Crain's Detroit Business articles from July 2003

Crain's Detroit Business archives from July 2003

Consumers Energy looks to pass on $530M in costs to customers.(News)
July 7, 2003... Byline: Amy Lane Consumers Energy Co. may ask its electricity customers to pay for nearly $530 million in pension costs, capital improvements and other expenses. The Jackson-based utility last week asked state regulators for...

On the road to recovery? Survey of local CEOs finds optimism for hiring, even though economists warn of rougher times in the next 6 months.(Special Report)
July 7, 2003... Byline: Brian Charlton Local CEOs are feeling better about their likelihood of hiring more people. But local economists warn that joblessness in the Detroit area is likely to get a bit worse before it gets better. The CEOs are...

Automakers plan fewer engine models, raising stakes for parts suppliers.(News)
July 7, 2003... Byline: Terry Kosdrosky Suppliers of engine components will have more at stake with each new contract win or loss over the next five years. Automakers are cutting the variety of engines they build and will share more engines across...

Retailers see hope after a bleak period.(Special Report)(Industry Overview)
July 7, 2003... Byline: Brent Snavely Retailers have been in a serious slump since last August. But sales appear to be improving slightly, and retailers are continuing to open stores in metro Detroit. The Lansing-based Michigan Retailers Association...

Rumblings.(K-Mart, Simon Property Group Inc. and Taubman Centers Inc.)
July 7, 2003... Testimony: Kmart board was among the last to know Kmart Corp.'s former board members didn't know how bad the Troy retailer's financial situation was until less than two weeks before the company declared bankruptcy Jan. 22, 2002, according...

Northville land winner loses $7.5M in rebid.(News)
July 7, 2003... Byline: Amy Lane Farmington Hills-based Grand Sakwa Properties L.L.C. last week won the right to purchase the Northville Psychiatric Hospital property for $76 million but could have had it for $7.5 million less had the state not rebid the...

New retirement-plan documents due Sept. 30.(News)
July 7, 2003... Byline: Robert Ankeny Small and midsize businesses using "off the shelf'' retirement-plan documents must update their plans by Sept. 30, the Internal Revenue Service has announced. About 750,000 companies must formally adopt updates to...

Riding the rails; Handrail systems give Ideal Group something to lean on.(Ideal Shield L.L.C.)(Company Profile)
July 7, 2003... Byline: Brent Snavely It used to be that when Loren Venegas looked at a steel bumper post, he saw, well, a steel bumper post. Now he sees handrails, conference tables and glow-in-the-dark bunk beds and loft systems. "It's like...

Week in Review.(Review)
July 7, 2003... Champion hires Koch to help lead turnaround Turnaround expert Al Koch was named chairman of the board and interim president and CEO of Auburn Hills-based Champion Enterprises Inc. He succeeds Walter Young, who has led Champion (NYSE: CHB)...

Correction.(Correction Notice)
July 7, 2003... * A story on Page 20 in the June 30 edition did not clearly state that the possible proceeds of exercising options by McLaren Performance Technology Inc. executives was a gross, and not net, amount. If McLaren executives exercise stock options...

Business Diary.(Business)
July 7, 2003... contracts The Michigan Peer Review Organization, Plymouth, has signed a contract with the Michigan Association of Health Plans Foundation, the Michigan Department of Community Health and the Michigan Public Health Institute to help improve...

Bankruptcies.(W. Chad Inc.)
July 7, 2003... Byline: Brian Charlton The following business filed for Chapter 7 protection in U.S. Bankruptcy Court in Detroit the week of June 27-July 3. Chapter 7 involves total liquidation. * W. Chad Inc., 35512 W. Michigan Ave., Wayne, voluntary...

Water Dept. recycling-plant contract may be sunk.(News)(Detroit Water and Sewerage)
July 7, 2003... Byline: Robert Ankeny The Detroit Water and Sewerage Department's contract with Minergy Detroit L.L.C. for a wastewater-solids recycling plant may be dead, city CFO Sean Werdlow told the city's Economic Development Corp. board last week....

DeMattia plans $150M business park in Plymouth.(News)
July 7, 2003... Byline: Jennette Smith The Plymouth-based DeMattia Group plans to build a $150 million second phase of a large business park on land it purchased last week from the city of Detroit. The site, part of the former Detroit House of...

MSU starts program to teach emergency response.(News)(Global Community Security Institute)
July 7, 2003... Byline: Laura Bailey The Global Community Security Institute, a new training program at Michigan State University, helps teach companies and communities to respond together when emergencies happen. The institute consolidates the...

Letters.(Letter to the Editor)
July 7, 2003... Nothing good came from Sept. 11 Editor: I am disturbed by the title and theme of Keith Crain's June 23 column, "9-11 has resulted in some small positives.'' I am the father of a young lady who was hosting a large conference of...

The 5 proposals.(News)(improving Canada-US border crossings)(Brief Article)
July 7, 2003... Byline: Michael Strong The Bi-National Study group is examining five potential corridors for a new border crossing. Four of the five are proposals made from outside sources, while the fifth is the group's idea. The four bridge proposals...

Panel: Up to 6 more lanes needed at border crossing.(News)(Windsor and Detroit )
July 7, 2003... Byline: Michael Strong A committee wading through proposals for additional border-crossing capacity between Windsor and Detroit says the region needs six lanes - four for trucks and two for cars. "We're going to need a minimum four...

Some manufacturers defy slow economy, increase revenue.(Special Report)(Masco Corp., ArvinMeritor Inc., American Axle & Manufacturing Holdings Inc., and Pulte Homes Inc.)
July 7, 2003... Byline: Michael Strong Several local manufacturers have managed to buck the slow business climate and boost their revenue. Some of the best local performers during the first quarter were Taylor-based Masco Corp., with 19 percent...

Farmer Jack's new lure: Dollar-store sections; Grocer tests fast-growing format in 10 stores.(News)
July 7, 2003... Byline: Brent Snavely Farmer Jack is experimenting with dollar-store sections at 10 grocery stores and may roll them out in more stores this year. "Obviously, the market has been very receptive to the dollar-store concept,'' said...

Bought and Sold.(News)(recent merger and acquisitions)
July 7, 2003... Merger and acquisition activity over the past two months: * Pulte Homes Inc. (NYSE: PHM), Bloomfield Hills, on Wednesday announced plans to buy Albuquerque, N.M.-based Sivage-Thomas Homes for an undisclosed amount. * Metaldyne Corp.,...

Small businesses look for boost from new tax laws.(News)
July 7, 2003... Byline: Laura Bailey Two new tax laws will help determine whether Plymouth-based E&E Manufacturing Co. Inc. buys a $4 million stamping press this year. But President Wes Smith said he wants to read the fine print to make sure the...

People.(recent appointments)
July 7, 2003... education Timothy Faley to managing director, University of Michigan Zell Lurie Institute for Entrepreneurial Studies, Ann Arbor, from director of technology transfer and commercialization, College of Engineering, University of Michigan....

Amid tough questions, DMC touts reductions in technology costs.(News)(Detroit Medical Center)
July 7, 2003... Byline: Katie Merx, Andrew Dietderich Amid lawsuits and accusations from aggrieved vendors, The Detroit Medical Center is standing behind its information-technology department and strategy. The reason: IT costs have been slashed since...

Other Voices: Negativity shouldn't bog down Detroit.(Column)
July 7, 2003... In May, I had the pleasure to revisit Detroit for the second time since last August. I am not certain if residents of Detroit and its surrounding suburbs are aware of the tremendous improvements that their city has undergone in the past 10...

Local M&A activity begins to rumble; It is sign of economic turnaround, experts say.
July 7, 2003... Byline: Andrew Dietderich Merger and acquisition activity has been heating up along with the summer temperatures as companies sell all or part of their businesses and buyers spend to beef up offerings. The increased activity isn't...

Proposal would help open state's tax 'letters'.(News)
July 7, 2003... Byline: Amy Lane For the past couple of years, businesses have been disputing what they view as a state cutback in some types of tax-law interpretations. Now, they're hoping a bill on its way to Gov. Jennifer Granholm will give them a...

Briefly.(Briefs)
July 7, 2003... Development group adds rental housing in Detroit Wayburn Townhouses has completed 64 rental units on Wayburn between Mack Avenue and Lozier Street as part of a $10 million project by U-SNAP-BAC, one of 30 nonprofit community-development...

Former Carriersnet starts container-tracking project.(News)
July 7, 2003... Byline: Michael Strong The U.S. Department of Homeland Security is getting help from Detroit-based Axiolog Inc., formerly known as Carriersnet Group Inc., to better track goods coming into Detroit from Canada. Axiolog formed a...

Constructing Ideal.(News)(Ideal Group Inc.)(Brief Article)
July 7, 2003... Founded in 1979 by Frank Venegas, the Detroit-based Ideal Group Inc. has grown from a steel-fabricating company into a group of six related companies. They are: * Ideal Steel: Steel fabrication of beams, bars, ramps, railings, towers,...

First National adds law center as enticement for legal tenants.
July 7, 2003... Byline: Jennette Smith, Robert Ankeny One of the city's landmark legal buildings, the First National Building, is getting a $2.5 million law center and other upgrades to keep current law-firm tenants and attract new ones. Law firms...

Opinion.(green space laws and Verizon services)
July 7, 2003... Skirting green-space law is shortsighted Land-use planners, environmentalists and home-builders thought they had hit a home run in 2001 when they helped enact new state laws to preserve green space in housing developments. The laws,...

This just in.(Detroit Medical Center)(Brief Article)
July 7, 2003... DMC: Layoffs could begin in 2 weeks without funding The Detroit Medical Center could begin laying off staff within the next two weeks, Ginny Seyferth, the DMC's interim vice president of public relations, said last Friday. The...

Delphi adds purchasing unit in lower-cost regions.(News)(Brief Article)
July 7, 2003... Byline: Crain News Service Delphi Corp. has established a secondary purchasing network in low-cost regions of the world as part of its drive to cut costs. North America is not included in the new four-office network. In the past three...

Aastrom gets grant to study bone-grafting technique.(News)(Brief Article)
July 7, 2003... Byline: Laura Bailey Aastrom Biosciences Inc. announced Thursday that it has received a Small Business Innovation Research Phase I grant to fund development of stem-cell-based approaches to regenerate bone in bone-graft patients. This...

Dollar days.(News)(Farmer Jack's dollar-store sections)(Brief Article)
July 7, 2003... Farmer Jack has been experimenting with dollar-store sections in 10 stores but declined to give locations. Crain's reporting produced the following partial list: * 30851 Gratiot Ave., Roseville * 9023 Jos. Campau, Hamtramck * 3010...

Rebuilding Detroit, one brick at a time.(Column)
July 7, 2003... Byline: KEITH CRAIN What great news the city got last week. We're going to host the NCAA Final Four basketball tournament for 2009. There might not be a tournament in the country that generates as much excitement as the NCAA does each...

DMC applies to run its own HMO.(News)(Detroit Medical Center)
July 14, 2003... Byline: Katie Merx The Detroit Medical Center plans to apply for its own HMO license today with the hope of reducing its exposure to what it calls pennies-on-the-dollar payments from other managed-care companies. Tom Malone, DMC senior...

A classic model finally ends its long run.(Volkswagen Beetle)(Column)
July 14, 2003... Byline: KEITH CRAIN We haven't been able to buy an air-cooled Volkswagen Beetle for probably 20 years in the United States. For the past 20 years, they continued to manufacture Beetles in Brazil, then stopped, and lately have made the...

Collector to close Carail museum.(News)(Richard Kughn)(Brief Article)
July 14, 2003... Byline: Brent Snavely Longtime car and train collector Richard Kughn plans to close his Carail Inc. museum and conference center in November after selling another batch of his classic cars and most of his toy-train collection in August and...

Switching circuits; Hughes Electronics reprograms its business to survive.(News)(Company Profile)
July 14, 2003... Byline: Laura Bailey In the face of overseas competition and a dwindling customer base, a struggling 30-year-old Livonia circuit-board company reinvented itself to stay afloat. President R.J. Smith of Hughes Electronics Products Corp....

Hot places for new homes.(News)(Detroit area)(Brief Article)
July 14, 2003... Top sites for residential development in 2002. Based on number of new units. Includes permits for both single-family and multifamily construction Macomb Township 1,572 Canton Township 1,143 Novi 871 Sterling Heights 738 ...

Mexico mission may be Automation Alley's last.(News)
July 14, 2003... Byline: Andrew Dietderich A trade mission that Automation Alley is guiding in Mexico City this week may be the organization's last international jaunt. Hayes Jones, Automation Alley export manager, said the Oakland County-based...

Real Estate Briefs.(Real Estate)(Brief Article)(Industry Overview)
July 14, 2003... New owner, brand for Novi hotel The Novi Hilton has been purchased and converted into a Sheraton hotel, its new owner announced. Norwalk, Conn.-based HEI Hospitality and Prudential Real Estate Investors purchased the 239-room hotel...

Kroger says it fired first shot in grocery-store price war.(News)
July 14, 2003... Byline: Brent Snavely As soon as Farmer Jack reopened its stores June 20 with lower prices on thousands of items, speculation began about how and when Kroger Co. and Meijer Inc. would hit back. But Cincinnati-based Kroger says it...

Tight economy feeds franchise restaurants.(Industry Overview)
July 14, 2003... Byline: Michael Strong Detroit area restaurant companies are advertising on sports broadcasts, placing advertisements in newspapers and putting notes on their menus to tell the world they're looking for new franchisees. At least eight...

A simple formula for ethics in business.(the Rotary Foundation)(Column)
July 14, 2003... Byline: MARY KRAMER I have a suggestion for judges sentencing white-collar crooks convicted of fraud and theft: When they're paroled, make them join a chapter of Rotary. Of course, they'd have to find a chapter that would take a...

United Way goal $70M.(News)(Brief Article)
July 14, 2003... Byline: Natalie Lombardo United Way Community Services has set a $70 million goal for its annual Torch Drive campaign this fall. The Detroit-based nonprofit raised $67.2 million last year, falling short of its $75 million goal. ...

Analysts say ArvinMeritor's play for Dana is to boost survival odds.(News)
July 14, 2003... Byline: Terry Kosdrosky ArvinMeritor Inc. is willing to fight a long legal battle for its proposed hostile takeover of rival Dana Corp. and is willing to take on massive debt for one simple reason: It gives the company a better chance to...

Legal aviation practice grows to keep biz grounded in law.(News)(Miller, Canfield, Paddock and Stone)
July 14, 2003... Byline: Michael Strong New legal and tax issues surrounding the use of private aircraft by local companies motivated Miller, Canfield, Paddock and Stone plc to start an aviation practice in its Detroit office in April. Don Katz, vice...

Mission to Mexico.(News)(reporter Andrew Dietderich)(Illustration)
July 14, 2003... Crain's Detroit Business reporter Andrew Dietderich will be our man in Mexico during the Automation Alley trade mission to Mexico City and the Paace Automechanika automotive show in Monterrey. While there, Dietderich, 29, will file stories...

correction.(Correction Notice)
July 14, 2003... * A This Just In item in the July 7 edition should have said Comcast Corp. will represent WideOpenWest L.L.C. in regional and national ad sales in the Detroit and Chicago markets. Viamedia Inc. continues to handle local sale.

Hot spots; Developers look to small sites, high density in older suburbs while continuing spread to outer ring.(Real Estate)
July 14, 2003... Byline: Jennette Smith Genoa and Ypsilanti townships have a key similarity with Sterling Heights and Royal Oak: the attention of residential builders. Metro Detroit's home-building patterns in the next few years are expected to bring...

Letters.(Letter to the Editor)
July 14, 2003... Takeover bill benefits only a few Editor: The proposed Michigan "Control Share Act'' appears custom-tailored for a particular company in a particular fix at this particular moment (Week in Review: "Senate leader halts bill that would...

RamaTech equipment to be sold; 2 lenders take action against auto supplier.(News)
July 14, 2003... Byline: Terry Kosdrosky RamaTech L.L.C., an auto supplier founded by entrepreneur A. Ram Thuluri and Downriver businessman Ron Palmer, is having equipment auctioned. Van Buren Township-based RamaTech, which produces metal parts and...

Finalists outline plans to redevelop Silverdome.(News)
July 14, 2003... Byline: Jennette Smith The three finalists competing for the chance to redevelop the Pontiac Silverdome are offering more specifics on their plans. A recent presentation provided the first in-depth look at the three proposals. More...

Rumblings.(briefs)
July 14, 2003... Rakolta offers expertise on Romania trip John Rakolta Jr., chairman and CEO of Walbridge Aldinger Co., is putting his heritage and knowledge to use on a business-development mission this week. Rakolta, who is of Romanian origin, is on...

Hilton Garden INN in Plymouth sold.(Real Estate)(Brief Article)
July 14, 2003... Byline: Jennette Smith Hilton Garden Inn in Plymouth sold The Hilton Garden Inn in Plymouth Township has been sold. The terms were not disclosed, but the hotel will remain a Hilton, the broker on the deal said. Heritage...

Kingsley gets $8m redo and Radisson affiliation.(Real Estate)
July 14, 2003... Byline: Jennette Smith The Kingsley Hotel has become part of the Radisson franchise network and completed an $8 million makeover to rekindle its reputation as one of the area's more elegant places to stay. In its heyday, the Kingsley...

Bankruptcies.
July 14, 2003... The following businesses filed for Chapter 7 or 11 protection in U.S. Bankruptcy Court in Detroit the week of July 3-10. Under Chapter 11, a company files a reorganization plan that the court must approve. Chapter 7 involves total liquidation....

Trans-Man founder works things out 2nd time around.(News)(Bill Barrett)
July 14, 2003... Byline: Michael Strong The second time was the charm for Bill Barrett. Barrett started Trans-Man Logistics Inc. of Taylor in August 1997 and is president and CEO. Trans-Man is a third-party logistics company, which means it oversees...

This Just In.(briefs)
July 14, 2003... Pittsfield Twp. a possibility for Hyundai, Kia R&D site Pittsfield Township and other sites in Southeast Michigan are under consideration for a $240 million North American research and development headquarters for Hyundai Motor America and...

Pulte awarded $48.7M in suit against U.S. government.(Review)(recent mergers, lawsuits, obituaries, and credit ratings)
July 14, 2003... Pulte Homes Inc. was awarded $48.7 million in damages from a breach-of-contract case against the U.S. government. Bloomfield Hills-based Pulte (NYSE: PHM) said in a news release that the U.S. Court of Claims decision calls for a damage award...

Unity behind new push for clinics for the poor.(News)
July 14, 2003... Byline: Katie Merx Medical and government officials think they finally have a plan to get a fair share of federally qualified health centers for the city of Detroit. The city, with just eight of the primary-care clinics for the poor,...

New PSC chairman takes job with a lot on the line.(News)(Michigan Public Service Commission)
July 14, 2003... Pick an issue - higher rates for Detroit Edison Co., cost increases for rivals of SBC Communications Inc. and rising natural-gas prices - and it's going to fall into J. Peter Lark's lap. Lark, the newly named chairman of the Michigan Public...

Strict ozone rules likely to have a big impact.(News)
July 14, 2003... Byline: Amy Lane Stricter federal ozone standards are hitting home in Southeast Michigan, threatening changes in everything from air-pollution permits to vehicle fleets. State regulators this week are sending to Washington a 15-county...

State needs to fix Medicaid - quickly.(Opinion)
July 14, 2003... Like many states trying to control spiraling Medicaid costs, Michigan tried to organize its low-income Medicaid residents into health maintenance organizations. In theory, the idea was to offer preventive care to reduce illness rates and save...

Another HMO grapples with negative worth; Great Lakes touts plan to improve.
July 14, 2003... Byline: Katie Merx Southfield-based Great Lakes Health Plan, the state's second-largest Medicaid health maintenance organization, is not meeting state financial requirements. But a new management team contends that its 5-month-old...

People.(recent appointments)
July 14, 2003... architecture Michael Henninger to senior associate, Young & Young Architects Inc., Bloomfield Hills, from associate. construction Robert Minielly to chief estimator and partner, Shaw Electric Co., Livonia, from accounting manager....

Domino effect; As Compuware, EDS bring 6,000 jobs downtown, Detroit officials hope for more residents, retail.
July 14, 2003... Byline: Andrew Dietderich Lynn Domzalski moved from Oakland County's Sylvan Lake to the banks of the Detroit River for one reason: She's betting on the future of Detroit. The 30-something testing analyst at Detroit-based Compuware...

Business Diary.(Business)(recent moves, transactions, contracts, name changes, new products and services)
July 14, 2003... Acquisitions The Western Creative Agency, Redford Township, recently acquired an interest in Topical Biomedics of Rhinebeck, N.Y. Western Creative also will handle the production and placement of Topical Biomedics' advertising. Topical...

Identifying customers key to finding them.(News)(ZenaComp Inc.)(Company Profile)
July 21, 2003... Shifting to small-business and municipal clients after serving companies as large as Wal-Mart requires a different selling technique, but a Livonia technology company hit on a successful formula to do just that. When ZenaComp Inc. formed...

Meijer turns to hip design firm to jazz up its acres.
July 21, 2003... Byline: Brent Snavely Efficient mass merchant and grocery retailer Meijer Inc. has turned to renowned New York City architect David Rockwell to redesign its stores. Locally, Rockwell's firm is known for the huge Tiger replicas...

Champion posts profit, but new rules loom over effort.(News)(Champion Enterprises Inc.)
July 21, 2003... Byline: Jennette Smith Champion Enterprises Inc.'s new CEO, Al Koch, didn't take much time last week to celebrate the manufactured-home-maker's second-quarter profit, the first quarterly profit in almost two years. Koch, who is also...

LDM may be close to being sold; Supplier in talks with private-equity investor.(News)(LDM Technologies Inc.)
July 21, 2003... Byline: Terry Kosdrosky and Rhoda Miel LDM Technologies Inc., which took itself off the market after looking for a buyer earlier this year, is now talking with a private-equity investor about a sale, according to an internal memo and...

Caucus members.(News)(John F. Kennedy Small Business Caucus )(Brief Article)
July 21, 2003... Members of the John F. Kennedy Small Business Caucus of the Michigan Democratic Party Chairman: * Richard Sloan, co-founder, Sloan Ventures L.L.C., Birmingham Vice chairs: * Karen Anderson, co-owner and corporate secretary,...

letters.(Letter to the Editor)
July 21, 2003... Here's the right border solution Editor: Finally, the analysis of the five proposed corridors across the river by the Bi-National Partnership Engineers has been made public ("Panel: Up to 6 more lanes needed at border crossing,'' July...

Boy, was I ever wrong - and I'm glad.(Column)
July 21, 2003... Byline: Keith Crain I was on the board of the Detroit Economic Growth Corp. a while ago. We tried and tried to get someone interested in investing in the Book Cadillac, an empty, ugly eyesore in downtown Detroit. We could never get any...

Fay accompli; After leading merger of colleges, University of Detroit Mercy president leaves formidable financial, academic legacy.(News)(Sister Maureen Fay)
July 21, 2003... Byline: Laura Bailey Perhaps better than any other local college president, Sister Maureen Fay realizes that no matter how things change, some things just don't budge. For example, some University of Detroit alums still hate the name...

Supporters band together to push takeover bill.(Rumblings)(briefs)
July 21, 2003... Companies and organizations that support legislation aimed at making it more difficult to acquire a Michigan-based company announced the formation of the Coalition for Michigan Shareholder Rights last Wednesday. Among other things, the...

correctons.(Correction)(Correction Notice)
July 21, 2003... * Because of incorrect information given to Crain's, an article on Page 3 of the June 16 issue incorrectly states that Gunnar Birkerts is design consultant on a new building in Domino's Farms. Birkerts has no involvement with the project,...

How to find customers.(News)(Brief Article)
July 21, 2003... * Identify the most promising customer categories. * Join trade groups and other organizations that attract those customers. * Donate products or services to key groups. * Become a reseller if that will help win other business.

Briefly.(Briefs)
July 21, 2003... Wayne Circuit Court consultant to review update of computers Wayne County Circuit Court has hired a research team from the National Center for State Courts in Washington to study the court's business needs and propose a plan for...

Business Diary.(Business)(Erudite Corp. gets new contracts)
July 21, 2003... contracts Columbia/Construction Services, a Detroit-based general contractor, has been awarded contracts for a 24,000-square-foot medical building by Troy Professional Associates L.L.C. and an 11,000-square-foot design-build fire station...