Crain's Detroit Business articles from July 2008

Crain's Detroit Business archives from July 2008

Week in Review.
July 7, 2008... 4 on Detroit council part of federal probe Federal authorities are looking at four unnamed Detroit City Council members as part of an investigation into a $47 million sludge recycling deal, the Detroit Free Press reported. The Free...

Will all the political scandal ever end?
July 7, 2008... Byline: Keith Crain OK, we all know about the lousy auto sales last month. Chances are good sales will remain fairly bleak for at least the rest of the year, maybe longer. Those numbers have gotten us a bit of unwelcome attention...

How do you keep them working when it's warm?(Brief article)
July 7, 2008... You'll be reading this after a long holiday weekend. So, how do you keep employees motivated when warm weather beckons? This week in Small Talk, our exclusive Web feature for small-business owners, we'll look at the issue of...

Operation Able closes doors, looks to transfer assets, programs.
July 7, 2008... Byline: Sherri Begin With the tough decision to cease operations behind it, Operation Able of Michigan now faces the equally challenging work of winding down its business. The 22-year-old agency ceased operation June 30 after years of...

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July 7, 2008... Steve Friedman and Howard Fingeroot formed Pinnacle Homes. The company entered the market positioned well to survive not saddled with debt.

Opinion.(Viewpoint essay)
July 7, 2008... Bad time to crack down on contractors Michigan's economy may be at a modern low. The state desperately needs jobs, and at the same time, laid-off workers need income. Hence, the ranks of independent contractors are growing. So what a...

Changes at TriMas.
July 7, 2008... Byline: Chad Halcom The following are recent changes to the management structure at TriMas Corp.: * Eliminated a group vice president position for industrial specialties and energy products. Jeffrey Paulsen, who held that position,...

Bankruptcies.
July 7, 2008... The following businesses filed for Chapter 7 or 11 protection in U.S. Bankruptcy Court in Detroit June 27-July 3. Under Chapter 11, a company files for reorganization. Chapter 7 involves total liquidation. Russell's Best Inc., P.O. Box...

THIS JUST IN.(briefs)(Michigan. Legislature)(Zekelman Family Holocaust Memorial Center)
July 7, 2008... Holocaust museum seeks $6M expansion The Holocaust Memorial Center in Farmington Hills is pursuing a $6 million expansion to accommodate a children's museum. A proposal developed by Neumann/Smith Architecture is before city Planning...

Rumblings.(Volkswagen Group of America Inc.)
July 7, 2008... Will state fund be used to lure Volkswagen? Lawmakers have moved fast and approved final aspects of a new state deal-closing fund amid rumors that investment by Volkswagen AG is one of the projects being courted. Officials at the...

Senate energy bill called inadequate.(Michigan. Legislature. Senate)
July 7, 2008... A renewable-energy mandate passed by the state Senate is being criticized for doing too little to encourage the development of such resources. Senate Bill 213, part of a package of energy reforms sent to the House, calls for a 7 percent...

Expected Survivors.(Brief article)
July 7, 2008... Real estate professionals expect fewer homebuilders to be left standing in Southeast Michigan as the industry rebuilds. Here are some companies considered to be set up for survival: National company Pulte Homes, Bloomfield Hills ...

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July 7, 2008... Sharon McRill, founder and president of Ann Arbor-based concierge company Betty Brigade, is among area businesspeople who use networking to land new clients and employees.

Slump survivors; Homebuilder startups and those who change their business plan stand the best chance of becoming.
July 7, 2008... Byline: Daniel Duggan Homes in Northville's Kirkway Estates subdivision were selling in the mid-$500,000s when Farmington Hills-based Curtis Building Co. owned the project. However, the development went back to the bank in the fourth...

More bad news for The News; Debt rating downgrade, more buyouts keep paper struggling.
July 7, 2008... Byline: Bill Shea The Detroit News was hit with the announcement of another round of buyouts last week and saw its parent company's debt rating downgraded last month amid dire predictions from Wall Street, but it's far too soon to write...

About the papers.(Detroit News Inc.)(Detroit Free Press Inc.)(Industry overview)(Brief article)
July 7, 2008... The Detroit News Founded: 1873 Staff: 230 Owner: MediaNews Group, Denver, Colo. Owns 57 daily newspapers in 12 states. The Detroit Free Press Founded: 1831 Staff: 280 Owner: Gannett Co. Inc., McLean, Va. Largest...

A furnished niche.(Fenner, Melstrom & Dooling P.C.)(Brief article)
July 7, 2008... A few months before Super Bowl XL was held in Detroit in 2006, Mark Schroeder, a CPA and partner at the Auburn Hills firm of Fenner, Melstrom & Dooling P.C., bought three furnished condominium units with investor partners at the Riverfront...

In the spotlight.(appointment of Kathy Oswald in Henry Ford Health System)(Brief article)
July 7, 2008... Kathy Oswald has been named senior vice president and chief human resources officer at Henry Ford Health System in Detroit. Oswald, 58, had filled the post on an interim basis for the last year while also serving as president of the Great...

News, sports; George Jackson Jr.(Detroit Economic Growth Corp.)(Brief article)
July 7, 2008... Byline: H. Jose Bosch On his computer or his breakfast table, George Jackson Jr., president and CEO of the Detroit Economic Growth Corp., doesn't care how he gets his news. But he does have a soft spot for the old-fashioned hard copy....

Power of three; Plastic Systems takes just 3 weeks to land 3rd acquisition in 2 years.(Millennium Plastics Technologies L.L.C.)
July 7, 2008... Byline: Rhoda Miel Plastic Systems L.L.C. has completed a deal to buy Millennium Plastics Technologies L.L.C. of El Paso, Texas, saving 175 jobs and keeping open a plant that was slated to close. The purchase, completed June 2 for an...

Business Diary.(briefs)(Voluntary Benefits Solutions L.L.C.)(OpTech L.L.C.)(Itronix)
July 7, 2008... Acquisitions Simrit, Plymouth, has acquired the assets of the Tetralene Cos. of Houston, a developer and manufacturer of specialized custom sealing components for the oil and gas industry. Arthur J. Gallagher & Co., an Itasca,...

Contract hiring under scrutiny.
July 7, 2008... Byline: Nancy Kaffer In the wake of a task force report on the misuse of worker classifications, companies that use independent contractors may face increased scrutiny from state agencies. A report by the Interagency Task Force on...

Suspect employment practices targeted.(United States. Internal Revenue Service)(Brief article)
July 7, 2008... * In 2007, Michigan became the first of 29 states to sign a memorandum of understanding with the Internal Revenue Service aimed at rooting out questionable employment tax practices. * Misclassification and nonpayment of unemployment...

JCI's Plastech joint venture expected to stabilize suppliers.
July 7, 2008... Byline: Rhoda Miel Automakers are staggering, but the auto supply business might have just regained some stability as Johnson Controls Inc. (NYSE: JCI) takes over the interiors operation of bankrupt Plastech Engineered Products Inc. in...

A three-week deal.
July 7, 2008... * Millennium Plastics Technologies L.L.C. of El Paso, Texas, looks for a buyer and plans to close by the end of June if one isn't found. * Plastic Systems L.L.C. of Romeo is contacted. It's interested, but there's a big hurdle the deal...

Corrections.(Correction notice)
July 7, 2008... * An incorrect photo ran with the profile of Flagstar Bancorp Inc. CEO Mark Hammond on Page E15 of the June 30 edition. The correct photo is at right. * A story on page M27 of the June 2 edition incorrectly said that Houghton Lake had no...

People.(Plante & Moran P.L.L.C appoints Jonathon Trionfi)(H.W. Kaufman Financial Group Inc. appoints Mark Schostak)(Henry Ford West Bloomfield Hospital appoints Rita Fields )
July 7, 2008... Finance Jonathon Trionfi to associate, employee benefits consulting team, Plante & Moran P.L.L.C., Auburn Hills, from associate, Towers Perrin, Southfield. Mark Schostak, president and CEO, Team Schostak Family Restaurants,...

Defining workers.
July 7, 2008... The difference between an independent contractor and an employee is determined in part by the concept of "right to control,'' a state task force says. * Employees: Employer determines and directs the work. * Independent contractors:...

Small Biz Barometer finds bright spots amid gloom.(Edward Boguszewski)
July 7, 2008... Byline: Nancy Kaffer Edward Boguszewski may be the happiest small-business owner in Michigan. At Dearborn Heights-based EMB Investigations L.L.C., specializing in corporate investigations, things are looking good. "The worse the...

New rules close charity assets loophole.(Brief article)
July 7, 2008... Byline: Sherri Begin The state Legislature late in June adopted amendments to the Nonprofit Corporation Act that close a loophole for safeguarding charitable assets when nonprofits close without notifying the attorney general's office. ...

Reporter's Notebook.
July 7, 2008... Byline: Daniel Duggan Conflicts of interest in the commercial real estate world might be getting a lot more attention around here with the sale of Dallas-based real estate firm Staubach expected in the third quarter to Jones Lang LaSalle....

Restructuring, international demand make TriMas optimistic.
July 7, 2008... Byline: Chad Halcom Digging in now, and digging out later, might summarize a number of Bloomfield Hills-based TriMas Corp.'s maneuvers to weather a bearish market in recent weeks and fears of a consumer-led recession. Company stock...

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July 7, 2008... Mike Grates and other house flippers are finding ways to make money despite the slump in the residential real estate market.

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July 7, 2008... Plastic Systems' sales director Mike Kelley, CEO Steven Belleville and CFO Ingo Pridoehl worked quickly to acquire Millennium Plastics Technologies L.L.C. The deal doubles the size of Plastic Systems.

Commercial insurers urge lawmakers to reject bill to allow Blues acquistion.
July 7, 2008... Byline: Jay Greene A coalition of for-profit commercial insurers is calling for Michigan legislators to vote against a pending bill that would allow a for-profit workers' compensation subsidiary of Blue Cross Blue Shield of Michigan to...

25 Detroit hotels work to form advocacy group.
July 7, 2008... Byline: Daniel Duggan Representatives of 25 Detroit hotels are in the early stages of forming an association with the goal of creating a lobbying and advocacy force specifically for Detroit hotels. Called the Detroit Hotel Association,...

Lear request: Less credit, more time.(Lear Corp. )(Brief article)
July 14, 2008... Byline: Ryan Beene Southfield-based Lear Corp. last week said some of its lenders agreed to extend the term for its $1.7 billion revolving credit line from April 2010 to the end of January 2012. Lear's credit line was reduced by about...

David Kennedy.(Atlas Oil Tool Co.)(Occupation overview)(Brief article)
July 14, 2008... Byline: Bill Shea Commercial sales representative Atlas Oil Co., Taylor 2007 sales: $1.5 million 2008 sales goal: $3 million David Kennedy literally couldn't get in the door. The top salesman at Atlas Oil, which...

Spec buildings on tap in F. Hills; IBM will be Kojaian anchor.
July 14, 2008... Byline: Daniel Duggan Kojaian Cos. will start construction on a 150,000-square-foot office building in Farmington Hills next month after securing a lease with IBM Corp. as an anchor tenant last week. The New York-based technology...

Capital Briefings.
July 14, 2008... Legislation aims to upgrade downtowns Bills designed to spur revitalization of downtown areas are on their way to Gov. Jennifer Granholm for her expected signature. The measures, part of a 10-bill package, are designed to help cities...

Recent rulings weighing on patent law.
July 14, 2008... Byline: Robert Ankeny Three lawsuits recently decided or pending in the nation's highest courts have significant impact on intellectual property protections for companies and inventors. What is patentable? The most important case...

BANKRUPTCIES.(Public notice)
July 14, 2008... The following businesses filed for Chapter 7 or 11 protection in U.S. Bankruptcy Court in Detroit July 310. Under Chapter 11, a company files for reorganization. Chapter 7 involves total liquidation. Matrix Auto and Tire L.L.C., 8728...

Week in Review.
July 14, 2008... Worthy may expand charges against Kilpatrick Wayne County Prosecutor Kym Worthy says she may expand perjury charges against Detroit Mayor Kwame Kilpatrick, claiming he lied about affairs with several women, based on a statement during a...

Don't like excitement? Better leave town.
July 14, 2008... Byline: Keith Crain This is a great summer for outdoor fun. Last weekend, we celebrated the Gold Cup and once again, the unlimited hydroplanes danced along the Detroit River. But August is a month packed with events for motor...

Bing has biz support for run; Execs say character a plus, change agent needed.(Occupation overview)
July 14, 2008... Byline: Robert Ankeny Detroit area business leaders reacted with enthusiasm to reports Friday that Dave Bing might consider becoming a Detroit mayoral candidate next year. The former Detroit Pistons star turned industrialist and...

Business sprouts for local growers; Profits grow on the appeal of hometown food.(Royal Oak-based Pure Food 2 U)
July 14, 2008... Byline: Nancy Kaffer Every weekend, Kelli Lewton-Secondino and her crew of chefs pull 16-hour days, preparing meals for more than 100 customers signed up with Royal Oak-based Pure Food 2 U. The seven-month-old food-delivery service is...

Briefly.(Michigan State University offer joint business with Walsh College )
July 14, 2008... Walsh, MSU offer joint business, communications program Troy-based Walsh College will offer a joint program this fall semester with Michigan State University, allowing graduate students at both schools to cross-train between business and...

This Just in.(Oakwood Healthcare Inc. )(Ford-UAW Family Service and Learning Center )
July 14, 2008... Oakwood, UM-Dearborn to reopen care center Dearborn-based Oakwood Healthcare Inc. and the University of Michigan-Dearborn will reopen that city's shuttered Ford-UAW Family Service and Learning Center to serve developmentally disabled...

Appealing rejected patents is costly, time-consuming.
July 14, 2008... Byline: Mike Scott Challenging a patent application that has been initially rejected can be a time-consuming process and attorneys report mixed results. But the potential reward still has attorneys busy working with clients on cases...

Filings on the rise.(patent law)(Brief article)
July 14, 2008... The increase in applications for U.S. patents is overwhelming the U.S. patent office, one reason some are pushing for patent reform. Figures below represent the commonly applied-for utility use patents, granted for new inventions and processes....

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July 14, 2008... Chef Kelli Lewton-Secondino has launched a food-delivery business emphasizing locally grown, organic foods.

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July 14, 2008... From left: Pure Food 2 U owner Kelli Lewton-Secondino, executive chef Bert Shedd and executive chef Sara Nadlicki slice Michigan-grown organic vegetables for use in customers' meals.

Opinion.(Volkswagen AG)
July 14, 2008... Right-to-work zones can fix state's image Where will Volkswagen build its new U.S. plant? That's the $788 million question. By late last week, sister publication Automotive News was reporting the automaker was leading toward...

A Conversation With; Ed Olson, business attorney.(Interview)
July 14, 2008... Byline: Bob Ankeny Hiring a good business attorney before starting a business can save headaches and possible lawsuits later. Rochester-based business attorney Ed Olson has been advising Michigan business owners since 1985. He spoke with...

Stem cell fight likely to be an expensive one.
July 14, 2008... With supporters of a state constitutional amendment to expand stem cell research in Michigan spending $2 million to garner nearly 600,000 signatures, experts predict spending on advocacy and education for and against the measure could easily...

Tavi Fulkerson.(The Fulkerson Group)(Occupation overview)(Brief article)
July 14, 2008... Byline: Bernadine Stallings President The Fulkerson Group, Bloomfield Hills 2007 sales: $15.5 million in sponsorship sales. 2008 sales goal: $14 million-$17 million, depending on event space and inventory. Tavi Fulkerson...

Pinnacle design was fast-tracked.
July 14, 2008... Byline: Bill Shea Normally, a world-class thoroughbred racetrack surface requires at least two years of research, testing and design work. Joe King had five months to plan Pinnacle Race Course. Considered by some to be the...

Kashif Khawaja.(Hagopian World of Rugs)(Occupation overview)
July 14, 2008... Byline: Bill Shea Salesman and Assistant Manager, Birmingham showroom Hagopian World of Rugs, Birmingham 2007 sales: $990,000 2008 sales goal: $1.25 million When Alexandria Christy bought for her Beverly Hills home a...

Call to post; Race to open track enters home stretch.
July 14, 2008... Byline: Bill Shea Jerry Campbell had a lot of reasons to hurriedly open his new Pinnacle Race Course thoroughbred track this summer. Six million of them, in fact. Campbell, the retired chairman of Citizens Republic Bancorp in Ann...

By the numbers.
July 14, 2008... Facts and figures about the new Pinnacle Race Course thoroughbred horse track opening Friday: * The site is 320 acres at the corner of Pennsylvania and Vining roads in Huron Township, a mile southwest of Detroit Metropolitan Airport. ...

These sellers have power.(David Kennedy of Atlas Oil Co.)(Kashif Khawaja of Hagopian World of Rugs)(Brief article)
July 14, 2008... Meet the 2008 class of Crain's Power Sellers. In this awards program in its second year, we're providing some much overdue recognition to hard-working sales professionals who demonstrate creativity and close the deal. Our staff...

Mark Donatiello.(Mann & Hummel Advanced Filtration Concepts)(Occupation overview)(Brief article)
July 14, 2008... Byline: Bernadine Stallings Sales manager Mann & Hummel Advanced Filtration Concepts, Bloomfield Hills 2007 sales: $3.5 million 2008 sales goal: $4 million Three years ago, Chrysler L.L.C. only used Mann & Hummel/Advanced...

Carl Bentley.(Strategic Staffing Solutions Inc.)(Occupation overview)(Brief article)
July 14, 2008... Byline: Bernadine Stallings Vice President Strategic Staffing Solutions, Detroit 2007 sales: $26 million 2008 sales goal: $30 million Carl Bentley, 51, has managed Strategic Staffing Solutions' largest branch in Detroit...

Who wants what?(Brief article)
July 14, 2008... Byline: Chad Halcom Oakland University, Ferris State University and Saginaw Valley State University are the only four-year universities currently slated to receive full funding for their requested capital projects in a bill reported out of...

Bill would fund OU project; Most schools got partial funding or none at all.(Oakland University)
July 14, 2008... Byline: Chad Halcom Oakland University would be one of only three four-year universities to receive full state bond funding of its capital requests, and the only one in Southeast Michigan, under a bill voted out of a legislative conference...

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July 14, 2008... CBS Boring and Machine Co. Inc. continues to diversify its customer base. Guiding the company are management team members (from left): Brian Kolp, vice president of materials and new business development; John O'Leary, vice president of...

Marketing tips online.
July 14, 2008... Check out www.crainsdetroit.com for online features that cover the marketing and sales industries, including "Sales Moves,'' the syndicated column by author and sales trainer Jeffrey Gitomer, and Crainstorm, content designed for readers working...

Bill Burton.(Detroit Radio Advertising Group)(Occupation overview)
July 14, 2008... Byline: Bernadine Stallings President Detroit Radio Advertising Group, Troy 2007 sales: DRAG contributed to more than $220 million in local radio advertising sales last year. Burton individually has been behind about $300 million...

Seat feat: Lear expects more profits by making more parts.
July 14, 2008... Byline: David Barkholz With vehicle sales plummeting for its two largest customers, Southfield-based Lear Corp. is looking to boost revenue by manufacturing more of the components that go into its seats. The company has produced few...

The "sludge' here is getting really deep.(Federal Bureau of Investigation)(WJBK-TV (Detroit, Michigan))
July 14, 2008... Byline: Mary Kramer It's ironic that the latest scandal to hit Detroit is over, well, sludge. Isn't there a reality TV show in this somewhere? The latest turns in our real-life soap opera last week were the news reports that WJBK-TV2's...

Attorney general discusses health insurance bills.(Michael Cox )(Brief article)
July 14, 2008... It's not every day you get to pick the brain of your state's attorney general. This week, Michael Cox met with the Crain's Detroit Business editorial board to explain why he prefers the state Legislature defer legislation to reform the...

Local food grows local economy.(Brief article)
July 14, 2008... Byline: Nancy Kaffer While some may debate the merits of organic food, the financial impact of locally grown goods isn't subject to question, said Don Koivisto, director of the Michigan Department of Agriculture. Michigan-grown foods...

IP protection plan; Patent attorneys and clients with international business seek uniform rules, clarity.
July 14, 2008... Byline: Robert Ankeny While the 2008 election year is creating a sort of hiatus on patent law reform in Congress, concerns about protections for intellectual property continue to grow in light of the expanding global economy. Steve...

Weak dollar, consolidation drive growth at CBS Boring.(Company overview)
July 14, 2008... Byline: Chad Halcom A weak U.S. dollar, supplier consolidation and local government assistance have helped spur growth for Fraser-based CBS Boring & Machine Co. Inc. in recent months. As of last week, the company had reached 199...

Businesses find worker volunteerism helps "third bottom line'.
July 14, 2008... Byline: Sherri Begin A new study by Deloitte L.L.P. suggests many companies may be missing the opportunity to leverage volunteerism to develop business and leadership skills. Deloitte surveyed 250 human resource managers from Fortune 500...

Patents: Domestic and Foreign.(Brief article)
July 14, 2008... Major differences between patent law in the United States and most other countries: Prioritizing Every other industrialized nation uses a patent priority system commonly referred to as "first-to-file.'' The U.S., on the other...

What food labels mean.
July 14, 2008... Byline: Nancy Kaffer * Grass-fed. According to a United States Department of Agriculture standard adopted last year, meat marketed as "grass-fed'' must come from animals fed a diet of grass or forage for its lifetime, with the exception of...

Corrections.(Correction notice)
July 14, 2008... * Mary Kramer's column on Page 9 went to press last week while Fox 2 anchorwoman Fanchon Stinger was still on paid leave after having been suspended when it was revealed she had been paid by Synagro Technologies in connection with a city sludge...

Forces for patent reform gain power.
July 14, 2008... The patent business is being reinvented. Federal patent reform, expected to again gain traction after the presidential elections, will likely harmonize U.S. patent laws with those in use elsewhere around the industrialized world. ...

People.(Patrick Kanary joins SHW Group Architects)(Karen Currie joins Marco Retail Group)(Randi Paananen joins Integrated Design Solutions)
July 14, 2008... Architecture Patrick Kanary to project architect-project manager, SHW Group, Berkley, from project architect-project manager, Neumann Smith Architecture, Southfield. Karen Currie to senior designer, Marco Retail Group, Northville,...

Medical groups prep for physician networks.
July 14, 2008... Byline: Jay Greene Three large physician-operated medical service organizations are joining in an effort to share best clinical practices in preparation to contract with health insurers that are beginning to create high-performance...

Also growing.(briefs)(Harman Becker Automotive Systems Inc.)(Brief article)
July 21, 2008... Several foreign-based engineering firms in addition to FEV Inc. are opening North American offices and tech centers locally. They include: * IAV Automotive Engineering Inc., Ann Arbor. Building an $18.5 million, 40,000-square-foot...

Even utilities have to save on energy.
July 21, 2008... Byline: Ryan Beene Local energy companies that use technologies to manage their large vehicle fleets have found savings even with $4 a gallon gas. DTE Energy Co. has taken several steps to adjust its business operations for its 4,800...

Food: Restaurants, suppliers take bite out of fuel costs.
July 21, 2008... Byline: Nathan Skid The food industry is scrambling to find new and creative ways to trim soaring operating costs in a strained economy. Crain's talked to three business owners from different ends of the food spectrum to see how rising...