . . . . . . . . . . . . . . . . . . . 12

Detroit Public Schools . . . . . . . . . . . . . . . . . . . . . . 8

Detroit Regional Chamber . . . . . . . . . . . . . . . . . . . . 3

Diplomas Now . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

EBuy Media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Henry Ford Health System . . . . . . . . . . . . . . . . . . . 11

Gibbs Planning Group . . . . . . . . . . . . . . . . . . . . . . . 1

Hygieia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Kandu Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Lambert Edwards & Associates . . . . . . . . . . . . . . . 11

Marketing Resource Group . . . . . . . . . . . . . . . . . . . 3

Michigan Aerospace Foundation . . . . . . . . . . . . . . 23

Michigan Department of Transportation . . . . . . . . . 1

Michigan Infrastructure & Transportation Assn. . . . 24

Michigan International Speedway . . . . . . . . . . . . . 20

Oakwood Healthcare . . . . . . . . . . . . . . . . . . . . . . 12

O’Keefe & Associates . . . . . . . . . . . . . . . . . . . . . . . 9

Productions Plus-The Talent Shop . . . . . . . . . . . . . . 4

Skillman Foundation . . . . . . . . . . . . . . . . . . . . . . . . 8

St. John Providence Health System . . . . . . . . . . . . 12

Trinity Senior Living Communities . . . . . . . . . . . . . . 9

University of Michigan School of Public Health . . . 12

Vanguard Health Systems . . . . . . . . . . . . . . . . . . . 13

West Village Commons . . . . . . . . . . . . . . . . . . . . . 25

Westminster Homes . . . . . . . . . . . . . . . . . . . . . . . 25

William Beaumont Hospitals . . . . . . . . . . . . . . . . . 11

Yankee Air Museum . . . . . . . . . . . . . . . . . . . . . . . . 3

YMCA of Metropolitan Detroit . . . . . . . . . . . . . . . . . 8

Youth Vision Solutions . . . . . . . . . . . . . . . . . . . . . . 8

Company index

Department index

RV rentals paying off at MIS,Page 20

Inside

BANKRUPTCIES . . . . . . . . . . . . . . . . . 24

BUSINESS DIARY . . . . . . . . . . . . . . . . 18

CALENDAR . . . . . . . . . . . . . . . . . . . . 17

CAREERWORKS . . . . . . . . . . . . . . . . . 19

CLASSIFIED ADS . . . . . . . . . . . . . . . . 20

KEITH CRAIN . . . . . . . . . . . . . . . . . . . . 6

MARY KRAMER . . . . . . . . . . . . . . . . . . 7

OPINION . . . . . . . . . . . . . . . . . . . . . . . 6

OTHER VOICES . . . . . . . . . . . . . . . . . . 6

PEOPLE . . . . . . . . . . . . . . . . . . . . . . 19

RUMBLINGS . . . . . . . . . . . . . . . . . . . 26

STAGE TWO STRATEGIES . . . . . . . . . . . 4

WEEK ON THE WEB . . . . . . . . . . . . . . 26

BY BILL SHEA


Revised draft legislation madepublic last week that wouldpermit the Michigan Depart-ment of Transportation to en-ter into a public-privatepartnership to build andoperate a new Detroit Riv-er bridge is getting mixedreviews.

“The draft legislation isan excellent point fromwhich to restart the con-versation of public-private part-nerships and a new bridge toCanada,” said Sarah Hubbard, se-nior vice president of govern-ment relations at the Detroit Re-gional Chamber, which backs the$5.3 billion Detroit River Internation-al Crossing project. “It’s clear Sen.(Jud) Gilbert aims to protect thebest interests of Michigan taxpay-ers through his approach.”

Her worry with the new lan-guage, however, is that MDOTwill be too regulated by Lansing.

“Legislative oversight is im-portant, but if it goes too far in-vestors will not risk the funds,”she said. “Political risk is real.Requiring final approval by theLegislature of the final agreementwill scare off investors. It has inother states.”

MDOT needs Lansing’s permis-sion to move forward on the $5.3 billion DRIC project, and therevised bill would narrow public-

private partnership legislation —MDOT’s preferred financialarrangement to build and run thebridge — to only the proposednew public span.

Gilbert, an Algonac Republi-can, is chairman of the state Sen-ate Transportation Committeeand his office drafted the revisedbill (HB 4961). He began circulat-ing it last week, and it could seerevision before it’s eventually in-troduced in the committee for de-bate.

No date for debate has beenscheduled.

The revised bill basically out-lines the creation of an authorityto oversee the construction andoperation of a new bridge.

Gilbert’s office began draftingrevised legislation in July whenit became obvious the previousbill, approved by the House inMay, was a non-starter among Re-publicans on his committee andin the Senate. Many expressedworry the original bill gaveMDOT a dangerous amount of un-supervised ability to enter intopublic-private partnerships, or P3agreements, and create toll roadsand bridges.

Gilbert’s bill attempts to quellthose fears by limiting the P3 toDRIC.

Others, such as Sen. AlanCropsey, R-DeWitt, are staunchadvocates of Ambassador Bridgeowner Manuel “Matty” Moroun’splan to build a second span for hiscrossing without public funding— a $1 billion project stalled byCanadian opposition and prefer-ence for DRIC.

DRIC’s backers are happy thelegislation could see action thisfall.

“The supporters of the DRICare pleased that Sen. Gilbert hasdrafted a bill that just focuses onthe DRIC project. Some of the oth-er P3 issues were distracting, andthis allows everyone to focus onmoving the DRIC project for-ward,” wrote DRIC spokesmanTom Shields, president of Lans-ing-based public relations andlobbying firm Marketing Resource

BY SHERRI WELCH


The Yankee Air Museum plans to reopen Oct. 9 and10 with a gala and open house at Willow Run Airportin Ypsilanti, six years after a fire destroyed the his-

toric hangar that once housed it.In the midst of a multiyear ef-

fort to raise $10 million to build anew home for the museum, abuilding on the east side of theairport came on the market latelast year.

The museum acquired the40,000-square-foot building fromthe Michigan Institute of Aviationand Technology for $1.8 million inDecember.

It’s now moving its operations from Hangar 2 atthe airport — which recently was condemned — tothe new site.

“We have not been able to admit the public to ourfacilities since the building burned down in 2004,”

said Executive Director RandyHotton.

“This is a facility we can open... for paid admissions to ... tellour story about the Willow RunBomber Plant and airport, U.S.mobilization prior to World WarII ... and (to) experience where we

want to go in the future.”The museum, founded in 1981 by a group

calling itself Yankee Air Force Inc., is tran-sitioning from a membership club toa director-driven formal museum,with assistance from Ann Arbor-based Nonprofit Enterprise at Work Inc.Over the past couple of years, themuseum has worked with the Pren-tice Co., based in Chicago, to develop along-term $45 million plan to construct anew home for the museum, a new hangar for itshistoric flyable aircraft and a visitor center.

The membership governance, however, was bog-

Court rulings cloudresearch projects

BY TOM HENDERSON


Federal funding of embryonicstem cell research has become amajor focus of the upcoming WorldStem Cell Summit in Detroit, follow-ing recent decisions by federalcourts that have put about $75 mil-lion of near-term funding at riskand left researchers in limbo.

The sixth annual summit will beheld Oct. 4-6 at the Detroit MarriottRenaissance Center.

It is expected to draw some 1,200scientists, government officialsand representatives from life sci-ence companies from more than 30countries.

The summit’s agenda has beenrevised to focus on stem cell re-search and related policy issues,particularly the possible shut-offof federal funding and its ramifica-tions.

Agenda items focusing on em-bryonic stem cell issues include:

� A keynote address to open theconference Monday by U.S. Sen.Carl Levin.

� The science keynote addressat 11 a.m. Monday by Sean Morri-son, director of the University ofMichigan’s Center for Stem Cell Bio-logy.

See Stem cell, Page 24

Bill doesn’t unite sides on Detroit River spanOversight, limits on P3 agreements stir waters

Yankee Air Museum ready for takeoff

Stem cell funding fightnow key topic for summit

Legislativeoversight isimportant,but if it goes

too farinvestors will

not risk thefunds.Sarah Hubbard,

Detroit Regional Chamber

”

“

New home, new direction: Galacelebrates reopening after fire

See Bridge, Page 24

See Yankee, Page 23

DETAILSGala and openhouse: Find outabout tickets,Page 23

THIS WEEK @WWW.CRAINSDETROIT.COM

Know the news when we doFollow us on Twitter@crainsdetroit

Keep up with local restaurant newsCheck out Nathan Skid's Table Talkblog, crainsdetroit.com/skid

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Yankee Air Museum’snew building (top)and its B-17 bomber.

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September 13, 2010CRAIN’S DETROIT BUSINESS

Location: Bingham FarmsDescription: Talent and casting

agencyCEO: Margery KrevskyFounded: 1981Employees: 36Revenue: $20 million in 2009,

with $23 million projected for2010.

Business decision: During goodtimes, the Productions Plus teamlived below its means, hoardingcash whenever possible.

When the recession hit, thecompany had a “war chest” to fallback on.

But in 2008, CEO MargeryKrevsky was approached by TheTalent Shop, one of her biggestcompetitors. The BinghamFarms-based firm was in the mar-ket for a new owner.

Solution: While hesitant to tapthe safety net, “We figured thatan acquisition would be more ad-vantageous for us, based on howquickly we could fold that busi-ness into ours,” said Sal Caruso,executive vice president andCFO.

With extra cash on hand, Pro-ductions Plus was able to com-plete the 2009 purchase withoutbank financing.

Risks and considerations: Beforethe acquisition, Productions Plusmainly handled automotive prod-uct demonstration, event and cos-metics marketing. The Talent

Shop, however, worked primarilyin film.

“When we evaluated the poten-tial business that (The TalentShop) could bring in, it definitelyoutweighed the risk because wewere only bringing over the rela-tionships and key players fromthat business,” Caruso said.

Productions Plus’ satellite of-fices in Chicago and Los Angelesgot a big boost with the largerstaff and the Hollywood connec-tions.

And the new company, Produc-tions Plus-The Talent Shop, becamethe largest Screen Actors Guild-certified talent agency in Michi-gan.

It would’ve taken years to getwhat Productions Plus received,had it not bought The TalentShop, Caruso said.

“The money and the time thatwould’ve been invested would’vefar outweighed what we paid forthe acquisition,” he said.

“It was a difficult decision tolose our reserves in such difficulteconomic times,” Caruso said.“But we knew the cash reserveswouldn’t be depleted for verylong.”

Expert opinion: Brad Coulter, di-rector at Bloomfield Hills-basedO’Keefe & Associates, deals withlots of businesses that have tochoose between losing the safetynet and growing the business.

“Before you put in money, youhave to ask yourself, ‘Can I affordto lose this money if this goessouth?’ Too often, companies flyby the seat of their pants,” hesaid.

And it’s not just about the ini-tial cost, Coulter said. A businessowner must know how much isneeded to run the new endeavor.

“Do I need working capitalloans or do I have enough moneyto fund payroll and buying prod-uct and everything else?” Coultersaid. “Even if the (acquired) com-pany is profitable, what’s it goingto cost to support it?”

Whether a business uses itsown money or the bank’s money,it still has bills to pay.

“Either way, they’re at risk,”Coulter said. “You might be in-curring a little more risk by usingthe bank’s money versus yourown.”

— Shawn Wright

StageTwoStrategiesA weekly look at problem-solving by growing companies.

PRODUCTIONS PLUS-THE TALENT SHOP

If your company has recently made a tough business decision, contact Jennette Smith, assistant managingeditor/Focus, at [email protected]. For more news and information, visit crainsdetroit.com/getemail to re-ceive Crain’s twice-monthly e-mail dedicated to growing companies.

BY NANCY KAFFER


The completion of a review thatcould release the Detroit HousingCommission from the U.S. Depart-ment of Housing and Urban Develop-ment’s “troubled” list has beenpushed back to January 2011.

Eugene Jones, executive direc-tor of the commission since 2008,had hoped the panel would be freeof federal oversight this summer,but he said two resignations fromthe commission’s advisory boardhave slowed the process.

“We had advisory committeemembers we had trained, we had acouple resign, and we had to getnew members and had to get May-or Dave Bing to bless them,” Jonessaid.

By January, he said, the newcommission board members willbe fully trained.

Having properly trained em-ployees and advisory board mem-bers, Jones has said, is essential tothe housing commission’s future.If it’s released from federal con-trol, the commission must havethe right personnel and oversightto remain independent.

Mismanaged for decades, the

housing commission — which hasan annual operating budget ofroughly $71 million — was takenover by HUD in 2005.

Numerous federal auditsshowed the commission had inap-propriately spent millions in fed-eral funds, that city leadership un-der then-Mayor Kwame Kilpatrickwasn’t able to properly manage thedepartment, and that Kilpatrickhad made appointments to thecommission without regard toability or qualification.

In addition, the department’sSection 8 Management Assess-

ment Program and its PublicHousing Assessment Systemweren’t meeting required metrics.

Jones said his team has sub-mitted the agency’s new metricsto HUD and is awaiting the com-pletion of a review that will de-termine if it has improved suffi-ciently to leave the troubled list.

During Jones’ tenure, thehousing commission’s opera-tions and management have im-proved, according to officials inHUD’s Washington, D.C., head-

quarters.Most notably, Jones has pushed

progress at the former HermanGardens housing project, a rede-velopment now renamed Garden-view Estates.

The first two phases of construc-tion at the site — mixed subsidizedand market-rate housing units —are complete, and for-sale proper-ties are next on the agenda. Allunits are full, and there’s a waitinglist, Jones said.

Most recently, Jones said, thecommission is preparing to breakground at Cornerstone Estates, anextension of the Woodbridge Es-tates project. Nancy Kaffer: (313) 446-0412, [email protected]

Housing commission’s independencedelayed, still on track, says director

We had to get newmembers

and had toget MayorDave Bing

to blessthem.

Eugene Jones, Detroit Housing Commission

”

“

Krevsky Caruso


3 4 9 7 7 wo o dwa r d av e n u e , s u i t e 2 0 0 b i r m i n g h a m , m i 4 8 0 0 9 w w w. g r e e n l e a f t ru st. c o m 2 4 8 . 5 3 0 . 6 2 0 0 8 7 7. 5 3 0 . 0 5 5 5

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DBpageAD.qxd 9/7/2010 10:21 AM Page 1

Re: $16.2M diabetes grantAs someone who works in pub-

lic-sector health care, I think thisgrant will go a long way in pre-venting diabetes within the re-gion. It is also great to see that thisgrant will help foster collaborationand sharing of information among oth-erwise competing hospitals.

F. Masha Olaniran

Re: Four to face chargesin DPS embezzlement case

(Those four) should be proud oftheir education. After all, theylearned that it was profitable tosteal from the disempowered. … Itwasn’t enough to have a job and/ora position of authority — they hadto pad their pockets, too.

Timothy Dinan

You can bet this isn’t an isolatedincident. The current and formerschool board members, the formerschool superintendents and anyother adult who aided and abettedthe theft of an education from sev-eral generations of DPS studentsshould be put behind bars for a seri-ously long time.

jg48386

Re: Arts Beats & Eats in Royal OakMy excitement (over the move)

quickly ended with the excessive$15 local parking fees and the $3

entry fee. I ate less and bought lessas a result of the unexpected costs.

MsSunshine

Re: Chelios takes job with WingsGlad to see he will stay with the

Red Wings. Great guy.Car Nut

Re: Where have moderates gone?Under which tree have you been

sleeping, Rip Van Crain? Haven’tyou heard of the Party of “No”?

criticatlarge

Re: Ferguson felony chargesNo one is surprised about this

indictment. It is but another full-employment indictment for the lo-

Some 15,000 Michiganchildren have autism, butonly about 20 percent ofthem receive treatmentbecause Michigan healthinsurers aren’t requiredto cover it.

Like me, most people inMichigan are probablyshocked by that — whichis why DTE Energy Co.voluntarily offers planswith autism coverage to our 10,000employees.

We could argue that it’s simplythe right thing to do, but it alsomakes good economic sense. If ouremployees can get early, medicallyproven treatments for their chil-dren with autism, the complex neu-robiological condition is much bet-ter controlled. When that happens,DTE benefits because our employ-ees are more likely to be at workand more likely to be fully produc-tive due to reduced stress at home.

The human benefits that comewith autism treatment cannot beoverstated, but the economic bene-fits seal the case for reformingMichigan’s insurance law to coverautism. That’s why I’m among thegrowing group of Michigan resi-dents urging state lawmakers to

make that change, as 23other states already havedone.

It’s estimated that ifMichigan insurers provid-ed autism coverage, statetaxpayers would save $14billion in lifetime costs forthe current population ofkids with autism.

Public hearings are un-der way across the state to

consider how to ease the crushingfinancial and emotional burdenfaced by Michigan families deal-ing with autism. The hearings area bipartisan effort being led bySens. Randy Richardville, R-Mon-roe, and Tupac Hunter, D-Detroit.They have been held in Detroit,Ypsilanti and Grand Rapids, andwill soon be scheduled in Lansing.

Autism impairs a child’s abilityto communicate, learn and relate toothers. It is the fastest-growing de-velopmental disability in the coun-try, affecting one in every 110 chil-dren, according to the U.S. Centersfor Disease Control and Prevention.Boys are four times more likelythan girls to have autism. Morechildren will be diagnosed withautism this year than with AIDS,diabetes and cancer combined.

Behavioral, occupational, physi-cal and speech therapies can helpnearly all children with autism, butthey can cost as much as $50,000 an-nually — far beyond the financialreach of most Michigan families.

That’s why insurance coverageis needed. With treatment, nearlyhalf of all children receiving early,appropriate treatment experienceimprovements in functioning andIQ. That in turn saves money fortaxpayers, who otherwise wouldhave to foot the bill for the lifetimecosts of caring for people with un-treated autism.

Michigan lawmakers need to acton this issue, as a growing numberof companies with self-funded in-surance plans already have, in-cluding Microsoft Corp., TheHome Depot, Eli Lilly and Co. andTime Warner Inc., as well as insti-tutions such as Ohio State Univer-sity, the University of Minnesotaand the Mayo Clinic.

To be financially viable, govern-ment and business alike mustmake prudent investments to keepcosts down. Reforming Michigan’sinsurance law to cover autism isjust such an investment.

Anthony Earley is chairman andCEO of DTE Energy Co.

Outgoing leaders canstill take bold action

ere’s an interesting scenario: Michigan’s top three po-litical leaders — governor, House speaker and Senatemajority leader — will all leave office Dec. 31, 2010.

Could they accomplish in the next 15 weeks what partisanwrangling prevented over the past eight years?

Michigan voters have already spoken: They want change,and they’re sick of partisanship.

So, we issue the challenge to Gov. Jennifer Granholm,House Speaker Andy Dillon and Senate Majority Leader MikeBishop: Dare to be great.

The budget agreement announced last week has no tax in-creases, amid a 3 percent across-the-board budget cut and an ear-ly retirement package for state workers that the Detroit Region-al Chamber and other business groups have endorsed. Thatpackage will also require workers to make contributions to helppay for retiree health care costs, phased in over five years.

Also, as Amy Lane reports on Page 1, officials are near to find-ing a way to cough up $84 million as a state match for nearly $500million in federal highway funds. There is also a tax amnesty pro-posal and other elements to produce revenue and savings.

All of those proposals are a great start. You wonder why it couldn’t have happened sooner, but at

least it should be ready for the start of the Oct. 1 budget year.What can these elected leaders do for an encore?

Traffic-tax proposal a good ideaCount on Oakland County’s L. Brooks Patterson to offer a

pragmatic response to a business calamity.Patterson proposed last week legislation to reduce proper-

ty taxes up to 50 percent for businesses affected by a construc-tion project that lasts more than three months in its first year.

Many businesses, particularly retailers, know the pain ofsummer road construction.

This year, the pain has been particularly acute on majorstate thoroughfares: Southfield Road south of I-94 in AllenPark in Wayne County and a 16-mile stretch of TelegraphRoad, from the city of Southfield through Bloomfield Town-ship in Oakland County.

Traffic crawls, motorists avoid the congestion and the ef-fect on businesses is compounded because so few mediancrossovers are available.

Business owners have complained of cash registers ringingin 20 percent to 50 percent lower sales since construction began.

Detroit Regional Chamber CEO Sandy Baruah and stateSenate Majority Leader Mike Bishop back the Oakland Countyexecutive’s plan. Such a bill would help businesses across theregion and state. It’s a good idea.

Covering autism saves kids, money

Last week, Mayor Dave Bing an-nounced a revolutionary plan forrestructuring the city of Detroit.

He’s looking for residents to par-ticipate in several town hall meet-ings. At best, those meetings aregoing to be difficult. At worst, theywill deteriorate into chaos.

But he is looking for public in-put. We’ll see what happens.

The implications of what he isdiscussing have tremendous im-pact on not only the citizens of De-troit but the residents of the entireregion.

The business community will beimpacted greatly, as well.

If this is successful, itcould become the modelfor the entire nation.There are plenty of ur-ban cities that need togo through the sameprocess Detroit is begin-ning.

It simply doesn’tmake sense to have somuch vacant land andso many abandonedhomes and factories. Itis impossible to serve the residentsand the businesses when they areso scattered throughout the com-munity.

There can be a ratio-nal plan to redevelopmuch of the city and,with some redistribu-tion of population, endup with a city far moreviable that it is today,with opportunities forbusiness developmentand residential develop-ment as well.

It is difficult, perhapsimpossible, to try to put

together any sort of land packagesfor business or industrial use to-day. It’s impossible to locate own-ers to secure land for develop-

ment for a new plant or other pro-ject.

Trying to serve the citizens withwater, electricity — let alone policeand fire protection — is almost im-possible when people, homes andbusinesses are scattered randomlyover 140 square miles.Mayor Bingis embarking on a historic and im-portant mission. It is incumbent onthe business community to standup and support his efforts. I havebeen quite disappointed in the lackof business support for the mayor’sendeavors.

The business community cannotremain silent, regardless of any

risks it may face for speaking up. The opportunities the mayor is

discussing are dramatic. But theywill take a long time and createlots of anger and controversy be-fore they’re finished.

To do nothing would lead thecity into further decay. That issimply not an option.

I hope the discussions the mayorplans remain orderly and thought-ful. We need input from voters andinvestors.

It’s a perilous journey he has be-gun. But it is a journey that mustbe made. The alternatives are notacceptable.


Mayor’s huge plan needs business support

H

From www.crainsdetroit.comReader responses to stories andblogs that appeared on Crain’sWeb site. Comments may beedited for length and clarity.

See Talk, Page 7

OTHER VOICESOPINION

KEITH CRAIN:

TALK ON THE WEB

Anthony Earley


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$30 million), to balancethe books.

With the economicmeltdown, the DSO lostmore than 20 percent inticket sales and $2.5 million a year ingovernment and corpo-rate gifts and grants. Italso lost handsome fi-nancial returns on itsinvested endowmentmoney — returns thathit as high as 17 percentin Anne Parsons’ seven-yeartenure as CEO. Those losses hob-bled the plans hatched in 2000 touse investment gains to pay the

debt service on the Or-chestra Hall expansion.

Musicians argue thatmanagement hasn’tdone a good job of rais-ing money, pointing tofour development di-rectors in four yearsand a decline in thedonor base.

“How can you have along-term relationshipwith donors with thatturnover?” asked Haden

McKay, a musician spokesman andcellist of 27 years with the orchestra.

Management, which says itsmusicians must adapt to “the new

normal,” says it now connectsfundraising with marketing underExecutive Vice President PaulHogle, who came to the DSO thisyear from Atlanta. But cultivatingdonors takes time.

How would you save the orches-tra?

What about gain-sharing? Whyshouldn’t orchestra members bepart of the pitch to donors?

What if 85 new donor companies“adopted” a DSO musician, chip-ping in $5,000 to $10,000 apiece tobridge the economic gap? Andwhat if the musician in turn per-formed at a company, in a lunch-room or holiday potluck?

Recently, Eastern Michigan Uni-versity — known for its labor dis-putes and faculty strikes — settled anew contract that was calibrated toreward faculty if EMU reached spe-cific goals. That was remarkable,given EMU’s labor history.

Let’s hope the DSO and its musi-cians can reach a similar “a-chord.”

MARY KRAMER: Biz could help ease DSO contract discord

Mary Kramer is publisher ofCrain's Detroit Business. Catch hertake on business news at 6:10 a.m.Mondays on the Paul W. Smith showon WJR AM 760 and in her blog atwww.crainsdetroit.com/kramer. E-mail her at [email protected].

Come October, I hope I’ll be sit-ting in my usual season seat on theaisle at Orchestra Hall, watchingDetroit Symphony Orchestra mu-sicians perform on stage — and notas buskers on a picket line.

Contract negotiations betweenthe orchestra and its musiciansare stalled. And rancorous.

Musicians have offered to take apay cut of 22 percent in the firstyear but get some of that back in lat-er years. Management wants to cutmore over three years, halt the no-tion of 52-week compensation (in-cluding nine weeks of vacation),change benefits (including a switchto defined contribution pensions)and adopt new job descriptions.

The orchestra’s business modelcollapsed with the economy. Its op-erating loss for the year that endedAug. 31 is $6.5 million. And debtservice on construction of “TheMax” addition is on top of that. Soit’s taking money from its unre-stricted endowment, now $21 mil-lion (and formerly more than

TALK CONTINUED■ From Page 6

cal criminal defense bar. The follow-ing civil and forfeiture proceedingsshould be equally interesting.

Timothy Dinan

Re: WVMV FM 98.7 to switch formatsI always looked forward to get-

ting ready for work listening to myfavorite songs, and now I have nothingthat even compares to this station.

Very shocked

CELEBRATE THE D AND DESIGNThe popular event that celebratesDetroit and offers a chance toexperience a night in the D — theCrain’s Detroit House Party — isback for its fifth act. Plus, this year’s party features aDetroit design show.The Sept. 29 event, planned inconjunction with Crain’s recent“Living and investing in the D”supplement, offers attendees theopportunity to visit one of 26 lofts,apartments, condos and historichomes in Detroit for cocktails anda tour, followed by an afterglow atthe College for Creative Studies’ A.Alfred Taubman Center for DesignEducation.The afterglow includes cocktails,strolling dinner and “Design inDetroit,” a first-time show featuringfurniture and fine art made by amix of metro Detroit-baseddesigners, including establishedshops and up-and-comers. The presenting sponsor is theMichigan State HousingDevelopment Authority. Cocktail parties will run 5-6:30 p.m., and the afterglow willrun 7-10 p.m. Tickets are $50 aperson and include a one-yearsubscription to Crain’s. Tickets forthe afterglow only are $45. For more information or to register,go to crainsdetroit.com/events.


City Year and Communities inSchools have been working inschools for years. City Year pro-vides year-round in-class tutoringand afterschool programming.Communities in Schools workswith parents and staff on whateverelse it takes to make students suc-cessful, from health centers toplaygrounds to social workers.

But Communities in Schools, CityYear and Johns Hopkins coming to-gether “allows us to go to the nextlevel, more powerfully,” said PennyBailer, executive director of Com-munities in Schools.

Seeing the value of wrap-aroundservices to students, other non-profits are stepping up their in-volvement in Detroit education.

Covenant House Michigan recentlyformed a nonprofit charter manage-ment company, Youth Vision Solu-tions, to oversee about 350 studentsat each of its three Detroit charterhigh schools for high schooldropouts and at-risk youths.

When it looked at its poor reten-tion rates and talked with stu-dents, Covenant House realizedthe computer-aided model thatAkron-based White Hat Manage-ment LLC was using at the schoolsoffered little or no opportunity toprovide extra services to studentswho needed them, said Superin-tendent of Schools Stan Childress.

Youth Vision still uses a com-puter-aided lesson model, but it isflexible enough to allow teachersto give students extra help whenthey need it, Childress said.

As a nonprofit, Youth Vision canreinvest any profits into theschools, starting this year with payincreases to teachers and adminis-trators of 7 percent to 10 percent.

“This is not just business. … Weare in business to help kids,” Chil-dress said.

After managing the Detroit ServiceLearning Academy for 10 years beforeit began operating independent ofits charter in 2006, YMCA of Metropol-itan Detroit this year opened a char-ter school on Detroit’s far west side.

Detroit Leadership Academy,which opened last week with 170students in K-5, is the first of “aconstellation” of new charterschools YMCA has planned for De-troit over the next few years, saidScott Landry, executive vice presi-dent for strategic development.

“These children need an incred-ibly holistic support system,” hesaid. “The school is certainly thecenter of it, but they also need af-ter-school programs and supportservices at almost every level.”

The low-profit, limited liabilitycompany YMCA formed to managethe schools — YMCA Educational Ser-vices — operates at 3 percent of per-student state aid to run the school,versus 10 percent for the averagefor-profit operator, Childress said.

Nonprofits are trying to fix prob-lems that come out of failingschools, like poor reading scores,behavioral problems, poor social-ization and poor economic condi-tions, said Tonya Allen, vice presi-dent of program at theDetroit-based Skillman Foundation.

“The mission of many nonprof-its is very much in alignment withthe mission of public education,”she said. “If we use money to pre-vent a problem, it’s a lot cheaperand a lot more cost-effective.”

Sherri Welch: (313) 446-1694,[email protected]

BY SHERRI WELCH


Communities in Schools of Detroitand City Year Detroit are workingwith Baltimore-based Johns Hop-kins University to open a new DetroitPublic Schools high school next fall,based on a model its affiliates haveused in schools in other low-per-forming areas of the country.

The new school will follow workstarted by the collaborative Diplo-mas Now this year at Bow andEmerson schools.

The idea is to help solve prob-lems that get in the way of learn-ing for at-risk students, such as

lack of shoes, food, school supplies,health/social issues or conflicts athome, said Communities inSchools CEO Charlie Anderson.

“In high-poverty districts, 50 percent or more of the studentsare high-need,” he said.

“It is expensive to deal with

young people in high-risk environ-ments where they are surroundedby so many problems. … But ifthose needs aren’t taken care of,they can’t focus on education.”

The collaborative is among fourfinalists in line for a grant throughthe $13 million school startup/tech-

nical assistance fund administeredby Ann Arbor-based think tankMichigan Future Inc.

In August, the U.S. Department ofEducation awarded Diplomas Now a$30 million grant to open 60 middleschools and high schools in 14 dis-tricts around the U.S., including De-troit. That followed a $6 milliongrant from the PepsiCo Foundation.

With a curriculum shaped byJohns Hopkins in place, the threeorganizations meet regularly todiscuss the highest-risk studentsso they can succeed in school andavoid three drop-out indicators:low attendance, poor behavior,and failure in English or math.


Nonprofits launch efforts to reach high-risk studentsThis is not just business. ...We are in business to help

kids.Stan Childress, Covenant House Michigan

”“



Cousins branch out from family biz, acquire senior living facilitiesthe five senior centers from bank-rupt Sunwest Management inSalem, Ore., a company that grewto 350 senior centers in 10 years.

“Sunwest literally went on buy-ing and were paying ridiculousprices,” Dubin said. “They wereover-leveraged, and then the creditmarkets got tight and the marketcollapsed.”

For the five senior centers, Kan-du paid $35,000 per unit, which issignificantly below replacementcost of about $100,000, Dubin said.All the properties have positivecash flow. Some need capital im-provements, he said.

Kandu paid cash for the SouthCarolina and Ohio facilities. It took

out a bank loan to purchase a por-tion of the $4.5 million cost of the In-diana properties, Dubin said.

At Trinity Senior Living Communitiesin Livonia, Kelly Gasior, vice presi-dent of planning, marketing andpublic relations, said the 21 centersTrinity operates in SoutheastMichigan have been upgradingsteadily over the past several years.

Trinity Senior Living is part ofNovi-based Trinity Health, which op-erates 12 hospitals in Michiganand 45 nationally.

“We are primed for growth andwe are trying to be ready for it, butat the same time we are trying notto overbuild,” Gasior said.

Gasior said Kandu’s strategy of

growing slowly and investing in re-cently acquired properties to makethem more appealing makes sense.

“We are interested in extendingTrinity’s health network and hav-ing assisted living near our hospi-tals (in Oakland, Macomb andWashtenaw counties).”

Dubin said Kandu also is adopt-ing a network strategy but withouthospitals and physician groups.

“We see seniors moving from in-dependent living to assisted livingand having an Alzheimer’s-care fa-cility nearby to provide a continu-um of care,” Dubin said.

Boudreau said health care orga-nizations that take a networkingapproach stand a much better

chance of success than indepen-dent facilities.

“Systems will have a leg up in at-tracting new patients,” he said. “It isalmost like a feeder system, whereyou have (people) steering them to-ward the assisted-living center.”

Kandu, which also operates satel-lite offices in Chicago and NewYork, employs nine people in itsBirmingham office and about 1,400at the five centers, Dubin said.

“We probably will add people inthe next 12 months as we stabilizeour operations,” Dubin said. “Afterthat point we plan to start aggres-sively looking for acquisitions.”

Jay Greene: (313) 446-0325,[email protected]

BY JAY GREENE


Bradley Dubin, director of ac-quisitions and co-owner of Birm-ingham-based Kandu Capital LLC,wanted to do something differentwith his life than his grandfather,father and uncle did.

All of them were in the nursinghome business for more than 40years.

Three yearsago, Dubin andcousins Tonyand Scott Kantordecided to tapfamily resourcesand start acquir-ing independent-and assisted-liv-ing facilities, aswell as care cen-ters for those

with Alzheimer’s and dementia.Since January, Kandu has ac-

quired five senior housing facilitiesin Indiana, Ohio and South Caroli-na with 306 total units for $10.75 mil-lion. “There is a shift toward assist-ed living from skilled nursingcare,” Dubin said. “It is more mod-ern and less-expensive approachthan skilled nursing care.”

Experts predict a boom in the se-nior housing industry because thenumber of people age 65 and olderwill more than double to 87 millionby 2030 from about 40 million to-day, according to the U.S. CensusBureau.

Southeast Michigan’s popula-tion over age 65 also is expected tonearly double to 1.1 million, or 25 percent of the population, from616,000, or 14 percent.

“We are looking very hard fordeals in Michigan, but no dealshave presented themselves yet,”said Dubin, 34. “Because we use ourown money, we are very selective.We are not into development. Weare management and acquisition.”

But another reason Kandu haspurchased facilities outside ofMichigan is that some states, in-cluding Indiana and Ohio, subsi-dize assisted-living care for peopleif they run out of money and quali-fy for Medicaid.

Prices for residents at assisted-living facilities can range from$2,000 to $3,000 per month, Dubinsaid. Skilled-nursing homes canrange from $5,000 to $8,000 permonth. About 70 percent of nursinghome residents are on Medicaid.

“Most states, like Michigan, areprivate pay (for assisted livingcenters),” Dubin said. “Michigandoesn’t have Medicaid fundingrules that helps to keep census andoccupancy up.”

Mike Boudreau, director oftransactional financial consultingwith Bloomfield Hills-based O’Keefe and Associates, said occu-pancy rates for senior living facili-ties have been flat the past 18months because of the downturn inthe economy and housing market.

“When people retire, they selltheir homes, tap into the equityand use cash to fund living in thecenters,” Boudreau said. “With thereal estate market down, equityhas dried up and slowed new cus-tomers in senior living centers.”

Boudreau said companies likeKandu are finding bargains as somecompanies have overbuilt and findthemselves in financial trouble.

For example, Kandu purchased

Dubin


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BY JAY GREENE


ealth care advertising campaigns inSoutheast Michigan are judged to-day by return on investment that

can be documented by patient volumeincreases and revenue gains.

Gone are the days of scattershot ad-vertising when hospitals,physician organizations,HMOs, insurance compa-nies and other healthcare companies spentthousands of dollars innewspapers, magazines,radio or television totout a new clinical ser-vice, medical device orbenefit product withoutchecking whether pa-

tients were attracted or market sharemoved.

Health care organizations now aremore often using “targeted,” “niche”and “relationship” marketing in whichspecific population groups — women,men, seniors — are identified, trackedand sent tailored messages using the In-ternet or direct mail.

With diminishing or flattening pa-tient care revenue, receiving a strong re-turn on investment from an ad cam-paign is highly desired, said Don Hunt,managing director and partner in thehealth care practice of Lambert Edwardsand Associates in Troy.

“In a down economy, they want mea-surable results,” Huntsaid. “There are ways tojudge the merits of whatyou spend to make sureyou get bang for thebuck.”

Hunt said hospitals arespending money, butonly so long as it can bejustified by increasingmarket share.

It’s true at Detroit-based Henry Ford HealthSystem.

“We are less reliant on mass mediaand do more targeted and niche market-ing where we are appealing to the specif-ic individual needs of different groups,”said Rose Glenn, senior vice presidentfor marketing and advertising. “It issometimes significantly more effectivethan mass media advertising alone.”

Henry Ford recently offered eveningeducational programs in “hot topics forwomen,” Glenn said.

Using a system to trackthe impact of the mailing,752 women came in forthe services after receiv-ing the mailing.

“We looked at the actu-al net revenue for the pa-tients, the cost of themarketing and subtract-ing the cost of the mail-ings, and the ROI was $1million,” Glenn said.

Beaumont began to ad-vertise in newspapers and television inthe middle 1980s, said Mike Killian, vicepresident of marketing and public af-fairs with William Beaumont Hospitals inRoyal Oak.

“You advertise to get a return on in-vestment,” he said. “We stopped becauseit was expensive and we were already100 percent full.”

Over the past several years, as the vol-ume of patients has dropped and nowflattened, Beaumont has gone back toadvertising services to position itself inthe market, Killian said.

“Southeast Michigan is really notgrowing anymore,” he said. “It has be-come, as all markets become, highlycompetitive for those people who arehere. Advertising and marketing be-comes more intense.”

Beginning in 2006, Henry Ford beganshifting away from traditional print, ra-dio and broadcast advertising and to-ward more targeted advertising that in-cludes Web-based social media sites likeFacebook, said Liz Schnell, HenryFord’s director of brand management.

Glenn said Henry Ford conducted amammography campaign called PinkySwear on Facebook last Oct. 5 to Nov. 30to encourage women to make appoint-ments.


See Results, Page 12

People

Ext ra

Tailored to getresults

Health care campaigns more targeted; ROI tracked

In a downeconomy, they

want measurableresults.

Don Hunt, Lambert Edwards and Associates

”

“

INSIDEAd spending: It’sdown overall, upfor some systems,Page 12Vanguard effect?DMC sale seen aslikely to drive ads,Page 13

DAVID DALTON

Liz Schnell (left), director of brand management, and Rose Glenn, senior vice president for marketingand advertising, coordinate the promotion and public image of Henry Ford Health System.

H

HEALTH CARE LEADERSHIP SUMMITSecond annual event will focus onimplementing health care reformchanges, Page 14

� Anuja Kapadia,M.D., has joined thestaff at Doctors’Hospital of MichiganClarkston FamilyHealth Center.Kapadia graduatedin June from DHM’sfamily medicineresidency program.The health centerprovides general

services, including physicals, well-childcheckups and vaccinations. Kapadiaalso works in DHM’s WaterfordEmergency Center.

� Peter McCullough, M.D., hasaccepted the position of chief academicand scientific officer for St. JohnProvidence Health System. McCulloughwill be responsible for expansion of thehospital’s research program andcoordinating medical education activities.In addition, he will lead a clinical andresearch team in cardiovascular medicineat Providence Park Heart Institute in Novi.He is a 2009 recipient of the AmericanCollege of Cardiology Simon Dack Awardfor scholarly excellence.

� Mark Saffer, DPM, president andCEO of Dearborn-based Midwest HealthPlan Inc., was given the Ellis J. BonnerOutstanding Achievement award duringthe Michigan Association of HealthPlans’ 25th annual conference, held inJuly. The award recognizes exemplaryservice, leadership and contributions tothe managed-care industry andcommunity. Saffer founded MidwestHealth Plan and Midwest Health Centerto help an underserved population inDearborn and the Detroit area.

� Elizabeth MinHui Kim, M.D., andAbhinav Deol, M.D.,recently joined thestaff of the BarbaraAnn KarmanosCancer Center inDetroit. Kim, whorecently served as abreast surgicaloncology fellow atMassachusettsGeneral Hospital,joins Karmanos’breast cancermultidisciplinary teamas a surgeon. Deol,who recentlycompleted hisfellowship training atKarmanos, joins thebone marrowtransplant andmalignant

hematology multidisciplinary team.

� Patricia Wilkerson-Uddyback,M.D., FACEP, former chief of emergencymedicine at Detroit’s Harper UniversityHospital and Hutzel Women’s Hospital,was recently promoted to vice presidentof medical affairs for both hospitals.She will be responsible for managing allissues and processes related tophysicians and patients, includingquarterly performance reports, processimprovements, length of stay andmedical records management. She is amember of the American College ofEmergency Physicians, the WayneCounty Medical Society, the MichiganState Medical Society and the NationalMedical Association.

Deol

Kim

Kapadia


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Health Care Extra

Results: Campaigns more targeted■ From Page 11

“Customer relationship man-agement, where we target cus-tomers based on life interests, al-lows us to measure results withspecific initiatives,” Glenn said.

Glenn said 827 people mademammogram appointments, someencouraged with the famous Face-book “poke.” In 2008, a similarcampaign netted 359 people.

“We will do more niche genera-tional marketing,” Glenn said. “Itdoesn’t cost that much.”

Schnell said analyzing ROIhelps management make deci-sions on how to best spend itsmarketing budget.

“We evolved from doing directmail to putting resources inthings that have very specificmeasurable results,” Schnell said.

Increasingly, health care orga-nizations also use social mediawebsites that include Facebook,Twitter, LinkedIn and Digg —tools used to reach specific audi-ences.

To judge interest in posted arti-cles, podcasts or videos, healthcare organizations can encouragepatients to register where they canpost opinions about a strategy orservice.

Diana Marx Prosi, DMC’s vicepresident of marketing, said DMC’swebsite gets a lot of attention be-cause of former broadcast journal-ist Emery King’s medical videos.

DMC also recently posted avideo on YouTube that featuredintensive care unit staff dancingwhile washing their hands. Thevideo brought more than 2,000views, she said.

“If you build it, they will come,”Prosi said. “We had Channel 7(ABC) contact us on that piece andanother station did the samething. You know something isworking when that happens.”

While ROI on specific campaignsis important, health care organiza-tions still conduct branding cam-paigns to make sure their cus-tomers know who they are and howthey differ from their competitors.

Many people have seen HenryFord Health System’s campaign,“When others can’t, we can;” Oak-wood Healthcare’s “We specialize.In you;” Barbara Ann Karmanos Can-cer Institute’s “Hear cancer. ThinkKarmanos;” St. John ProvidenceHealth System’s “Passion for Heal-ing;” and Detroit Medical Center’s“When it is serious, go to DMC.”

One of the longest-runningbranding campaigns is BeaumontHospitals’ “Do you have a Beau-mont doctor?” which began in 1999.

Killian said that simple sloganhas been Beaumont’s best cam-paign.

“We have mentioned otherphrases, but the key to health careis seeing a doctor,” Killian said.“We have been very consistentwith our message.”

Other successful ad campaignshave focused on emergency de-partments.

In 2000, Oakwood started its 30-minute-or-less wait guarantee tosee a doctor or receive an apologyand two movie tickets.

Shortly after Mike Duggan be-came CEO of DMC in 2004, he de-cided to beat Oakwood’s pledge byoffering patients a 29-minute ERguarantee.

Executives for both systems saytheir guarantees not only havebrought in additional patients, butthat the promises have made themmore efficient in ER care.

This year, DMC began postingon its website actual ER waittimes — in minutes and seconds —for its eight hospitals.

While generating revenue andenhancing hospitals’ positive im-ages, Dean Smith, a professor ofhealth management at the Universi-ty of Michigan’s School of PublicHealth, said the ER guarantees alsocan increase inappropriate ER vis-its, waste health care dollars andexacerbate overcrowding.

Hospitals can make moneywhen their ERs are busier because

they already have to fully staff theER to comply with federal regula-tions, Smith said.

Smith said hospitals often usetheir ERs as entry vehicles, or“low-priced appetizers,” for themain course of lucrative cardio-vascular, orthopedic or gastroin-testinal elective surgeries.

“DMC has tried for years tobring patients downtown, and thisis an example of one of their ef-forts,” Smith said.

Prosi said DMC has been tryingto stretch its market reach into thesuburbs, primarily because itsstrengths are advanced specialtyservices that include children’s,rehabilitation, vision, obstetricsand cardiology.

Capturing the attention of pa-tients who live outside a hospital’sprimary market has been a goalfor other systems besides DMC forseveral years, said SusanHanchett, Oakwood’s corporate di-rector of brand management.

A lot had to with consolidationof hospitals and the increase in thenumber of physician-staff outpa-tient medical centers, she said.Hospitals had so many locations tosupport that they spent their mon-ey in larger media, buying TVspots to support physicians andservice lines.

Oakwood spends most of its adbudget on its primary servicelines, or centers of excellence, thatinclude cardiac and vascular care,orthopedic, women’s health andneuroscience.

One of Oakwood’s more success-ful ad campaigns has been its“Points of Pride” messages thatfeature specialty physicians talk-ing about Oakwood’s quality andpatient satisfaction awards.

The campaign, begun threeyears ago, is on radio, in newspa-pers and on outdoor billboards,Hanchett said.

“We know consumers want in-formation, and they seek it out onthe Web, so we do a lot of testimo-nials and have people tell storiesabout the care they receive,”Hanchett said.

CareTech Solutions, a Troy-basedinformation services company,uses the Web and social media toadvertise its product, along withtraditional methods and tradeshows, said Colleen Hanley, vicepresident of marketing, communi-cations and government affairs.

CareTech, co-owned by DMC,Oakwood and Compuware Corp.,has contracts with more than 150hospitals nationwide. The compa-ny offers information-technologymanagement services to hospitalsfor clinical, accounting and quali-ty control systems.

“We are launching a nationaladvertising campaign to get ourmessage to the 2,500 hospitals thatcould use CareTech,” Hanley said.“Hospitals are lagging a bit withadoption of digital solutions.”

Hanley said CareTech’s best ap-proach is using testimonials byCEOs.

“They describe … the problemsthey encountered and how theirpain went away,” she said. “It isquite effective.”


TOP AD SPENDING AMONG 52 AREA HEALTH ORGANIZATIONSSystem 2008 Share of total 2009 Share of totalBeaumont $3.5 million 15.8% $3.6 million 17.2%DMC $4.4 million 19.7% $3.5 million 16.7%Henry Ford $3.6 million 16.1% $3.5 million 16.7%St. John $1.6 million 7.3% $2.2 million 10.7%Crittenton $773,000 3.5% $1.4 million 6.8%UM $1.5 million 6.6% $1.3 million 6.5%Oakwood $1.4 million 6.3% $995,523 4.8%Note: Figures reported to VoiceTrak. Excludes Internet spending, departmental staffingcosts and other factors. Percentages are out of all area systems, not just those listed.

Hospitals spend less on ads, research firm saysAdvertising spending for area

health systems dropped 6.3 percentto $20.8 million in 2009, from $22.2 million, for 52 hospitals andhealth care organizations that re-ported data to Tucson, Ariz.-basedmarket research company VoiceTrak.

The numbers are much lowerthan those reported on IRS Form990, hospital officials say, becauseVoiceTrak data doesn’t represent

their entire advertising and mar-keting budgets and excludes Inter-net spends and departmentalstaffing costs.

Some hospital-based systems cutadvertising spending in 2009, butseveral increased spending. All de-cided to get their messages out onless-expensive social media web-sites and embark on targeted mar-keting strategies, officials said.


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Health Care Extra

DMC sale, health care reformcould drive hospital advertising

Starting this year, two major de-velopments could alter health careorganizations’ plans to market andadvertise their products, and mightramp up competition for patients.

The first is health care reform.Over the next five years, about 1 million of Michigan’s 1.2 millionuninsured are expected to eitherjoin the state Medicaid program orbuy subsidized private health in-surance from commercial insurersand HMOs. Many of these patientseither never have been insured orhave no allegiance to a hospital,doctor or insurance company.

The second is the expected con-version of the Detroit Medical Centerinto one of the Midwest’s largestfor-profit health systems.

In June, DMC signed a finalagreement to sell its seven-hospi-tal system to for-profit VanguardHealth Systems Inc. of Nashville in a$1.5 billion deal. The closing is ex-pected by Oct 1.

DMC recently launched an admailing campaign with Vanguard— “A New Partnership for De-troit” — showing the proposednew 175,000-square-foot patient

tower for Children’s Hospital ofMichigan.

Diana Marx Prosi, DMC vicepresident of marketing, said an ad-vertising strategy for after the ac-quisition has not been settled.

“We have so many things tocommunicate. It is like a rebirth ofDMC with those investment dol-lars in new buildings and patientrooms, the children’s specialtytower,” Prosi said.

Officials for Henry Ford HealthSystem, St. John Providence HealthSystem, Oakwood Healthcare andWilliam Beaumont Hospitals say theydo not plan to increase ad spend-ing when DMC becomes a for-prof-it health system.

But Dean Smith, a professor ofhealth management at the Universi-ty of Michigan’s School of PublicHealth, said DMC competitorscould respond quickly if patientvolume shifts.

“If DMC increases its ad budgetand patients move, there will be aresponse. St. John and Henry Fordwon’t be silent. They will spendmore,” Smith said.

— Jay Greene

St. John Providence Health Systemin Warren uses a survey-based re-search method called Touchpointto help decide what advertising ve-hicle — print, television, bill-board, word of mouth or website —it should use to get its message outto patients about a particular clini-cal service line.

Jan Cosby, the system’s vicepresident of marketing and com-munications, said the Touchpointapproach helps guide advertisingfor St. John’s clinical service linesthat include neurosciences, heartdisease, cancer, women’s services,orthopedics and bariatrics.

Touchpoint is a proprietary sur-vey system offered through St.John’s ad agency, Optimedia of In-

dianapolis. Touchpoints are the contact

points used by brands like St.John, Henry Ford Health System,William Beaumont Hospitals, or forthat matter, Pepsi or McDonalds,that are preferred by patients orpotential customers.

For health care, a touchpointcould be a doctor’s recommenda-tion, a radio or TV ad, hospitalwebsite, word of mouth or a bill-board, Cosby said.

“Our doctors rank as the highesttouchpoint. They have the mostcredibility,” Cosby said.

Cosby said St. John uses the sur-vey to help decide where it shouldinvest resources and ad dollars.

— Jay Greene

Survey research guides St. John’s ads


It’s really our customers who win.

* The source for data contained in this publication is Quality Compass® 2009 and is used with the permission of the National Committee for Quality Assurance (NCQA). Quality Compass 2009 includes certain CAHPS

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Health Care Extra

Summit to discuss implementing health care reform changes Health care reform has

arrived. Just ask anymetro Detroit human re-sources director.

They and their healthbenefit specialists arescrambling to get readyto comply with new em-ployer mandates that gointo effect for plans start-ing in January.

The mandates includethe elimination of exclusions forpre-existing conditions for partici-

pants under age 19, cov-erage of children to age26, the elimination oflifetime dollar benefitlevels, and eliminationof cost-sharing on pre-ventive care services.

Health care reformalso requires employersto report the cost of em-ployer-sponsored healthcoverage for each cov-

ered employee on their W-2 formand provide a variety of notices of

plan changes.To address these and other

changes from the federal Account-able Care Act of 2010, Crain’s De-troit Business will host on Oct. 14at the Rock Financial Showplace inNovi its second annual HealthCare Leadership Summit.

More than 600 participants —representing payers, hospitals,physicians, employers, pharma-ceutical companies and individu-als — are to discuss the opportuni-ties presented by the health care

reform bill.It starts with

registration at7:30 a.m. andconcludes witha networking re-ception 3-4:40p.m.

Paul Keckley,executive direc-tor of the De-

loitte Center for Health Solutions, isback to host the breakfast session.

Keckley will discuss a pre-event

survey on making Detroit amedical destination and talkabout health care reform oppor-tunities for metro Detroitproviders.

After breakfast, a panel of em-ployers will discuss changesthey will see from health carereform. Employers are expectedto include ex-ecutives withWhirlpoolCorp., DTE En-ergy, MeijerInc., The DowChemical Co.,Ford Motor Co.and KelloggCo.

Jerry Konal,a health andbenefits principal with Mercerin Detroit, will moderate theemployer panel.

Later in the morning, thegroup will break into panels todiscuss the Eight Big Ideas gen-erated from last year’s summitand modified slightly by thesummit’s advisory panel.

Panelists will discuss how tocreate an online health infor-mation exchange, how to in-crease primary care providersupply, expand the use of med-ical homes, encourage wellnessprograms, use lean process im-provement techniques to im-prove efficiency and to reduceovercapacity of hospitals,surgery and imaging centers,which drives up health carecosts.

Other panels will discussmaking Southeast Michigan amedical destination for pa-tients, companies and researchand how to leverage existingfederal and state grants to drivemedical research and expandDetroit’s life science sector.

During lunch, Crain’s willhonor the 2010 winners of its an-nual Health Care Heroes in cor-porate achievement, physician,allied health,advancementin health careand healthcare trusteeleadership.

Otherspeakers in-clude RobertMecklenburg,MD, medicaldirector ofthe Center forHealth Care So-lutions at Vir-ginia MasonMedical Centerin Seattle;and RachelMaguire, ahealth futur-ist with the In-stitute for theFuture in Palo Alto, Cal.

I am expecting a fast-pacedand informative meeting. Ofcourse, audience participationis the key. So get involved, itwill vastly improve the discus-sion.


Jay Greene

Mecklenburg

Keckley

Maguire

Konal


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CRAIN'S LIST: WAYNE COUNTY'S LARGEST EMPLOYERSRanked by full-time employees, excluding Detroit, Hamtramck and Highland Park

Rank

CompanyAddressPhone; website Top local executive

Full-timeemployees

Wayne CountyJan. 2010

Full-timeemployees

Wayne CountyJan. 2009

Full-timeemployees in

MichiganJan. 2010

WorldwideemployeesJan. 2010 Type of business

1.Ford Motor Co.1 American Road, Dearborn 48126(313) 322-3000; www.ford.com

Alan Mulallypresident and CEO

33,000 B 33,000 B NA 159,000 Automobile manufacturer

2.Oakwood Healthcare Inc.1 Parklane Blvd., Suite 1000E, Dearborn 48126(313) 253-6000; www.oakwood.org

Brian Connollypresident and CEO

5,833 5,679 5,837 5,837 Health care system

3.Henry Ford Health System1 Ford Place, Detroit 48202(800) 436-7936; www.henryford.com

Nancy Schlichtingpresident and CEO

3,478 3,727 18,473 18,473 Health care system

4.U.S. Postal Service1401 W. Fort St., Detroit 48233-9998(313) 226-8607; www.usps.gov

Nancy Rettinhousedistrict manager

2,668 2,691 NA NA Postal service

5.Johnson Controls49200 Halyard Drive, Plymouth 48170(734) 254-5000; www.johnsoncontrols.com

Beda Bolzeniuspresident, automotiveexperience

2,650 2,700 B NA 130,000 Automotive supplier, building control systems andfacilities management

6.AutoAlliance International Inc. C

1 International Drive, Flat Rock 48134(734) 782-7800

John Savonapresident, CEO and plantmanager

2,517 3,508 NA NA Joint-venture automobile assembly firm

7.Dearborn Public Schools18700 Audette, Dearborn 48124(313) 827-3020; www.dearbornschools.org

Brian Whistonsuperintendent

2,208 D 2,215 D 2,208 D 2,208 D Public school district

8.Livonia Public Schools15125 Farmington Road, Livonia 48154(734) 744-2500; www.livonia.k12.mi.us

Randy Liepasuperintendent


9.Plymouth-Canton Community Schools454 S. Harvey St., Plymouth 48170(734) 416-2700; www.pccs.k12.mi.us

Craig Fiegelsuperintendent


10.U.S. government477 Michigan Ave., Detroit 48226(800) 688-9889

NA 1,724 1,800 B 27,696 1,917,515 Federal government

This list of Wayne County employers encompasses companies with headquarters in Washtenaw, Oakland, Wayne, Macomb and Livingston counties. Companies with headquarters elsewhere are listed with the address and main executive of their Detroit-area office.This is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the companies. Number of full-time employees may include full-time equivalents. NA = not available. U.S. Steel-Great Lakes Works, No. 7 onlast year's list, temporarily idled operations in December 2008.B Crain's estimate.C Joint venture between Ford and Mazda.D Figures are FTE counts from the Center for Educational Performance and Information.

LIST RESEARCHED BY ANNE MARKS


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TUESDAYS E P T . 1 4

Expanding Opportunities in the DefenseIndustry. 7:30 a.m.-10 p.m.; also 7:30 a.m.-4:30 p.m. Sept. 15. Michigan Chapter ofthe National Defense Industrial Associ-ation. With: Tracey Pinson, director, of-fice of small-business programs, De-partment of the Army; others. MarriottDetroit, Troy. $395. Contact: (586) 825-7141; e-mail: [email protected]; website:www.ndia-mich.org.

WEDNESDAYS E P T . 1 5

Best Practices for Growing Your Busi-ness. 8-10:30 a.m. Detroit Economic

Growth Corp.; others. With: LinkHoward III, president and CEO, Power-link Facilities Management; PerryMehta, president and CEO, FutureNetGroup; and Edward Walker, presidentand CEO, W Industries. TechTown,Detroit. Free, registration required.Contact: (617) 297-3127; website:www.icic.org/detroit.

THURSDAYS E P T . 1 6

Delivering America’s Energy Security.11:30 a.m.-1:30 p.m. Detroit EconomicClub. With: Clarence Cazalot Jr., presi-dent and CEO, Marathon Oil Corp. De-troit Marriott. $45 members, $55 guests,$75 nonmembers. Contact: (313) 963-8547; e-mail: [email protected]; web-site: www.econclub.org.

FRIDAYS E P T . 1 7

Extreme Change: Four Women, FourSectors, Total Transformation. 11:30a.m.-1:30 p.m. Inforum. With: Susie Ell-wood, CEO, Detroit Media Partner-ship; Carol Goss, president and CEO,the Skillman Foundation; Barbara Mc-Quade, U.S. attorney for the easterndistrict of Michigan; and Mary Zucker-man, COO, Detroit Medical Center.MotorCity Casino-Hotel, Detroit. $55members, $65 nonmembers, $600 tableof 10. Contact: (877) 633-3500; website:www.inforummichigan.org.

COMING EVENTSEggs & Energy Breakfast Series. 8-10:30a.m. Sept. 20. Engineering Society ofDetroit. With: Mujeeb Ijaz, systems en-ergy solutions group manager, A123systems. ESD, Southfield. $35 members,$50 nonmembers, includes continentalbreakfast. Join ESD for $114 and attendfor free. Contact: (248) 353-0735, ext. 149;e-mail; [email protected]; website:www.esd.org.

Crain’s Michigan Business-Bay Area.Noon-2 p.m. Sept. 22. Crain’s DetroitBusiness. Topic: Michigan’s New Sili-con Valley. With: Mary Lou Benecke,vice president of public affairs and cor-porate communications, Dow CorningCorp. Northwood University, Midland.$50, $45 each for groups of 10 or more,$60 at the door. Contact: (313) 446-0300; e-mail: [email protected]; website:www.crainsdetroit.com. For sponsor-ship opportunities, contact MarlaDowns at (313) 446-6052 [email protected].

TUESDAY WORKSHOP TARGETSMANAGING SUDDEN GROWTHWhen a big contract comes in, asecond-stage company can doublein size overnight. Here’s a chanceto learn from executives whomanaged a specific area of acompany through sudden growth,at Crain’s Second Stage Workshop:Scaling Up Fast.

Speakers areto includemoderator LeeMeadows,professor ofmanagement,Walsh College;and panelistsMichelleCrumm, chiefbusinessofficer,Adaptive

Materials Inc.; Bill Johnson, CFO,Xcend Group; Tom Nixon, partner,Identity Marketing and PublicRelations; and Jason Teshuba,CEO, Mango Languages.After the presentation, participantscan talk with executives in a fast-paced, peer-to-peer roundtable.The event takes place 7:30-10:30a.m. Tuesday at the MichiganState University ManagementEducation Center in Troy. Ticketsare $35, $30 each for groups of10 or more, $40 at the door. For more information, call (313)446-0300, [email protected] or visitwww.crainsdetroit.com. Forsponsorship opportunities, contactMarla Downs at (313) 446-6052or [email protected].

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ACQUISITIONSAmsdell Storage Ventures I LLC, Bing-ham Farms, and Compass Self StorageLLC, Bingham Farms, subsidiaries ofAmsdell Cos., Cleveland, Ohio, acquiredtwo self-storage facilities, at 160 W.Avon Road, Rochester Hills, and 40900Grand River, Novi, from Delaware-based MW Tolero Holding Corp.Viper Networks Inc., Troy, a telecom-munication network operations andtechnical management company, has

signed a letter of intent to acquireGlobal Teleconnects Corp., Chicago,Ill., a calling card distributor and tele-com network company.Marketing Worldwide Corp., Howell,has agreed to sell up to $5 million of itscommon stock to Southridge PartnersII LP, Ridgefield, Conn.

CONTRACTSOpen Dealer Exchange LLC, Troy, hassigned an agreement with Westlake

Financial Services, Los Angeles, forcredit application integration directlywithin the dealer’s dealership man-agement system. Ingenex, Ann Arbor, an Internet mar-keting agency, has been selected to de-sign, develop and implement a newwebsite and launch a new social me-dia campaign for Emerson School,Ann Arbor.Estate Organization Services, GrossePointe Woods, has signed with Execu-tor’s Resource, Louisville, Colo., to be-come a distributor of the EstateLogiconline organization system in Michi-gan.The U.S. Army Tacom Lifecycle Man-agement Command, Warren, hasawarded General Dynamics Land Sys-tems, Sterling Heights, a businessunit of General Dynamics, FallsChurch, Va., $9.8 million to purchasematerials to support production ofdouble-V-shaped hulls for Stryker ar-mored combat vehicles.Driven Solutions Inc., Ferndale, an ad-vertising and marketing agency, hassigned ABC Warehouse Inc., Pontiac,an appliance and electronics retailer,as a client.

EXPANSIONSMango Languages, Farmington Hills,a provider of foreign language learn-ing programs, has expanded with itsentry into the education market. TheMango program is now available foruse in educational institutions of alltypes across North America.

MOVESIndependent Broker Network LLC, areal estate firm, from 6678 Dixie High-way to 6060 Dixie Highway, Clarkston.Telephone: (248) 623-6030.Tim Crawford Nationwide InsuranceAgency, from Rochester to 1415 Wal-ton Blvd., Rochester Hills. Telephone:(248) 402-5005.

NEW PRODUCTSOne of Us Films, Detroit, has released“Daisy Tells a Secret,” an animatedfilm about personal safety and bodyownership for children 4 to 8 yearsold, commissioned by Haven, Pontiac.Website: www.oneofusfilms.org.Rave Computer, Sterling Heights, hasunveiled Rave Ignition, workstationsdesigned specifically for engineeringprofessionals operating computer-in-tensive 3D CAD/CAM/CAE applica-tions. Telephone: (800) 966-7283. Web-site: www.rave.comTakata Electronics, a division of Taka-ta Corp., Pontiac, has added an exclu-sive driver alertness feature to itsSafeTrak system that detects andmonitors erratic driving or weavingwithin lanes. Website: www.safetrak.takata.com.Bonal Technologies Inc., Royal Oak, aprovider of sub-harmonic vibratorystress relief technology, will soon re-lease its Meta-Lax 2000 semiautomatictouch-screen system. Website:www.bonal.com.American Laser Enterprises LLC,Wixom, launched A-Las, an automat-ed laser alignment system. Website:www.a-l-e.net.

NEW SERVICESWarner Norcross and Judd LLP, South-field, has established a health care re-form practice group to assist employ-ers, insurers and health careproviders in preparing for and com-plying with the changes to health in-surance and health care-related pro-grams enacted by Congress. Website:www.wnj.com.Vistage Michigan, formerly TEC De-troit, St. Clair Shores, has launched awebsite, www.vistagemichigan.com.Telephone: (586) 443-5880.Borders Group Inc., Ann Arbor, in conjunction with Alibris, Emeryville,Cal., has launched its new BordersTextbook Marketplace at www.borders.com/textbooks. XanEdu Publishing Inc., Ann Arbor, aprovider of course packs and custom

textbooks, has launched an iPad pub-lishing program. The move will allowstudents and instructors greater flexi-bility in accessing course materials.Telephone: (800) 218-5971. Website:www.xanedu.com.Stardock, Plymouth, has made Bethes-da Softworks’ titles available on Im-pulse, the digital download platformfor PC games. Website: www.impulsedriven.com.Courtyard by Marriott, Ann Arbor, man-aged by Alliance Hospitality Manage-ment, Raleigh, N.C., has remodeled itslobby to better serve business clients.Website: www.gocourtyard.com.ArvinMeritor Inc., Troy, has launcheda redesigned website at www.arvinmeritor.com.Formcode Design Group, Troy, agraphic design company, designedand launched a new website,www.spireintegrated.com, for SpireIntegrated Systems Inc., Troy, an au-dio/video and control systems compa-ny. Web site: www.formcode.com.Business Improvement Team, Bloom-field Hills, launched a speakers bureauto provide professional speakers forevents, conferences and trade shows.Website: www.bizimpteam.com.Altair Engineering Inc., Troy, addedStream, the thermal fluid analysissystem by Software Cradle, Osaka,Japan, to its HyperWorks Partner Al-liance. HyperWorks users can nowdownload the latest version of Streamfrom the HWPA website at www.hyperworksalliance.com.Plumbing Professors, Canton Town-ship, a plumbing and sewer repair company, now offers a freeLunch and Learn program on itsepoxy pipe lining system. Website:www.plumbingprofessors.com.

Edsel and Eleanor Ford House, GrossePointe Shores, has launched aniPhone and iPad application and in-teractive tour. The app is free oniTunes and as a Web app for mostsmart phones. Pre-loaded iPod Touch-es are also provided on-site to visitors.Website: www.fordhouse.org.Group Associates Inc., BinghamFarms, a health and welfare administration company, haslaunched a new corporate website,www.groupassociates.com.Fry Inc., Rochester Hills, a subsidiaryof Micros Systems Inc., Columbia,Md., launched a new membershipwebsite for the United States TennisAssociation, White Plains, N.Y., a not-for-profit organization that promotesand develops the growth of tennis.Website: www.usta.com.RouteOne, Farmington Hills, an-nounced its website is now compatiblewith iPhone, iPad, iPod touch and An-droid mobile browsers. Virtually allRouteOne functionality can now beperformed on these mobile devices.Website: www.routeone.net.

STARTUPSProductive Pricing LLC, a transferpricing consulting firm, at 390 N. Harvey St., Plymouth. Telephone:(248) 752-1190. Website: www.productivepricing.com.200 West, an American cuisinerestaurant, in the Detroit Marriott Ho-tel, at 200 W. Big Beaver Road, Troy, inthe former location of a Shula’s Steak-house.Credit Law Services, a law firm spe-cializing in consumer credit repair, at30555 Southfield Road, Suite 500,Southfield. Telephone: (800) 379-7010.Website: www.creditlawservices.com.

BUSINESS DIARY

20100913-NEWS--0018,0019-NAT-CCI-CD_-- 9/9/2010 3:54 PM Page 1

CareerWorks onlineVisit www.crainsdetroit.com/careerworks to search for jobs,post a résumé or find talent.

Blue Care Network of Michigan is a nonprofit corporation and independentlicensee of the Blue Cross and Blue Shield Association

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BCN Advantage HMOCONTACT INFOMiBCN.com/medicareCall 1-866-966-BLUE (2583)TTY users call 1-800-431-7944 (8 a.m. to 5 p.m., seven days a week)Or contact your Blues representative or independent agent

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PEOPLEDISTRIBUTION

Brian Alderete tovice president ofsupply and trans-portation, RKAPetroleum Cos.Inc., Romulus,from vice presi-dent of supply andlogistics, FleetCard Fuels, Bak-ersfield, Calif.

EDUCATIONKathy Spring to director of develop-ment, Cleary University, Howell, fromdirector of annual fund and alumni re-

lations, JacksonCommunity Col-lege, Jackson.Scott Behrens todean of academicaffairs and opera-tions, South Uni-versity, Novi,from associateprofessor of edu-cation, AdrianCollege, Adrian.

FINANCEGregory Cahalanto partner, Plante& Moran PLLC,Southfield, fromassociate; also,Doug Hocken-borcht to partner,from associate;Martin Olejnik topartner, from as-sociate; Terry Ole-jnik to partner,from associate;Paul Wills to part-ner, from associ-ate; Mark Warnerto manager, fromassociate;Michele McHaleto manager, fromassociate; and Bri-an Franey to part-ner, AuburnHills, from associ-ate. Kevin Johns toshareholder, Clay-ton & McKerveyPC, Southfield,from senior man-ager.

GOVERNMENTPatrick Nemecekto director, Can-ton Public Safety,Canton Town-ship, from deputypolice chief.

REAL ESTATEJim Young to se-nior vice presi-dent, PlanteMoran Cresa,Southfield, fromvice president ofideation and exe-cution, Lilli-bridge Health-care, Columbus,

Ohio.

Charles Runyanto chief socialmarketing offi-cer, Short SalePros LLC, War-ren, from presi-dent, CharlesRunyan Enter-prises LLC,Grand Rapids.

SUPPLIERSMasayasu Saito to president, AisinWorld Corp. of America, Plymouth,from managing officer of the Anjo,Japan, plant; also, Takashi Araki to ex-ecutive vice president, from treasurerand secretary; Tsukasa Ito to execu-tive vice president, from president,Aisin Automotive Castings, London,Ky.; John Koenig to executive vicepresident, from executive vice presi-

dent, Mitsubishi Motors North Ameri-ca Inc., Cypress, Calif.; Atsushi Onishito treasurer, from financial manager,Aisin Seiki, Japan; Shingo Sanjo to ex-ecutive vice president, from generalmanager, Toyota Sales Group, Japan;Masanori Saso to executive vice presi-dent, from human resources manager,Aisin Seiki, Japan; and KazuyaTsukamoto to executive vice presi-dent, from treasurer, Aisin Brake andChassis Inc., Terre Haute, Ind.

PEOPLE GUIDELINESAnnouncements are limited tomanagement positions. Nonprofitand industry group boardappointments can be found atwww.crainsdetroit.com. Sendsubmissions to Departments,Crain’s Detroit Business, 1155Gratiot Ave., Detroit, MI 48207-2997, or send e-mail [email protected] must contain the person’sname, new title, company, city inwhich the person will work, formertitle, former company (if notpromoted from within) and formercity in which the person worked.Photos are welcome, but we cannotguarantee they will be used.

Alderete

Behrens

Saito

McHale

Nemecek

Warner

Young

20100913-NEWS--0018,0019-NAT-CCI-CD_-- 9/9/2010 3:55 PM Page 2

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BY BILL SHEA


When Belleville-based WaltMichaels RV succumbed to the reces-sion in late 2008, its local media buy-er moved swiftly to salvage one ofits still-successful side businesses.

The recreational vehicle dealer-ship had the camping and RV rentalconcession at Michigan InternationalSpeedway near Brooklyn for thetrack’s NASCAR races — the HeluvaGood Sour Cream Dips 400 in Juneand the Carfax 400 in August, whichdraw an estimated 100,000 fanseach.

Andy Winnie, owner of Ply-mouth-based eBuy Media Inc., hadbeen handling the RV dealership’sbroadcast advertising deals since2004. He also had been doing thepaperwork on the track campingconcession.

He learned in March 2009 that theconcession was in default, so he bro-kered a deal with the speedway andlender to take over the service.

“Within 60 days, I put together adeal with the bank, launched thewebsite (MISCamping.com) andstarted renting RVs,” Winnie said.“I literally took the box of keysfrom the bank’s law firm and wentstraight to the racetrack and start-ed renting them out.”

Winnie paid $400,000 for 32recreation vehicles worth an esti-mated $650,000, and because of de-mand he recently bought five moredirectly from the manufacturers.

“Back when I wanted to startthis, in March 2009, the market wasterrible. No one was loaning moneyto anyone,” he said, adding that heused a combination of his own mon-ey and financing to buy the vehiclesand pay the rights fee at the track.

The risk paid off and business isbooming: Every RV gets rented forthe races, and Winnie grosses about$300,000 for the two race weekends.

The track has 9,000 campsites onits 1,400 acres in the Irish Hillsarea near Brooklyn, and Winniehas a concession on more than 50of the sites spread over nine camp-grounds. This summer he expand-ed rentals to the rest of the sum-mer, too.

“The word is out and the de-mand is there,” he said. “I call itmy 401(k) plan. It generates a nicelittle cash flow, and I can soon payoff the RVs.”

The media-buying business re-mains his primary source of in-come, generating about $2 millionin annual sales.

MISCamping.com is a turnkeyrental operation: Clients rent anRV and space, and Winnie and afew helpers set everything up andact as a concierge service for therace weekend.

“It’s a hassle-free camping expe-rience for corporate customers,” hesaid. “They just show up and enjoythe camping experience and walkaway. There’s no setup. The air con-ditioner is on, the refrigerator iscold. We provide them with fire-wood, lawn chairs. They pull upand start enjoying their weekend.”

Winnie pays an undisclosedyearly rights fee that covers hismarketing, including signs, thecost of the campsites and for the

exclusive rights to be official RVand camping sponsor at the track,said Josh Burgett, the speedway’sdirector of corporate sales.

The campsites sold to Winnie forthe season range from $130 to$2,100 for a weekend.

He estimates about 60 percent ofhis clients are corporate. Hecharges $2,400 to $6,000 for full pack-

ages that include the RV, campsiteand services. Renting only thecamper costs $1,850 to $2,400.

Corporate clients include GrandRapids-based Gordon Food Service,Ann Arbor-based Domino’s PizzaInc. and Newell Rubbermaid Inc.

Dennis Doyle, owner of Wayne-based wheel bolt manufacturerB&D Cold Heading Inc., has a five-year lease on a suite at the trackand rents multiple RVs from Win-nie for the race weekends.

“For a guy that’s had it only twoyears, he’s done a great job know-ing what people want and gettingthings prepared at the track,”Doyle said.

Having Winnie already involvedin the RV concession before takingit over meant less of a headache forthe speedway as race season ap-proached.

“There’s always a relief whenthere’s continuity,” said SammieLukaskiewicz, the track’s directorof communications.

Walt Michaels was pleased Win-nie kept the track business going.

“He called me up and congratu-lated me. Despite all the bad timeshe had, he was excited for the op-portunity I had,” Winnie said.

Bill Shea: (313) 446-1626,[email protected]

ROBERT CHASE

Andy Winnie seized the moment tosecure the RV rental concession atMichigan International Speedway.

Quick move puts media buyer intodriver’s seat of MIS’ RV rental biz


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BY CHAD HALCOM


Two of the three ice manufactur-ers and distributors facing a class-action lawsuit in Detroit will pay acombined $740,000 under an agree-ment with Michigan AttorneyGeneral Mike Cox to settle allegedviolations of the state AntitrustReform Act.

Cincinnati-based Home City Ice Co.and Arctic Glacier International Inc. ofWest St. Paul, Minn., will pay$390,000 and $350,000, respectively.

Home City could soon pay out$13.5 million to retailers, after U.S.District Court Judge Paul Borman inDetroit agreed earlier this month togive preliminary approval to thatcompany’s proposed settlement inits portion of a civil lawsuit.

Home City and Arctic Glacieralso were sentenced to $9 million incriminal fines earlier this year afterthe companies pleaded guilty to “al-locating customers in the Detroitmetropolitan area and Southeast-ern Michigan,” according to a U.S.Department of Justice statement.

As in the federal case, Cox wasinvestigating allegations thatHome City and Arctic Glacier col-laborated between 2001 and 2007to reduce competition in themetro Detroit market by allocat-ing geographic territories andcustomers between themselves,leading to possible higher pricesfor retailers and consumers.

Dallas-based Reddy Ice Corp. isthe third defendant in the Detroitcivil lawsuit.

Attorneys for the three pack-aged-ice companies could not be

reached for comment Friday.The attorney general’s commu-

nications director Joy Yearoutsaid the settlement resolves claimsagainst Arctic Glacier and HomeCity only, and he would not com-ment on whether an investigationcontinues against Reddy Ice.

Gregory Curtner, a principal atMiller, Canfield, Paddock and StonePLC who co-represents Kozak Enter-prises of Oregon, Minn.-basedThomas Liquors and other retailplaintiffs in the case, said the Coxsettlement should have little

bearing on the civil lawsuit, sinceit covers a state law and not a fed-eral one.

Purchasers, mainly retailers, aresuing the icemakers for alleged an-titrust violations, fraudulent con-cealment, noncompetitive practicesand pricing unjustified by costs.

The Detroit suit consolidatesclaims from several federal juris-dictions to one court, as orderedlast year by the U.S. Judicial Panelon Multidistrict Litigation.Chad Halcom: (313) 446-6796, [email protected]

Two of three ice makers in antitrust suit settle with state


tle more with the new year,” hesaid.

The Bogdasarians own and oper-ate the Ann Arbor studio as a fran-chise and estimate it averages 600client sessions per month, while therest of the CoachMeFit franchisesaverage 200-400 per month.

Sessions are generally $55-$75each, but vary with the franchiseand volume of sessions ordered.

CoachMeFit’s new growth couldalso reflect a broader recovery forthe fitness industry.

The gym and health fitness clubindustry had an estimated $23.6 bil-lion in revenue nationwide in 2009,off 2.3 percent from the previousyear, according to a report pub-lished by International Business In-formation Systems, or IBISWorld.

But the firm projects the indus-try is expanding again amid eco-nomic recovery, with $23.9 billionrevenue or 1.4 percent growth pro-jected for 2010.

Valencia Hamilton, a former au-ditor at PricewaterhouseCoopers LLPand later DTE Energy Co. until shewas downsized in 2008, openedBody and Mind Fitness LLC in down-town Ferndale later that year.

Hamilton said she has lookedinto a similar franchising modelfor her own business as a long-term goal.

She expects 2010 will be about abreak-even year, much like 2009.

CoachMeFit estimates franchisestartup costs will range from$106,000 to $261,500, including a$12,500 initial franchise fee and$2,500 in software installation fees,according to its franchise disclo-sure document.

Franchisees pay 5 percent of rev-enue to the franchisor company,and generally must locate in com-munities with $90,000 or more in av-erage household income and popu-lations of at least 75,000 within athree-mile radius of the studio.

Lindsay Bogdasarian also saidaccess to a mix of committed train-ers also help make a franchise suc-cessful.

“If some of the trainers are do-ing 30 sessions per week, that canmean 40-48 hours a week theyspend in the studio,” she said.

“So we also have some who justdo 10-15 hours a week, and some ofthem might be moms who wait forhusbands to come home (fromwork) and then train in theevenings, and they come in freshand excited late in the day.

“That’s better for their sched-ules, and it appeals to some of ourcustomers as well,” she said.

Chad Halcom: (313) 446-6796,[email protected]

BY CHAD HALCOM


Ann Arbor-based CoachMeFitLLC is on pace for a landmark year,with total revenue expected to top$1 million for the first time for itsfour Michigan studios.

The chain of personal trainingcenters that Lindsay Bogdasarianfounded 10 years ago is nearly 20percent ahead of revenue for thistime last year, including 12 per-cent estimated growth at the origi-nal studio in Ann Arbor that sheopened in late 2001.

“A majority of the growth we’veseen ... has been growth during this

calendar year,”said John Bog-dasarian, Lind-say’s husbandand vice presi-dent and CFO ofCoachMeFit’sfranchising cor-poration.

A graduate ofthe University ofMichigan School

of Kinesiology in 1999, Lindsay Bog-dasarian, CoachMeFit’s president,held other fitness jobs in Michiganand in Chicago before foundingher own company in the basementof the couple’s Ann Arbor home.

Almost immediately she hiredother trainers to allow her to de-vote more time to management andbusiness development, she said.

Her Ann Arbor studio now uses11 trainers and a studio manager,while others work at franchise lo-cations that opened in Birming-ham, West Bloomfield Townshipand East Grand Rapids in 2008.

“We try to make it a personal-ized environment for each client,”she said.

CoachMeFit originally had twostudios, in Saline and in Ann Ar-bor, where Bogdasarian sharedspace with her husband’s commer-cial real estate office at PreviewProperties Inc.

The Saline studio closed aboutfive years ago and merged with thegrowing Ann Arbor operation, andJohn Bogdasarian moved his realestate practice to Preview’s corpo-rate headquarters in Brighton.

The company moved to a fran-chising structure in 2007. After thefirst three new studios, CoachMe-Fit had plans for locations in Troy,Novi, Northville, Plymouth andelsewhere.

But lack of financing for smallbusinesses slowed growth, alongwith what John Bogdasariancalled a search for the “right peo-ple” with both business and exer-cise backgrounds.

“We are really looking for thepeople who not only love fitnessand training but have a level ofbusiness acumen.”

The current franchises contin-ued to grow and add client ses-sions, particularly this year.

Derek DiGiovanni, president andco-owner of CoachMeFit-Birming-ham LLC, recalls “things were a bitcrazy” in late 2008, but business hasgrown consistently since then.

“We expect another little bumpwhen people get their kids back inschool and have more control oftheir schedules. Then, maybe a lit-

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Fitness chain bulks up revenue CoachMeFit expects to hit $1M mark this year

ALAN WARREN

Owner Lindsay Bogdasarian opened her original CoachMeFit training center inAnn Arbor in 2001. There are four locations now.

Bogdasarian


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Yankee: Museum ready for takeoff■ From Page 3

ging down the museum’s decision-making, said Diana Kern, vicepresident of programs at NonprofitEnterprise at Work.

“There were lots of decisions be-ing made based on what the mem-bers wanted to see, rather thanwhat was in the best interests ofthe museum in terms of servingthe public,” Kern said.

Moving to a directorship envi-ronment creates structured gover-nance, with the museum recruit-ing board members with specificskills and resources.

In 2008, it began naming to the11-member board influential direc-tors such as Jack Roush, founder,CEO and co-owner of North Caroli-na-based Roush Fenway Racing; andBill Rands, past president of theDetroit River Regatta Association andorganizer of the Gold Cup races inDetroit.

Last year, the organizationrewrote its bylaws. This year, itnamed Hotton executive directorto oversee the museum’s opera-tions and four other employees.

This summer, after raising $1 million, the Yankee Air Muse-um and its fundraising arm, theMichigan Aerospace Foundation,opened the David and AndreaRobertson Education Center in arenovated 1938 schoolhouse movedto the east side of the airport fromanother part of its campus.

The new building came on themarket just as the museum andMichigan Aerospace Foundationwere attempting to raise about $10 million for the first phase ofthe project to construct a newhome for the museum and a newhangar to house the three planes itwas able to save from the fire: twoWWII bombers — a B-17 and B-25— and a C-47 transporter.

The General Motors Foundationhas contributed $1 million to thecampaign, and numerous individ-uals and organizations have madecontributions, including Dave andAndrea Robertson, the husbandand wife racing team that make upRobertson Racing LLC; DTE EnergyFoundation; the Louisville, Ky.-based C.E. & S. Foundation Inc.; Envi-ronmental Quality Co.; and the Lloydand Mabel Johnson Foundation.

The Michigan Aerospace Foun-dation and Yankee Air Museumhave raised about $6 million forthe larger project over the past sixyears, said president Dennis Nor-ton, who is founder of the YankeeAir Museum and owner of Ann Ar-bor-based Norton Real Estate Co.

The new building is meant toserve as only a temporary homefor the museum, Hotton said.

“We’d like to start constructionon a new hangar on the east side ofthe airport next year to house theflyable airplanes,” at a projectedcost of $3.5 million to $5 million.

Currently, the three flyable his-toric airplanes are in leasedhangars at Willow Run and GrosseIle airports.

“We take the B-17 all over thecountry ... people pay ($425 each) toride in them,” said Hotton, who pi-lots the aircraft. “We can generatesizable income by flying the B-17;now we’ve started to market the B-25.”

Those flights, membership feesfrom the museum’s 2,500 members,donations and admission fees to

the annual air show the air muse-um hosts at Willow Run Airportbrought in nearly $2 million inrevenue last year, Hotton said.That’s up from total revenue of$1.4 million in 2008.

“We would like to see ... 10,000 to15,000 members four or five yearsfrom now” and be able to providethem benefits much like The HenryFord in Dearborn does, with dis-counted gift shop sales, free or dis-counted tickets and other benefits,he said.

The Yankee Air Museum “hasthe most volunteers I’ve ever seenfor a nonprofit,” Kern said.

The change in direction says,“‘We respect our membership, butat the leadership level, we’re goingto bring in leaders that have pas-sion for the mission,’’ Kern said.

Sherri Welch: (313) 446-1694,[email protected]

GALA AND OPEN HOUSETickets to the Oct. 9 gala at WillowRun Airport are $250 per couple.The free Oct. 10 museum openhouse will include WWII re-enactments with tanks brought infor the event, sky divers and foodvendors. For more information onboth events, go towww.yankeeairmuseum.org. The new Yankee Air Museumincludes:� A wooden and fabric WWI Spadairplane being put together byvolunteers. � A full-size B-24 beingreconstructed.� A tabletop model of the WillowRun Bomber Plant’s assembly line.� Three aircraft simulators — twoof the cockpit and one simulatingflight. � WWII aircraft engines on display.� A Vietnam helicopter saved fromthe fire and other non-flyingairplanes stored outside the hangar,including a B-52 bomber, an F-4Phantom Jet that served in Vietnam,and F-86 and F-84 fighters.Source: Yankee Air Museum



� A panel on “The NIH Guide-lines and Sherley v. Sebelius: Im-plications for the Future of Stem-Cell Research.”

� A panel “Empowering theStem Cell Advocacy Movement,”which includes Danny Heumann,who was active with the MichiganCitizens for Stem Cell Research andCures, a group that helped passProposal 2 in Michigan in 2008,which allowed embryonic stemcell research in the state.

� A luncheon address on themorality of embryo use by HarvardUniversity philosopher Lois Guenin.

� An “Embryonic Stem CellResearch Oversight CommitteeWorkshop” moderated by Dr.James Shayman, UM associatevice president for research and aprofessor in the departments ofinternal medicine and pharma-cology.

On Aug. 23, U.S. District JudgeRoyce Lamberth of the District ofColumbia granted a preliminaryinjunction blocking further fund-ing of stem cell research by theNational Institutes of Health andother federal agencies.

Last Thursday, the U.S. AppealsCourt in Washington issued a tem-porary stay of the ban. Opponentsof the funding have until Sept. 14to file a response to the appealscourt ruling, and the U.S. can filea follow-up response on Sept. 20.

The Aug. 23 ruling came in thelawsuit Sherley v. Sebelius, filedby, among others, Dr. JamesSherley, Dr. Theresa Deisher andthe Christian Medical Association.

The plaintiffs claimed that newembryonic funding guidelines an-nounced last year by NIH violatedthe 1996 Dickey-Wicker Amend-ment, which Congress passed toprohibit federal funding for anyresearch in which a human em-bryo was destroyed.

Sherley and Deisher are re-searchers who use adult stemcells and claimed the new guide-lines would limit their ability toget funding.

The federal government esti-mates that $54 million in grants theNIH had been expected to renew inSeptember will not be renewed

now, and up to $20 million ingrants for new projects are on hold.

“The cloud over stem cell fund-ing remains inplace. Thiswon’t go awayuntil we get alegislative solu-tion,” saidBernie Siegel,executive di-rector of theFlorida-basedGenetics PolicyInstitute, a non-

profit that organizes the summit. “Congress must act to do away

with Dickey-Wicker forever. Forthe regenerative-medicine com-munity, Sherley v. Sebelius iswhat Roe v. Wade was for thosewho believe in reproductiverights.”

Twice during the previous ad-ministration, Congress passedthe Stem Cell Research Enhance-ment Act to allow federal fundingof embryonic stem cell research.Both times it was vetoed by Presi-dent George W. Bush.

UM’s Morrison is scheduled totestify Thursday before a Senatecommittee about the importanceof federal funding for stem-cell re-search.

“The injunction against fund-ing was like a nuclear bomb forresearch,” said Morrison.

Morrison said he found out lastThursday that NIH won’t processa $1.4 million, five-year traininggrant for UM, an extension of agrant that has been funded for 35years to fund research by gradu-ate students. The grant involvesup to 40 professors at UM, saidMorrison.

Just two of them are involved inembryonic research, but that wasenough to cause the rest of the pro-fessors’ students to lose funding.

Morrison said UM is still as-sessing potential grant losses, buthe said he knew of six grants forembryonic stem cell research to-taling $4 million that would belost in the next year.

Last October, the school an-nounced it had received 13 federalstimulus grants for stem cell re-

search totaling $6.8 million. Mor-rison was awarded $744,000 to ex-amine the potential for using em-bryonic stem cells for treatingHirschprung’s disease, a birth de-fect that affects regulation of in-testinal function.

Federal money that has beendisbursed can continue to bespent, but further disbursalswere halted in August.

“I was very pleased to hearthere is at least a temporary banon the lower court decision, but Iremain very cautious and con-cerned,” said Eva Feldman, co-di-rector of the A. Alfred TaubmanMedical Research Institute at theUM medical school.

Last May, she announced inCrain’s that she would be raising$1.5 million from private donorsto fund animal trials for a stemcell-based treatment forAlzheimer’s, a progressive degen-erative disease that severely im-pacts brain function and affects5.3 million in the U.S.

That decision was based on ear-ly results of clinical trials atEmory University Hospital in Atlantaon human patients with LouGehrig’s disease. Those trials useneural progenitor cells, whichare stem cells that have devel-oped beyond the embryonic stage.

Feldman said those trials — theseventh patient will be injectedwith stem cells on Oct. 20 —aren’t affected because they are paid for with private dona-tions.

She said one grant her grouphad been ready to file with theNIH, for $1.25 million over fiveyears for embryonic research,has been put on hold.

Feldman and Taubman willshare the stage for 30 minutes onthe opening day of the summit,with Taubman talking on policyissues and Feldman on her clini-cal trials.

The second day of the summit,Feldman will moderate a 90-minute panel on current and fu-ture clinical trials and stem-celltherapies.

Tom Henderson: (313) 446-0337,[email protected]

use of toll credits to reduce theamount of bonding. Hardiman ischairman of the Senate Appropria-tions Committee’s subcommitteeon transportation.

Toll credits are federal creditsthat in Michigan are based on twoelements: tolls collected at theBlue Water, Mackinac and Inter-national bridges; and the amountof money the state spends to main-tain those bridges.

The credits allow the state to ac-cess federal money without com-ing up with matching funds.

The proposed bonding concernsthe Michigan Infrastructure andTransportation Association, whichhas been among groups in Lansingpushing for a long-term, compre-hensive solution to Michigan’schronic road-funding needs.

Keith Ledbetter, director of leg-islative affairs, said arriving at the

federal match is “the good news,”but the group is not in favor of theborrowing approach.

“What we’re talking about isputting your mortgage on yourcredit card,” Ledbetter said.

In addition, MDOT expects thatthe $84 million revenue shortfall itfaces will be even larger next year,when the state would also need torepay the one-year bond.

“So they’ve only exacerbated theproblem,” Ledbetter said. “We’reborrowing money for operating ex-penses. We need a user fee-basedsystem which will pay for ourroads and bridges.”

MITA and others have called foraction on a package of transporta-tion reforms that include increas-es in Michigan’s gas and dieselfuel taxes, and altering and raisingvehicle registration fees.

But politically, there’s not

enough support for such measuresprior to the November elections.

“We’re putting as much pressureon the Legislature as we can to forcea long-term resolution after the elec-tion is over,” Ledbetter said.

Gonzales said he would like in thepost-election “lame duck” session tosee the Legislature come up with atransportation funding package.

But he said the short-term noteand other parts of the current $84 million agreement are “a goodsolution because that’s what wehave available at this time” andMichigan needs to do all it can toavoid walking away from the fed-eral funds.

The Senate had previouslypassed an MDOT budget that made$84 million in cuts and shifts inother transportation areas to comeup with the money. The Housepassed a version that took $84 mil-

lion out of the state’s general fund.Gov. Jennifer Granholm’s office

confirmed that there is agreementto fully match the federal trans-portation funds, but she would notdiscuss details.

Last week, Granholm and Houseand Senate leaders reached abroad state budget agreement con-taining many pieces that need leg-islative approval.

The fiscal 2011 budget solutionincludes:

� An early retirement packagefor state workers that includes atemporary enhanced retirementbenefit and a 3 percent employeecontribution for retiree health carecosts, phased in over five years.

� Cuts of 3 percent in state de-partments.

� A freeze in state revenue-sharing levels.

� A tax amnesty program waiv-

ing penalties for businesses andindividuals that have delinquenttax liabilities and settle their debt.Taxes affected would includeMichigan Business Tax, the for-mer Single Business Tax, income,sales, use and tobacco taxes.

� Shortening the time for finan-cial institutions and others to trans-mit unclaimed property to the state.

� Liquor law changes that in-clude allowing stores that sellpackaged liquor to offer customertastings, allowing new types ofpromotional packaging, in-storeredemption of instant rebates andcoupons, a new type of license forowners of private wine and liquorcollections to auction their stock,and stepped-up enforcement andpenalties for illegally importingand selling liquor in Michigan.

Amy Lane: (517) 371-5355,[email protected]

Group Inc., in an e-mail to Crain’s.MDOT itself is saying very little

about the revised bill at this point.“We are happy to have his bill to

review and we look forward to do-ing that and meeting with Sen.Gilbert to provide our feedback,”Bill Shreck, MDOT’s director ofcommunications, said in an e-mail.

MDOT is one of the four U.S. andCanadian government partneragencies that seek to build thebridge to link Ontario’s Highway402 and I-75 between Detroit’s in-dustrial Delray neighborhood andWindsor’s Brighton Beach area.

Sen. Ray Basham, D-Taylor, alongtime DRIC advocate, calledGilbert’s retooled bill “a goodstart.”

“The revised plan is more specif-ic to DRIC only. I can live withthat,” he said.

Basham believes the bill will bedebated and voted upon this fall,but also expects more squabblingover it.

“We have a good sense that we’removing forward on this thing,” hesaid. “I think there’ll be anotherfight yet with Al (Cropsey).”

Cropsey has repeatedly calledDRIC a “boondoggle” and leads thechorus of GOP opposition that saysthe project’s traffic projections areflawed and that backers’ claims thattolls will cover its costs are wrong.

Peter Samuel, editor of Mary-land-based industry newsletterand website Tollroad News for thepast 15 years, has closely followedthe DRIC debate and called the re-vised legislation confusing.

“It seems to be intended to shiftrisks of losses to the private entity,but it seems to me poorly draftedand in need of clarification,” hesaid.

Specifically, the language creat-ing the authority is vague anddoesn’t address Canadian repre-sentation.

Samuel also said the languagecreating the bridge authority does-n’t do a good job protecting taxpay-ers — something Gilbert hasvowed to do.

In fact, the bill may leave the tax-payers more vulnerable, he said.

“It seems to leave it open for the

state bridge authority itself to is-sue revenue bonds, therefore in-curring risk,” he said.

Two messages seeking commentwere left for Gilbert.

Canada has offered to pay theprojected $550 million U.S. cost ofthe span. The money would covercapital costs not otherwise cov-ered by the private sector.

Other than saying the moneywould be repaid via Michigan’sshare of the tolls, details of the of-fer remain unclear, which hassparked additional skepticism inLansing, where lawmakers mustapprove MDOT’s financial partici-pation in the project.

A local transportation insiderfamiliar with the bill and thebridge situation, but who agreed tospeak only on condition ofanonymity, said the revised legis-lation could be viewed as a poisonpill for DRIC supporters.

“I find it hard to believe they’llfind it acceptable,” he said. “Thebill doesn’t allow any state moneyto be spent on anything related to(DRIC). They’re kind of gettingwhat they ask for (because) theysay the traffic and toll revenue willpay for everything.”

Bill Shea: (313) 446-1626,[email protected]

The following businesses filed forChapter 7 or 11 protection in U.S.Bankruptcy Court in Detroit Sept. 3-9.Under Chapter 11, a company files forreorganization. Chapter 7 involvesliquidation.H&HM Inc., 1624 Silvery Lane, Dear-born, voluntary Chapter 11. Assets:$14,488; liabilities: $70,017.Dahlquist Ryan Builders Inc., 8500 Fer-ry Road, Grosse Ile, voluntary Chap-ter 7. Assets: $1.1 million; liabilities:$2.7 million.Earl Stevenson Corp., 4651 W. Jeffer-son, Ecorse, voluntary Chapter 7. As-sets: $200; liabilities: $115,651.

— Shawn Wright

BANKRUPTCIES

Budget deal: Agreement would yield match for roads funding■ From Page 1

Stem cell: Funding fight key topic■ From Page 3

Bridge: Bill no unifier■ From Page 3

Siegel



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Project: Judge orders construction in Dearborn■ From Page 1

Hygieia: Startup creates device to help diabetics■ From Page 1

Almost-preferred developersThe project was divisive from

the start. Then-Mayor of Dearborn

Michael Guido picked BinghamFarms-based developers PeterBurton and Robert Katzman forthe project in 2002 but was forcedto concede to the City Council,which instead backed Dearborn-based D.J. Maltese Co.

After a year of stalled progress,Maltese was forced to back out ofthe deal in 2003 and Burton-KatzmanDevelopment Co. was able to pur-chase the land and begin work.

Maltese was backed by John“Jack” O’Reilly, head of the citycouncil at the time and currentlymayor of the city.

Under the development agree-ment, Burton-Katzman was tobuild 48 condo units, a retail cen-ter and two midrise buildings forresidential, office or hotel use.

In return, the city of Dearbornagreed to borrow money to buildtwo parking decks, with the $12million cost repaid by the incre-mental revenue produced througha tax increment financing agree-ment. In a TIF the new tax revenuecreated by improved properties isused specifically for a certain dis-trict; in this case, to pay back thebonds on the parking deck.

That development agreementbecame the heart of a lawsuit filedsix years later.

Impossible taskIn court filings, the developers

point out that the financial condi-tions that developed in metro De-troit could never have been fore-seen. Such conditions emerged afterthe retail development and 36 of the48 condo units were built — alongwith the city’s two parking decks.

By the summer of 2007, city offi-cials began questioning the pace ofthe third and largest phase of theproject: two seven-story buildingsto be built between the two park-ing decks.

Ground was never broken onthe buildings as demand disap-

peared for condos, office space orhotels, Burton-Katzman attorneyswrote in a Sept. 18 filing.

“The Dearborn economy has ab-solutely no demand for thesebuildings,” attorneys wrote.

“Even if some demand existed,there is literally no financingavailable to fund construction.This is not a situation in which aneconomic downturn has made per-formance of a contract simplymore difficult or more expensive,but rather an unprecedented eco-nomic collapse that has truly madeperformance under the develop-ment agreement impossible.”

The city not only is left with thedebt for two parking decks, but alsono office building, condo buildingor hotel to bring enough traffic tomake use of the parking decks.

The city built the parking struc-tures before the developers put upthe revenue-producing buildings.

“They insisted we do that,” saidO’Reilly. “We fulfilled our end, andthey didn’t get their end finished.”

Burton, however, said he askedthe city to build one of the parkingdecks, not both.

Complaints filedThe city filed a complaint in

Wayne County Circuit Court in May2009 alleging breach of contract byBurton-Katzman for not construct-ing the two buildings.

Dearborn is asking the court toforce completion of the buildingsand award damages of $16.5 mil-lion for the outstanding debt onthe parking decks along with un-paid property taxes and fees.

In the office of the Wayne Coun-ty clerk, the case has produced

enough public documents to filltwo boxes as attorneys have filedmotions, counter-motions, claimsand counterclaims.

A key ruling came in December2009 when Judge Michael Sapaladetermined there is no merit to theBurton-Katzman argument of eco-nomic conditions making the de-velopment impossible to complete.

“Breach of the developmentagreement is not excused by thedefense of impossibility,” he wrotein his ruling.

In addition, Sapala ordered thatconstruction start on the projectby April 3, later extending that toOct. 1. While a trial date has notbeen set, Sapala already has or-dered $5 million in damages bepaid to the city to cover initial debtpayments on the parking decks,back taxes and other fees.

Bankruptcy or avoidance?On Aug. 26, Burton, Katzman

and other investors in the projectfiled Chapter 7 bankruptcy for thethree business entities named inthe suit: West Village Commons LLC,Westminster Homes LLC and Burton-Katzman Development Co.

Listed among the liabilities forthe West Village LLC entity is $10million in loans from Bank of Amer-ica for the project and land valuedat $3.4 million.

Burton said the bankruptcy fil-ing was an unfortunate reality asthe development has become fi-nancially insolvent.

In a press release, Burton and oth-er investors said the bankruptcieswere directly related to the $5 mil-lion in fines already owed underSapala’s judgment because the enti-ties “cannot satisfy the obligations.”

Burton also pointed out that theprincipals of the firm have 70 to 80other business entities created forindividual holdings.

The group continues to have aportfolio of 5 million square feetunder ownership and manage-ment, Burton said, and has not giv-en other holdings back to the bank.

“We are still here,” he said. “Wehave our struggles like everyone

else these days, but we are not fad-ing away.”

The bankruptcy move did not sitwell with the city. Several days af-ter the filing, the city issued astatement that the move was mere-ly a ploy to avoid the fees assessedby the court.

It’s uncertain whether bank-ruptcy will end the fight.

The city has pursued a legal strat-egy to “pierce the corporate veil”and pursue the individuals person-ally involved with the legal entities.

Sapala added individual in-vestors to the suit: Burton, Katz-man and three other investors:Charles DiMaggio, Laurence Gossand Steven Bentley. However, therehas been no ruling as to whetherdamages will be assessed to them.And a trial date has not been set.

The case represents the stresscreated when developments fund-ed through public and privatesources fail, said Gibbs.

TIF and other programs remainan important tool, when used cor-rectly, he said.

“Too many cities in UnitedStates have taken on all of the riskwith projects and let developerstake all of the profits,” he said. “Insome cases, where a project isdreamed up on unreal demand, wesee a lot of problems now.”

In Dearborn’s case, Gibbs saidthe city has density and a strong de-mographic foundation, so it will at-tract a project to the site some day.

“Using the money to build aparking deck is a very smart deci-sion,” he said. “While some citiesuse development money for foun-tains and parks and lavish build-ings, parking decks are a huge re-source and will make the areasuccessful later on.

O’Reilly is also convinced thatthe land in question will be devel-oped, and the situation is beingused as a learning tool.

“It helped us learn to structurethese deals better,” O’Reilly said.“We’ve done deals since then andthey’re going smoothly, but we ne-gotiated differently.”

Daniel Duggan: (313) 446-0414,[email protected]

said the data generated by DIGS al-lows patients to change insulindosages immediately rather thanwait up to 90 days to see a physi-cian and then change their dosage.

Hygieia’s DIGS, the size of aBlackBerry, analyzes blood sugarin a way very similar to tradition-al glucose monitoring devices.

Patients apply a drop of theirblood on a test strip and insert itinto the device. But instead ofreading out blood-sugar data, theDIGS reads out the amount of in-sulin the patient should inject.

“We created the device like aground positioning system so pa-tients can adjust their therapy on adaily basis,” Bhashan said. “Like aGPS, you tell the device where youwant to go, it creates a master planand then adjusts the plan to yourcurrent (blood-sugar levels).”

Over two years, Hygieia hasraised about $1 million from private

investors in Michigan and the U.S. It also is using a $340,000 grant

from the National Institutes of Healthto help fund a clinical trial in Min-neapolis with 60 patients.

Besides Hodish, who is Hy-gieia’s medical consultant,Bhashan said Hygieia has six full-time employees; another six areemployed part time.

If Hygieia receives sales approvalfrom the U.S. Food and Drug Adminis-tration early next year, Bhashansaid the company plans to hire sev-eral more people when the compa-ny begins to sell the product. It hascontracted with a Korea-based man-ufacturer to produce the DIGS.

With 20 million people sufferingfrom diabetes worldwide, Bhashanprojects first-year sales of $3 mil-lion and expects sales to reach $75 million in three years.

Bhashan said Hygieia’s competi-tors are telemedicine companies

that track data supplied by patientsover secure data lines. Usingtelemedicine, patient data is ana-lyzed by physicians and nurses whoadvise patients on care changes.

“As far as we are aware, no oneis developing a standalone solu-tion like ours,” Bhashan said.

Jim Mingle, CEO of MyCareTeam,a Chelmsford, Mass.-based telemed-icine software company, said the fu-ture of diabetic care is patients us-ing devices that help them adjusttheir dosages regularly.

“People are starting to get real-time information to change theirdosages,” Mingle said. “It helpsimprove quality and outcomes. Weand others have proven it works.”

MyCareTeam also uses telemed-icine systems to help patients mon-itor their blood pressure, choles-terol and weight, Mingle said.

“We interact with patientsthrough a care team portal,” Min-

gle said. “Patients use their ownmeters at home and send the datathrough their computer to our por-tal, where the numbers are seen bydoctors or nurses in clinics.”

Several studies have concludedthat reducing blood-sugar levelscan reduce health care costs.

For every 1 percentage point de-crease in blood-sugar HbA1c lev-els, the National Council of Aging es-timates annual savings of $1,200per person in health care costs.HbA1c is a metric used to measurelong-term blood sugar control.

“Diabetes is a growing epidem-ic, and we are not training special-ists as fast as the disease is grow-ing,” Bhashan said. “The futuremust include automatic solutions.Our solution is the first step. Tenyears out, some people will requireadditional solutions.”


BurtonO’Reilly



MCC gets $1.4Mto start autotech center

arren-based Ma-comb CommunityCollege announced

that it has received a two-year $1.4 million NationalScience Foundation grant toestablish the Center for Ad-vanced Automotive Tech-nology at the college.

The center will offer ad-vanced training to students,with hopes of offering seedmoney to innovative tech-nology startups.

The NSF will provide anadditional two-year $1.5 mil-lion grant to MCC if the pro-gram proves successful.

ON THE MOVE� Marvin “Sonny” Eliot,

longtime local weatherforecaster now at WWJ 950AM, announced his retire-

ment. TheDetroit na-tive beganhis broad-cast careerin Detroitin 1950 andis a mem-ber of theMichigan

Association of BroadcastersHall of Fame (2002) and theMichigan Journalism Hall ofFame (2005).

� Lois Beznos, presidentof theChamberMusic Soci-ety of De-troit for 15years, saidshe willstep downto pursueother op-

portunities by the end ofthe year.

COMPANY NEWS� Livonia-based TRW

Automotive Holdings Corp.(NYSE: TRW) announcedits investors will sell 7.5 million shares of itscommon stock in a publicoffering. The stock is heldby Automotive Investors LLC,an affiliate of New York-based The Blackstone GroupLP. The private-equity firmacquired TRW in 2003 for$4.7 billion, before takingthe company public in Feb-ruary 2004.

� National toy retailerToys R Us Inc. plans to openand will be hiring for atleast eight temporarymetro Detroit locations,called Toys R Us Express, aspart of a national rollout of600 so-called pop-up storesfor the Christmas shoppingseason. The company’swebsite says the stores will

be in Oakland Mall, WestlandCenter, Lakeside Mall, South-land Center, Hampton Village,Hunters Square, Howell Out-lets and Macomb Mall.

� Shelby Township-based Leone Construction Co.has purchased the mostlyundeveloped Macomb TownCenter residential develop-ment at 24 Mile and RomeoPlank roads in MacombTownship. Terms were notdisclosed.

ECONOMIC NEWS� Data released by the

Southeast Michigan Councilof Governments and ana-lyzed by the Building Indus-try Association of SoutheastMichigan said there were162 homebuilding permitsissued in the region inJuly, up more than 50 per-cent from a year ago butdown 18 percent from June.

� The Southeast MichiganPurchasing Managers Index,compiled by the WayneState University School ofBusiness Administration andthe Southeast Michiganchapter of the Institute forSupply Management, slippedfrom 56.7 to 54.2 in August,meaning that the metro De-troit economy is still grow-ing, but at a slower rate.

COURT NEWS� Former Detroit city

Councilwoman MonicaConyershas report-ed to aminimum-securityfederalprison inWest Vir-ginia tobegin a 37-month

sentence for corruption,The Associated Press re-ported. It’s the same prisonwhere Martha Stewart wassent after being convictedin a stock-trading case in2004. Conyers admitted tak-ing bribes to support asludge contract.

� Toni Gilbert, a formerDetroit Public Schools pay-roll manager who pleadedguilty to conspiring to de-fraud the district of nearly$380,000, has been sen-tenced to 24 months inprison and ordered to paymore than $672,000 in resti-tution, AP reported.

� The city of Hamtram-ck on Sept. 3 sued the cityof Detroit in Wayne CountyCircuit Court for breach ofcontract, claiming it isowed $4 million in tax rev-enue from General MotorsCo.’s Detroit-Hamtramckassembly plant, AP report-ed.

� Detroit contractor Bob-by Ferguson, owner andpresident of Ferguson’s En-terprises Inc., faces eightfelony charges ranging

from bid fixing and moneylaundering to illegal dump-ing and being a felon inpossession of firearms, inconnection with the Gar-den View Estates project atthe former Herman Gar-dens site. If convicted, Fer-guson could face up to 20years in prison on the mostserious charges and finestotaling more than $2.5 mil-lion, federal officials said.

OTHER NEWS� Oakland County Exec-

utive L. Brooks Patterson an-nounced that he, with sup-port from Detroit RegionalChamber President SandyBaruah, has called upon lo-cal legislators to introducea bill granting 50 percenttax breaks to businessescaught in constructionzones that last more thanthree months in a firstyear, and a second year ofrelief if the project contin-ues at least two monthsinto a subsequent year.

� The Livonia-based Tedand Jane Von VoigtlanderFoundation has made a giftof $2.5 million to St. JosephMercy Hospital in Ann Ar-bor. The gift will name thehospital’s new inpatientcenter for women and chil-dren on the hospital’s thirdfloor in memory of TedVon Voigtlander, co-ownerof Discount Tire Co., and hiswife, Jane, who establishedthe foundation in 2006 afterher husband’s death.

� Royal Oak police saysome of the 1,900 parkingtickets issued during theFord Arts, Beats & Eats festi-val will be dismissed be-cause some were issued inpermit-parking zoneswhere the boundaries wereunclear, AP reported.Deputy Chief Corrigan O’Donohue said officials arereviewing tickets on a case-by-case basis.

� Lester Robinson, formerCEO of the Wayne County Air-port Authority, is one of threefinalists for the same job atAtlanta’s Hartsfield-JacksonInternational Airport. He alsois reportedly one of four fi-nalists for a similar post atTampa International Airport.

� Seattle-based Sur LaTable, a retailer for creativecooking and entertaining,is set to open Friday inTroy’s Somerset Collectionmall.

� The New Economy Initia-tive has contracted Issue Me-dia Group to launch a newwebsite to tell the stories oflocal entrepreneurs. Thesite at www.semichiganstartup.com will trackmore than 400 new Michi-gan companies.

OBITUARIES� Clarence Phillips, for-

mer mayor of Pontiac, diedSept. 1. He was 69.

etroit’s most famous-ly dysfunctional rap-per may prove as

troubling to the music in-dustry through lawyers ashe is to the audience withhis lyrics.

Eminem, who arrives inNew York this week with

Jay-Z inthe “Homeand Home”concerttour thatkicked offat Comeri-ca Park inDetroit ear-lier thismonth,

also is the core of a newcourt ruling that could re-define royalty payments toartists for music down-loads.

Ferndale-based FBT Pro-ductions LLC, which firstsigned Eminem back in1995, is entitled to 50 per-cent royalties on downloadsof the rapper’s recordings,according to a new rulingfrom the Ninth Circuit U.S.Court of Appeals.

Defendant Universal MusicGroup Recording Inc., whichargued for the more indus-try standard 18 percent cut,has already sought a re-hearing. But it’s more likelythe ruling will stand as aprecedent, said HenryBaskin, entertainment attor-ney and president of Birm-ingham-based The BaskinLaw Firm PC.

“(That decision) changeseverything. It’ll be chal-lenged, but everyone real-izes it’s really a question ofwhether the Supreme Courtwants to hear a case likethat,” he said.

FBT and Universal wererepresented by many of thesame attorneys who han-dled the Eight Mile Style LLClawsuit in Detroit againstApple Computer Inc. overiTunes downloads of Em-inem tunes. That case set-tled during trial late lastyear, and is estimated to beworth $2 million.

Bernero, Snyder to stump but not debate at forum

They won’t be debating,but Michigan’s two guber-natorial candidates will bemaking their cases at thisweek’s West Michigan PolicyForum in Grand Rapids.

Democratic Lansing May-or Virg Bernero and Repub-

lican Rick Snyder, chair-man and CEO of Ann Arborventure-capital firm ArdestaLLC, will appear back-to-back Friday morning andparticipate in individual 45-minute question-and-an-swer sessions moderated byCrain’s Detroit BusinessPublisher Mary Kramerand Grand Rapids Press Ed-itor Paul Keep.

Later on Friday, Ford Mo-tor Co. Executive ChairmanWilliam Clay Ford Jr. willclose the two-day confer-ence, which is expected todraw some 500 attendees in-cluding businesspeople,lawmakers, local politiciansand community leaders.The conference is spon-sored by the Grand RapidsArea Chamber of Commerce.

In case you’ve got a couple million lying around …

Are the days of $10,000condos over?

While Birmingham wasnever as bargain-basementas the rest of metro Detroit,a condo project in the tonysuburb starts tours nextweek with ultra-high-endresidences being put on themarket.

Just off Shain Park, the250 Martin On The Park build-ing has seven residentialunits with asking prices al-most in the “if you have toask ...” category of $2.2 mil-lion “and up.”

The fifth floor of thebuilding is two 5,000-square-foot units each built as two-story penthouses. The sec-ond floor is one5,300-square-foot unit.

Troy-based TMW Enterpris-es has been working on theproject since 2004, after buy-ing the unfinished buildingin foreclosure then redevel-oping it.

It’ll be showing off theviews, architecture andhigh price tags at an invita-tion-only first-look eventnext week.

Or, instead of buying oneunit, you can buy an entireblock of homes in Detroit.

RUMBLINGS WEEK ON THE WEBF R O M W W W . C R A I N S D E T R O I T . C O M , W E E K O F S E P T . 4 - 1 0

D

W

Lawyers may be Eminem’s biggest fans

Domino’s founder to slip in for anniversary breakfast

Domino’s Pizza founderand Catholic philanthropistThomas Monaghan will makea rare local appearance thisweek for an invitation-onlybreakfast celebration of the25th anniversary of theDomino’s Farms Office Park inAnn Arbor Township.

Monaghan, who also onceowned the Detroit Tigers, haskept a relatively low profilelocally since selling theAnn Arbor-based pizzachain for $1 billion in 1998and subsequently dedicat-ing himself to Catholiccharities and education, es-pecially Ava Maria Universityand an entirely new townhe’s building for a reported$400 million in Florida.

The Frank Lloyd Wright-in-spired office park is hometo 50 tenants and a herd ofbison on a 270-acre campus.

Pollster forms new ventureVeteran pollster Ed Sarpo-

lus once again has his ownbusiness.

Sarpolus, who in 2008 leftthe Lansing-based Epic-MRACorp. he co-founded to be di-rector of government af-fairs for the Michigan Educa-tion Association, hasdeparted the MEA andformed Target Insyght, astrategic consulting andsurvey and marketing re-search firm.

Taking on Sarpolus’ MEAduties is former director ofcommunications Doug Pratt,now the MEA’s director ofpublic affairs in charge of alllegislative, political and pub-lic affairs activities.

CBS taps EMU band for‘Hawaii Five-O’ spots

Book ’em, Eagles: Morethan 4,400 miles from theHawaiian Islands, the East-ern Michigan Universitymarching band can be seenperforming the theme fromdetective buddy series“Hawaii Five-O” in regionalTV ads.

The band is appearingwith members of the DetroitFire Department and Detroittroubadour Ty Stone in spotsthat debuted this month onCBS affiliate WWJ-TV.

“It’s great exposure for theuniversity and the band pro-gram,” EMU drum majorChad Mielens said in a state-ment.

CBS requested all 14 of itsnetwork-owned affiliates tofind musical groups to per-form the theme for use inthe series’ promo ads. TheUniversity of Southern Cal-ifornia marching band wasselected for nationally airedspots.

The new “Hawaii Five-O,” starring actors ScottCaan and Daniel Dae Kim,debuts Sept. 20.

Eliot

Beznos

Conyers

Eminem

SnyderBernero


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SEPTEMBER 13 â€“ 19, 2010 Path opened for road funds

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