Vol. 22, No. 29 JULY 17 – 23, 2006 ...

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BY ANDREW DIETDERICH AND BILL SHEA CRAIN’S DETROIT BUSINESS oogle Inc. plans to move its AdWords division to Ann Arbor with a promise of 1,000 new jobs, possibly the tipping point for an interactive-marketing industry gaining momentum in Southeast Michigan. Take, for instance, companies that special- ize in interactive marketing such as Ann Ar- bor-based Fry Inc., Pleasant Ridge-based ePrize L.L.C. and Ann Arbor-based Enlighten Inc. Client lists are impressive: Fry’s include Amazon.com, Eddie Bauer, Brookstone, Godiva and Whirlpool; ePrize’s clients include General Motors Corp., Ford Motor Co., Home Depot, Adidas, Fujitsu and Nikon; Enlighten’s clients include the University of Michigan, HBO, Comerica, Domino’s Piz- za, Reebok, Compuware Corp. and IBM Corp. The companies, which provide services for clients to generate busi- ness through the Web, are among more than 20 local companies engaged in interactive and database marketing, though it’s hard to extract the total number of employees. Membership in Glima, the former Great Lakes Interactive Market- ing Association, is at nearly 1,000. Glima, run by Troy-based Automa- tion Alley for individuals in the industry, was launched in 1996. The Ann Arbor chapter focuses on interactive marketing, said Phil Bertolini, executive director of Glima. http://www.crainsdetroit.com Vol. 22, No. 29 JULY 17 – 23, 2006 $1.50 a copy; $59 a year THIS JUST IN THIS JUST IN Prentice to reopen Shiraz Bingham Farms-based Matt Prentice Restaurant Group plans to reopen Shiraz today, less than a month af- ter closing the restaurant and two others because of declining sales. Morels, an American Bistro and Shiraz shared 15,000 square feet in Bingham Farms. The company closed those restaurants on July 2, along with Thunder Bay Brew- ing Co. in Auburn Hills, say- ing that road construction in the “mixing bowl” area of I-696 had caused business to fall off sharply in the Bing- ham Farms restaurants. President Matt Prentice said Friday that his compa- ny worked out a deal with Bingham Farms-based Bur- ton-Katzman Development Co. to lease only the 5,000 square feet previously occu- pied by Shiraz. “We could not justify 15,000 square feet in that lo- cation any longer,” said Prentice, who told Crain’s that Shiraz was making money before it closed. Chef Dave Viviano will remain at Shiraz, and the restaurant will operate un- der the same schedule as be- fore it closed. Shiraz also will pick up Morels’ retail wine program, which was introduced a year ago and lowered wine prices at the restaurant. — Sheena Harrison New bankruptcy judge Daniel Opperman, of Braun Kendrick Finkbeiner plc, has been appointed as a judge for the U.S. Bankruptcy Court for the Eastern District of Michigan in Detroit by the U.S. 6th Cir- cuit Court of Appeals. Opperman, who will han- dle cases in Flint and Bay City, is a graduate of Wayne State University Law School and Eastern Michigan Universi- ty and has been a lawyer since 1981 in commercial liti- gation, real estate, bankrupt- cy and corporate matters. Bankruptcy judges are appointed for 14-year re- newable terms; annual salary is $151,984. — Robert Ankeny NEWSPAPER Largest architects, Page 24 Automakers’ ‘nuclear option’ keeps supply lines open, Page 28 ® See This Just In, Page 2 CRAINS LIST CRAINS LIST BY JENNETTE SMITH CRAIN’S DETROIT BUSINESS Business executives aren’t pre- pared to go all in on promoting casi- nos in Michigan but nearly half would bet more advertising money on it. Nearly three-quarters of those surveyed for a study completed by Lansing-based EPIC-MRA for Crain’s Detroit Business and Honigman Miller Schwartz and Cohn L.L.P. oppose open- ing more casinos, but 48 percent agreed casinos should be included in state-sponsored advertising — 49 percent thought they shouldn’t. De- troit’s three casinos and the state’s 17 tribal casinos had combined gam- ing revenue of more than $2 billion last year. EPIC-MRA polled a random selec- tion of 500 management-level Crain’s subscribers spread across the state during the last week of June. Results carry a margin of er- ror of 4.4 percent. Many people don’t gamble but casinos provide a place for people to go and are a draw for entertain- BY SHERRI BEGIN CRAIN’S DETROIT BUSINESS It’s taken 12 years, but the Motor City may finally become part of the Woodward Avenue Dream Cruise. When the cruise began, it spanned Ferndale, Pleasant Ridge, Berkley, Huntington Woods, Royal Oak, and Birmingham. It since has expanded northward to Pontiac, but hasn’t moved south of Eight Mile Road. Now, Detroit Synergy, a nonprofit dedicated to revitalizing Detroit, is planning a road tour of seven his- toric automotive sites along Wood- ward Avenue in Detroit on Aug. 19, the day of the cruise. It’s also working with the Hard Rock Café to present “Cars and Gui- tars” at Campus Martius downtown on Aug. 17 as well as another related event at the adjacent Cadillac Square if a sponsor is signed. A dri- ve-in theater or classic car show are possibilities, said Andrea Schroed- er, who is president of condomini- um rental agency A Place Downtown and heading up the Campus Martius event for Detroit Synergy. If permits filed with the city are State cash for casino ads? See Survey, Page 36 MIDYEAR ECONOMIC REPORT How Michigan’s economy is coloring the governor’s race. See the Midyear Economic Report beginning on Page 11. MORE TO COME This is the first in a series of surveys co-sponsored by Crain’s Detroit Business and Honigman Miller Schwartz and Cohn L.L.P. on key business issues in Michigan. Full results are available under the features heading at the Web site www.crainsdetroit.com. Groups push to add Detroit events to Woodward Cruise See Cruise, Page 37 Biz divided on whether to promote OTHER PLAYERS EPrize, Fry Inc. are just two of the local stars in the interactive- marketing industry. See Page 34. ©Entire contents copyright 2006 by Crain Communications Inc. All rights reserved In the spotlight Move could give metro Detroit’s growing interactive-marketing industry a national name Bertolini GETTY IMAGES G See Google, Page 34 DETROIT BUSINESS MAIN 07-17-06 A 1 CDB 7/14/2006 6:44 PM Page 1

Transcript of Vol. 22, No. 29 JULY 17 – 23, 2006 ...

BY ANDREW DIETDERICH AND BILL SHEACRAIN’S DETROIT BUSINESS

oogle Inc. plans to move its AdWords division to Ann Arborwith a promise of 1,000 new jobs, possibly the tipping pointfor an interactive-marketing industry gaining momentum

in Southeast Michigan. Take, for instance, companies that special-

ize in interactive marketing such as Ann Ar-bor-based Fry Inc., Pleasant Ridge-based ePrizeL.L.C. and Ann Arbor-based Enlighten Inc.

Client lists are impressive: Fry’s includeAmazon.com, Eddie Bauer, Brookstone, Godivaand Whirlpool; ePrize’s clients include GeneralMotors Corp., Ford Motor Co., Home Depot, Adidas,Fujitsu and Nikon; Enlighten’s clients includethe University of Michigan,HBO, Comerica, Domino’s Piz-za, Reebok, CompuwareCorp. and IBM Corp.

The companies, whichprovide services forclients to generate busi-ness through the Web, areamong more than 20 local

companies engaged in interactive and databasemarketing, though it’s hard to extract the totalnumber of employees.

Membership in Glima, the former Great Lakes Interactive Market-ing Association, is at nearly 1,000. Glima, run by Troy-based Automa-tion Alley for individuals in the industry, was launched in 1996. TheAnn Arbor chapter focuses on interactive marketing, said PhilBertolini, executive director of Glima.

http://www.crainsdetroit.com Vol. 22, No. 29 J U L Y 1 7 – 2 3 , 2 0 0 6 $1.50 a copy; $59 a year

THIS JUST INTHIS JUST INPrentice to reopen Shiraz

Bingham Farms-basedMatt Prentice RestaurantGroup plans to reopen Shiraztoday, less than a month af-ter closing the restaurantand two others because ofdeclining sales.

Morels, an American Bistroand Shiraz shared 15,000square feet in BinghamFarms. The company closedthose restaurants on July 2,along with Thunder Bay Brew-ing Co. in Auburn Hills, say-ing that road constructionin the “mixing bowl” area ofI-696 had caused business tofall off sharply in the Bing-ham Farms restaurants.

President Matt Prenticesaid Friday that his compa-ny worked out a deal withBingham Farms-based Bur-ton-Katzman Development Co.to lease only the 5,000square feet previously occu-pied by Shiraz.

“We could not justify15,000 square feet in that lo-cation any longer,” saidPrentice, who told Crain’sthat Shiraz was makingmoney before it closed.

Chef Dave Viviano willremain at Shiraz, and therestaurant will operate un-der the same schedule as be-fore it closed. Shiraz alsowill pick up Morels’ retailwine program, which wasintroduced a year ago andlowered wine prices at therestaurant.

— Sheena Harrison

New bankruptcy judgeDaniel Opperman, of Braun

Kendrick Finkbeiner plc, hasbeen appointed as a judge forthe U.S. Bankruptcy Court forthe Eastern District of Michiganin Detroit by the U.S. 6th Cir-cuit Court of Appeals.

Opperman, who will han-dle cases in Flint and BayCity, is a graduate of WayneState University Law Schooland Eastern Michigan Universi-ty and has been a lawyersince 1981 in commercial liti-gation, real estate, bankrupt-cy and corporate matters.

Bankruptcy judges areappointed for 14-year re-newable terms; annualsalary is $151,984.

— Robert Ankeny

NE

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Largest architects,Page 24

Automakers’ ‘nuclear option’keeps supply lines open,Page 28

®

See This Just In, Page 2

CRAIN’S LISTCRAIN’S LIST

BY JENNETTE SMITHCRAIN’S DETROIT BUSINESS

Business executives aren’t pre-pared to go all in on promoting casi-nos in Michigan but nearly halfwould bet more advertising moneyon it.

Nearly three-quarters of thosesurveyed for a study completed byLansing-based EPIC-MRA for Crain’sDetroit Business and Honigman MillerSchwartz and Cohn L.L.P. oppose open-ing more casinos, but 48 percentagreed casinos should be includedin state-sponsored advertising — 49percent thought they shouldn’t. De-troit’s three casinos and the state’s17 tribal casinos had combined gam-ing revenue of more than $2 billionlast year.

EPIC-MRA polled a random selec-tion of 500 management-levelCrain’s subscribers spread across

the state during the last week ofJune. Results carry a margin of er-ror of 4.4 percent.

Many people don’t gamble butcasinos provide a place for people togo and are a draw for entertain-

BY SHERRI BEGINCRAIN’S DETROIT BUSINESS

It’s taken 12 years, but the MotorCity may finally become part of theWoodward Avenue Dream Cruise.

When the cruise began, itspanned Ferndale, Pleasant Ridge,Berkley, Huntington Woods, RoyalOak, and Birmingham. It since hasexpanded northward to Pontiac, buthasn’t moved south of Eight MileRoad.

Now, Detroit Synergy, a nonprofitdedicated to revitalizing Detroit, isplanning a road tour of seven his-toric automotive sites along Wood-

ward Avenue in Detroit on Aug. 19,the day of the cruise.

It’s also working with the HardRock Café to present “Cars and Gui-tars” at Campus Martius downtownon Aug. 17 as well as another relatedevent at the adjacent CadillacSquare if a sponsor is signed. A dri-ve-in theater or classic car show arepossibilities, said Andrea Schroed-er, who is president of condomini-um rental agency A Place Downtownand heading up the Campus Martiusevent for Detroit Synergy.

If permits filed with the city are

State cash forcasino ads?

See Survey, Page 36

MIDYEAR ECONOMIC REPORT

HowMichigan’seconomy iscoloring thegovernor’srace. See theMidyearEconomic

Report beginning on Page 11.

MORE TO COME

This is the first in a series of surveysco-sponsored by Crain’s DetroitBusiness and Honigman MillerSchwartz and Cohn L.L.P. on keybusiness issues in Michigan. Fullresults are available under thefeatures heading at the Web sitewww.crainsdetroit.com.

Groups push to add Detroitevents to Woodward Cruise

See Cruise, Page 37

Biz divided on whetherto promote

OTHER PLAYERSEPrize, Fry Inc. arejust two of thelocal stars in theinteractive-marketing industry.See Page 34.

©Entire contents copyright 2006 by Crain Communications Inc. All rights reserved

Inthe

spotlightMove could give metro Detroit’s

growing interactive-marketing industrya national name

Bertolini

GETTY IMAGES

G

See Google, Page 34

DETROIT BUSINESS MAIN 07-17-06 A 1 CDB 7/14/2006 6:44 PM Page 1

Ex-Product Safety Commissionchief joins Dykema Gossett

Hal Stratton, former chairmanof the U.S. Consumer Product SafetyCommission, has joined DykemaGossett P.L.L.C.

Stratton, 55, left the commis-sion post July 14. During his four-year tenure, he helped create aself-reporting program on defec-tive merchandise that startedwith Wal-Mart, the nation’slargest retailer. He also estab-lished an international affairs di-vision at the commission to workwith foreign consumer protec-tion agencies on import and ex-port products.

A former New Mexico attorneygeneral, Stratton will be based inDykema’s Washington office,working in the firm’s govern-ment policy and litigation depart-ments.

— Robert Ankeny

Beaumont exec to be COO at new Henry Ford hospital

Christine Zambricki, adminis-trative hospital director andchief nurse executive at BeaumontHospital in Royal Oak, has beenappointed COO of Henry Ford

Health System’s new 300-bed WestBloomfield hospital, the systemsaid on Friday. She’ll join HenryFord in early September.

Zambricki was responsible forsurgical services at Beaumont, aswell as various clinical depart-ments such as pharmacy andphysician specialty clinics. Shealso oversaw quality and clinicaloperations for more than 1,000employees.

Beaumont said that it woulddevelop its plan to find Zambric-ki’s replacement over the nextseveral weeks.

— Michelle Martinez

Survey: Small businesses hadbetter profits in 2nd quarter

Michigan small businesses sawincreased profits in the secondquarter and are planning to domore hiring as their economicoutlook has improved, accordingto a quarterly survey by the SmallBusiness Association of Michigan.

About 200 businesses are sur-veyed in areas including sales,profitability, expected businessperformance and politics inSBAM’s Small Business Barome-ter report each quarter.

Twenty-eight percent of small-business owners surveyed report-ed higher profits in the secondquarter, compared with 15 per-cent who reported increased prof-

its in the first quarter.Thirty-six percent of respon-

dents said they expect to hire ad-ditional workers in the next 12months. That’s the highest num-ber to anticipate hiring since2000, according to SBAM.

— Sheena Harrison

REM Marketing files for Ch. 7Events company REM Marketing

Group L.L.C. filed a voluntaryChapter 7 bankruptcy petitionlast week. The marketing compa-ny organized parties in conjunc-tion with Super Bowl XL, Ryder Cupand the 2005 MLB All-Star Game.

Rick Rachner, president, couldnot be reached Friday in time fordeadline. The company reportedannual sales of about $1.5 millionand eight employees. The bank-ruptcy filing reports assets of$76,188 and liabilities of $1.2 mil-lion.

— Jennette Smith

Wixom to dedicate new downtown during Friday event

Wixom this week is celebratingsix years of planning, $5 millionin public improvements andmore than $250 million in privateinvestment in its nearly 300-acreVillage Center Area district.

“Showcase Wixom” from 2 p.m.to 9 p.m. Friday will feature 14new businesses, entertainmentand a dedication ceremony for

the district on Pontiac Trail be-tween Wixom and Beck roads.

Also being featured is the $220million, 560-unit Tribute atWixom Village Center develop-ment by Farmington Hills-basedCohen Associates Inc. and Bloom-field Hills-based Robertson Bros.Co. Close to 100 homes have al-ready sold, said Assistant CityManager Tony Nowicki.

— Anjali Fluker

Social service agency breaksground on development

Latin Americans for Social andEconomic Development Inc. brokeground July 14 for renovation of ablighted block at West VernorHighway and Scotten Avenue,the first development project forthe social service agency.

The $2.75 million project reha-bilitating two buildings acrossfrom Clark Park includes 12 unitsof affordable housing and 6,500square feet of commercial space.

Financing includes $2.2 millionin low income housing, historicand brownfield tax credits and a$309,000 predevelopment loanfrom Detroit Local Initiations Corp.Also partnering in the project are

Charter One Bank and SouthwestHousing Solutions.

— Robert Ankeny

Developers’ association annualmeeting is Aug. 15-18

The Michigan Economic Develop-ers Association will host its annualmeeting at the Detroit Marriott atthe Renaissance Center Aug. 15-18.

Speakers include Wayne Coun-ty Executive Robert Ficano;James Epolito, president andCEO of the Michigan Economic De-velopment Corporation; and GeorgeJackson, president and CEO ofDetroit Economic Growth Corp.

The four-day cost for the mainconference functions and awardbanquet is $410 for non-associa-tion members and $230 for mem-bers.

Nonconference activities suchas a golf outing and tours of De-troit’s landmarks can be done fora fee.

To register for the conferenceor get more information, call(517) 241-0011 or visit www.medaweb.org.

— Bowdeya Tweh

THIS JUST INTHIS JUST IN

CORRECTIONS■ An item in the July 10 Week in Review column should have saidthat Robert Taubman had been named to the board of directors ofthe Real Estate Roundtable. An incorrect organization was named.

■ From Page 1

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July 17, 2006CRAIN’S DETROIT BUSINESSPage 2

DETROIT BUSINESS MAIN 07-17-06 A 2 CDB 7/14/2006 6:34 PM Page 1

BY MICHELLE MARTINEZCRAIN’S DETROIT BUSINESS

Dan Dirks thinks he can save the state millions byputting Medicaid recipients traveling to doctors’ ap-pointments on public buses.

By year’s end, he may be able to prove it.The Michigan Department of Human Services is looking

to a pilot program for Wayne, Oakland and Macombcounties to tell if hiring a broker to manage nonemer-gency medical transportation will trim the $8 millionthe state spent last year to provide the services, andsimplify access for enrollees. That agency is releasinga request for proposal around September.

Dirks, general manager of the Suburban Mobility Au-thority for Regional Transportation, said thatsimilar models have worked inConnecticut, Massa-

chusetts and other states for almost a decade, and thatmost have relied heavily on public transit for savings.

State-run Medicaid programs are required to pro-vide nonemergency medical transportation at a yearlycost of $2 billion nationwide.

“Based on the success of Medicaid bus pass pro-grams in other states, Michigan will save a significantamount of money,” Dirks said. “It will also give thetransit-dependent more options.”

Private medical-transportation service can cost asmuch as $50 one-way, Dirks said. Using SMART buseswould cost the state about $50 per person a month, hesaid. That could save the state about 20 percent in Med-icaid transportation costs each year, and also increasefederal matching dollars to SMART, he said.

SMART last week kicked off a campaign torally support for a .59 property tax-

millage renewal that will be on theAug. 8 primary ballot.

The local millage accounted for$49.4 million of SMART’s revenueof about $109 million for fiscal year2005, ended June 30. The systemhad $111.6 million in revenue for

2004.Here’s how the bus-pass

program would work:SMART would issue month-ly bus passes to Medicaidenrollees that would give

HEART OF THE MATTERWilliam O’Neill’s move from Beaumont mayshake up the local world of heart surgery.Among the programs looking to expand orimprove:

University of Michigan HealthSystem■ Building a $215 million,350,000-square-foot cardiovascularcenter that willemphasize a teamapproach amongrelated disciplines.

St. JohnHealth■ Has three hearthospitals designated cardiac “centers ofexcellence” by Blue Cross Blue Shield ofMichigan. ■ A fourth heart center will be built as partof the new Providence Park Hospital in Novi,slated to open in 2008.

Detroit Medical Center■ Recruited five top heart doctors to HarperUniversity Hospital two years ago and islooking to recruit more.

BY MICHELLE MARTINEZCRAIN’S DETROIT BUSINESS

The Sept. 1 departure ofWilliam O’Neill, Beaumont Hos-pital’s superstar chief cardiolo-gist, for the University of Miamihas left the Royal Oak-basedhospital withbig shoes tofill at an in-opportunetime.

Area hos-pital systemsare recruit-ing cardiolo-gists andheart sur-geons tobuild their own departments,medical chiefs say, and Beau-mont could become a primetrolling ground for the doctorsthat O’Neill recruited duringhis almost 20-year career.

“Unless Beaumont comes upwith some strong leadership …the physicians’ affiliation couldbe recruited for change,” saidTheodore Schreiber, vice presi-dent of cardiovascular develop-ment and division chief of clini-

cal cardiology for The DetroitMedical Center. “Some of the

physiciansprobablyhave astronger alle-giance toO’Neill thanto Beau-mont.”

The DMCrecruitedfive top heartdoctors to

Harper University Hospital twoyears ago and is “looking to re-cruit more to build (our heart)programs,” Schreiber said.

O’Neill announced in lateJune that he took the executivedean position at the universi-ty’s medical school in CoralGables, Fla., starting Sept. 1.

O’Neill said that the top heartspecialists he recruited arecommitted to staying, and thatBeaumont has launched a na-tionwide search for his replace-ment.

David Haines, director ofBeaumont’s heart rhythm cen-

CRAIN’SINDEX

Small Biz Solutions: Ifyou’re buying or leasingoffice space, check thefine print.Page 20.

Parkingnotincluded:At leastnot foreverybodyat newAnn Arborcondodevelopment. Page 32.

CRAIN’SINDEX

BANKRUPTCIES . . . . . . . . . 6BRIEFLY . . . . . . . . . . . . . 10BUSINESS DIARY . . . . . . . 21CAPITOL BRIEFINGS . . . . . . 6CHRISTOPHER CRAIN . . . . . 8CLASSIFIED ADS. . . . . . . . 30EARNINGS . . . . . . . . . . . . . 4LETTERS . . . . . . . . . . . . . . 8OPINION . . . . . . . . . . . . . . 8OTHER VOICES . . . . . . . . . . 9PEOPLE . . . . . . . . . . . . . . 22RUMBLINGS . . . . . . . . . . . 38SMALL BIZ SOLUTIONS . . . 20WEEK IN REVIEW . . . . . . . 38

These organizations appear in thisweek’s Crain’s Detroit Business:

Alliance Mobile Health . . . . . . . . . 37Alticor Inc. . . . . . . . . . . . . . . . . . . 12Automation Alley . . . . . . . . . . . . . . 14Beaumont Hospital . . . . . . . . . . . . . 3Berg Muirhead & Associates . . . . . 16Bluestone Realty Advisors . . . . 32, 33Book Cadillac Hotel . . . . . . . . . . . 17Borders Group Inc. . . . . . . . . . . . . . 4Bridgewater Interiors L.L.C. . . . . . . 29CB Richard Ellis . . . . . . . . . . . 15, 33Comerica Bank . . . . . . . . . . . . . . . 11Conway MacKenzie & Dunleavy . . . 28CSM Worldwide Inc. . . . . . . . . . . . 14Delphi Corp. . . . . . . . . . . . . 4, 28, 32Detroit Medical Center . . . . . . . . . . 3Detroit Regional Chamber . . . . . . . 13Detroit Synergy . . . . . . . . . . . . . . . . 1DMCVB . . . . . . . . . . . . . . . . . . . . . 17Elder Automotive . . . . . . . . . . . . . . 18Enlighten Inc. . . . . . . . . . . . . . . . . . 1ePrize L.L.C. . . . . . . . . . . . . . . . . . . 1Erickson Retirement Comm. . . . . . . 26Ernst & Young L.L.P. . . . . . . . . . . . 13Exemplar Manufacturing Co. . . . . . 29Ferchill Group . . . . . . . . . . . . . . . . 17Ford Motor Co. . . . . . . . . . . . . . . . 29Fraser Trebilcock Davis . . . . . . . . . 36Fry Inc. . . . . . . . . . . . . . . . . . . . . . . 1Gammet Interactive . . . . . . . . . . . . 36General Motors Corp. . . . . . . . . . . 19General Motors Corp. . . . . . . . 28, 29Glima . . . . . . . . . . . . . . . . . . . . . . . 1Google Inc. . . . . . . . . . . . . . 1, 12, 33Great Lakes Angels . . . . . . . . . . . . 15Greektown Casino L.L.C. . . . . . 16, 17Greenfield Village . . . . . . . . . . . . . 36Grubb & Ellis Co. . . . . . . . . . . . . . 20Hard Rock Café . . . . . . . . . . . . . . . . 1Henry Ford Health System . . . . 14, 37Henry Ford Museum . . . . . . . . . . . . 36Honigman Miller . . . . . . . . . . . . . . . 1Hospitality Advisors Inc. . . . . . . . . 17Hotel Investment Services . . . . . . . 17Ilitch Holdings . . . . . . . . . . . . . . . . 36J&K Transportation . . . . . . . . . . . . 37Johnson Controls Inc. . . . . . . . . . . 32Kenneth J. Dalto Associates . . . . . . 28Kingsley Commercial Real Estate . . 20LaFontaine Automotive . . . . . . . . . 18LaSalle Bank Midwest . . . . . . . . . . 14Lear Corp. . . . . . . . . . . . . . . . . . . . 28Lighthouse of Oakland County . . . . 15Martin Waymire . . . . . . . . . . . . . . . 16MEDC . . . . . . . . . . . . . . . . . . . . . . . 6Menlo Innovations . . . . . . . . . . . . . 15Metro Parent Publishing . . . . . . . . 20MGM Grand Detroit L.L.C. . . . . 16, 17Mich. Mfg. Association . . . . . . . . . 11Mich. State Med. Society . . . . . . . . . 6Mich. Campaign Finance Network . 13Michigan Chamber . . . . . . . . . 13, 27Michigan State University . . . . . . . 36Mike Riehl’s Roseville . . . . . . . . . . 18MotorCity Casino L.L.C. . . . . . . 16, 17Nonprofit Facilities Center . . . . . . . . 3Plante & Moran . . . . . . . . . . . . 15, 29Plastech . . . . . . . . . . . . . . . . . . . . 24Public Sector Consultants Inc. . . . . 13SMART . . . . . . . . . . . . . . . . . . . . . . 3St. John Health . . . . . . . . . . . . . . . 37Stewart Management Group . . . . . 18Suburban Collection . . . . . . . . . . . 18Tower Automotive Inc. . . . . . . . . . . 28Travel Michigan . . . . . . . . . . . . . . . 36Trustinus Inc. . . . . . . . . . . . . . . . . 15UM Health System . . . . . . . . . . . . . 37United Way of SE Mich. . . . . . . . . . . 3Universal Truckload . . . . . . . . . . . . . 4Venture Industries Corp. . . . . . . . . 28Visteon Corp. . . . . . . . . . . . . . . . . 28Woodward Ave. Action Assoc. . . . . . 37Woodward Dream Cruise Inc. . . . . . 37YWCA . . . . . . . . . . . . . . . . . . . . . . . 3

CALENDARFor a list of current

events, visitwww.crainsdetroit.com.

July 17, 2006 CRAIN’S DETROIT BUSINESS Page 3

United Way,YWCA look fornew locations

BY SHERRI BEGINCRAIN’S DETROIT BUSINESS

United Way for Southeastern Michiganis looking for a new downtown De-troit home with more open space tobetter meet its emerging role as a con-vener in the community.

The Young Women’s Christian Associa-tion of Metropolitan Detroit is also look-ing for a new downtown building —but one with less space than its cur-rent home in the former UniversityClub building on Jefferson.

United Way’s headquarters in theformer Detroit Savings Bank on Gris-wold is about 110,000 square feetspread among 13 floors, said Presi-dent Michael Brennan.

The building was built in the early1900s and donated to United Way byComerica Bank in the 1980s.

The configuration of the buildingonly allows seating for ten to 12 peo-ple per floor and doesn’t provide theopen space United Way needs for pub-lic gatherings, he said.

Parking also will become a largerissue as United Way begins to hostcommunity meetings, Brennan said.

Right now, the way the building isdesigned, at least 25 percent of theUnited Way building is surplus space,meaning it is not cost-effective, saidDiane Jones, director of the Nonprofit

Facilities Center, aUnited Way pro-gram.

“We’re certainlylooking to lessenthe employee divi-sion by floors, max-imize and openspace design if pos-sible and createstronger communi-ty convening

space,” Brennan said. A larger space would also allow

United Way to provide all its 2-1-1health and human-service call servicecenters from one building, Brennansaid.

The nonprofit is looking for 50,000to 60,000 square feet in Detroit’s cen-tral business district, he said.

“I’ve gone through this process acouple of times, both in (Washington)D.C. and in West Michigan,” saidBrennan.

“Space matters, and it can play arole on your performance, culture ofemployee attraction and retention,and your cost structure.”

The Nonprofit Facilities Centeralso is working with the YWCA to as-sess its space needs. The center re-cently awarded the nonprofit a$16,000 planning grant, said EmmaPeterson, president and CEO.

Like United Way, YWCA would liketo remain downtown, she said.

At 56,000 square feet, its current lo-cation in the old University Clubbuilding on Jefferson is much toolarge and draining the nonprofit’s re-sources, Peterson said.

“With the economy the way it is,there’s an extremely high need for peo-ple who need services,” she said. “Wewould much rather invest in program-ming than to continue to invest in thehigh operating cost of a facility.”

Wanted: Superstarcardiac surgeonBeaumont searches while others look to grow

SMART choice?Bus system makes pitch to save 20% on Medicaid transportation

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See SMART, Page 37See Buildings, Page 35

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DETROIT BUSINESS MAIN 07-17-06 A 3 CDB 7/14/2006 6:35 PM Page 1

TAKING STOCK

BY DAVID BARKHOLZAND DALE JEWETT

CRAIN NEWS SERVICE

Despite its descent into bank-ruptcy protection in 2005, DelphiCorp. slightly increased its re-search and development spendingin 2005.

The Troy-based parts supplierspent $2.2 billion on R&D last year,up from $2.1 billion in 2004, accord-ing to Delphi’s 10-K year-end finan-cial report filed Tuesday with theU.S. Securities and Exchange Com-mission.

Delphi lost $2.4 billion in 2005,compared with a loss of $4.8 billionin 2004. Revenue in 2005 totaled$26.9 billion, down 5.9 percentfrom $28.6 billion in 2004.

Research and development arekey to launching products and de-veloping new processes, Delphispokeswoman Claudia Piccininsaid. Delphi CEO Steve Millervowed to maintain R&D spendingafter Delphi put its U.S. operationsin Chapter 11 on Oct. 8.

Delphi introduced 200 productsand processes in 2005. The compa-ny employs about 26,000 engineers,scientists and technicians world-wide.

When it emerges from Chapter11, Delphi expects to be largely asupplier of automotive electronicsand major automotive modules,such as sensors, occupant safetysystems and invehicle communi-cations. Now, Delphi is shedding

commodity businesses such asspark plugs and catalytic convert-ers.

Delphi said former parent Gener-al Motors Corp. accounted for $12.8billion, or 47.6 percent, of the sup-plier’s revenues in 2005. That wasdown $2.6 billion from the yearearlier, when GM accounted for53.8 percent of Delphi’s revenue.

For the fourth quarter of 2005,Delphi lost $828 million. That com-pares with a loss of $4.9 billion inthe fourth quarter of 2004, whenDelphi restated its results due toincome-tax accounting rules.

Fourth-quarter revenue totaled$6.8 billion, down 2.9 percent froma year earlier.

From Automotive News

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STREET TALKTHIS WEEK’S STOCK TOTALS: 17 GAINERS, 55 LOSERS, 9 UNCHANGED

North Pointe Holdings Corp. $7.98 $7.47 6.83NAIC Growth Fund Inc. 8.90 8.40 5.95Meadowbrook Insurance Group 8.94 8.55 4.56Semco Energy Inc. 5.76 5.51 4.54Noble International Ltd. 14.03 13.48 4.08Valassis Communications Inc. 19.15 18.46 3.74Detrex Corp. 8.50 8.30 2.41Michigan Community Bancorp Ltd. 5.00 4.90 2.04Amerigon Inc. 8.82 8.66 1.85Michigan Heritage Bancorp Inc. 12.15 12.00 1.25

Champion Enterprises Inc. $8.60 $10.25 -16.10Somanetics Corp. 16.85 18.86 -10.66Saga Communications Inc. 8.02 8.91 -9.99Visteon Corp. 6.78 7.53 -9.96Rockwell Medical Technologies 6.99 7.66 -8.75Lear Corp. 20.16 21.87 -7.82Borders Group Inc. 17.56 19.01 -7.63TRW Automotive Holdings Corp. 25.16 27.03 -6.92General Motors Corp. 27.47 29.48 -6.82Pulte Homes Inc. 27.05 28.98 -6.66

Source: Bloomberg News. From a list of publicly owned companies with headquartersin Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks tradingat less than $5 are not included.

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EARNINGSEARNINGSArcadia Resources Inc. AMEX: KAD

4th Quarter March 31 2006 2005Revenue ....................$34,200,000 $28,600,000 †Net income ..............($1,200,000) ($6,900,000)Earnings per share ................($.01) ($.10)

12 monthsRevenue ..................$130,929,000 $105,342,000 †Net income ..............($4,711,000) ($7,434,000)Earnings per share ................($.06) ($.11)

†- Quarterly and annual numbers for fiscal year2004 ended March 31, 2005, include revenue andnet income from its predecessor company. Arcadiawas bought in May 2004 by RKDA Inc., a companyset up to acquire it.

Borders hires former Saks CEOBorders Group Inc. on Thursday

named George Jones, the formerCEO of Saks Inc. as its next presi-dent and CEO effective today.

“I am passionate about books,music and movies and truly hon-ored to lead this fine company,”Jones, 55, saidin the compa-ny’s statement.

Jones hasmore than threedecades of retailexperience, in-cluding his stintat Saks and pre-viously as presi-dent of world-wide licensingand retail for Warner Bros.

Jones succeeds Chairman, Pres-ident and CEO Greg Josefowicz,54, who announced in Januarythat he would retire from Borderswithin two years. Borders Public-Relations Director Anne Romansaid a date has not been set forJosefowicz’s retirement. He re-mains in an advisory capacity.

The chairman role will be filledby Borders board director LarryPollock, who is president of invest-ment firm Lucky Stars Partners L.L.C.

In separate statement, Ann Ar-bor-based Borders (NYSE: BGP)announced that it has lowered sec-

ond-quarter 2006 fiscal guidance.Borders now expects a consoli-

dated loss of 28 cents to 32 cents ashare for the quarter, which endsJuly 29, compared with a previouslyexpected loss of 10 cents to 20 cents.

The company said the revisedguidance reflects nonoperatingcharges, such as a $2.7 million pay-out to Josefowicz approved by thecompany’s board of directors un-der an employment agreement re-ported in January.

Other losses include $2.3 millionrelated to the closure of a distribu-tion facility and second-quartersales that fell below expectations,according to the statement.

— Sheena Harrison

Jones

Universal Truckload acquires Alabama trucking company

Universal Truckload Services Inc.(Nasdaq: UACL) on Thursdaysaid it acquired Scottsboro,Ala.-based Noble & Pitts, a truck-load carrier that provides dryvan, flatbed and freight broker-age that generated about $33million in revenue last year.

Universal is owned and con-trolled by Manuel Moroun andhis son, Matthew Moroun. Noble& Pitts will operate as part of theMason & Dixon Lines subsidiary.

The company is a transporta-tion manager for companies inthe U.S. and Canada. Its servicesinclude flatbed and dry van op-erations, and truck brokerage.

— Michelle Martinez

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The following businesses filed forChapter 7 or 11 protection in U.S.Bankruptcy Court in Detroit July 7-13.Under Chapter 11, a company files areorganization plan that the courtmust approve. Chapter 7 involves to-tal liquidation.REM Marketing Group L.L.C., 1994Twin Sun Circle, Walled Lake, volun-tary Chapter 7. Assets: $76,188.46; lia-bilities: $1,187,731.22.Renaissance Stone Works L.L.C.,13000 Lyndon, Detroit, voluntaryChapter 7. Assets: $516,566; liabilities:$1,144,166.20.JSK Corp. aka KLD Ltd. dba ManhattanCollection, 41760 Garfield, ClintonTownship, voluntary Chapter 11. As-sets and liabilities not available.PK Land Management L.L.C., 36434Groesbeck, Clinton Township, volun-tary Chapter 11. Assets: $875,000.00; li-abilities: $471,875.58.

— Compiled by Katie Maurer

BANKRUPTCIESBANKRUPTCIES

‘Less contentious’ budget set to passLANSING — It’s not

like state budget battles ofthe past.

Improved state revenue;continued spending re-straint; and savings, suchas refinancing debt, havehelped produce a budgetthat for business containsno draconian cuts, or taxor fee increases.

“It really has beenmuch less contentious in alot of ways,” said Ari Adler, presssecretary for Senate MajorityLeader Ken Sikkema, R-Wyoming.

Overall, Michigan’sgeneral-fund budget forthe fiscal year that startsOct. 1 is expected to be $9.2billion, compared withabout $9 billion appropri-ated in the current year.

House-Senate confer-ence committees lastweek approved depart-mental budgets and thefull Legislature is expect-ed to act on July 26.

The Michigan Department of Com-munity Health weathered the biggestdecrease, a $30 million reductionachieved largely through cost sav-

ings in various areas.But the budget contains no cuts

to Medicaid providers or new lim-its in eligibility; fully funds Medic-aid caseloads and provides a 2 per-cent, $16.6 million rate increase forsome services provided by physi-cians who treat Medicaid patients.

The rate increase particularlytargets pediatricians to increasepatient visits for such reasons ascheck-ups and immunizations,said T.J. Bucholz, the department’sdirector of communications.

David Fox, director of public re-lations for the Michigan State Med-ical Society, said that although the

increase “isn’t the panacea for theMedicaid situation, it is a move inthe right direction, and we hope tobuild on that in the future. TheLegislature recognized the needfor funding.”

At the Michigan Economic Devel-opment Corp., the agency’s budgetremains stable, including tourismpromotional funding unchangedfrom the current year. Lawmakersinserted a provision requiring theMEDC to contract with a Michiganresearch university to study statetourism advertising’s return on in-vestment. The study’s results aredue by Sept. 30, 2007.

In the Department of History, Artsand Libraries, the pot of state grantsfor arts and cultural organizationswill drop by $315,900, or about 3 per-cent, from the current year. Thebudget also contains language spec-ifying that the maximum grant thatcan go to any one organization is 16percent of total state grant funds,down from 17 percent in the cur-rent fiscal year. The bill suggests adrop to 15 percent in fiscal 2008.

Local governments failed in a fi-nal attempt to gain a revenue-shar-ing increase (Crain’s, July 10) witha conference committee adopting afreeze at current levels in thestatutory, or Legislature-directed,portion of revenue sharing.

And as announced June 30, the2007 budget includes an overall 3percent increase in operationsfunding for community collegesand universities, and a $210 per-pupil increase in the basic founda-tion allowance for K-12 schools.

The University of Michigan andMichigan State University receive a 3percent increase, while WayneState University gets a 2.5 percent in-crease. Oakland University receivesa 3.4 percent increase, and EasternMichigan University gets a 2.7 per-cent increase.

MEGA gets new flexibilityThe state has some new flexibili-

ty in its main tax-incentive pro-gram.

Just-signed Public Acts 281 and283, sponsored by Rep. Rick Bax-ter, R-Hanover, and Sen. JasonAllen, R-Traverse City, decreasethe number of new jobs needed toqualify for a single-business-taxcredit and allows job levels to beadjusted in existing MEGA agree-ments, if a business divests opera-tions and a successor employermaintains the jobs.

They also expand the MEGAlaw’s definition of a full-time joband broadens the type of technolo-gy businesses that qualify for acredit.

Elements of the bills could helpattract buyers for former VisteonCorp. plants, by continuing theavailability of tax credits whennew owners take over operations.

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

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Editor: I wanted to send a note over

commenting on ChristopherCrain’s recent column aboutbringing Major League Soccer toDetroit (“Let’s bring pro soccer toDetroit,” June 19). I truly enjoyedreading it and am beginning tofind people I talk to around the citywho agree with your thoughts andwould love to see the MLS in De-troit.

He suggested the Tiger Stadiumsite as a location for a new soccer-specific stadium, and I agree that’sa great choice; however, I wouldalso throw out Wayne State Uni-versity’s campus as a viable loca-tion. I’m not sure how familiar youare with the Home Depot Centerout in California, but it’s on thecampus of California State Univer-sity, Dominguez Hills and hasdone wonders for the communityand the school. It’s a great opportu-nity to put the campus “on themap” so to speak, also somethingthat Rowan University in New Jer-

sey is looking to do in partnershipwith the MLS.

Bottom line, as a proud teammember of a sports architecturalfirm (the Chicago Fire’s new stadi-um, Home Depot and the designsfor Red Bull and Real Salt Lake’ssoon-to-be homes as examples), Ihave to say it’s exciting to hearpeople talk about bringing soccerto the city.

I think the excitement of soccercould be great for Detroit and en-joyed your enthusiasm for the

sport as well as Detroit athletics ingeneral.

Leslie BroughtonMarketing manager

Rossetti Associates Inc.Southfield

Detroit redlines itselfEditor:

In reading Mary Kramer’s June26 column, “Detroit has manygreat neighborhoods, I noticedthat she left out a few facts thatmight be the reason Detroit suffersfrom “relocation redlining.”

While I agree that Detroit hassome absolutely beautiful neigh-borhoods with the quality ofhomes that don’t get built in thisday and age, Detroit also has an as-tronomical property tax millagerate and city income taxes and al-most nonexistent city services.

When shopping for homes justtwo years ago, my partner and Iconsidered Palmer Woods, Palmer

OPINION

Casinos should help state promote tourism

hould Michigan spend more tax dollars on tourism pro-motion that includes casinos? Maybe the better question

is: Should casinos help pay for tourism marketing for thestate?

The majority of Crain’s subscribers surveyed in a recentpoll don’t want more casinos to open in the state. But they’realmost evenly split on whether Michigan’s tourism promotionshould use casinos as a tourist-attraction tool.

(The survey, conducted by EPIC-MRA, was co-sponsoredby the Detroit law firm Honigman Miller Schwartz and CohnL.L.P. Full details appear in a story on Page 1.)

The three state-licensed casinos in Detroit make paymentsbased on revenue to local and state governments. But the 17 In-dian casinos operate on land considered sovereign and aren’tsubject to the same level of regulation. Originally, Indiantribes paid the state 8 percent of slot machine revenue under“compacts” with the state. Today, the tribes say they owe thestate nothing because Detroit’s casinos and the state lottery’sown keno game violate the “exclusivity” clauses in the com-pacts.

Why not find a way to persuade or require Indian-ownedcasinos to contribute toward state tourism promotion? Withnearly $1 billion a year collectively in revenue, they can proba-bly afford it. If even half of that revenue comes from slot ma-chines, the state’s theoretical share would be about $40 milliona year. Even a portion of that sum could go a long way in pro-moting tourism.

We’re feeling luckyHail to the victors!News last week that Google Inc. plans to move its AdWords

division to Ann Arbor is almost as important symbolically asit is from a nuts-and-bolts real estate and payroll perspective.

It’s also a solid home run in Gov. Jennifer Granholm’s re-election campaign.

As Andrew Dietderich and Bill Shea point out in a story onPage 1, the move could be a small tipping point in SoutheastMichigan’s growing interactive marketing sector. More inter-active marketing companies may be attracted to the region be-cause of Google’s presence.

This is a sector Michigan should seize and promote. Michi-gan offers ingredients that Silicon Valley would be hard-pressed to beat: low cost of living and salaries lower than theEast and West coasts. And now it has the most recognizable on-line brand of all: Google.

Detroit needs soccer’s energyLETTERS

OPINION

LETTERS

Water can unite us or it will di-vide us.

After 30 years of oversight con-trol of the Detroit Water and Sewer-age Department because of a federallawsuit, time is expiring on U.S.District Judge John Feikens’ tenureand, with it, his ability to controland therefore provide stability tothe department, which now servesnearly 4.5 million customersthroughout Southeast Michigan.

In 30 years, no one in the statehas had more experience dealingwith this issue than he has. Sowhen he shares his insight, we

should all sit up and takenote. In a recent opinionthat denied OaklandCounty’s motion to re-place the department’scourt-appointed specialadministrator with ajoint-management com-mittee, he wrote:

“Now, DWSD’s system,vital as it is to the healthand quality of life insoutheastern Michigan,has faced repeated challenges fromsome suburban communities whoare prevented by the state’s constitu-

tion from having any sayin the ownership or oper-ation of DWSD. At thesame time, the people ofDetroit who provide thisvaluable service arebarred by state law fromreceiving any financialbenefit or profit for do-ing so. This tension un-derlies the disputes thatcontinue to come beforethis court. This dilemma

will not be resolved by legislation orlitigation. It demands cooperationon the part of the Southeast Michi-

gan communities and the agreementby DWSD to modify the protectiongiven to it by the state’s constitutionas a part of a regional settlement.”

As the city of Detroit struggles tomeet its annual budget year afteryear, its leadership has recognizedthat the city’s responsibilities to itsresidents lay in providing core ser-vices: police, fire, and publicworks. Other services might be bet-ter operated by a private entity.

The strategy seems to be work-ing, but water and sewers are notservices that should be privatized.If Detroit residents, who own the

water department, estimated to beworth $2.3 billion by the MackinacCenter for Public Policy, were will-ing to accept an equal voice in de-termining its management fromits largest customer base — thesuburban wholesale customer —those customers should be willingto accept an additional cost of use.

That would provide the citywith a source of revenue, whichcould than be used for costly feder-al- and state-mandated capital im-provements in the water system’sinfrastructure or perhaps someother regional asset.

Crain’s Detroit Businesswelcomes letters to the editor.All letters will be considered forpublication, provided they aresigned and do not defameindividuals or organizations.Write: Editor, Crain’s DetroitBusiness, 1155 Gratiot Ave.,Detroit, MI 48207-2997.E-mail: [email protected] boards: Share yourviews in our online community.forums.crainsdetroit.com.

July 17, 2006CRAIN’S DETROIT BUSINESSPage 8

See Letters, Page 9

CHRISTOPHER CRAIN:CHRISTOPHER CRAIN: Share costs, benefits of water system

S

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July 17, 2006 CRAIN’S DETROIT BUSINESS Page 33

Google has manyoptions in site search

BY JENNETTE SMITHCRAIN’S DETROIT BUSINESS

Google is scouting sites in Wash-tenaw County for its 1,000-personoperation, and there are severalsites both in downtown Ann Arborand surrounding areas that wouldwork.

Jeff Bell, first vice president at CBRichard Ellis in Southfield, is part ofthe team assisting Google. Bell de-clined to comment on specific sitesbeing reviewed, but confirmed thecompany is looking at existingsites, or those that could be expand-ed, redeveloped or built to suit.

An analysis of data tracked byCoStar Group and conversationswith other real estate brokers high-light some options:

■ Kojaian Cos.’ Earhart CorporateCenter has 200,000 square feet avail-able, enough space for 1,000 people,in Ann Arbor Township.

■ The State Street ExecutivePark in Pittsfield Township has a60,000-square-foot building com-plete and another under construc-tion by S&N Development and therewould be space for more buildings.

■ A plan to redevelop the formerYMCA site in downtown Ann Arborcould be revised to make way for alarger office component. The devel-opers include nonprofit Hope Net-work, HDC L.L.C. of Novi and EAS Real-ty Inc. of Ann Arbor. Plans call foraffordable housing, market-ratecondominiums, and office and re-tail space.

■ The Liberty Square building at525 E. Liberty St. could be expand-ed.

■ Avis Farms South in PittsfieldTownship has room for additionalconstruction.

■ Cody Farm, a 127-acre site atState and Textile Roads in PittsfieldTownship, adjacent to Avis Farms,has space.

■ The Flint Group Inc. corporatebuilding on 27 acres at the Ann Ar-

bor TechnologyPark in Ann Ar-bor Townshipcould be expand-ed.

Google’s planis likely to in-clude one leasefor temporaryspace and anoth-er for its long-

term needs, said Neal Warling, CEOof Ann Arbor-based Bluestone RealtyAdvisors.

Another Ann Arbor real estatebroker involved in the search whoasked to remain unnamed said heexpected Google to take about 50,000square foot initially and then addspace during the next several years.He also expected that a downtownAnn Arbor site would have an edge.

Google’s digital-scanning opera-tion is at 1100 Eisenhower Place atthe Eisenhower Commerce Centernear State Street and I-94.

Jennette Smith: (313) 446-0414, [email protected]

Warling

Mexican trade seminar Aug. 24 in LivoniaGrand Valley State University’s Van

Andel Global Trade Center plansto host “Trade Mechanics withMexico” on Aug. 24 at SchoolcraftCollege in Livonia.

The program will touch on tradeinside of Mexico and with Mexico,and include legal perspectives forimporters and exporters.

The event runs from 7:30 a.m.-2

p.m. at Schoolcraft’s VisTaTechCenter.

The cost is $175 for members ofthe Van Andel Global Trade Cen-ter and $300 for non-members be-fore Aug. 17 and $50 more afterthat.

For more information, call (616)331-6811 or visit www.vagtc.org.

— Sherri Begin

DETROIT BUSINESS MAIN 07-17-06 A 33 CDB 7/14/2006 6:06 PM Page 1

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July 17, 2006CRAIN’S DETROIT BUSINESSPage 34

For companies that provide in-teractive-marketing services, thelocal auto industry supplies asteady stream of business. But in-teractive-marketing companiesalso stay in Southeast Michiganbecause of the low cost of living,high talent base and the fact thatsalaries are generally lower thanon the coasts.

Google’s presence could lead toeven more businesses to start upor relocate here, some say, andbring more interactive marketingprofessionals to Michigan.

“This isn’t going to turn South-east Michigan into Silicon Valley,”

said SteveGlauberman,CEO of Enlight-en, which devel-ops Web sitesand helps con-duct online ad-vertising cam-paigns. “But itwill bring a larg-er supply ofsmart, innova-

tive people to the area. It’ll feed anentire ecosystem.”

Ken Rogers, executive directorof Automation Alley, said thegrowing interactive marketing in-dustry in Southeast Michigan isanother thing the consortium cansell to other parts of the countryand world.

“I don’t think there’s any ques-tion that the interactive market-place is something to focus on,”Rogers said. “It’s an opportunity tocreate another market for South-east Michigan and help attract

more businessto Michigan.Let’s face it;there aren’t a lotof Googles outthere.”

Gordon Ma-comber, presi-dent and CEO ofFarmingtonHills-basedThomson Gale,

said even though his companycompetes with Google, the areawill benefit.

Gale sells databases to librariesand among its projects has beendigitizing books published in the18th century. Google is doing asimilar project for the University ofMichigan.

“When an entity like Googleshines a bright spotlight on anarea, it tends to attract more busi-

ness,” Ma-comber said.“The interactivemarketing in-dustry has nev-er been strongerin this area.”

Josh Linkner,CEO of ePrize,which special-izes in onlinepromotions

such as sweepstakes and rewardprograms, said having Googleshould help keep more of the col-lege graduates leaving to take jobsoutside of Michigan once theygraduate.

“Maybe others will start to seewhat we have known for a longtime,” Linkner said. “That Michi-gan has a terrific base of talent, agreat work ethic and is a very pow-

Google’sneighborsGoogle’s presence in Ann Arbormay be big news, but a number ofcompanies based in the area orwith local offices already engage ininteractive marketing, including:■ EPrize L.L.C., Pleasant Ridge, 230employees. Clients include HomeDepot, Coca-Cola, Procter & Gamble,Dell, American Express and Target. ■ Fry Inc., Ann Arbor, 210employees. Clients includeAmazon.com, Eddie Bauer,Brookstone, Godiva and Whirlpool.■■ Campbell-Ewald Digital, Warren,120 employees. Customersinclude U.S. Navy, U.S. PostalService, Chevrolet and Carrier.■■ JWT Detroit, Detroit, 86employees. Clients include FordMotor Co. and White CastleSystems restaurants. ■ Enlighten Inc., Ann Arbor, 80employees. Clients include Audi ofAmerica, DaimlerChrysler AG, FordMotor Co., General Motors Corp.,Sony Pictures DigitalEntertainment, Comerica, PulteHomes, Reebok and IBM.■ Clear!Blue Communications,Birmingham, 60 employees.Customers include DaimlerChryslerAG, Master Lock Towing, Dodgebrand and Mercedes-Benz brand. ■ Doner, Southfield, 50employees. Customers includeMazda, ADT Security Services, GELighting, U.S. Cellular, DuPont, La-Z-Boy, UPS Stores, AutoTrader.comand Blockbuster. ■ Arc Detroit, Troy, 20 employees.Customers of Leo Burnett Detroit’smarketing arm, include Cadillac,GM Goodwrench and Pontiac.■ MRM Worldwide, Birmingham, 7employees. Customers includeGeneral Motors Corp. ■ MichiganMall.com, Pontiac, 2employees. Customers includeMort Crim Communications, 7-Eleven, Hennessey Capital. ■ Perich + Partners, Ann Arbor, 4employees. Customers includeGeneral Motors’ alternative fuelsgroup, GMAC, Kelly Services Inc.and Mitsubishi Digital ElectronicsAmerica Inc.■■ Organic, Bloomfield Hills, did notwant to disclose number of localemployees but has 21 openpositions. Office handles interactivemarketing for DaimlerChrysler. Other agencies that conductinteractive marketing but couldn’tbe reached by deadline includeAtmosphereBBDO, Berline GroupInc., Beyond Interactive Inc., BrioAdvertising, Digitas, SMZ AdvertisingInc. and Wunderman.Also, some companies providedatabase collection, analysis andsales, including:■ ProQuest Co., Ann Arbor, 2,500employees. Collects and sellsdatabases of information mostly toeducation institutions. ■■ Thomson Gale, Farmington Hills,2,200 employees. Customers arelibraries. Gale provides databasesearch tools such as InfoTrac,which lets users browse archivedmagazine articles.■ R.L. Polk & Co. Inc., Southfield,507 employees. Providesdatabase and marketing servicesto the automotive industry.■ Infolab, Ann Arbor, 30employees. Customers includeProgressive Insurance, GeneralMotors Isuzu Commercial TruckDivision, Quicken Loans Inc.,Equifax Inc., Trans Union L.L.C.,Icom America Inc. and MadisonAdvertising Group. Infolab providesdatabases and database analysis.

Google: Move co■ From Page 1

Macomber

Linkner

Glauberman

DETROIT BUSINESS MAIN 07-17-06 A 34,35 CDB 7/14/2006 6:33 PM Page 1

ve could give local industry national boost

July 17, 2006 CRAIN’S DETROIT BUSINESS Page 35

erful place to do business.”Michael Finney, CEO of Ann Ar-

bor Spark, said Google’s decision torelocate here is an acknowledge-ment of what the area can offer.

“There was great knowledge ofthe intellectual horsepower andthe people and talent here. That’s awonderful draw for a companylike Google,” Finney said.

Todd Smith, CEO of Birming-ham-based Clear!Blue Communica-tions, said Google’s move into AnnArbor represents the transition

from old econo-my to new thatMichigan needsto go through.Clear!Blue pro-vides market-ing, event plan-ning,advertising andmerchandising.

“These guysrepresent the

new economy,” Smith said. “Theyare going to come in here and chal-lenge what have become thenorms.”

Fry CEO David Fry said hecould set up his business any-where, but the variables would notequate to what he gets in Ann Ar-bor. For example, he said, he could

go to a place likeLawrence, Kan.,and do businesscheaply. But hesaid he wouldn’tget the level oftechnical exper-tise or creative-ness that he getsin Ann Arbor.

On the flipside, he said, he

could open shop in Chicago. Butthe cost of business would be toohigh.

Fry’s company provides e-com-merce services ranging from Website development and promotion toonline order fulfillment.

Mountain View, Calif.-basedGoogle said Tuesday that it plansto hire 1,000 people during the nextfive years in the Ann Arbor areawhere it will locate its AdWordsadvertising unit.

With AdWords, companies payto have their advertisements ap-pear along with search resultswhen users type in certain words.It’s known as “pay-per-click” ad-vertising.

The headquarters for AdWords— Google’s primary revenuesource — will cost about $50 mil-lion, according to the Michigan Eco-nomic Development Corp.

David Fischer, Google’s directorof online sales and operations, saidduring a news conference thatGoogle came here because thecompany “looks to hire the bestand brightest talent available.”

Matt Stoll, client solutions direc-tor for Arc Detroit, Leo Burnett De-troit’s interactive-marking arm,said one reason Google came toSoutheast Michigan is because theauto industry is among the leadingspenders in online advertising.

“They opened (the AdWords of-fice) because they can see not onlythis great market, but from a be-havioral targeting standpoint,from a search engine standpoint,the Michigan and automotive mar-kets are primed to lead that trend,”he said.

He predicts overall advertiserspending on interactive marketingwill double over the next decade.

“This area can no longer be con-sidered a support media,” he said.“This is not a niche market. Digi-tal is a mass media.”

It’s also an industry not goingaway anytime soon as companies

UM was key ingetting Google to pick Ann Arbor

BY BILL SHEACRAIN’S DETROIT BUSINESS

The players involved in per-suading Google Inc. to put its on-line advertising headquartersin the Ann Arbor area are mak-ing sure credit is spreadaround, but it’s evident that theUniversity of Michigan played acritical role.

Michael Finney, CEO of AnnArbor Spark, said two elementsproved to be important: estab-

lished rela-tionships be-tween theuniversityand Googleand UM Pres-ident MarySue Cole-man’s workto cultivatenew relation-ships.

Coleman, who said she’sflown to Google’s MountainView, Calif., headquarters fortalks, credited the state’s $38million tax break it’s givingGoogle, the local talent pool andthe efforts of Ann Arbor Sparkand Gov. Jennifer Granholm’soffice for the deal. She also not-ed UM’s ongoing relationshipwith Google, which centers on a3-year-old project to digitize theuniversity library’s 7 millionbooks.

“We made it very clear we’dlove this relationship,” shesaid. “We’ve delivered on all ofour relationships with Google. Iexpect that this will enhance iteven more, having them in ourbackyard.”

Also key was Google founderLarry Page, a 1995 UM engi-neering graduate who’s main-tained close ties to the universi-ty. He advocated the Ann Arborarea as the site for Google’s Ad-Words unit, its primary sourceof revenue. The company wassearching for more than a year.

Google would not make Pageavailable for comment.

“I think we’re very lucky thatLarry Page went to school here.I do believe the university,from President Coleman ondown, they were able to presentan incredibly compelling argu-ment for being here,” said JesseBernstein, interim president ofthe Ann Arbor Chamber of Com-merce.

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

Smith

Fry

continue to invest in online adver-tising and presence.

For example, Pontiac-basedMichiganMall.com has seen itsmembership grow from 1,300 atthis time last year to 1,600 today.

Companies pay up to $175 a yearto be part of the company’s virtualmall that includes links to theirWeb sites.

“The great thing about the Inter-net is you can track how many peo-ple are interested in your prod-uct,” said Janis Rice, co-owner ofMichiganMall.com. “If you aren’tgetting views then you probablyneed to readdress you site design.”

Even traditional ad agenciescan’t ignore the power of interac-tive marketing.

Take Southfield-based Doner. Itworks with Mazda on online initia-tives, including a tie-in withGoogle Earth in which visitors cango to an online map of the globeand find clues as part of a contestto win a new vehicle, according toDavid DeMuth, executive vicepresident, chief strategy and inte-gration officer.

Ed Dillworth, executive vicepresident at Warren-based Camp-bell-Ewald Digital, said Google givesthe growing local industry a boostlike no other.

“There is not another brand,with the exception maybe of My-Space or YouTube, that could cometo the area that and be a biggerdraw,” Dillworth said.

Andrew Dietderich: (313) 446-0315, [email protected]

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

Finney

DETROIT BUSINESS MAIN 07-17-06 A 34,35 CDB 7/14/2006 6:34 PM Page 2

July 17, 2006CRAIN’S DETROIT BUSINESSPage 36

ment, food and other attractions,said Ed Sarpolus, vice president ofEPIC-MRA. Of those surveyed, 30percent said they did not visitMichigan casinos.

“Obviously we’re not a Las Ve-gas but there are additional attrac-

tions that can bebrought in,”said Dave Seri-no, an interac-tive-marketingconsultant forthe hospitalityindustry whowas amongthose surveyed.His Pinckney-based company,

Gammet Interactive, works on be-half of clients like hotels andtourism groups.

Serino said he’s hopeful the per-manent Detroit casino hotels willup the ante with entertainment of-ferings and work alongside otherdraws like the Fox and Gem the-aters. Beyond Detroit, Serino saidhe’d like to see much more promo-tion of Michigan’s natural re-sources, beauty and history.

“I tell people northern Michiganis one of the best-kept secrets inthe country,” he said

George Zimmermann, seniorvice president of Travel Michigan,said the importance of promotingcasinos varies by market. For ex-ample, casinos are emphasized inCleveland because because localsdon’t have an outlet for gambling.

Zimmermann said as Detroit’spermanent casino hotels are com-pleted, it will open the door tomore casino promotion.

A coalition called Tourism Improv-ing Michigan’s Economy is pushingfor the Michigan Legislature to in-crease the state’s annual promo-tional spending to $30 million from$5.7 million. Travel Michigan has atwo-year, $15 million infusion, buteven with that extra funding, theGreat Lakes State has far less towork with than many other states.Illinois, for example, has a $48 mil-lion appropriation.

“Everybody recognizes that weneed to spend a heck of a lot moreon promotion than we do,” said DonHolecek, director of the tourism re-source center at Michigan State Uni-versity. In addition to more money,other issues that need to stay top-of-mind include collaboration be-tween tourism groups and contin-ued hospitality training, he said.

Holecek said he believes Detroitand the state need to promote ex-isting assets rather than add moreattractions. Holeck said while casi-nos still are perceived as a compet-itive threat by some businesses,some of the broad-brush negativeperceptions have improved withthe rise in popularity of gambling,including online gambling.

“The general public finds casi-nos more acceptable,” he said.

Robert Russell, senior gaminganalyst with Fraser Trebilcock Davis& Dunlap in Lansing, said theCrain’s survey results show a lackof understanding on how tourismand casinos boost Michigan’seconomy. Of those surveyed, 62percent said tourism has no im-pact on their business.

Russell said casino operatorsshould improve their public-rela-tions efforts. Detroit’s three casi-

nos recorded combined gamingrevenue of $1.2 billion in 2005,making Michigan the fourth-largest U.S. casino market, accord-ing to the American Gaming Associa-tion’s annual survey.

Beyond Detroit’s building boomof three permanent casino hotels,there are lobbying efforts under-way to add more casinos in Michi-gan. Most notably, the Match-E-Be-Nash-She-Wish Band of Pottawatomiis fighting opposition groups overa new casino in Wayland Town-ship, south of Grand Rapids.

The American Indian tribe, alsoknown as the Gun Lake Tribe, has itsland-into-trust application ap-proved but the compact with thestate is on hold in the Legislature.

In New Buffalo Township, northof the Indiana border along LakeMichigan, the Pokagon Band ofPotawatomi Indians began construc-tion on its Four Winds Casino Resort,scheduled to open in mid-2007.

Also, in Battle Creek, the Not-tawaseppi Band of Huron Potawatomiseeks to place land into trust for acasino, said Eric Bush, adminis-trative manager of the Indian gam-ing section of the Michigan GamingControl Board. Bush said tribalgaming revenues are up, reportedat $983 million in 2005.

Tribal casino resorts, on sover-eign land, do not pay state taxes.Casinos established before theopening of Detroit’s three commer-cial casinos are no longer requiredto pay an 8 percent share of slot ma-chine gaming revenue to the statebecause the “exclusive rights” end-ed. Newer casinos are in court overthe revenue-sharing question.

However, tribes pay 2 percent ofelectronic gaming revenue to sur-rounding local municipalities, saidNelson Westrin, partner in thegaming and hospitality practicegroup of Honigman Miller. For ex-ample, the Saginaw Chippewa Indian

Tribe’s Soaring Ea-gle Casino & Re-sort in Mt. Pleas-

ant pays 2 percentof these gaming rev-

enues to local govern-ment entities, with the

specifics at the tribe’s discretion.Westrin said the survey results

show sentiment in Michigan to-ward casinos remains conserva-tive, yet they also show business-people recognize casinos as part ofthe entertainment to offer visitors.

The completion of permanentcasino hotels in Detroit wasranked as the top new attractionexpected to boost tourism inSoutheast Michigan. Outstate,casinos also are viewed as a criti-cal link to tourism and economicdevelopment, Westrin said.

“If you travel in northern Michi-gan or over to Traverse City, partof the expanding tourism experi-ence is the availability of casinos,”Westrin said. “All of the tribalcasinos are quite successful.”

Assuming amenities were thesame, survey respondents pre-ferred state-licensed commercialcasinos over tribal-owned casinos,but 38 percent were undecided and30 percent reported that they donot visit casinos.

Jim Townsend, executive direc-tor of the Tourism Economic Develop-ment Council, said, “Detroit, withthree major permanent casinos, isgoing to have a position.” Packagesthat highlight not only gambling,but nightlife and restaurants in themetro area will make sense.

“We’re in the midst of research,looking at the trips visitors takeand what sort of activities theybundle together,” he said.

Jennette Smith: (313) 446-0414, [email protected]

THE REAL JEWELS? MOSTLY

UP NORTH, SURVEY SAYSMichigan as a whole fared betterthan Southeast Michigan amongsurvey respondents as a place totake a vacation.Ninety-three percent recommendedthe state as a travel destination,while only half said they wouldrecommend Southeast Michigan.The top reasons among the 47percent who wouldn’t recommendSoutheast Michigan were thatthere’s “nothing to do” and “otherareas are better.”The top-rankedvisitordestinations inSoutheastMichiganamong thosepolled wereGreenfieldVillage, HenryFord Museum(right), casinosand sportsstadiums.The top-ranked visitordestinations in the state — notsurprisingly — were MackinacIsland (below) and Traverse City,followed by Detroit.Top-ranked strategies to boosttourism in Michigan were more

advertising, betterbusiness

environment, out-of-state promotion,and a positivemedia image.

Poll: Wings must stay iftaxpayers must pay

Business says no to a new Joe — at least if it requires public funding.Sixty-two percent of executives surveyed oppose using some taxpay-

er funding to build a replacement for Joe Louis Arena for use by the De-troit Red Wings. Thirty-four percent were in favor of such a plan.

Chris Ilitch, president and CEO of Ilitch Holdings Inc., the holdingcompany for the Wings, has said he’d like to make a decision by year-end on whether renovation or building a new stadium is the bestoption. The 20,000-seat arena was built in 1979 and cost $57 mil-lion.

Professionals say it could cost somewhere around $350million for all aspects of a new arena including land acqui-sition, design and construction.

The lack of public support isn’t a surprise to stadiumconsultant Lou Beer, president of First Public Corp. in Sagi-naw.

“What usually happens is governments find a way to makeit appear the cost does not fall on taxpayers,” he said. “There’sa lot of creativity.”

For example, Comerica Park and Ford Field used a combinationof private and public sources.

Ford Field’s $500 million in financing included public funding fromthe Detroit/Wayne County Stadium Authority, the city of Detroit and theDowntown Development Authority, the National Football League, and thesale of naming rights. The project also used financing arranged by theLions. Comerica Park, a $300 million project, also received fundingfrom the authority, state strategic fund, DDA and naming rights, butwas more than 60 percent privately financed by Mike Ilitch.

The stadium authority receives funding from hotel room and carrental taxes.

Nationwide, the trend is the same, with creative financing packagesthat find a way to get beyond resident opposition, Beers said.

“There are a lot of ways to skin a cat,” he said.— Jennette Smith

PHOTO COURTESY OF OLYMPIA ENTERTAINMENT

27-year-old Joe Louis Arena is the oldest of the area’s major sports stadiums.

MOTOWN

MUSIC IS STILL MAGICWe may have only heard it throughthe grapevine, but Detroit is stillMotown in the hearts and minds ofMichiganders.

Sixty-one percent of businessexecutives polled said theybelieve Detroit still has aMotown image and 20percent believe a Motownexperience center wouldbe a good draw fortourists.The idea would move

beyond what’s available atthe Motown Historical

Museum and offer expandedexhibits, live music and a chance

for visitors to star in their ownMotown studio recording.Earl Moore, owner of Detroit-basedjanitorial service Jani-King, saidsomething reminiscent ofCleveland’s Rock and Roll Hall ofFame could attract visitorsnostalgic about the Motown sound.Jim Townsend, executive directorof the Tourism EconomicDevelopment Council, said thecouncil, an arm of the DetroitMetro Convention & VisitorsBureau, is looking at a musicexperience idea and plans to shareinformation in the fall about data itis gathering through focus groupsand surveys.“Music is something that spreadsacross a lot of generations,” saidDave Serino, owner of Pinckney-based Gammet Interactive, aninteractive marketing company thatworks on behalf of clients likehotels and tourism groups.Serino said a trend toward leisurevacations with an educational twistwould help a new Detroit musicattraction. “There’s some greathistory and heritage here we canplay up,” he said. “We have a verygood product.”Nancy Cain, public-relationsmanager for Dearborn-based AAAMichigan, said a Motownexperience center would “draw onthe roots that made the Motownsound” and is an idea AAA wouldsupport.“It makes sense to capitalize onsomething that makes youunique,” she said.Other possible attractionssupported by those polled werepermanent casino hotels (31percent); an aquarium (12percent); an interactive sportsexperience venue or hall of fame (9percent); and a year-round Cirquedu Soleil-style show (8 percent). Andrea Soultanian, a WestBloomfield Township-basedmanufacturer’s representative whowas polled for the survey, said she’dlike to see a cleaned-up Belle Isle orrevived salt mine tours as draws forDetroit tourism. Hard economictimes make it difficult, but the regionneeds to do more to polish itshistorical assets, she said.“I don’t know what it’s going totake,” she said. “I certainly wishsomebody could come up with aplan.”

— Jennette Smith

Serino

Survey: Biz split on state promoting casinos■ From Page 1

DETROIT BUSINESS MAIN 07-17-06 A 36,37 CDB 7/14/2006 6:19 PM Page 1

ter, has been named interim direc-tor.

“We should be able to recruitsomeone who will take us into thenext chapter,” which will empha-size medical teams instead of indi-vidual doctors, said Leslie Rocher,chair of medicine at Beaumont.

“O’Neill was a great leader …but we’ve got more than 100 busycardiologists here,” Rocher said.“It’s a team endeavor. It’s thewhole package.”

Beaumont is spending morethan $40 million to build a heartand vascular center to bring to-gether cardiologists and surgeonswith vascular specialists to pro-vide integrated treatment, he said.That center will open in 2007.

Heart patients accounted forabout 16 percent of Beaumont’smore than 58,000 inpatient admis-sions in 2005.

O’Neill is known for pioneeringthe use of angioplasty as an outpa-tient treatment for heart attack.He made Beaumont the first in thenation to perform procedures suchas replacing a heart valve in an el-derly patient without majorsurgery, the hospital said.

And he was key to building itsheart center into one of the high-est-ranked in the nation.

U.S. News & World Report ratedBeaumont 12th for heart and heart

surgery in its 2006 listing of “Amer-ica’s Best Hospitals,” higher thanany other Michigan hospital.

University of Michigan Health Sys-tem’s heart program was 22nd onthe list and Henry Ford Health Sys-tem’s ranked 37th.

“A lot of the physicians havebeen either trained or influencedby O’Neill’s practice,” Schreibersaid. “It represents (a) big changein landscape, to the detriment ofBeaumont, I’m afraid to say.”

Short term, that’s only true ifBeaumont can’t hold onto itsphysicians, said Jeff Lutz, a princi-pal in health care life sciences at

Deloitte & ToucheUSA L.L.P. in De-troit.

Most patientsidentify withBeaumont as abrand, not withparticular doc-tors, he said.And most of thesystem’s pa-

tients are locals that aren’t likelyto look elsewhere for heart care.

“You just keep building thebrand,” he said, “and make surethat you very quickly backfill (doc-tors that leave the system).”

But Beaumont isn’t alone in try-ing to build its brand — and forvery good reason, said Shukri

David, chief of cardiology, Provi-dence Hospital in Southfield, ownedby Warren-based St. John Health.

“The market is shrinking asmore people are exiting (SoutheastMichigan) than are coming in,” hesaid. “And heart care … representsthe bulk of revenues for institu-tions.”

St. John’s three heart hospitalsare designated cardiac “centers ofexcellence” by Blue Cross BlueShield of Michigan, he said. A fourthheart center will be built as part ofthe new Providence Park Hospital inNovi, slated to open in 2008.

The UM Health System is build-ing a $215 million, 350,000-square-foot cardiovascular center that,much like Beaumont, will empha-size a team approach among relat-ed disciplines.

“The cardiologist 10 years fromnow will be different than whatyou have today,” said RichardPrager, co-director of the UM Car-diovascular Center. “This is a con-cept … that has an opportunity toset a new paradigm for care for pa-tients,” he said.

Beaumont isn’t fazed by thecompetition.

“None of us are indispensable,”Rocher said. “We will thrive.”

Michelle Martinez: (313) 446-1622,[email protected]

July 17, 2006 CRAIN’S DETROIT BUSINESS Page 37

www.crainsdetroit.comEDITOR-IN-CHIEF Keith E. CrainPUBLISHER Mary Kramer, (313) 446-0399 [email protected] PUBLISHER Christopher Crain,(313) 446-1645 or [email protected] EDITOR Cindy Goodaker, (313) 446-0460 or [email protected] EDITOR Jeff Karoub, (313) 446-0402 or [email protected] MANAGING EDITOR Michael Lee,(313) 446-0416 or [email protected] SECTIONS EDITOR Shawn Selby, (313)446-1654 or [email protected] EDITOR Nancy Clark, (313) 446-1608 or [email protected] EDITOR Vic Doucette, (313) 446-0410 or [email protected] EDITOR Anne Marks, (313) 446-0418 [email protected] EDITOR Dan Eizans, (313) 446-0473 [email protected] DESIGNER/PRODUCER Ai-Ting Huang,(313) 446-0403, [email protected] SUPPORT Anita Duncan, (313) 446-0329; Joanne Scharich, (313) 446-0419NEWSROOM (313) 446-0329, FAX (313) 446-1687 TIP LINE (313) 446-6766

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REPORTERS

ADVERTISING

Peterson said the groupprefers to retain ownership ofthe building with the help of apartner, but has posted a “forsale or lease” sign out front.

YWCA is still auditing its2005 numbers, Peterson said,but preliminarily it posted rev-enue of $2.8 million and an op-erating deficit of $208,000. Ofthat, $130,000 was depreciationrelated to the building andYWCA’s other assets, she said.

To counter the rising costs ofoperating and maintaining the1931 building which was de-signed by Albert Kahn, YWCAlast fall eliminated two full-time positions and laid off threeother employees, increased em-ployees’ health care co-pay andcut salaries across the board by5 percent, Peterson said.

The moves saved $73,563 andleft the organization with about42 full-time employees and 70part-time workers, she said.

“Obviously this wasn’tenough, so what we really haveto do now is look elsewhere,”said Peterson.

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

Buildings:Nonprofitson lookoutfor sites■ From Page 3

them access to all SMART’s ser-vices. SMART runs about 1,000trips a day on its regular bus ser-vice, and also offers small-bus andprearranged curb-to-curb service.

Riders on SMART buses cantransfer to buses run by the Detroit

Department ofTransportationand Mass TransitAuthority, whichserves Flint andGenesee County.

The cost of thebus pass wouldbe between $45and $50 a month,depending onthe services the

enrollee would need, Dirks said.He’s been pitching the idea to the

state for the past year. Once thestate selects its broker for the pilot,he’ll pitch it to them too, he said.

It may not be a tough sale.“Public transportation really

needs to be the preferred option,”said David White, president of Der-by, Conn.-based Coordinated Trans-portation Solutions Inc., a nonprofittransportation broker that helpsmanage Connecticut’s and NewYork’s nonemergency Medicaidtransit. “We look at it first.”

Using $45 bus passes for a por-tion of Connecticut’s 300,000 Med-icaid enrollees has saved that stateabout $10 to $15 a trip, he said.

The state DHS already pointspeople toward public transporta-tion as a low-cost option, but saidit’s too early to say whether theRFP will be aimed at increasingpublic transit’s share.

“The RFP is still being formulat-ed,” said Maureen Sorbet, a DHSmedia representative.

Private ambulance companieswould “gladly pass on the busi-ness” to SMART, said LaurieThiel, CEO of the Rochester Hills-based Alliance Mobile Health, “be-cause Medicaid doesn’t reimburseat the cost to provide the service.”

But not every transportationprovider wants to pass on the busi-ness to SMART.

Medicaid accounts for about 20percent of the business of Detroit-based J&K Transportation, saidJohnnie Kendrick, company presi-dent. “And right now, (Medicaid)doesn’t cover the costs of gas orour drivers,” he said.

SMART’s entry would put fur-ther downward pressure on prices,he said. J&K charges Medicaidabout $5 to $7 one-way to takesomeone from downtown Detroitto Beaumont Hospital in Troy.

Thiel said transporting Medic-aid recipients, who tend to be sick-er than other patients, may be adifficult proposition for SMART orany other provider not trained todeal with medical emergencies.

“A trip to a dialysis center for atreatment cannot be taken lightlyjust for the sake of assigning busi-ness to the lowest-cost provider,”she said.

Dirks said that althoughSMART’s buses are all equippedwith ramps or wheelchair lifts, itspitch isn’t meant to cover every-body — riders with special med-ical needs still may need to use pri-vate options, he said.

“But if we can get half or evenone-third of (Medicaid enrollees)to use the bus service, we can savethe state a lot of money,” he said.

Michelle Martinez: (313) 446-1622,[email protected]

SMART: Makes a pitch■ From Page 3

Heart: Cardiac surgeons wanted■ From Page 3

Lutz

approved, the event will in-clude live entertainment, foodand parking space for up to 200classic cars along Monroe andFarmer streets, Schroedersaid. Cars will be able to regis-ter their vehicles at www.detroitsynergy.org.

The event would run from 4-11p.m. Hard Rock and Detroit Syn-ergy are asking the city to closeMonroe between Woodward andRandolph, and Farmer betweenMonroe and Bates.

The groups hope to finalizeplanning by the end of thisweek and to get approval fromthe city by the end of themonth, she said.

Details of the road tour stillare being finalized, but carswould check in at Palmer Park,the site of the first mile of con-crete highway in the U.S. Theywould continue on to sites in-cluding the Model T AutomotiveHeritage Complex, which com-prises the Piquette Plant, thebirthplace of the Model T; andCampus Martius, where the firstelectric traffic light was erected.

Participants in the road tourare to receive discounts andgiveaways from merchantsand would be eligible for MotorCity raffle items, tours of thePiquette Plant and a commem-orative “Cruise in Detroit”dash plate.

The Woodward Avenue ActionAssociation is providing give-aways for the events, includinga map of Woodward attractionsand itineraries for day trips fo-cused on historic automotivesites and musical sites.

“I’m delighted to see thatthere is momentum and otherevents occurring along Wood-ward in different areas,” saidHeather Carmona, executivedirector of the Woodward Av-enue Action Association, apublic-private partnership thatrepresents the 10 local govern-ments along the 27-mile stretchof Woodward running fromdowntown Detroit to Pontiac.

“Tying something in down-town connected to the cruise isa natural connection,” giventhe corridor’s and city of De-troit’s automotive history, shesaid. “There’s a whole story onthe cruising era along Wood-ward, as opposed to just thecruise itself.”

Woodward Dream Cruise Inc.,the nonprofit that organizesthe cruise, may vote as early astoday on whether to host asanctioned cruise event indowntown Detroit, said DonTanner, executive director ofWoodward Dream Cruise Inc.

“The initiative we’re lookingat would be in the city of De-troit and would be an officialDream Cruise event,” he said.He declined to give further de-tails before presenting the ideato the organization’s board.

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

Dirks

Cruise:Comingto Detroit■ From Page 1

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July 17, 2006CRAIN’S DETROIT BUSINESSPage 38

WEEK IN REVIEWRUMBLINGS

Wagoner,Ghosn, meet on potentialglobal alliance

arlos Ghosn, whoheads both Renault SAand Nissan Motor Co.,

on Friday said he was look-ing forward to a “brisk ne-gotiation” with General Mo-tors Corp. once the two sidesbegin talks on an expandedalliance, Reuters reported.

Ghosn said he would meetfor dinner on Friday withGM CEO Rick Wagoner toagree on a framework fortalks on whether a tie-up be-tween the car companieswould produce importantenough savings for all sidesin order to justify a deal.

Ghosn said his initialmeeting with Wagonerwould focus on proceduralquestions for the negotia-tions, which were sparkedby a suggestion from bil-lionaire investor KirkKerkorian, GM’s largest in-dividual investor.

He said that any dealstruck with GM would haveto “reinforce” the existingNissan-Renault alliance.Renault has a controllingstake in Nissan.

State narrows field for21st Century Jobs Fund

The state has narrowed,by nearly two-thirds, thefield of contenders vyingfor up to $100 million fromMichigan’s new 21st Centu-ry Jobs Fund.

The Strategic Economic In-vestment and Commercializa-tion Board has selected 179proposals to proceed to theformal interview stage ofthe process. That compareswith the 505 proposals thatthe state originally re-ceived, seeking more than$1.1 billion in funding.

The state board will makeawards based on an indepen-dent, peer-review processconducted by the AmericanAssociation for the Advance-ment of Science, the world’slargest science and engi-neering association and pub-lisher of Science magazine.

AAAS expects to completeinterviews of contenders inAugust, and final award de-cisions are expected to be an-nounced in early September.

More information isavailable at www.michigan.org. Look under “21stCentury Jobs Fund.”

Clark Hill partner, wife die in fire at vacation cottage

Patrick Higdon, 49, a part-

ner with the law firm ClarkHill plc, and his wife, Mar-garet, 45, also an attorney,died early Monday morningin a blast and fire at a cot-tage near Ellison Bay, Wis.

Their three children sur-vived, as did Margaret Hig-don’s parents, who werestaying in an adjacent cot-tage, The Detroit News re-ported. A propane leakcaused the explosion.

ON THE MOVE■ David Adams to interim

president of the RoyalOak/Southfield campuses ofOakland Community Collegefrom interim president ofOCC’s Auburn Hills campusand remaining executive di-rector of marketing. He re-placed Martha Smydra, whoretired at the end of June.Also, Steven Reif, Royal Oakdean of academic and stu-dent services, to interimvice chancellor of academicaffairs, replacing the retiredGeorge Keith; and LloydCrews, Royal Oak dean ofacademic and student ser-vices, to interim executivedirector of student services,assuming some of Reif’s du-ties.

BRIEFLY■ Arcadia Resources Inc.

on Monday said it acquiredHollywood, Fla.-basedWellscripts L.L.C., which hadabout $5.5 million in rev-enue last year.

■ The American Bar Asso-ciation has granted Lansing-based Thomas M. Cooley LawSchool approval to establisha full, three-year juris doc-tor degree program at Oak-land University. The lawschool said in a release thatit plans to begin offeringthe degree in September.

■ Veri-Tek InternationalCorp. has closed on its ac-quisition of Georgetown,Texas-based Manitex Inc., ac-cording to a company state-ment Monday.

■ QuatRx PharmaceuticalCo. of Ann Arbor, a makerof drugs to fight endocrine,metabolic and cardiovascu-lar diseases, withdrew itsfiling with the U.S. Securi-ties and Exchange Commis-sion on July 7 to become apublic company.

■ The Adell Brothers Chil-dren’s Trust, owners of thenow-abandoned Novi ExpoCenter, has sued BlairBowman, who had leased thebuilding since 1991, claiminghe owes the trust $500,000 inunpaid rent, the Detroit FreePress reported. Also namedin the suit is KWWIK Enterpris-es L.L.C., which signed anagreement with Bowman toopen several auto dealer-ships on the site.

■ W. B. Doner & Co. hasbeen named ad agency ofrecord by Madison, Wis.-based Great Wolf Resorts Inc.

■ DTE Energy Co. said itplans to remove the listingof its common stock fromthe Chicago Stock Exchange.

■ The U.S. Department ofAgriculture and the MichiganDepartment of Agricultureseized 1,600 pounds of poul-try from a Troy warehousethis month after it wassmuggled from areas of Chi-na affected by avian flu, theDetroit Free Press reported.

The story said the ware-house supplies 300 restau-rants and Asian grocerystories in metro Detroit.Meat found at the ware-house has been destroyedby federal officials, and thewarehouse owner couldface criminal charges.

■ CMS Energy Corp. is sell-ing its west Michigan nu-clear power plant for $380million to New Orleans-based Entergy Corp., the na-tion’s second-largest nu-clear power company.

■ Meijer Inc. says it plansto open a new store in War-ren this year, and plans toopen stores next year inLenox Township and AllenPark.

■ Northwest Airlines Corp.and its flight attendants onFriday still had “a long wayto go” to reach an agree-ment on how to divvy up$195 million in annual wageand benefits cuts, the Associ-ation of Flight Attendants-CWAtold its members. A U.S.Bankruptcy judge is sched-uled today to allow North-west to impose a new con-tract if an agreement hasnot been reached. The unionsaid that move would trig-ger a strike.

Also, a federal bankrupt-cy judge in Minneapolisgranted Mesaba Airlines Inc.the right on Friday to im-pose $17.1 million in con-cessions on its 1,300 pilots,flight attendants and me-chanics. Mesaba flies asNorthwest Airlink, a regionalcommuter for NorthwestAirlines.

OBITUARIES■ Jeffery Barry, president

emeritus of Troy-basedWalsh College, died after along illness July 8. He was67.

■ Kenneth Dial, co-founderof Troy accounting firmGeisinger & Dial plc, died of aheart attack June 28. He was57.

■ John Fitzgerald, formerstate senator and chief jus-tice of the Michigan SupremeCourt, died July 7. He was 81.

■ Douglas McIntosh, aprincipal at McIntosh PorisAssociates architects inBirmingham and presidentof Preservation Wayne, an ar-chitectural preservation or-ganization in Detroit, diedof a pulmonary embolismJuly 11. He was 44.

he city of Windsor’stourism agencywould like to see the

International Freedom Festivalfireworks moved to a week-end in order to promotemore tourism, WindsorMayor Eddie Francis said.

“We (could) attract moretourists and have a three-day eventrather thanjust a day-long event,”he said.

Detroit-based The Pa-rade Co.,which putson the annualfireworks dis-play, has notyet met withthe Canadianagency, saidParade Co.PresidentJoanLeMahieu, who is a Canadi-an citizen.

“Obviously, we’re alwaysinterested in discussing col-laboration with our friendsin Canada,” she said. “Butit’s far too early to specu-late on any changes.”

Francis also has givenThe Parade Co. his blessingto solicit financial supportfrom Windsor businessesthat benefit financiallyfrom the fireworks.

“The fireworks are veryimportant to this region andto tourists,” said Francis.The city of Windsor eachyear budgets a significantamount of money for polic-ing, security, cleanup andstreet closures, “so we cer-tainly appreciate the costs

of putting on the show foreveryone’s benefit,” he said.

The past two years thecity of Windsor has helpedpay the cost of flying theCanadian flag by helicopterbefore the fireworks. Thisyear that support amountedto just under $7,500,LeMahieu said.

Globe Building may be redeveloped

The city-owned GlobeBuilding at 1801 E. AtwaterSt. is under scrutiny for re-development by GrinnellPlace Development L.L.C.

The Globe property isone of 107 city-ownedparcels within a 67-acrearea once known as thewarehouse district that fellinto disuse after a faileddesignation for casino de-velopment.

Michael Dempsey, projectmanager for the Detroit Eco-nomic Development Corp.,which is handling the prop-erty for the city, said theGrinnell Place concept is

among the best he’s seen inthe variety of proposals putforth in recent years.

“We’d like to see some-thing making use of the ex-isting building, preferablyincluding residential,” hesaid.

Grinnell Place has not yetreceived a right-of-entry cer-tificate from the DEGC butplans to pursue further in-vestigation of the site. Grin-nell Place is redeveloping a1921 furniture warehouseonce owned by Grinnell Bros.Piano Co. into lofts at 2003Brooklyn St. in Corktown.

Parts of the 55,602-square-foot former machine shopand warehouse date to 1884,according to a 2005 brown-field redevelopment assess-ment report, and the build-ing has been vacant since1999. The report says the 1.2-acre site contains severalunderground storage tanksranging from 2,500 gallonsto 20,000 gallons that wouldhave to be removed.

Stanley Cup making a 2-day stop in Detroit

The Stanley Cup is makinga two-day swing throughDetroit today and Tuesday,courtesy of Peter KarmanosJr., co-owner of the NationalHockey League’s playoffchampions, the Carolina Hur-ricanes, and chairman andCEO of Compuware Corp.

The cup will be in the atri-um of the Compuware head-quarters at One CampusMartius at 11 a.m., thenmoves to the cafeteria fromnoon to 6:30 p.m. for employ-ee photo opportunities.Monday night from 7-10 p.m.it will be at the CompuwareSports Arena in Plymouth.

Tuesday afternoon it willbe at the Children’s Centerfrom 1-2 p.m., the KarmanosCancer Institute from 2:30-3:30 p.m., the Compuwareatrium from 4-7 p.m. and inthe Hard Rock Café in theCompuware building from7-10 p.m.

RUMBLINGS WEEK IN REVIEW

Windsor wantsfireworks show on weekend

F 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 J U L Y 8 - 1 4

T C

Is there anything out there that can’tbe marketed on MySpace? Despiterecent criticism of the socialnetworking site, some politicians aremaking use of “official” pages in theirrespective campaigns. Maryland’s Allan Lichtman(myspace.com/allanlichtman), aDemocrat running for a U.S. Senateseat in Maryland, has 3,227 friendsand counting. The site features hisplatform, links to his full site andsome other tidbits, but the “splashfor change” video, which featuresLichtman cannon-balling into a pond in a fullsuit, is worth the visit alone. Other Democrats include Californian PhilAngelides (myspace.com/angelides), the statetreasurer who’s running for governor, andUtah’s Pete Ashdown(myspace.com/pashdown), who will square off

against U.S. Sen. Orrin Hatch comeNovember. Perhaps Gov. Jennifer Granholm andDick DeVos could benefit fromMySpace as part of their own adstrategy (See story, Page 12).Still, not all of the sites are positive,and many aren’t endorsed by thepoliticians themselves. Not tomention the friends added may notnecessarily reflect the same views asthe candidates. Many politicians have MySpace

profiles devoted to them. They range fromrespectful (myspace.com/russfeingold), toplayful (myspace.com/dickdevos ormyspace.com/jennifergranholm). Others aredownright vicious. You’ll need to hunt thosedown on your own.Add your favorite legislator today!

WEB WORLDDaniel Eizans

Takin’ it to the geeks

Windsor Mayor Eddie Francis thinks thefireworks would draw more on a weekend.

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