vol. 23, no. 50 december 10 – 16 ... · brian jeffersonand his wife, karen, acquired a majority...

BY AMY LANE

CAPITOL CORRESPONDENT

LANSING — Supporters of in-creased Michigan road fundingcontinue to make a strong push inthe Capitol, as the Legislature’simmediate attention turns beyondbudget crises and taxes.

Road builders and others alsoare looking at new options in the

wake of Michigan’s recent $1.5 bil-lion in tax hikes that could make asought-after increase in Michi-gan’s gasoline tax a tougher sell.

One idea: To raise Michigan’sgas tax but offset it with a reduc-tion in Michigan’s sales tax ongasoline, mitigating the pocket-book pain for motorists but send-ing more money toward maintain-ing and building roads and

bridges.Given new increases in the

state income tax and MichiganBusiness Tax, funding proponentsare looking at how to “come upwith a plan that is palatable to res-idents,” said Keith Ledbetter, di-rector of legislative affairs for theMichigan Infrastructure & Transporta-tion Association, or MITA.

The Okemos-based group repre-

sents road and bridge builders, un-derground contractors and otherconstruction interests, and is aleader of a coalition seeking in-creased transportation funding.

Ledbetter said MITA officialsand members have met with Gov.Jennifer Granholm and legislativeleaders and soon plan to present “anumber of different options … interms of how we can provide addi-tional dollars for transportation.”

In February, MITA proposed a 9-

http://www.crainsdetroit.com Vol. 23, No. 50 D E C E M B E R 1 0 – 1 6 , 2 0 0 7 $2 a copy; $59 a year

THIS JUST INTHIS JUST INGroup buys major stake in Morley Brands L.L.C.

A group of executivesand a couple from Indi-anapolis announced Fri-day the purchase of a ma-jority position in MorleyBrands L.L.C., makers ofchocolate candy andSanders products, from De-troit-based Peninsula CapitalPartners L.L.C.

Brian Jefferson and hiswife, Karen, acquired amajority stake in Morleyon Nov. 27. Four currentexecutives also becamepartners. Jefferson de-clined to disclose the pur-chase price.

Brian Jefferson, whogrew up in Royal Oak, hasprevious sales and market-ing experience in the in-surance industry with In-dianapolis-based JWF Cos.and has been an indepen-dent sales consultant forthe past 18 months. He saidhe plans to use his sales ex-perience to help Morleyboost revenue.

“I just think the peoplein Michigan love Sandersand Morley’s … . I think wehave an opportunity to se-cure more jobs for the re-gion and export somethings nationally,” Jeffer-son said.

This year, Clinton Town-ship-based Morley Brandsis expecting sales of about$15 to $20 million, downfrom about $40 million in2002.

Much of that sales de-cline is due to a decision toshut down the company’sfundraising arm, said RonRapson, president of Mor-ley Brands.

Morley acquired theSanders brand and itsrecipes in 2002 and hasopened four Sanders retailstores since then. In addi-tion, Morley has landed na-tional distribution dealswith Kohl’s and Bed Bath &Beyond, Rapson said.

Rapson said he believesthe new owners will help toreinvigorate MorleyBrands because they willbe actively involved asmanagers.

— Brent Snavely

NE

WS

PA

PE

R

©Entire contents copyright 2007 by Crain Communications Inc. All rights reserved

Dome bidder hasplans, still needsmoney, Page 3

Legal firms urgedto bulk up,1

®

See This Just In, Page 2

Push is on for road fundingShifting sales tax on gas is one option

BY BRENT SNAVELY

CRAIN’S DETROIT BUSINESS

Keith Famie, the OaklandCounty chef who became na-tionally known as a “Survivor”contestant, has staked out a sec-ond career as successful docu-mentary filmmaker.

Last year, Famie embarkedon a project called “Our StoryOf” — a series of documen-taries about metro Detroit’sethnic communities.

The first hour-long documen-tary was “Our Italian Story.”Since then, Famie has complet-ed Polish, Greek and Arab-American versions. The latest,“Our Arab-American Story,” isscheduled to air Saturday at 7p.m. on WXYZ, Channel 7.

“Our Italian Story” wonthree Emmys from the MichiganChapter National Academy of Tele-vision Arts & Sciences in May,and Famie’s programs have

See Funding, Page 24

BILL PUGLIANO

Keith Famie’s documentary on the Arab-American community is the latest for the filmmaker.

Second success

See Famie, Page 22 See HAP, Page 25

HAP joins list of opponents to Blues bills

BY SHERRI BEGIN

AND AMY LANE


Health Alliance Plan late last week joined thegrowing slate of companies and organizationslining up to oppose state legislation backed byBlue Cross Blue Shield of Michigan.

HAP is taking issue with House Bills 5282and 5283, which would set new rules in thegrowing market for individual health insur-ance.

In talking points forwarded to Crain’s, HAPsaid any initiative to reform the individualmarket should be based on three objectives:

� Reducing the number of uninsured inMichigan.

� Making health care coverage less costlyand more affordable.

� Promoting competitionin the individual market.

The Blues’ legislation fallsshort on all three objectives,HAP said.

The legislation “was craft-ed by a single carrier, per-haps disguised as a solutionfor the issue of uninsuredand the cost of individualhealth care in our market,”said Jon Clement, vice presi-

dent of finance at HAP.“But after simple analysis, it’s more a solu-

tion for the Blues,” he said.HAP’s concerns follow others raised last

week by Michigan Attorney General MichaelCox, AARP Michigan, health advocacy nonprofit

MORE ON THE WEB

You can read moreabout the peoplefeatured in KeithFamie’s documentariesand listen to an audioclip by a group of Arabicdrummers thatperformed at a recentpre-screening event atwww.crainsdetroit.com/famie.

Food paves path for chef to become filmmaker

Clement

DETROIT BUSINESS MAIN 12-10-07 A 1 CDB 12/7/2007 7:24 PM Page 1

Bureau wants businesses onDetroit’s brandwagon

A group of marketing consul-tants and business leaders willhold an event in February toshow businesses how to use the“D Brand” branding campaigndeveloped by the Detroit MetroConvention & Visitors Bureau.

The Feb. 1 D Brand Summitwill give examples of businessesthat are using Detroit’s newtourism and community develop-ment brand to support their ownbrand and business initiatives.

“Detroit is at the forefront ofboth branding itself and creatingopportunities for companies touse the brand to tell their ownstory,” said Jim Townsend, execu-tive director of Tourism EconomicDevelopment Council, an arm of thebureau.

The event will take place 8 a.m-5p.m. at The Henry Ford. Contact Di-ane Bach, [email protected] (313) 202-1949 for more informa-tion.

Keynote speaker will be authorand strategy consultant John Kao.Also speaking will be Crain’sPublisher Mary Kramer. Crain’s isa sponsor of the event.

— Daniel Duggan

Doner names new executiveGreg Clausen has joined South-

field-based advertising agencyW.B. Doner & Co.as executivevice president,chief media of-ficer.

Clausen, 44,starts todayand will be incharge of Don-er’s planning,buying, re-search and dig-

ital media groups. He replacesShane Ankeney, who left for theTBWA\Chiat\Day agency.

Clausen comes to Doner fromChicago’s Spark CommunicationsInc., where he was executive vicepresident, managing director.

— Bill Shea

Leader of nonprofit to retireJoyce Keller, executive director

of the Farmington Hills-basednonprofit JARC, announced shewill retire from her position after30 years.

JARC, which serves peoplewith developmental disabilitiesin Oakland County, has not yetfound a replacement for Keller,who plans to retire next year.

Keller, 56, said she doesn’t haveany set plans after retiring, butmay still help on a part-time basis.

Keller has been recognized forher leadership at JARC, receiv-

ing awards such as the Arc of Oak-land County Lifetime AchievementAward in 2005. JARC operates 20group homes and a variety of in-dependent living programs foradults with developmental dis-abilities.

— Leah Boyd

State, Ann Arbor Film Festivalreach settlement

The Ann Arbor Film Festival an-nounced a settlement on a federalFirst Amendment lawsuit it hadfiled against the state of Michi-gan.

The organization had chal-lenged state arts funding restric-tions. The lawsuit, filed in Marchin U.S. District Court in Detroit bythe American Civil Liberties Union onbehalf of AAFF, claimed the stateunconstitutionally punished theAAFF for screening “objection-able” films by withdrawing Michi-gan Council for Arts and Cultural Af-fairs program grants.

In exchange for the state re-pealing its restrictions on fund-ing, the Ann Arbor Film Festivaland the ACLU agreed to dismissthe case. The festival showcasesindependent and experimentalfilms; the state’s new guidelinesfor arts funding will mirror theguidelines of the National Endow-ment for the Arts.

The festival had received fund-ing from the state for 10 years pri-or to the restrictions. To recover

financially, AAFF launched anonline fundraising campaign, En-dangered, to raise $75,000 by theend of January. The campaignhas raised half the funds needed,the festival said.

— Leah Boyd

Judge approves changes in Delphi stock-purchase plan

Troy-based Delphi Corp., thebiggest bankrupt auto-parts mak-er, won federal court approval onFriday for changes to a $2.55 bil-lion stock purchase agreementwith a group led by AppaloosaManagement L.P.

U.S. Bankruptcy Judge RobertDrain in New York approved thechanges over the objections of agroup of bondholders includingSailfish Capital Partners L.L.C. andCaspian Capital Advisors L.L.C.,which argued the deal’s termswere too favorable for Appaloosa.

The changes give the investorslarger discounts on new Delphistock than in the original agree-ment reached in July.

— Bloomberg News

Tool and die supplier’s plant designated for tax abatements

Ronart Industries Inc. of Detroit, a50-year-old family business supply-ing tool and die work to the auto in-dustry, won approval last weekfrom the Detroit City Council for aTool and Die Recovery Zone desig-nation for its northeast side plant.

It’s an example of using taxbreaks to retain businesses aswell as attract new ones, said Dou-glass Diggs, director of the DetroitPlanning and Development Depart-ment.

The zone requires approvalfrom the state.

It gives Ronart local and statetax abatements on its property at19365 Sherwood near Seven MileRoad for 12 years. In exchange,Ronart agrees to provide at least21 new jobs

Ronart will get help in fillingthe positions from the DetroitWorkforce Development Departmentand Focus: HOPE, said BrianWatkins, manager of incentiveprograms for the Planning andDevelopment Department.

— Robert Ankeny

THIS JUST INTHIS JUST IN

CORRECTION

■ The Dec. 3 announcement of the hiring of Web General ManagerAlan Baker should have said that WTOL-TV’s Web site won a second-place award in 2007 in a competition of the Ohio Associated PressBroadcasters.

■ From Page 1

December 10, 2007CRAIN’S DETROIT BUSINESS

Clausen


BY DANIEL DUGGAN


Ann Arbor-based engineering firmAtwell-Hicks is bucking the economicslowdown by increasing its size and ge-ographic reach.

Revenue is up 46 percent since 2004,and the firm has opened five new officesoutside Michigan since May, includingone in South Korea.

CEO Brian Wenzel said his companylearned its lesson when the slowdown ofthe 1980s nearly sank the firm.

“At that time, they realized that theywere only focusing on one industry, one

geographical area andone group of compa-nies,” he said. “Whenthose groups sloweddown, the whole firmslowed down.”

The company hassince diversified bybecoming experts inareas such as envi-ronmental services

and consulting and broadened its scopeby branching out of Michigan.

Wenzel said the key was putting plansin place during the booming late 1990s,when the company could afford to fail.

The company opened its first officeoutside Michigan in Chicago in 2001 —which was a flop at first.

“We made every mistake in the bookand lost money in Chicago for two orthree years,” he said. “We could neverdo that today.”

Last year, the Chicago office was thehighest-earning office with $13 millionin revenue.

Company revenue has increased 46percent since 2004 to an estimated $65million for 2007.

And with offices in growth marketssuch as Florida and Arizona, the out-

BY ROBERT ANKENY


Detroit-based Miller, Canfield, Paddock and StoneP.L.C. has created an inter-disciplinary practicegroup to address climate change and global warm-ing issues for its business clients, becoming one ofa growing number of local law firms that are doingso.

Mark Bennett, who joined Miller Canfield as se-nior counsel in August, leads a team of 13 lawyers

from practices in public fi-nance, real estate, environmen-tal, government affairs and com-mercial lending.

Like many law firms, MillerCanfield sees this as an opportu-nity to offer clients service thatgoes beyond strict legal workinto comprehensive advice oncomplex issues, Bennett said.

Climate change is a criticalpolicy area affecting not only

business and industry but consumers, govern-ment and regulatory agencies, so it offers opportu-nities for law firms — as well as communities andcompanies — to make money while addressing se-rious problems, Bennett said.

“So often in law, we’ve focused on mitigatingrisks,” Bennett said, “but in the climate changearea, we’re emphasizing government incentivesand operating efficiencies that can create econom-ic return on investments in energy conservation.”

CRAIN’SINDEX

Puff piece: Workplacesmoking ban maysmolder in the House.See Capitol Briefings,Page 21.

Goingsouth:TurnaroundspecialistVanConwaysaysAtlantacould behub forcompany’sexpansionplans.Page 6.

CRAIN’SINDEX

BANKRUPTCIES . . . . . . . . . 6BRIEFLY . . . . . . . . . . . . . 16BUSINESS DIARY . . . . . . . 15CALENDAR . . . . . . . . . . . . 16CAPITOL BRIEFINGS . . . . . 21CLASSIFIED ADS. . . . . . . . 19EARNINGS . . . . . . . . . . . . . 4KEITH CRAIN . . . . . . . . . . . 8LETTERS . . . . . . . . . . . . . . 8MARY KRAMER. . . . . . . . . . 9OPINION . . . . . . . . . . . . . . 8PEOPLE . . . . . . . . . . . . . . 17RUMBLINGS . . . . . . . . . . . 26WEEK IN REVIEW . . . . . . . 26

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

American Plastic Toys . . . . . . . . . . 21

Atwell-Hicks . . . . . . . . . . . . . . . . . . 3

Blue Cross Blue Shield of Michigan . 1

Borders Group Inc. . . . . . . . . . . . . . 4

Butzel Long . . . . . . . . . . . . . . . . . . 25

Caraco Pharmaceutical . . . . . . . . . . 4

Conway MacKenzie & Dunleavy . . . . 6

Danou Enterprises . . . . . . . . . . . . . 24

Dickinson Wright P.L.L.C. . . . . . . . . 11

First Spirit Bank . . . . . . . . . . . . . . 25

General Dynamics Land Systems. . . 14

Gonzalez Design Group . . . . . . . . . 14

Health Alliance Plan . . . . . . . . . . . . 1

Honigman Miller . . . . . . . . . . . . . . 25

InspireVision . . . . . . . . . . . . . . . . . . 3

Intrepid Defense & Security . . . . . . 14

Jaffe, Raitt, Heuer & Weiss P.C. 11, 13

Kitch Drutchas . . . . . . . . . . . . . . . 11

Michigan Infrastructure &

Transportation Association . . . . . . . 1

Miller, Canfield . . . . . . . . . . . . . . . . 3

Morley Brands L.L.C. . . . . . . . . . . . . 1

Plunkett & Cooney P.C.. . . . . . . 11, 12

Slade Properties L.L.C . . . . . . . . . . 24

Sommers Schwartz . . . . . . . . . . . . . 13

Stuart Frankel Development Co. . . . 24

The Dewey Group L.L.C. . . . . . . . . . 24

The Doll Hospital . . . . . . . . . . . . . . 21

The Quell Group . . . . . . . . . . . . . . . 12

Visionalist Entertainment

Productions L.L.C. . . . . . . . . . . . . 22

Women in Defense . . . . . . . . . . . . . 14

American Plastic Toys . . . . . . . . . . 21

December 10, 2007 CRAIN’S DETROIT BUSINESS

Big shows, small prices

Goal: Solve problemswhile making profits

Silverdome bidder invokes Costco model

See Climate, Page 25

See Atwell-Hicks, Page 23

ARA HOWRANI

Jett Ferm, one of four finalists bidding on the Silverdome, wants to use the venue for outrageous events thatwill be entertaining.

Bennett

Law firmswarm toclimateissues

JETT FERM’S BUSINESS PLAN

� Costs: Ferm’s calculations for Silverdomeoperations break down to a cost of roughly$100,000 per event. Add $100,000 for thetalent, he said. � Revenue: If he can attract 20,000 people,charge $10 per person, charge $10 per car forparking (three people per car) and assume eachperson spends $10 each on concessions, itbreaks down to $470,000 per event in revenue. � Net profit: Taking out money for operationsand talent, debt service and payments toinvestors, he said a conservative estimate is anet profit of $108,000 per show; and with 100shows per year, an annual total of $10.8 million. � Memberships: In addition, Ferm plans to offermemberships at $100 each, with which familiescan get tickets for $6 rather than $10. � Other revenue streams: Ancillary businesseshe foresees would be a high-volume, low-cost gasstation on the property near Opdyke, a food-distribution business and a family fitness center.Revenue from luxury suites and signage couldcome later.

BY DANIEL DUGGAN


Few people would think to run the PontiacSilverdome the way Costco Wholesale Corp. runsits stores.

Jett Ferm does. “When I lay out my plans, people either think

I’m a genius or I’m out of my mind,” he said.“How does Costco sell beef cheaper than anyoneelse? High volume, big utilization and low over-head. That’s our plan.”

Ferm, a 55-year-old residential real estatebroker and entrepreneur, is considered thefront-runner among four final bidders for theSilverdome and 127 acres of Pontiac land. He op-erates under the name InspireVision.

Ferm wants to market outrageous events thatwill be entertaining though small enough not tobe attached to national booking agencies.

“We’re not talking Bruce Springsteen here,”he said. “We’re going for shock and awe. Peoplejumping motorcycles, monster truck shows,stunt thrill shows.

See Silverdome, Page 24

Atwell-Hicks finds revenue in diversity

Wenzel

On the Grow is afeature that willappear in most issueshighlighting growingcompanies, large andsmall. Know of acompany you thinkCrain’s should writeabout? ContactManaging EditorAndrew Chapelle [email protected].

OntheGrow

Van Conway


TAKING STOCK

BY SHERRI BEGIN


Caraco Pharmaceutical Laborato-ries Ltd. last week announced itsseventh final product approvalfrom the U.S. Food and Drug Adminis-tration since June 30.

To accommodate growth it ex-pects from new products and gainsin market share, Caraco this weekplans to break ground on a $14.5million, 140,000-square-foot expan-sion to its southwest Detroit man-ufacturing operation.

First announced in August, theexpansion will add manufactur-ing, administrative, warehousingand research and developmentspace, and will create 598 jobs.

Caraco received about $14 mil-lion worth of tax breaks from thecity of Detroit and tax abatementsfrom the state over the next 12

years for theproject.

CEO DanielMovens said heexpects thebuilding to becompleted byJanuary of 2009.

“We continueto perform verywell,” he said.“We’re ahead of

guidance at this point for the firstsix months of the year.”

Caraco late in October reportedrecord net sales for the secondquarter and first half of fiscal 2008,reflecting a 45 percent to 46 per-cent increase during each period,year over year.

Its performance outpaced itsprojections for revenue growth of

about 30 percent during the firsthalf of the year, Movens said.

Caraco last month was rankedNo. 471 on Deloitte & Touche L.L.P.’s2007 North American TechnologyFast 500 — a ranking of the 500fastest growing technology, mediatelecommunications and life sci-ences companies in North Ameri-ca — for revenue growth of 270percent between 2002 and 2006.

And Caraco is still on the fasttrack for revenue increases.

In October, the pharmaceuticalsmanufacturer reported net incomeof $4.6 million on sales of $41.4 mil-lion for the quarter ended Sept. 30,up from net income of $2.3 millionon sales of $28.3 million in revenueduring the same quarter of fiscal2007.

Increased market share of Cara-co’s existing products and its new-er products is driving revenuegrowth, Movens said.

The company has a $10 millionline of credit obtained through JPMorgan Chase Bank N.A., “whichwould allow us flexibility in ex-pansion efforts to increase our ca-pacity over the next few years,”Movens said in a statement.

The Detroit-based company Dec.5 said the FDA had granted finalapproval for a generic version ofAmlodipine, which is used to treathypertension.

“We are evaluating the market-place and internal productionplanning in an effort to monetizethis approval as soon as possible,”Movens said.

Caraco now offers 43 differentproducts, he said.

Integrated Management System

Data, cited by Caraco in a news re-lease, valued the market for theAmlodipine generic and brandproducts at approximately $550million, with 10 generic competi-tors.

Shares of Caraco (Amex: CPD)rose to $15.01 per share Dec. 5 be-fore closing at $14.70. The compa-ny’s stock had closed at $14.41 aday earlier.

Caraco’s stock price closed at$15.18 on Friday.

Last week’s approval followsCaraco’s Nov. 30 announcementthat the FDA had granted tentativeapproval for Caraco to market ageneric version of a drug thattreats patients suffering from de-pression.

Caraco plans to market Escitalo-pram Oxalate tablets as a genericequivalent to Forest LaboratoriesInc.’s Lexapro tablets, which hadU.S. sales of approximately $2.5billion for the 12-month periodended Sept. 30, according to IMSData.

“As previously disclosed, we arecurrently involved in litigationwith Forest Laboratories that willdetermine whether we may launchour generic product prior to theexpiration of these patents,”Movens said in a news release.

“Though the outcome of this liti-gation is uncertain, we remainconfident in our position and con-tinue to expect a favorable conclu-sion.”

Movens declined last week tocomment further on the litigation.

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

TAKING STOCKNEWS ABOUT DETROIT AREA PUBLIC COMPANIES

Caraco gets seventh product OKfrom the FDA, begins expansion

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STREET TALKTHIS WEEK’S STOCK TOTALS: 39 GAINERS, 32 LOSERS, 4 UNCHANGED

Flagstar Bancorp Inc. $7.26 $6.30 15.24%ArvinMeritor Inc. 11.48 10.11 13.55Energy Conversion Devices Inc. 29.20 25.87 12.87Pulte Homes Inc. 11.52 10.22 12.72Compuware Corp. 9.27 8.26 12.23Federal Screw Works. 11.90 11.00 8.18Somanetics Corp. 21.63 20.01 8.10Masco Corp. 23.93 22.40 6.83Valassis Communications Inc. 13.17 12.33 6.81Agree Realty Corp. 31.98 30.05 6.42

American Axle $19.80 $23.12 -14.36%PSB Group Inc. 10.50 12.00 -12.50Ford Motor Co. 7.06 7.51 -5.99Rockwell Medical Technologies Inc. 7.14 7.54 -5.30Dearborn Bancorp Inc. 9.50 10.03 -5.28Noble International Ltd. 15.51 16.32 -4.96FNBH Bancorp Inc. 14.75 15.50 -4.84General Motors Corp. 28.62 29.83 -4.06Veri-Tek International Corp. 6.10 6.35 -3.94Credit Acceptance Corp. 18.43 19.07 -3.36

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.

CDB’S TOP PERFORMERS

CDB’S LOW PERFORMERS

12/07 11/30 PERCENTCLOSE CLOSE CHANGE

12/07 11/30 PERCENTCLOSE CLOSE CHANGE

1.2.3.4.5.6.7.8.9.

10.

1.2.3.4.5.6.7.8.9.

10.


Movens

Company Amount Payable Record

date date

2007 2007

NAIC Growth Fund Inc. .....$.88 12-27 12-14

DIVIDENDSDIVIDENDS

Borders stores win praise Shopping at Borders stores is

fun, according to a survey of about5,000 consumers conducted by For-rester Research Inc.

Ann Arbor-based Borders GroupInc. took second place in For-rester’s “Customer Experience In-dex,” which measures customers’perceptions about U.S. retailersbased on whether the companieswere enjoyable, useful and easy towork with. The index was based onresponses for 112 companies na-tionwide. Costco took the top spot.

Borders (NYSE: BGP) was No. 1in “enjoyability” and tied for firstwith credit unions in usefulness.

— Sheena Harrison


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Crain’s picks topmergers, dealsInvolved in a merger or acquisitionin 2007?Crain’s Detroit Business will becovering the year’s M&A activity intwo ways:

M&A AwardsYou may be eligible for the firstCrain’s M&A Awards competition.Crain’s Detroit Business is workingwith the Detroit chapter of theAssociation for Corporate Growth tohonor companies and individualsin the following categories:� Best Deal of the Year – Threeawards: Up to $25 million in value;more than $25 million-$100million; and more than $100million. � Deal Maker of the Year – M&Aexperts, lenders, CPAs,consultants and attorneys, amongothers, are eligible. � Lifetime Achievement – Senior-level executive who has beeninvolved in significant transactionsand made a significant impact onthe community. � Best Minority/Woman Enterprise DealApplications for the M&A awardscan be found atwww.crainsdetroit.com/nominate.The deadline for entering is Jan.17. Winners will be announced at aMarch 13 reception and strollingdinner at the Troy Marriott andprofiled in an edition of Crain’s.

Biggest deals of 2007Crain’s will publish a list of thelargest deals of 2007 in its Jan. 28issue. Included will be mergers andacquisitions of at least $10million, commercial-property salesand the largest office andindustrial leases.For mergers and acquisitions,please submit information toExecutive Editor Cindy Goodaker [email protected] information aboutcommercial property sales andoffice and industrial leases toAssistant Managing EditorJennette Smith [email protected] a copy of the criteria, pleasecall editorial assistant AnitaDuncan at (313) 446-0329 or e-mail [email protected]. Thecriteria also are posted atwww.crains detroit.com. Thedeadline is Jan. 10.

The following businesses filedfor Chapter 7 or 11 protection inU.S. Bankruptcy Court in Detroit Nov.30-Dec.6. Under Chapter 11, a com-pany files for reorganization. Chap-ter 7 involves total liquidation.

Diamond Elite Jewelers Inc., 16205Dix-Toledo Road, Southgate, vol-untary Chapter 11. Assets and lia-bilities not available.

Jitney L.L.C., 700 E. Maple Road,Birmingham, voluntary Chapter11. Assets and liabilities not avail-able.

Specialty Medical Group P.C., 26411Southfield Road, Southfield, vol-untary Chapter 7. Assets: $0; liabil-ities: $892,884.

— Compiled by Jonathan Eppley

BANKRUPTCIESBANKRUPTCIES

Atlanta hub next in expansion of turnaround specialistsBY TOM HENDERSON


The Birmingham-based turnaround firmConway MacKenzie & Dunleavy has signed alease to expand into Atlanta as part of its planto become a national firm over the next yearor two.

Van Conway, senior managing director andco-founder, said construction of the Atlanta of-fice should be finished by the end of January.He said that office will serve as a hub for satel-lite offices that could open in Charlotte, N.C.,and Tampa by the end of 2008.

Conway said he was in Los Angeles in lateNovember to meet prospective managers of apossible office there, and said the firm is ex-ploring the opening of offices in Dallas and

Boston as well. He said he’dlike to be in at least one ofthose cities, and possiblytwo, by the end of next year.

“Los Angeles is an inter-esting market. It doesn’thave a lot of corporate head-quarters, so it’s sort of amiddle-market city, whichis our niche,” he said.

Conway MacKenzieopened an office in the Rockefeller Center inManhattan on Nov. 26 and has other offices inChicago, Dayton, Grand Rapids and Shanghai.

Greg Charleston, a senior managing direc-tor, has transferred from Birmingham to At-lanta to help run the office there. He has beenjoined by senior managing director Jeff Arm-

strong, a veteran of the Atlanta market, saidConway.

Armstrong was co-founder and managingpartner of Corporate Revitalization PartnersL.L.C., a national restructuring firm headquar-tered in New York. He led the Atlanta office.

“Atlanta is a good long-term market for us,”said Conway. “We look at both New York andAtlanta as having 10-20 people in a year. That’sa wide range. That’s where market conditionscome in, and finding the right people. We havea certain culture here, and you want to findpeople who fit it.”

He said both New York and Atlanta couldbe bigger than the Birmingham office in fiveyears. The company has 53 employees inBirmingham and 75 in all.

Tom Henderson: (313) 446-0337, thender-

Conway


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Editor: Your editorial of Dec. 3, “Gov’s

COO pick shows poor judgment,”criticizing Gov. JenniferGranholm’s appointment of DanKrichbaum as her new COO, sim-ply doesn’t get it.

When Governor Granholmlooked for a person to serve asCOO, she looked for someone whocould both oversee the executiveoffice and assist her in the imple-mentation of her economic plan.

She wanted someone who couldengage the business communityand the private sector in her ef-forts to further reform and stream-line state government and contin-ue to expand and develop the “onestop shop for permitting” effortshe announced in her State of theState address two years ago. DanKrichbaum fits that bill.

While your editorial suggeststhe governor needs someone tohelp her execute tough decisionsand deliver bad news, it should benoted that this year, the governor

did make a tough choice: She stoodfirm to prevent deep and massivecuts to health care, education andpublic safety — cuts that wouldhave made the state uncompeti-tive. She made money-saving re-forms to public employees’ healthcare and pensions and has calledfor tough new prison reforms todecrease state costs.

It was a tough call to be honestabout the fact that Michigan need-ed a mix of cuts, reforms and rev-enue to solve its budget crisis. In

the end, the state legislators enact-ed a combination of solutions justas the governor asked them to do,because they, too, knew that thekinds of deep cuts necessary to bal-ance the budget were too high aprice to pay.

Just because your paper doesn’tagree with the governor’s deci-sions doesn’t mean she needssomeone else to make them forher.

Liz Boyd

Press Secretary to the GovernorLansing

Granholm chose wellEditor:

I take great exception to the Dec.3 editorial, “Gov’s COO pick showspoor judgment,” which effectivelydismisses Dan Krichbaum’s quali-fications to run state governmentbecause he is a nonprofit execu-tive.

KEITH CRAIN:

OPINION

Clear priorities areneeded in Lansing

ow that we’ve averted one spending crisis, we’re on tothe next.

This time, as Amy Lane reports on Page 1, it’s callsfor more road funding. However, the Michigan Infrastructure& Transportation Association, a group representing construc-tion interests, appears to have backed away from an earlieridea to boost Michigan’s gas tax by 9 cents.

Instead the group is looking at offsetting a gas tax increasewith a decrease in the sales tax on gasoline. That would putmore money into a dedicated fund for roads without increas-ing consumer pain at the pump.

The move would, of course, mean that something elsewould get less funding — mostly schools, in this case. So thatbegs the question: Are roads a higher budget priority thanschool funding and other uses of the sales tax? That’s a public-policy question that deserves the kind of priority-setting dis-cussion advocated by The Price of Government, the hot bookamong policy wonks in 2005 that outlined a disciplined processfor making spending decisions within limited resources.

We’d believe the governor and the Legislature should givethis approach another look, but broaden it to look at all the ar-eas where the state spends money.

The reason? State residents are tired, really tired, of gov-ernment by lobby, government by name-calling and govern-ment by exhaustion. Before we get further into another gruel-ing year of dealing with difficult state finances, state leadersneed to step back and do the hard work that would force deci-sions about priorities and foster better spending within them.

Don’t rush bills on account of the BluesAnother area where some stepping back would be in order

is House Bills 5282 and 5283, which set new rules for health in-surance policies for individuals.

The Blue Cross/Blue Shield-backed bills sailed through thestate House of Representatives in October but have since facedrapidly accumulating opposition (See story, Page 1).

The bills appear to be designed to treat the Blues like a pri-vate insurer without the Blues having to give up nonprofit sta-tus. While it is true the Blues are required to serve as the in-surer of last resort, it is also true they are compensated at leastin part for that by not having to pay taxes.

Understanding the true import of the bills is important —the need for individual health coverage is growing — and theSenate needs to spend time making sure that it does.

We believe part of that process should be a thorough re-view of the Blues’ finances to determine if there is, in fact, aproblem. Then it can be determined if changes in the law needto be made.

KEITH CRAIN:

Krichbaum a good choiceLETTERS

OPINION

LETTERS

I had asked our folks in our owncompany if they could please getan on/off switch for my phone.

When I’m talking to people, itwould be nice if the phone didn’tring during a personal discussion.

They seem to be having a prob-lem trying to solve what I thoughtwas a simple request, so I decidedto take matters into my ownhands. That’s always a mistake.

Our phone system is calledAvaya, so trying to be a 21st centu-ry executive, I thought the simplething to do would be to find its Website. I was successful, and after

spending far too muchtime scrolling and click-ing, I fell back on theother possibility: I foundits phone number andcalled.

You have to know thatanyone in the phonebusiness would really begood at phone calls,right? These folks wereawful. First I got achoice of six categories,none of which suited my request.Then I was given a choice of whoknows how many more. All the

while, they are playingthe worst music I’veever heard. Finally, afterwaiting on hold for fourminutes, I got my firsthuman being.

She actually found ouraccount, but quickly ad-mitted that this was notin her realm but shewould transfer me to theright department thatcould take care of my is-

sue. I told her my name and phonenumber. I wasn’t going to wait onhold for another four minutes, and

perhaps if I didn’t get through shecould have someone call me. She as-sured me that she would have some-one call me.

After waiting for three minutes, Ihung up and no one from Avaya hascalled me. I just wanted to knowhow to turn off the ringer. If youdon’t believe my tale, call them at(866) GO-AVAYA. I dare you.

Meanwhile, I am becomingmore and more irritated with tech-nology taking the place of cus-tomer service. I really get madwhen I’m put on hold and they tellme how important my call is to

them, but everyone is busy soplease wait. If my call was impor-tant to them, whoever they mightbe, they’d hire more people to an-swer the phone.

I tried to call someone at Fordthe other day. It was almost impos-sible. They wanted to know every-thing about my intentions, andthat was after a menu of selectionsand monitoring and Spanish, andby then I said the heck with it all,it wasn’t important.

Sometime when you don’t haveanything else to do, call your of-fice. You might be surprised.


Crain’s Detroit Businesswelcomes letters to the editor.All letters will be considered forpublication, provided they aresigned and do not defameindividuals or organizations.Letters may be edited forlength and clarity.Write: Editor, Crain’s DetroitBusiness, 1155 Gratiot Ave.,Detroit, MI 48207-2997.E-mail: [email protected]

Technology is simply against me

N

See Letters, Page 9


December 10, 2007 CRAIN’S DETROIT BUSINESS Page 21

Smoking ban maysmolder in House

LANSING – A proposed statewideban on workplace smoking may onlysmolder in the Senate, after passingthe state House last week.

House Bill 4163, which would bansmoking in most Michigan places ofemployment, including bars, restau-rants and private workplaces, facesopposition in the Republican-con-trolled Senate.

Senate Majority Leader Mike Bish-op, R-Rochester, “has been veryclear, he’s not interested in addition-al government regulation on smalland independent businesses,” said

Bishop’s press sec-retary, Matt Mars-den. “The propri-etors of theseestablishmentsshould have theability to decidewhether or not al-lowing smoking intheir establish-ment is a benefit ora hindrance.”

The bill, whichpassed the House

56-46, exempts certain cigar bars andtobacco retail stores, casino gameroom floors, bingo halls and horseracing tracks.

New bills may change requirementsfor gift cards or certificates

Bills setting new requirements forbusinesses that issue gift cards andcertificates are making their waythrough the Legislature.

House Bills 4050, 4317 and 4680would prohibit the sale of gift cardsor certificates that expire in less thanfive years, prohibit inactivity andservice fees, and require retailers todisclose all terms and conditions topurchasers.

The bills recently passed the House,in tandem with a bill previouslypassed by the Senate that would ex-empt retailers and other issuers from arequirement that they send unspentamounts from cards and certificates tothe state after five years.

That Senate measure, SB 388, is im-portant to business issuers that other-wise could oppose the package and thatsee the House bills as unnecessary.

Gov. Jennifer Granholm is urgingthe Legislature to pass the measures.

Package of bills would spurdowntown redevelopment

A package of bills designed to spurredevelopment of downtown areasthroughout Michigan is queuing upin the Senate.

The 15-bill package will includemeasures that:

■ Allow the state’s neighborhood en-terprise zone law, currently used tolower taxes on residential property, tobe used to renovate or build hotels.

■ Permit the property tax rate fordowntown condominiums and apart-ments to remain at predevelopmentlevels until the units are sold or rented.

■ Create a category of tax-free re-naissance zones for retail develop-ment.

■ Allow downtown development au-thorities to assist with retail-leasehold-er improvements. DDAs could also op-erate retail business incubators.

■ Provide expedited processing of

state liquor permits. The fee wouldbe $500 for 10 days; $1,000 for five.

Part of the package, Senate Bills 970-980, was introduced Thursday. Addi-tional bills are expected by January,and the Senate Commerce andTourism Committee expects to starthearings early in the year.

COMINGS & GOINGS

■ Valdemar Washington, owner andCOO of Flint dispute-resolution firmSettlemate Inc., has been named deputytreasurer for local government ser-vices in the Michigan Department ofTreasury. He fills a post vacated in Juneby Gregory Pitoniak, who became execu-tive director of the Southeast MichiganCommunity Alliance.

■ James Holcomb, chief of staff toHouse Minority Leader Craig De-Roche, R-Novi, has been named vicepresident of business advocacy and as-sociate general counsel at the MichiganChamber of Commerce. He assumesmost of the duties previously held byRich Studley, who became the cham-ber’s executive vice president in 2006.

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

CAPITOL BRIEFINGSAmy Lane

HOW THE MICHIGAN BUSINESS

TAX SURCHARGE WILL WORKOn Dec. 1, the Legislature passedand Gov. Jennifer Granholm signedinto law a new surcharge on theMichigan Business Tax. Thesurcharge replaces Michigan’s now-repealed tax on services.Here’s how it will work as businessescompute the MBT:■ Determine what portion ofbusiness income and gross receiptsis taxable in Michigan. Businessincome is the part of federal taxableincome derived from businessactivity.■ Multiply those figures by therelevant MBT tax rates: 4.95 percentfor income for most companies and0.8 percent for gross receipts. Thesurcharge is 21.99 percent of the sumof the results for most businesses. Thesurcharge rate for financial institutionsis 27.7 percent in 2008 and 23.4percent after that; insurancecompanies don’t pay a surcharge.Companies can qualify for a 1.8percent income tax rate if they haveless than $20 million in gross receipts,$1.3 million in total income and$180,000 in single-owner income.

Surcharge facts:� The surcharge will end in 2017 ifMichigan has positive personalincome tax growth in any one of thethree years before that.� There is a $6 million cap on thetotal surcharge any business wouldpay in a single tax year.� The Michigan Department ofTreasury estimates that about70,000 of Michigan’s 250,000businesses will pay the surcharge.Businesses with less than $350,000in gross receipts don’t have to file orpay the MBT, and businesses withgross receipts between $350,000and $700,000 pay the tax at agraduated rate.

For more information:The Michigan Department of Treasurywill post information on the taxchanges on its MBT Web site atwww.michigan.gov/mbt.

HAP: Objects to Blues legislation■ From Page 1

Consumers Union, the United AutoWorkers, Aetna and other com-mercial insurers and the Michi-gan Osteopathic Association.

The Blues say competitorsare insuring primarily healthyindividuals, leaving the Blues,which must insure anyone whoseeks coverage, to hemorrhagemoney on the sickest cus-tomers. Others say the bills arewritten to protect the interestsof a single insurer — the Blues— and that consumers ultimate-ly will have fewer choices if thebills become law.

Cox contends the bills cripplethe state’s ability to regulate theBlues’ rates.

“There’s a lot of rhetoric outthere,” said Helen Stojic, publicrelations director at Blue Cross.“We’ll be glad to sit down andtalk to people and help them un-derstand why this legislation isgood for the individual market-place,” she said.

“Blue Cross is incurring mas-sive losses, and the regulation islax for the rest of the market.This legislation would imposethe same sort of regulations onall carriers” while maintainingthe Blues’ status as an insurerof last resort, she said.

The Blues’ individual insur-ance bills and two others, HB5284 and HB 5285, passed theHouse in October.

They also include a proposalthat the Blue’s for-profit sub-sidiary, the Accident Fund Insur-ance Co. of America, be allowed tobegin selling other types of in-surance beyond workers com-pensation.

The Blue Cross legislation isbefore the Senate Health PolicyCommittee, where chairmanTom George, R-Kalamazoo, saysit will get a thorough look.

The committee plans to hold ahearing Wednesday to receivean overview of the individualhealth insurance market, butGeorge said the committee willnot take up the specifics of thebills until January.

He said he expects to hold sev-eral hearings, as opposed to theone hearing the bills received inthe House.

George said he is aware ofconcerns raised by competitors,the attorney general and others,and said he is “interested inhearing about all of those con-cerns,” as well as the Blue Crossarguments for the bills.

“As a legislator, my interestis finding what is going to workto promote the health of the peo-ple of Michigan. I’m at the pointwhere I’m going to be approach-ing this with an attitude where Iwant to hear all the arguments,”

George said.Matt Marsden, press secre-

tary for Senate Majority LeaderMike Bishop, R-Rochester, saidBishop wants to “make surethat we do our due diligence inexamining every aspect of theproposed legislation, and thenwe’ll move forward from there.”

One of HAP’s largest con-cerns is that the proposed legis-lation would make organiza-tions such as HAP — which,like the Blues, offers communi-ty-rated medical coverage to in-dividuals without healthscreening and without regard toage — share in the potentiallosses Blue Cross would realizein its offering of individualproducts, Clement said.

The legislation, according toan analysis circulated by BlueCross in Lansing, calls for thecreation of a Blue Cross-admin-istered Guaranteed Access Planthat would be funded by assess-ments levied on insurers. BlueCross would pay for startupcosts and absorb losses throughthe first two years.

Thirty-four other states oper-ate these types of high-risk

plans, and 29 of them have somesort of assessment to help fundthe pool, such as a tobacco taxor an assessment on all carriersin the state, Stojic said.

As an HMO, HAP has offeredcoverage to individuals since itsinception, Clement said. “Wedon’t like the idea of beingforced to underwrite someoneelse’s losses when we’re essen-tially in the same position.”

The insurance industry as awhole should make recommen-dations on improvements in theindividual health market, hesaid. “We feel strongly thatsome of those improvementsmight include … that every car-rier offers the same benefits,”Clement said.

HAP takes issue with a num-ber of other points in the pro-posed legislation, including aproposal to define the accept-able loss ratio for individualhealth plans, other than theGuaranteed Access Plan, as 70percent, meaning that 70 centsout of every dollar would getspent on claims.

“Our target loss ratio onthese products is more in theneighborhood of 92 percent,”Clement said. The proposed 70percent loss ratio “(would give)the Blues the opportunity tohave triple the administrativecosts.”

The Blues proposed a 70 per-cent loss ratio because it wasthe highest mandated ratio inother states, Stojic said.

The Blues currently spends$1.27 for every dollar it takes in,or a 127 percent loss ratio, shesaid.

“The reason we were interest-ed in loss ratios is currently thefor-profit insurers have a 55 per-cent minimum loss ratio in thestate,” Stojic said.

The new ratio would meansome carriers operating at low-end loss ratios would have topay more in claims to meet the70 percent mandate, she said.

“We want to have a level play-ing field for all the carrierswhen it comes to regulation.One way to do that is to have aloss ratio that’s mandated inthis law,” Stojic said.

The legislation also would ex-pand the number of people eligi-ble to buy an individual policy.Employed individuals who nowpay more than 50 percent oftheir premium through groupcoverage would be able to shoparound for an individual plan.

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

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

BILLS AT A GLANCEHouse Bills 5282 and 5283,which would set new rules in thegrowing market for individualhealth insurance, includeproposals to: � Limit the amount that insurerscan raise for individual rates atrenewal.� Require that all insurers payinto a newly created, Blue Cross-administered GuaranteedAccess Plan and pool that wouldoffer insurance to people whohave been denied coverage. � Have Blue Cross cover theadministrative costs of the planand the costs incurred forlosses in the pool’s first twoyears.� Require other insurers tomake contributions to the poolbased on their market share,beginning in its third year. � Define the acceptable lossratio for individual health plansother than the GuaranteedAccess Plan as 70 percent,meaning that 70 cents out ofevery dollar would get spent onclaims.� Change the definition of anindividual in Michigan to make itpossible for people who mightotherwise be covered undersmall-employer plans to getcoverage through the individualmarket.� Alter the rate filingrequirement for Blue Cross andenact new rate scrutiny andlimits on insurers.

The American Civil LibertiesUnion of Michigan is buying abuilding in Midtown as part ofan expansion that will includedoubling its staff and opening asatellite office in Grand Rapids.

Growth of the civil rights or-ganization is being supported in

part by $2.5 million being grant-ed by the ACLU national head-quarters, Executive DirectorKary Moss said. The ACLU isselling its current building at 60W. Hancock, where her staff of14 has outgrown its space.

Under the expansion plan, the

ACLU is near closing on the8,000-square-foot Arts Buildingat 2966 Woodward Ave. Termswere not disclosed.

RFP Associates Inc. is the realestate company handling thedeals.

— Robert Ankeny

Michigan ACLU chapter buys building in Midtown Detroit


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December 10, 2007CRAIN’S DETROIT BUSINESSPage 22

Famie: Films bring second success■ From Page 1

drawn strong ratings when theyhave aired. Famie’s path to film-making was an unusual one.

At 22, he was chef de cuisine atthe acclaimed Chez Raphael inNovi, and by the late 1980s heopened Les Auteur in downtownRoyal Oak, a move that helpedlaunch the city’s rebirth as arestaurant center.

“That was the hottest place inthe city,” said Matt Prentice, CEOof Bingham Farms-based MattPrentice Restaurant Group. “Keithhas always been quite the show-man. He is a very bright guy. He isa very well-schooled culinarian. Ithink he used his showmanship topromote his credibility as a chefwhen he was at a really youngage.”

Famie later transformed Les Au-teur into Durango Grill, a “cowboy”restaurant that closed in the mid-1990s. He then became executivechef at Forte in Birmingham whenit opened in 1996.

Throughout the 1990s, Famiewas involved in producing a vari-ety of food programs for television.Famie established Visionalist Enter-tainment Productions L.L.C. in 1998and unwittingly began to lay thegroundwork for a second career.

“I was doing at the time a lot ofnews segments, but I would tryand always go and film things indifferent parts of the world thatwere film adventure stuff,” Famiesaid.

He landed a half-hour show onWDIV, Channel 4, called “Famie’sAdventures in Cooking.”

Then, in 2000, Famie landed aspot on “Survivor II: The Aus-tralian Outback,” a CBS show that

would catapult him into house-holds around the world.

“Survivor” was then the biggestshow on television. And eventhough Famie’s most notable mo-ment on Survivor was cooking ricethat fellow cast members com-plained about, Famie said the ex-perience helped him land a showon the Food Network called “KeithFamie’s Adventures,” a show thatlasted for 32 episodes.

Getting behind the cameraUntil that point, all of Famie’s

television experience was relatedto food, and most of it was withFamie in front of the camera.

“My first behindthe camera experi-ence, which Iseemed to enjoymore than being oncamera, is when wedid ‘Ice Warriors,’” Famie said.

Filmed in 2005,“Ice Warriors” fol-lows the Red WingsAlumni team as theytour Russia andplay seven hockeygames against re-tired Russian hock-ey greats. Famiewas immediatelyhooked.

“I was so thrilledabout telling thisstory,” Famie said. “I really neverthought I’d ever be doing anythinglike this.”

Prior to filming “Ice Warriors,”Famie’s father, who had been suf-fering from Alzheimer’s diseaseand had adopted Famie when hewas 6 weeks old, died.

“When he died and took his lastbreath and I was there holding hishand, I was still just kind of dumb-founded by the fact of — this is it? ”

That loss of his father promptedFamie to dust off an old idea hehad set aside a few years earlierthat was originally called “Rags toRiches.”

Famie renamed it “Our Story Of”and set off to catalog the stories ofmetro Detroit’s immigrant eldersand the commu-nities theyhelped create.

Now 47,Famie has par-layed his experi-ence into aknack for get-ting people totalk aboutdeeply emotion-al struggles.

“Keith is no stranger to televi-sion production,” said MarlaDrutz, director of programming atWXYZ. “But I think he has reallyhoned his skills. I think if youspecifically look at the story-telling, the editing and the photog-raphy — it’s all first class.”

WXYZ broadcasts the “Our Sto-ry Of” documentaries commercialfree and typically airs them at 7p.m. on Saturday or Sundayevenings.

Both the Italian and Polish docu-mentaries drew household ratingsof between 5 and 7, or between100,000 to 140,000 households, thesame rating that WXYZ typicallydraws during that time slot.

Drutz said WXYZ charges Famiefor the airtime, but declined toshare the specifics.

“I think the fact that Keith trav-els to his destinations, and somuch of the program is shot on lo-cation, that I think it is visuallyvery stimulating and extremelywell-produced.”

In “Our Greek Story,” Famieand his crew follows Despina Kar-takis to visit her childhood town ofGalatas, Crete, where she hid in acave during WWII while the Nazisbombed her homeland.

During the film, Kartakis pointsto the cave where she hid and de-scribes how shrapnel from a bombdestroyed her lower jaw and tore

through hershoulder.

“In all of thedocumentaries,I look for that‘Oprah’ moment… where some-thing we film re-ally engages theviewer andhelps makethem feel closeto that culture,”Famie said.

But whileFamie has aknack for find-ing people toprofile andprompting themto tell their sto-

ries, he said he hates the process ofraising money to fund the films.

In 2006, Visionalist’s total rev-enue from “Our Italian Story” wasabout $175,000, Famie said. Thisyear, Visionalist’s annual saleswill top about $600,000.

Key members of Famie’s teamare Detroit freelance writer ChrisKassel; cinematographer KevinHewitt; Visionalist director ofbusiness relations Bill Harvey;and Kinetic Post, a video editing,sound and production company inSouthfield.

Famie said it costs between$200,000 and $250,000 to create eachfilm. However, that is a shoe-stringbudget. Famie said many of thepeople he works with charge lessthan their normal professionalfees because they believe in thevalue of the project.

Raising fundsMuch of the money raised from

past projects is spent immediatelyon filming the next installments.

Russell Ebeid, president of theglass group of Auburn Hills-basedGuardian Industries Corp., said he de-cided to help fund the Arab-Ameri-can project by donating $150,000 ofhis own money after being ap-proached by an Arab communitygroup and viewing “Our ItalianStory.”

“I thought, well, this is a way ofhonoring my parents and memori-alizing the attributes they gave mybrother and I,” said Ebeid, aLebanese-American.

But while Ebeid’s support was atremendous help for the Arab-American installment, Famie saidit might have been impossible tocomplete any of the projects with-out the support of Toni WisneSabina and her restaurant compa-

Drutz

See Famie, Page 23

In all of thedocumentaries, I

look for that ‘Oprah’

moment . . . wheresomething we film

really engages the viewer.

Keith Famie”

“

DETROIT BUSINESS MAIN 12-10-07 A 22,23 CDB 12/7/2007 4:58 PM Page 1

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side offices bring in a much largershare than before.

In 2005, Michigan represented 75percent of the company’s revenue,said COO Daniel McNulty, com-pared to a forecast of 30 percent thisyear.

They’ve further honed niches lo-cally, focusing on ways to help theowners of real estate assets makeuse of them in the down market.

“It’s one thing to remove a fewmanhole covers for a client,” Wen-zel said. “It’s another thing whenthey can’t get to the point of devel-oping because of the market, andwe can help solve their problems.”

In addition to adapting its ser-

Atwell-Hicks: Learns a lesson, finds revenue in diversity■ From Page 3

ny, Epoch Restaurant Group.Wisne and Epoch have donated,

on average, about $50,000 to eachproject, Famie said.

Famie’s ties to Wisne are deep.Her family owned Chez Raphael,and Forte is part of the EpochRestaurant Group.

Epoch benefits from the spon-sorship relationship because thepre-screening events take place atthe Rock Financial Showplace,where Epoch has an exclusivecatering contract, said Steve Sabi-na, Wisne Sabina’s husband.

But Sabina said they also be-lieve in the value of the project.Plus, both are Polish and wantedto support the Polish installment.

Next year, Famie plans to com-plete Indian, Jewish and Japanesesegments of “Our Story Of.” Also inthe planning stages are Chaldeanand African-American versions. Infact, Famie says there are 24 differ-ent ethnic communities in Detroitthat he would like to document.

“The hardest part is we shoot onfaith. I have no money raised (forthe next installments), but wecan’t set our schedules. Societysets our schedules,” Famie said.

For instance, Famie was filmingHanukkah celebrations last weekeven though he has barely begunfundraising efforts in the Jewishcommunity.

Because it is so difficult to findfunding, Famie and Visionalist arebranching out into projects withhigher profit potential.

Famie has begun a film called“Saving America,” a documentaryabout Arabic doctors who work inU.S. hospitals, and wants to do adocumentary called “Seeing in theDark,” which would profile peoplewho have achieved success despitebeing blind. Famie believes thesefilms may appeal to PBS or TheLearning Channel.

With all of these projects underway or in the planning, Famie nowdoubts he will ever return to thekitchen full time.

“That was an exciting part of mylife. ‘Survivor’ was a fun part of mylife. But this is something that I cantruly say is emotionally gratifyingon another level,” Famie said.

Brent Snavely: (313) 446-0405;[email protected]

vices, the company has looked foropportunities and followed them.

Opening the South Korea officeis an example.

Wenzel said the company stakedout the niche of doing environmen-tal services for dry-cleaning compa-nies in the Chicago market. He esti-

mates 80 percent of the dry-cleaningcompanies are owned by people ofKorean descent.

Atwell-Hicks found the only twoKorean hydrogeologists in thearea and hired them, eventuallytaking 75 percent of the dry-clean-ing work in that market.

In learning about the industry,Atwell-Hicks formed a relation-ship with Kung Yung Engineering,one of South Korea’s major plan-ning, engineering and architectur-al companies.

“That led to bigger projects,”Wenzel said. “And we eventuallyopened an office there.”

The key, he said, is to keep look-ing for opportunities for growth.

“You can’t turn it off,” he said.“If you’re not growing, you’re dy-ing ... and if you’re staying thesame, you’re just dying slowly.”

There is more growth to be foundin the local market that a companylike Atwell-Hicks is missing, howev-er, said Doug Brown, director ofbusiness development withBrighton-based ASTI Environmental, alocal competitor, offering environ-mental consulting services.

“They can pack up, open officesin Korea, Tennessee or wherever,but we’ll dig in and market thisstate to outside investors,” he said.

“I’m not sure which approachworks the best, both seem to beworking.”

Wenzel said the company’s grow-ing national presence lends theability to develop corporate rela-tionships at the national level withcompanies that want to work inmultiple markets.

Learning the importance of lo-cal talent goes back to some of theChicago flops.

“Zoning, utilities is somethingthat requires local knowledge,” hesaid. “No matter what, real estateis a local business.”

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

Famie:Successful■ From Page 22

If you’re notgrowing, you’re

dying.Brian Wenzel, Atwell-Hicks

”“

DETROIT BUSINESS MAIN 12-10-07 A 22,23 CDB 12/7/2007 4:58 PM Page 2

“They’re out there.”He would also book self-help speakers who

would give presentations after the mainshows. The speakers, often trying to sellbooks or programs, would pay to speak tothose who chose to stay around after the mon-ster truck show.

In general, he said, there hasnever been an all-out effort tomarket the Silverdome. With afew more investors signed, hesays the Silverdome will be his.

He plans to cut out companiessuch as Ticketmaster and Live Na-tion, charge people $10 per showand hold two shows per week.

“We’ll buy the clients, takethe price down so low that theyhave to come, then make themoney off concessions,” he said.

Also in the running for thesite is a plan by Pontiac-based developersRobert and James Slade for an Indian casino.

Allen Park-based Samir Danou — who bid onthe Silverdome in 2002 — is proposing a horseracing track, indoor water park and hotel.

And a partnership between Bloomfield Hillslawyer H. Wallace Parker and Mid-America Asso-ciates CEO Richard Mazur proposes a horseracing operation combined with a casino.

A source close to the decision-makingprocess said the Pontiac City Council likes thatFerm will leave the Silverdome intact, is offer-ing more money than the other bidders, andwon’t need to jump through the regulatory hur-dles needed for horse racing or a casino.

Working against Ferm, the source said, ishis plan to finance the $30 million he offeredPontiac.

The city has set a deadline of Thursday forthe bidders to lay out their financing plans.

For Ferm to prove he can finance the dealwith private investors, he has to first furnishletters of credit to the city. He says he hasfound a lot of interest and expects investors tosign this week.

He was able to disclose only one of them toCrain’s.

The Dewey Group L.L.C., a $25 million invest-ment firm based in West Bloomfield, has

agreed to invest in the project, said David T.Dorsey III, director of acquisitions.

“He has a plan that makes sense, it soundslike a decent project and has a level of risk wecan tolerate,” Dorsey said, though he declinedto disclose how much was invested.

Ferm also has a powerful ally in KarlKrapek, former CEO of Con-necticut-based United Technolo-gies Corp. and currently on theboard of directors for Van Bu-ren Township-based Visteon,Paris-based Alcatel-Lucent, At-lanta-based Delta Airlines andNewark-based Prudential Finan-cial Inc.

Krapek said he has been offer-ing business advice and callinginvestors on Ferm’s behalf. How-ever, he is not an investor, hesaid, because he is involved in so

many other endeavors. “I like his idea, I like his business model,”

Krapek said. “It’s just crazy enough that itmight work.”

Ferm met Krapek during Ferm’s eight-yearcareer at General Motors Corp. When Krapekleft GM to join United Technologies and headthe company’s Otis Elevator subsidiary, Fermfollowed but left three years later to help hisfather and brother start a commercial real es-tate business in Delaware. He helped developa 300,000-square-foot office park and a 250,000-square-foot self-storage complex. Later, he de-veloped a small residential project.

In 1993, Ferm moved back to the Detroitarea and started a residential real estate busi-ness, The Skyward Group in Royal Oak, withwhich he continues to be involved.

Operating a venue is something Ferm hasnever done. He claims to have a known entityin the event-booking world involved in theproject, but it doesn’t want to be identified un-til the plan is approved by the city.

Though the plan needs to clear more hur-dles, Ferm won’t consider it a long shot.

“If I thought this was a long shot, I’d quit,”he said. “I’m with this until the bitter end.”

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


cent gas tax. The increase wouldbe phased in at 3 cents a year overthree years and was part of apackage of measures to generate$1 billion annually in road fund-ing. A possibility might be to low-er the 6-cent Michigan sales taxon gasoline by 1 cent a year overthree years to offset the corre-sponding increase in the gas tax,Ledbetter said.

Other ideas being consideredinclude capturing more revenuefrom vehicle registration fees andending transfers of MichiganTransportation Fund money toother departments.

Such transfers include $20 mil-lion annually that helps pay forMichigan Department of State ser-vices, a $2 million diversion inthis year’s budget to the MichiganDepartment of Corrections for in-mates to clean up roadways, Led-better said.

Paul Tait, executive director ofthe Southeast Michigan Council ofGovernments, said in terms of tax-es, SEMCOG’s first choice is astate gas tax increase. But local-option taxes are another alterna-tive that might “be easier to sell,”

he said.Tait said the

debate overroad funding“absolutelyneeds to heatup.” SEMCOGhas a full-timestaff person inLansing lobby-ing on trans-portation, the

first single-issue employee Taitsaid he has had in the Capitol.

“We’re really looking at a fullcourt press to get more attentionto this issue. Not that we ever re-ally set it down,” he said. “We justknew it was pointless to talkabout any type of tax when theLegislature was appropriately all-consumed with balancing” thebudget.

Sarah Hubbard, vice presidentof government relations at the De-troit Regional Chamber, said shehopes the Legislature can turn totransportation and other issuesearly next year.

But she added that Michigansoon will enter another budget

cycle, beginning withGranholm’s budget presentation.There are already concerns about

revenue, and“this Legisla-ture hasn’tshown itselfadept at multi-tasking,” Hub-bard said.

One factorthat could pushthe road fund-ing debate in

Michigan is that the law authoriz-ing federal transportation fund-ing expires in fiscal 2009. The en-suing reauthorization couldheighten the need for more statedollars, Hubbard said.

Liz Boyd, Granholm’s presssecretary, said the governor isaware of discussions on Michiganroad funding solutions, but hercurrent focus is on working withother governors at the federal lev-el to secure a higher return of gastax dollars sent to Washington.

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

THE FINAL FOURPontiac City Council narrowed the field of bidders down to four proposals. They mustdemonstrate financial backing by Thursday, otherwise other offers will be considered.

Silverdome: Plan offers big shows for small prices■ From Page 3

Funding: Backers push Legislature■ From Page 1

Tait

Michigan roads at a glance

Bloomfield attorney H. Wallace Parker andMid-America Associates CEO Richard MazurUse: Thoroughbred horse track and casino.Bid for land: $7.5 million.Project cost: $20 million.The Dome: Knock down one side, extend itto accommodate indoor horse racing.Financing: Won’t disclose.Challenge: Casino component requiresstatewide approval by voters, horse trackrequires state approval.Upside: “We looked at tracks in Maryland,West Virginia and Indiana that bring in $177million per year,” Parker said. “The areaneeds a thoroughbred track.”

Pontiac-based Slade Properties L.L.C.Use: Indian casino, convention center, hoteland retail.Bid for land: $10 million up front andanother $10 million if gaming license isobtained.The Dome: Use as a venue while obtaininga casino license.Project cost: NA Financing: Seeking financial backing fromnational gaming companies. Challenge: Indian casinos require approvalby Michigan in addition to participation ofCongress and U.S. government.Upside: “We grew up in the city of Pontiacand feel this would be a catalyst to get thecity moving again,” said Robert Slade, whopartnered with his brother, Jim, on theproposal. “This would generate 2,000 to3,000 jobs and $30 to $50 million per yearin revenue.”

Samir Danou, owner of Allen Park-basedDanou EnterprisesUse: Thoroughbred race track, indoor waterpark, Major League Soccer field.

Bid for land: $5 million plus unspecifiedincentives.The Dome: Modify to house indoor waterpark.Project cost: NAFinancing: NAChallenge: Obtaining horse racing permit,attracting a soccer team.Upside: “Young people and families areflocking to these type of indoor waterparks,” Danou said. “It’s what the siteneeds, what the city needs.”

Jett FermUse: Entertainment venue.Bid for land: $30 million.The Dome: Spend $35 million to upgrade.Project cost: $200 million. Financing: Private investors.Challenge: Finding private investorsUpside: “This plan will make use of theSilverdome and be something that bringspeople together in the community,” saidFerm.

On the sidelines:Troy-based Stuart Frankel Development Co.submitted a bid after the initial deadline forbids. The city has decided the Frankel bidcannot be considered unless the first bidsare dismissed. Use: Convention center, research office andindustrial park and retail.Bid for land: $9.4 million.The Dome: Demolish.Project cost: NAFinancing: NAChallenge: Coming in as a late bidder.Upside: Major developer, can show trackrecord of completing large-scale commercialreal estate developments.

How they’re fundedState motor-fuel taxes, motor-ve-

hicle registrations and fees, andfederal highway fuel taxes. Thecurrent year state road and bridgeprogram has a $1.3 billion budget,down $300 million from the previ-ous year.

The decline is due partly to theapproaching end of a three-yearGranholm administration pro-gram that accelerated local roadprojects around the state, but alsoto a drop in gas tax collections.

According to the Michigan De-partment of Treasury, gas tax collec-tions totaled $906.2 million in fis-cal 2006, down $16.2 million fromthe previous year. Estimated gastax revenue for fiscal 2007, whichended Sept. 30, was $891 million.

What they costRoad construction costs have

risen about 43 percent since 2004,driven partly by higher prices forcommodities such as steel, cement,petroleum and natural gas, saidBill Shreck, director of communi-cation at the Michigan Departmentof Transportation.

In addition, debt payments frompast road bonding eats into fund-

ing. According to M-DOT, debt ser-vice was $187 million in 2006,$158.3 million in 2007 and is expect-ed to be $188 million in fiscal 2008,about 14 percent of the $1.3 billionroad budget.

Shreck said bond programs un-der former Gov. John Engler andGov. Jennifer Granholm filled im-portant needs, but “the more wespend in bonding, the less we cando in current road funding.”

Goals metThe good news: M-DOT has hit a

milestone, meeting and slightly ex-ceeding its 10-year goal of having90 percent of the state network ingood condition by 2007.

But the achievement may beshort-lived. M-DOT’s new five-yeartransportation plan predicts that,based on anticipated future fund-ing, freeway pavement conditionwill begin deteriorating, reachingabout 87 percent in good conditionin fiscal 2010 and 79 percent ingood condition by 2014.

Non-freeway good pavementconditions are expected to declineto 88 percent by 2010, and 70 per-cent by 2014.

— Amy Lane

Hubbard

The city has seta deadline of

Dec. 13 for thebidders to lay

out theirfinancing.



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Climate: Law firms warm to issues■ From Page 3

Other major Detroit law firms agree thatlawyers need to address a changing landscape inthese practice areas, and most are doing so.

“Been there, done that,” said Alan S. Schwartz,CEO and chairman of Honigman Miller Schwartzand Cohn L.L.P. “That is, we’ve had such a group

for a while.”An Investment Incentives

and Tax Savings practice wasestablished in 2004, chaired bySteven Nadeau, and Honigmanrecently created an alternativeenergy group headed by SandyRing. Each group has 15lawyers.

Both practice groups workwith companies whose busi-nesses involve regulating,

patenting and marketing new energy sources aswell as ways to take advantage of tax breaks andfederal grants while they address environmentalconcerns, Nadeau said.

Larry McLaughlin, who heads Honigman’sreal estate practice, said his firm regularly advis-es clients on developments such as incentives forgreen real estate practices.

At Detroit-based Butzel Long, Beth Gotthelf,who heads the environmental practice, said, “En-vironmental law practice isn’t the old environ-mental law it used to be, focusing on pollution,Super Sites and wetlands.

“We’re doing energy, climate change and glob-al warming issues, with ethanol plants and R&Dson alternative fuel. And on new construction, it’s‘What can we do to make buildings more energyefficient and what kind of credits are there if wemake them more green?’ ” she said.

With lawyers needed for contracts, financialdeals and regulatory compliance, it makes sensefor law firms to offer a total package on such is-sues, Gotthelf said. “We are seeing much moreclearly that environmental practice touches allaspects of life and is in every discipline.”

Understanding and using tax incentives is oneway to assist businesses with climate change is-sues, Bennett said. But when the U.S. implementsa carbon-regulatory scheme, it will have botheconomic and technological impacts beyond legaland regulatory compliance, he said.

The European Union’s use for several years ofclimate change regulations gives a perspectiveon how U.S. businesses can productively incorpo-rate such issues into commercial transactions.

For instance, assigning a price to a ton of emit-ted carbon dioxide impacts the value of real es-

tate because carbon emissions caused by electric-ity consumption become an occupancy cost fortenant or landlord that can be built into a lease,he said. “We can address this additional risk orreward in a lease for both landlord and tenantclients,” he said.

Lawyer Michael Gerrard of New York city-based Arnold & Porter L.L.P. said that municipali-ties are under a lot of political pressure, assources of emission, as regulators and as buyersor sellers of credits.

He predicts that growth in climate change ac-tivity will be spurred, “if and when Congressadopts mandatory regulatory laws, which I ex-pect to happen in 2009 and 2010 … whether thenext president is a Democrat or Republican.”

Earlier this year, President Bush announcedthe administration’s new stance on global cli-mate change, and some segments of the publicand Congress are pushing for more action.

Gov. Jennifer Granholm on Nov. 14 created aMichigan Climate Action Council to develop plansto reduce the state’s energy use by 10 percent bythe end of 2008 and to reduce electricity purchasesby 20 percent by 2015. She also called for growth inthe alternative energy industry and for the state toestablish Renewable Portfolio Standards, all areasthe Miller Canfield team addresses.

The Miller Canfield climate change team alsowill work with business, industry and governmentclients on sustainable development includingLEED certification. LEED is the Leadership in En-ergy and Environmental Design green buildingrating system established by the Washington, D.C.-based U.S. Green Building Council to set standards forenvironmentally sustainable construction.

Also on the team’s agenda, Bennett said, is:waste-to-energy project certification; carbonemission reduction credits; voluntary emissionreductions transactions on the Chicago ClimateExchange and over-the-counter markets; publicnuisance litigation alternative energy projects;and bio-refinery regulations, among other cli-mate issues.

Team lawyers in metro Detroit, along withBennett, are Amanda Van Dusen, Mike McGee,Ronald Hodess, Anna Maiuri, Duncan Ogilvieand Jean-Vierre Adams.

Based in Lansing are William Danhof, HarveyMessing, James Lancaster and Bree PoppWoodruff .

Trent Taylor is in Grand Rapids and PaulDurbin is in Chicago.

Robert Ankeny: (313) 446-0404;[email protected]

BY TOM HENDERSON


Organizers of First Spirit Bank, a proposedcommunity bank that plans to target smallbusinesses in the Hispanic and African-Ameri-can communities in southwest Detroit, saythey are back on track with fundraising andnow hope to open their long-delayed headquar-ters on Michigan Avenue by the end of April.

The bank recently got commitments of up to$1.5 million in equity funding from three mu-nicipal pension funds, is negotiating for an in-vestment of nearly $1 million from a state ven-ture capitalist, and has engaged the respectedGrosse Pointe investment banking firm of Don-nelly Penman & Partners to finish fundraising.

Organizers hope to raise $10 million, but saythey can finish the build-out of their headquar-ters in the Brinker Building, on Michigan Av-enue at West Grand Boulevard, and open theirdoors with a total of $8 million.

Counting the commitments by the pensionfunds and the $1.2 million the founders invest-ed, the bank has raised about $3 million, ac-cording to Donald Snider, chairman of First Spir-it Bancorp Inc., the bank’s holding company, and

president and CEO of De-troit-based Paper Plas Inc., anauto supplier.

Plans for the bank were an-nounced in September 2004,with an opening planned forlate 2005. But approval fromthe state’s Office of Financialand Insurance Services wasn’tgranted until December 2006,with approval by the Federal

Deposit Insurance Corp. coming in January.As fundraising stalled, a planned opening for

the second quarter this year was pushed backto the fourth quarter and then into 2008. But theaddition of Donnelly Penman to the fundrais-ing team signals serious progress, say other lo-cal community bankers.

One of Donnelly Penman’s specialties is rais-ing money for community banks. It claims tohave helped 13 banks in the U.S. raise morethan $118 million in the past six years.

This year, it helped Level One Bancorp Inc. ofFarmington Hills raise $16.7 million, First Michi-gan Bancorp Inc. of Troy raise $11.1 million andValley Group Ltd. of Saginaw raise $4.7 million.

Managing Director John Donnelly confirmedinvolvement with First Spirit but declined tocomment further because of U.S. Securities andExchange Commission rules barring public pro-motion of private placements.

“When Donnelly Penman gets on board, thatadds a lot of creditability. It’s like somebodysprinkling you with holy water,” said DavidWidlak, chairman and CEO of Mt. Clemens-based Community Central Bank.

First Spirit’s CEO and President is LawrenceJones, hired on Nov. 26. He has a 35-year bank-ing career and most recently was chief admin-istrative officer of commercial banking forTroy-based LaSalle Bank Midwest N.A.

Ronald Yee, director of the Wayne County Em-ployees Retirement System, said his board votedNov. 26 to make a matching investment of 5 per-cent of what First Spirit raises, up to $500,000.

Earlier, Detroit’s General Retirement Systemand its Police & Fire Retirement System eachmade the same commitment. First Spirit alsogot an investment of $25,000 from Detroit-basedHome Federal Savings Bank.

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

Legal expert spentyears in business

Mark Bennett, 44, the head of Miller,Canfield, Paddock and Stone P.L.C.’s newclimate change group, has expertiseranging from environmental law to realestate development work, includingventure capital and corporate forma-tion, mergers and acquisitions.

What he doesn’t have is law firm ex-perience.

Before joining Miller Canfield, hisonly law firm experience was as a clerkat Detroit-based Barris Sott Denn & DrikerP.L.L.C. for less than a year while in lawschool. Rather than climb the classicladder from associate to partnership, heundertook a series of business ventures.

While still in law school, Bennett de-veloped Toxicheck Environmental Informa-tion Services, an environmental databasesystem that detailed contaminated sites.

Merging Toxicheck with Connecticut-based Environmental Data Resources Inc.,Bennett served as president of EDR for10 years. Bennett then founded and wasCEO and chairman of Merchant InternetGroup Inc. in Royal Oak from 2000 to 2004,developing Web site-based e-mail mar-keting campaigns.

From 2005 until joining Miller Can-field in the summer, he was managingpartner of Birmingham-based PembrokeVenture Partners L.L.C., a real estate in-vestment group that redevelopedbrownfield properties.

Michael Gerrard, a partner at NewYork City-based Arnold & Porter L.L.P.,said he considers Bennett to be a leadingauthority on climate change in the U.S.

“Mark has become particularly well-known for his expertise in environmen-tal disclosures and due diligence work,”he said.

Gerrard, who chaired the 10,000-mem-ber American Bar Association Environ-ment, Energy, and Resources Section in2004-2005, said he’s seen the area evolveand grow since he started environmen-tal law practice in 1979. “It startedaround 2002, and there is more witheach passing year.”

Still, “it’s really difficult distinguish-ing press releases from real practice,”Gerrard said.

— Robert Ankeny

Schwartz

First Spirit Bank back on track to open headquarters

Snider



WEEK IN REVIEWRUMBLINGS

State Houseapproves helpfor strugglinghome owners

he state House onTuesday passedHouse Bills 5443-5447,

which would offer lower-in-terest, fixed-rate loansthrough the Michigan StateHousing Development Authori-ty to some home owners.

One program would helphome owners who have anadjustable-rate mortgagethat is increasing or pro-jected to increase, while an-other would help homeowners at risk for losingtheir homes.

The initiatives would befunded by the sale of bonds,and home owners would beresponsible for paying offthe full value of their refi-nanced mortgages. The pro-grams are designed to helplow- and moderate-incomeborrowers who meet othereligibility criteria, such ashaving a good overall credithistory.

The bills now go to theSenate.

ON THE MOVE

� Teri Takai, director of thestate Department of Informa-tion Technology, will becomedirector of the new Office ofthe CIO for the State of Califor-nia. Gov. JenniferGranholm has appointed

KennethTheis tosucceedher.

Theishas beena seniorexecutivein the de-partmentsince itscreation

in 2001, most recently aschief deputy director.

� Nicholas Hevron, a 43-year veteran of the bankingand finance industry, has re-tired from his position as se-nior vice president and CFOof Oxford-based Oxford Bank.

OTHER NEWS� Gov. Jennifer

Granholm on Friday an-nounced that The WellnessPlan was approved as a Fed-erally Qualified HealthCenter, which will allowthe center to expand its ser-vices by providing primarymedical care reimbursedby Medicare and Medicaid.

� Chicago-based private-equity firms Code Hennessy& Simmons L.L.C. and TheEdgewater Funds have ac-quired Farmington Hills-based American Laser Cen-

ters L.L.C. for an undisclosedamount. Caribou CoffeeChairman Gary Graves wasnamed as CEO, succeedingfounder Rich Morgan, whoretains some ownership inthe company and will servein an advisory role.

� Lawmakers on Dec. 1repealed the 6 percent ser-vice tax due to take effectthat day and replaced itwith a surcharge on thenew Michigan BusinessTax. (See Page 21) Business-es that assessed the tax dur-ing its short life on Satur-day need to return it tocustomers or to the state.

� Gov. JenniferGranholm last Mondaysigned an executive orderrevoking the declaration ofa financial emergency inHamtramck, in the wake ofimproved city finances andfinancial management.

� Continental AG ofHanover, Germany, saidMonday it has completedits purchase of Siemens VDOAutomotive AG from SiemensAG of Munich for $16.7 bil-lion. The acquisition willaffect about 1,600 Michiganemployees, the majority ofwhom work in the two com-panies’ North Americanheadquarters in AuburnHills.

� Demolition work hasbegun on the former DetroitFree Press printing plantsite along the Detroit Riverrecently acquired by the De-troit RiverFront Conservancy.The plan is to make way forexpansion of the city’sRiverWalk.

� The Detroit Belle IsleGrand Prix generated $53 mil-lion in direct economic im-pact over Labor Day week-end, according to a studyreleased Wednesday by theDetroit Metro Convention andVisitors Bureau. The studysaid 28 percent of race atten-dees came from outside thetri-county region.

� A United Auto Workerslocal representing 17,000state-employed human ser-vices and administrativesupport workers has rati-fied a three-year contractwith the state that calls fora 1 percent base pay in-crease in 2009 and a 3 per-cent increase in October2010, according to a news re-lease from UAW Local 6000.

� The Macomb CountyClerk has certified a propos-al that reduces the numberof county commissionersand lays the groundwork tocreate an elected county ex-ecutive. The proposal, slat-ed for the May ballot, goesbefore the county commis-sion in January.

� A Robert Half Interna-tional survey of chief infor-mation officers at 200 com-panies in the Detroit areafound that 13 percent expectto increase hiring of IT pro-fessionals during the firstquarter of 2008. About 5

percent expected hiring todecrease. Some 82 per-centanticipate no change.

� Dayton-based Care-Source has closed on its pur-chase of Okemos-based Com-munity Choice Michigan,which provides Medicaidservices to more than 49,000members.

� The U.S. Small BusinessAdministration reported lastMonday that JPMorganChase was the No. 1 lenderof SBA-backed loans toMichigan businesses forthe fiscal year ended Sept.30. Chase made 616 loans to-taling $36.2 million, whichwas nearly 20 percent of theloans made by 90 financialinstitutions in the state.

� The eastbound andwestbound ramps from I-94onto north and south I-75will be closed starting at 6p.m. today until mid-Janu-ary for major repairs.

� Oakland University willlaunch a new clinical-train-ing program for 24 nursingstudents to work at Critten-ton Hospital Medical Centerwith funds from a $2 milliongift from the Crittenton Hospi-tal Medical Center Foundation.

� A third-quarter reportreleased today on foreclo-sures and delinquencies bythe Washington-based Mort-gage Bankers Associationshows that as of Sept. 30,Michigan had 1.6 millionloans on one- to four-unitresidential properties, and8.34 percent were past dueand 3.07 percent were inforeclosure. Only Mississip-pi had a higher past-duerate; only Ohio and Indianahad higher foreclosurerates.

� Standard & Poor’s Rat-ings Services said Fridaythat it placed its B+ corpo-rate credit rating on Plas-tech Engineered Products Inc.on CreditWatch with nega-tive implications. Standard& Poor’s defines B+ as fourlevels below investmentgrade. Standard & Poor’ssaid Plastech’s total bal-ance-sheet debt was $488million on Sept. 30. Private-ly held Plastech had $1.2billion in revenue in 2006.

� Dura Automotive Sys-tems Inc. on Wednesday an-nounced the sale of its jackand tool kit business in But-ler, Ind., to India-based Au-toline Industries Ltd. for$900,000.

� Alken Ziegler Inc., aKalkaska-based metal form-ing and machining compa-ny, plans to move 100-plusjobs from Kalkaska to Tay-lor, where it will converttwo buildings at 25575 BrestRoad into one.

OBITUARIES

� George Helis, retiredOEM sales manager ofWayne Bolt & Nut Co., De-troit, died Dec. 2 of a heartattack. He was 79.

ayne County isnow holding allthe cards in its

negotiations with the part-nership that owns the coun-ty building at 600 Randolph.

The County Commissionlast week approved $60 mil-lion in bonds to buy theGuardian Building and oth-er real estate, including upto $10 million for buyingthe county building.

The county buildinglease extension expires Dec.31, and the county wouldthen be free to leave if theright deal isn’t negotiated.

Building owner Old WayneCounty Building L.L.C. has an$8 million mortgage on theproperty and owes thecounty $31 million in prin-cipal and interest from aloan issued when the prop-erty was purchased in 1986.

In a worst-case scenario,the county could move outand force the ownership todefault on the $8 millionloan. As second-place lienholder, the county couldpay off the first lien holderand take the building.

Partnership spokesmanMike Layne, a principal withMarx Layne, said negotia-tions continue.

Art Van will help test biofuels in delivery trucks

It may be good for the en-vironment and lessen for-eign-oil consumption, butcan biodiesel haul that newcouch to your front door?

Warren-based Art Van Fur-niture Inc. will take part in aprogram to develop stan-dards for B-20 biodiesel byletting researchers test the

fuel in its delivery trucks,in partnership with non-profit NextEnergy in Detroit.

The retailer joined theNational Biofuels EnergyLaboratory consortiumdedicated to developingstandards for B-20 levelbiodiesel. B-20 is a blend of20 percent biofuels and 80percent petroleum diesel.

The NBEL testing willhelp research the fuel’s ef-fects on engines and helpestablish a revised nationalstandard for B-20.

The Art Van trucks willuse the fuel in deliveriesnext year while techniciansmonitor effects on the vehi-cles for “real world” testingthat laboratories couldn’tprovide, said Chris Morrisroe,Art Van communications

director.

Foley & Lardner lawyer willpractice in Army Reserve

Jeffrey Kopp, a labor andemployment law partner atthe Detroit office of Foley &Lardner L.L.P., will be prac-ticing a different kind of

law afterWednes-day.That’swhenKopp, 39,of GrosseIle, is tobe de-ployed toIraq,serving

as a Judge Advocate Gener-al lawyer with the rank ofmajor in the U.S. Army Re-serve’s 300th Military Po-lice Brigade.

Stationed outside Bagh-dad, Kopp expects to spendabout a year handling mili-tary investigations, govern-ment contracting and oper-ational law disputes. The1996 University of NotreDame Law School graduatealso will provide legal ad-vice to generals, comman-ders and soldiers on rules ofengagement and conflictand other issues.

BITS & PIECES

� Pfizer Inc. has donated45 well-known paintings de-picting great moments inmedical history to the Univer-sity of Michigan Health System.Pfizer obtained the paintingsthrough its acquisition ofParke-Davis & Co., which com-missioned Michigan painterRobert Thom to paint them inthe 1950s.

■ Detroit-based CommunityLegal Resources has namedDickinson Wright P.L.L.C. LawFirm of the Year.

Butzel Long received theOutstanding Partneraward. Chris Ballard, of Bod-man L.L.P., received the Vol-unteer Attorney of the Yearaward.

RUMBLINGS WEEK IN REVIEW

Wayne Countycould keep keysto 600 Randolph

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 D E C . 1 - 7

W T

At Rock Financial Showplace inNovi last week, hundreds of Arab-American community and busi-ness leaders gathered for an ad-vance screening of Keith Famie’snew documentary, “Our Arab-American Story.” You’ve alreadyread about Famie on page 1 of thisissue, but at our Web site this weekyou can learn more about the filmitself.

You’ll also find an audio clip of aperformance at the screening bythe Maples Arabic Music Ensemble, astudent group that Famie and his crewlearned about while filming two of its mem-bers outside a Dearborn store at a local fes-tival.

You can find these Web exclu-sives atwww.crainsdetroit.com/famie.

As Brent Snavely reports there,even though the area remains oneof the most segregated in the coun-try in terms of African-Americanand Caucasian populations,Famie’s past work has documentedthe strength of our individual eth-nic communities. One hopes moreefforts like the “Our Story Of” se-ries (www.ourstoryof.com) canspur metro Detroiters to be prouder

of that diversity.Kevin Hill is Web editor of Crain’s Detroit

Business. You can reach him [email protected]

WEB WORLDKevin Hill

Your story can be ‘Our story’

What highly hypedbusiness plan is nevergoing to happen? Take our pollWith most of 2007 now inthe rearview mirror, Crain’sDetroit Business is castinga backward glance atsome of the businessstories that generatedbuzz and raised eyebrowsthis year. We’d like to hearwhat you think.Each week through Dec.17 we’ll ask a newquestion. We will publishthe results Jan. 7.Today’s question:What highly hypedbusiness move, initiativeor plan is never going tohappen? Why?

To weigh in, go towww.crainsdetroit.com/poll.

Takai

Kopp


Steven L . Winter, JD Walter S. Gibbs Professor of Constitutional LawAn accomplished constitutional litigator, a recognized scholar in constitutional law and legal theory, and a pioneer in applying developments in cognitive science to law.

Wayne State University Law SchoolMaking a difference through scholarship, research and service

David A. Moran, JD Associate DeanWon a landmark U.S. Supreme Court case guaranteeing the rights of indigents to have an attorney help appeal criminal sentences; co-wrote a state statute allowing convicted inmates to petition for testing of DNA evidence.

Robert A. Sedler, JD Distinguished Professor and Gibbs Chair in Civil Rights and Civil LibertiesExtensively published in constitutional law and conflict of laws; has argued a number of influential civil rights and civil liberties cases in Michigan and elsewhere.

John F. Dolan, LLB Distinguished ProfessorAuthor of a widely cited two-volume treatise on letters of credit. International Chamber of Commerce Publishing selected him to co-write a handbook on the ICC’s recently announced rules for documentary credits.

Alan Schenk, LLB, LLMProfessorAn internationally recognizedexpert in value-added tax whohelps developing countries writetheir tax laws; also teaches apracticum on planning businesstransactions.

Wayne State University Law School faculty members advance legal theory andpolicy reform through their scholarship, research and communications skills.Professors working in specialties ranging from constitutional law, legal history andhuman rights to health law, intellectual property and tax share their knowledgethrough books advocating new ideas, treatises for practitioners, casebooks forstudents, academic articles in leading journals and op-ed pieces. I am pleasedto introduce seven scholars known locally and internationally for their impact onthe public issues of the day and the way in which our legal system functions.

Frank H. Wu, JDDean

Laura Bartell, JD ProfessorMember of the Board of Directors for the American Board of Certification, which oversees certification of bankruptcy lawyers nationwide, and an expert on bankruptcy and secured transactions.

Katherine E. White, JD, LLMProfessorA major in the U.S. Army Reserve in the Judge Advocate General’s Corps, and vice president of the Fulbright Association Board.

wayne.edu


Fifth Third and Fifth Third Bank are registered service marks of Fifth Third Bancorp. Member FDIC.

www.53.com

Steve Yzerman may have retired from the ice, but he’s as committed as ever to winning in Detroit.

So is Fifth Third Bank! While others are moving out, we’re moving ahead

with many new Banking Centers here in Eastern Michigan over the next three years.

We’re also expanding our commercial bank portfolio and increasing

our Wealth Management capabilities. Steve knows a good team when he sees one, too.

Join him on the Fifth Third team and start working on your better tomorrow

Call 1-800-246-5372 or walk in any Eastern Michigan Banking Center today.

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