Suppliers, OEMs ride ups and downs COMING SOON

28 Pages·2012·5.6 MB·English

20121119-NEWS--0001-NAT-CCI-CD_-- 11/16/2012 6:14 PM Page 1
®
www.crainsdetroit.com Vol. 28, No. 48 NOVEMBER 19 – 25, 2012 $2 a copy; $59 a year
©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved
Duggan: City on wrong road
Page 3
Keeping up with the market:
Makeover for Ann Arbor inn
Survey says: Health care
Detroit Good management, not Detroit Works
costs rise, but more slowly
Medical
Center CEO
or EFM, is what Detroit needs
Mike Duggan
Seneca Partners split
is not yet
creates more VC options a declared
candidate BYCHADHALCOM the state to take over BBeellllee
for Detroit CRAIN’S DETROIT BUSINESS IIssllee PPaarrkkat a $6 million sav-
mayor, but
ings to the city, in part be-
Second Stage Extra he says a If Mike Duggan gets to
turnaround cast his own role as a can- cause it did not adequately
‘is not as far address a cleanup plan for
didate in next year’s De-
away as it
neighborhood city parks.
appears.’ troit mayoral race, it
He thinks a state-appointed
would likely be as the
emergency financial man-
turnaround expert who
ager is all wrong for the
thinks the current turn-
city, wouldn’t take such a
around strategy isn’t work-
position if asked, and won’t
ing.
comment on reports that
Logistics firm finds it pays He opposes the 30-year
he’s been asked.
lease proposal in
to move into staffing,
He finds it “hard to imag-
September for
Page 11 ine anything more mishan-
dled” than the Detroit
Innovation center aims to
See Duggan, Page 22
boost small manufacturing,
Page 13
VIDEO
Mike Duggan on core
issues facing Detroit,
crainsdetroit.com/duggan
Crainsdetroit.com: Come in,
look around next week
NATHAN SKID/CRAIN’S DETROIT BUSINESS
Suppliers, OEMs ride ups and downs Full plate to keep
Crain’s Detroit Business is
having a holiday open house!
Online, that is.
Crain’s will open its website
lame ducks hopping
to all — subscribers and non- Challenges change contingency plans
subscribers, for one week, Nov.
25-Dec. 1.
The website, www. BYDUSTINWALSH automotive law. Biz property tax on menu
crainsdetroit.com, is continually
CRAIN’S DETROIT BUSINESS “Companies know volumes are rising right
updated with breaking news,
now, but they don’t know the effects of health
blogs, analyses and multime- A better-than-expected rise in demand for care, the fiscal cliff — all related to consumer BYCHRISGAUTZ
dia. Content will be accessible new cars, combined with the extraordinary confidence. I don’t know how we get off this CAPITOL CORRESPONDENT
free for the entire week. events of Superstorm Sandy and the federal ride.”
Changes to the state’s personal property tax
Paid subscribers have access debt crisis, is putting already taxed auto sup-
and the conversion of Blue Cross Blue Shield of
all the time but must register. pliers into overdrive.
Obstacles around every turn Michigan into a nonprofit mutual insurance
The open house is a chance to But suppliers, on aver-
company are likely to top Lansing’s post-
introduce Crain’sto a co-work- age already running their The newest pressure is the Sandy factor.
Thanksgiving lame-duck menu.
er or colleague. plants at nearly 90 percent The storm destroyed as many as 250,000 cars
The Blues conversion in particular tops Gov.
Crain’s produces several capacity, are hesitant to across the Eastern Seaboard, according to the
Rick Snyder’s list. From there, the state House
e-newsletters that also require shift things up any further. National Automobile Dealers Association. Au-
and Senate will begin deciding what needs to
registration. The newest, Crain’s Managing capacity and tomakers report scrapping 16,000 brand new
get done and what some want to get done.
Michigan Morning, is a start-the- making contingency plans vehicles damaged by the storm.
Also on the list is a possible reworking of a
day compilation of business are the new normal in an The devastation expedited demand for new
year-old tax on health insurance claims, im-
news in Southeast Michigan and unpredictable economy. cars to replace the casualties.
posed to provide federal matching funds for
around the state. See www. “The world was ending a But the latest hurricane is only one of the
crainsdetroit.com/newsletters. few years ago; now we’re Sharkey challenges facing suppliers as they react to Medicaid but which hasn’t raised as much mon-
ey as anticipated.
Questions? Contact Nancy riding this roller coaster,” said Dan Sharkey, immediate needs and plan for next year on
Other issues not yet scheduled that could
Hanus, digital content strategy partner at Birmingham-based law firm Brooks
manager, at [email protected]. Wilkins Sharkey & Turco PLLCand a specialist in See Suppliers, Page 25 See Lame ducks, Page 24
G
N
M I
O Website Open House
C
R N
PE S O O
A
P All content unlocked and FREE to visitors for one week only!
S
W November 25 - December 1 | www.crainsdetroit.com
E
N
20121119-NEWS--0002-NAT-CCI-CD_-- 11/16/2012 5:37 PM Page 1
Page 2 CRAIN’SDETROITBUSINESS November 19, 2012
M
ICHIGAN BRIEFS
Legislation aims to boost tracks 17 event will have more than 200
GR’s ‘wage theft’ response: Promise you won’t do it
shows and will take place at more
Legislation pending in the than 40 venues in Grand Rapids,
Michigan Senate aims to put a lit- Lowell, and Holland. LaughFest,
tle giddyap in the state’s struggling Businesses that do work for the city of Grand wanted the city to establish an enforcement mecha- which raises funds for Gilda’s Club
horse racing industry. MLive.com Rapids have to promise to pay employees for the work nism. But the city “did not see that as being viable, Grand Rapids, honors the memory
reported that the measure would they did, including overtime they might deserve, un- as there are already state and federal laws” govern- of comedian Gilda Radner.
permit horse tracks to install ma- der a “wage theft” administrative policy change the ing wage theft. (cid:2) Wyoming-based Gordon Food
chines allowing customers to bet Grand Rapids City Commissionapproved last week. The Mayor’s Wage Theft Task Force was commis- Servicehas completed its $40 million,
based on past races. Bettors get If they break the promise, the city can stop doing sioned by Grand Rapids Mayor George Heartwell two 386,000-square-foot headquarters on
some information about the prere- business with them. However, City Manager Greg years ago to investigate wage theft in the city. The pan- a 50-acre campus. MLive.com re-
corded races provided in programs Sundstrom said, the policy change does not include el had wanted companies doing $10,000 or more in ported that nearly all the invest-
for live races, but not details about any enforcement provisions. Because of that, the work for the city to put up posters explaining state and ment was local, from the contrac-
the races’ outcomes. measure fell short of the approach favored by work- federal wage theft laws to workers and including a tors to the Steelcase furniture and
The measure was approved 91-16 ers’ rights advocates — led by the Grand Rapids- phone hotline number. But after push-back from the Haworth floors to the artwork. Gor-
in the House. based Micah Center. Grand Rapids Area Chamber of Commerce, the City Com- don Food Service is the largest fami-
Supporters say it would give Sundstrom said the Micah Center — a spiritually mission removed the requirement for the poster. ly-operated food distributor in
horse tracks a modern gambling based organization advocating social justice — — Rod Kackley North America, with estimated an-
attraction. But some casino inter- nual sales of over $8 billion.
ests say that because of a 2004 con- (cid:2) Flint-based Richfield Manage-
stitutional amendment, state and is that your building has been Frank Peters, who owned the build- portation Security Administrationarea, ment LLCwill be sold for $7 million,
local voters also must approve the around for a long time, meaning re- ing during Prohibition, changed a widened corridor linking two sec- with two parties buying its con-
change. Tracks with live racing in- pair costs can add up. And in the the name to the White Horse Inn. tions of the airport, about 47,000 tracts and equipment out of bank-
clude Mt. Pleasant Meadows, Sports end, the need for “immediate ma- square feet of new terminal space ruptcy. The buyers are Halton Recy-
Creek Raceway in Swartz Creek, jor repairs to insure the safety of Flint area hopes Bishop Airport and four new gates, MLive reported. cling of Ontario and Sterling
Hazel Park Harness Raceway and our staff and guests” is what Heights-based Rizzo Environmental
Northville Downs. caused owner Tom Wilkins to close expansion helps region take off MICH-CELLANEOUS Services.
what had been considered the
After 162 years, White Horse Inn state’s longest-running restaurant. Bishop International Airportin Flint (cid:2) Comedian Lewis Black, for- Find business news from
Wilkins and wife Lisa took over the has completed a $16.8 million ex- mer “Saturday Night Live” cast around the state at crainsdetroit
hangs up ‘closed’ sign for good White Horse Inn 11 years ago. pansion, doubling capacity to 2 mil- member Jim Breuer and “Commu- .com/crainsmichiganbusiness.
Lorenzo and Lucy Carpenter lion passengers a year. A dedication nity” cast member Joel McHale Sign up for Crain's Michigan
Obviously, a number of good Hoard bought the two-story build- ceremony last week marked the are among the acts for next year’s Business e-newsletter at crains
things can be said about a restau- ing in 1850, according to records of completion of the expansion, which Gilda’s LaughFest. The March 7- detroit.com/emailsignup.
rant that has been open for 162 TheFlint Journal, and renamed it was done in five stages. Community
years. The food must be good. Ser- the Hoard House while operating it leaders told MLive.com that the ex- CORRECTION
vice, too. So the Historic White Horse as a restaurant and inn. The loca- pansion could boost trade and
Inn Restaurant in Metamora east of tion is said to have been a stop on transportation business and help (cid:2) A story on Page 3 of the Nov. 12 issue should have said that Moose-
Flint has that going for it. the Underground Railroad, dance the airport compete with other re- jaw’s temporary pop-up store on Woodward Avenue will be open Thurs-
But one problem with being in hall, boarding house, bar and other gions in Michigan. day-Saturday through Dec. 22, rather than Thursday-Sunday.
business for 162 years in one place businesses including restaurants. Bishop now has a larger Trans-
History is made in a moment. Open for 55 straight
hours! Free admission!
Detroit Historical Museum Grand Re-Opening: November 23, 2012, 9:30 a.m.
DOORS OPEN FRIDAY, NOVEMBER 23
AT 9:30 A.M. AND DON’T CLOSE UNTIL
SUNDAY, NOVEMBER 25 AT 5 P.M.
Come explore and experience the remarkable stories
of the people, places and events that define who we
are. Enjoy favorites like the Streets of Old Detroit
and discover new favorites like the Allesee Gallery
of Culture and the Kid Rock Music Lab.
Look for raffles, refreshments and giveaways
throughout the weekend.
It’s a weekend that will make history. Don’t miss it.
Visit www.detroithistorical.org or call
[phone] for more information.
(cid:55)(cid:76)(cid:74)(cid:72)(cid:85)(cid:3)(cid:54)(cid:87)(cid:68)(cid:71)(cid:76)(cid:88)(cid:80)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:3)(cid:82)(cid:81)(cid:3)(cid:71)(cid:76)(cid:86)(cid:83)(cid:79)(cid:68)(cid:92)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:81)(cid:72)(cid:90)(cid:3)(cid:36)(cid:79)(cid:79)(cid:72)(cid:86)(cid:72)(cid:72)(cid:3)(cid:42)(cid:68)(cid:79)(cid:79)(cid:72)(cid:85)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:38)(cid:88)(cid:79)(cid:87)(cid:88)(cid:85)(cid:72)(cid:17) 5(a4t0 K1i rWbyo)odward Avenue
Detroit, MI 48202
The Detroit Historical Society Mr. Terence E. Adderley Mr. and Mrs. Kevin P. A. Janette Ferrantino Masco Corporation Foundation
Broderick
would like to thank the Mr. Frederick M. Alger III David and Jennifer Fischer McGregor Fund
City of Detroit
following individuals and Bob and Maggie Allesee Benson and Edith Ford Fund Sandy and Mimi McMillan
Sean and Nancy Cotton
Marcia and Eugene General Motors Foundation PVS Chemicals/
organizations who provided
Applebaum Family Foundation Detroit Salt Company The Nicholson Family
Hudson-Webber Foundation
leadership gifts to our
John A. and Marlene L. DTE Energy Foundation The Matilda R. Wilson Fund
Kid Rock Foundation
Past>Forward Campaign: Boll Foundation
20121119-NEWS--0003-NAT-CCI-CD_-- 11/16/2012 6:25 PM Page 1
November 19, 2012 CRAIN’SDETROITBUSINESS Page 3
No room for outdated at the inn
Inside
UAW retiree trust short;
stock market blamed, Page 6
Future looking sweet for
Ann Arbor Holiday Inn to get $4M makeover from Tom Monaghan in March
expanding Avalon bakery,
1993.
The state’s Pure Michigan cam- Page 14
BYSHERRIWELCH paign and the Ann Arbor Area Con-
CRAIN’S DETROIT BUSINESS Renovations will soon change the vention and Visi-
look of the Holiday Inn Near the
tors Bureau
of TMheic Hhoigliadnay iInnn NAenanr thAer Ubnoirv erhsiatsy Uanndiv oeursti.t By yo fJ uMlyic, hiti gsahno u(lledft) inside bcirtoyuwgihdte i n mcoorne- Company index
resemble the rendering below.
launched a $4 million renovation ventions and
These companies have significant mention in this
to update the hotel from the top business last week’s Crain’s Detroit Business:
down and inside out by July. year, Sefcovic
Planned are updates to the said: “The city Algal Scientific . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
building’s exterior, ballroom, 225 … did very Ann Arbor Farms Hotel Corp. . . . . . . . . . . . . . . . . . . 3
guest rooms and suites, lobby, bar well.” The Armored Group . . . . . . . . . . . . . . . . . . . . . . . . 21
and restaurant Guy Hollerin’s, with COURTESY OF ANN ARBOR FARMS HOTEL CORP. The hotel, Avalon International Breads . . . . . . . . . . . . . . . . . 14
plans to add a new “e-bar” and me- which has a Sefcovic Bank of America . . . . . . . . . . . . . . . . . . . . . . . . . . 11
dia lounge where guests can sip said, with David Lonsway of Rock- guest experience for the next 10 green lodging certificate from the BBK Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
coffee or a drink while getting on- ford serving as president. Sefcovic years.” state attesting to operating proce- Blue Cross Blue Shield of Michigan . . . . . . . . . . . . . 1
line or catching the TV news. declined to name the other princi- The project is the first compre- dures such as energy conservation Brinks Hofer Gilson & Lione . . . . . . . . . . . . . . . . . 16
Franchise operator Ann Arbor pals. hensive renovation under Ann Ar- and hotel-wide recycling, also con- Brooks Wilkins Sharkey & Turco . . . . . . . . . . . . . . . 1
Farms Hotel Corp.recently signed a The renovation was a condition bor Farms Hotel Corp., Sefcovic tinued to see high demand from Cascade Partners . . . . . . . . . . . . . . . . . . . . . . . . . . 3
third 10-year franchise agreement of getting the franchise license re- said, though the owners have com- visitors to the University of Michigan Compuware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
with Holiday Inn that begins in newed, but the ownership group is pleted other updates as needed. and the University of Michigan Health Deloitte . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
April, general manager Joseph Se- going beyond required updates The hotel’s 2011 revenue exceed- System, he said. Detroit Mutt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
fcovic said. and minimum levels of finishes, he ed $7 million, Sefcovic said, noting Sefcovic projects that the hotel, Dykema Gossett . . . . . . . . . . . . . . . . . . . . . . . . . . 25
The principals of Ann Arbor said. that last year produced the highest on the north side of Ann Arbor at Eastern Michigan University . . . . . . . . . . . . . . . . . . 4
Farms Hotel Corp. are business- “We want to position the hotel results of any year since the own-
Economic Alliance for Michigan . . . . . . . . . . . . . . 24
men from the Chicago area, he in the marketplace to enhance our ership group acquired the hotel See Hotel, Page 23
Evans Distribution Services . . . . . . . . . . . . . . . . . . 11
Fisker Automotive . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Freudenberg-NOK . . . . . . . . . . . . . . . . . . . . . . . . . 25
Survey: State health benefit costs up 5.4%
Garden Fresh Gourmet . . . . . . . . . . . . . . . . . . . . . 14
Grand Valley State University . . . . . . . . . . . . . . . . . 4
Harvard Drug Group . . . . . . . . . . . . . . . . . . . . . . . 16
Henrob . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Holiday Inn. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
SPECIAL TBOY CRRAYINA’SN DEKTERLOILTY BUSINESS HOLDINGTHELINEONHEALTHCOSTS yemeaprlso fyreorms nnaotwio, n18a lplyer scaeyn tt ohfe lya regxe- HHoosspteitsasl iBtyr aAnddvsis o.r s. .C .o .n .s u. l.t i.n .g . G. r.o .u .p . .. .. .. .. .. .. .. .. .. .. 2231
pect to offer it as their only plan,
Michigan’s health benefit costs Selected results for Michigan from the survey on health benefit costs by up from 11 percent in 2011. InPore Technologies . . . . . . . . . . . . . . . . . . . . . . . 15
New York-based Mercer Inc.: James Group International . . . . . . . . . . . . . . . . . . 12
rpoesre e 5m.4p lpoeyrecee,n at cicno r2d0i1n2g t oto $a1 0s,1u2r2- (cid:2)Asked about their 2013 costs, directed health plan with a health forT ah ep lcaons wt iotfh c ao vheeraaltghe snaavtiinognsa allcy- Key Plastics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
veTy hbey fNinewdi nYgo riks -bpaasret do Mf aer cneart Iinocn.- rmpelaasndp,eo c nnodose tcnsht swa neogsuetldism rtaiost eeth dbe ytih r7 ac.tu2 irfr ethnety sr(cid:2)eaiv6mi6nbg upsre sareccmecnoetun ont fta eocmrc ohpuelonaytlt ethehsis c yoevaerr.ed caovuernatg ies, a tbhoeunt t2h0e p ceorscte notf lPoPwOe rc, oovn- KKePyM SGa fe. t.y .S .y .s t.e .m . s. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .2 35
wide survey that drew responses percent. However, they expect to in respondents’ health plans are erage — $7,833 per employee com- Kymeira Advanced Materials . . . . . . . . . . . . . . . . . 15
from 2,800 employers, 104 of which hold their cost increase to 4.6 enrolled in PPO/point of service pared to $10,007, the survey said. Lemon Peel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
were from Michigan. The national percent by making changes to plan plans, 17 percent in HMOs, 17 For example, last year, Sterling Level One Bancorp . . . . . . . . . . . . . . . . . . . . . . . . . 4
benefit cost increase, at 4.1 per- design and/or plan vendors. percent in consumer-directed plans Heights-based Key Safety Systems Living Essentials . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
cent, is the smallest in 15 years, ac- (cid:2)61 percent planned to shift costs and none in traditional indemnity Inc. began a program offered by Michigan Association of Health Plans . . . . . . . . . . 24
cording to the survey, which found to employees next year by raising p(cid:2)lans. Blue Cross Blue Shield of Michigan Michigan Chamber of Commerce . . . . . . . . . . . . . 24
an average nationwide per-em- deductibles, co-pays/co-insurance or Only 6 percent of respondents called GlidePath, a defined contri- Michigan Economic Development . . . . . . . . . . 13, 21
said they were likely or very likely to
ployee cost of $10,558. out-of-pocket maximums, increasing terminate their medical plans in the bution benefit health plan that Michigan Manufacturers Association . . . . . . . . . . 24
Employers are continuing to employees’ share of the premium next five years. More than two- helped the company control costs, Michigan Municipal League . . . . . . . . . . . . . . . . . 24
keep health care cost increases at contribution, or some other way. thirds of the respondents had more said human resources Manager NanoMAG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
bay by fixing costs or shifting (cid:2)39 percent offered a consumer- than 500 employees. Eileen Vernor. National Center for Manufacturing Sciences . . . . . 13
them to employees through con- Under the program, employers Oxford Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
sumer-directed health plans and ally consumer-directed plans were panies with 500 or more employees determine how much they plan to Omaha Automation . . . . . . . . . . . . . . . . . . . . . . . . 11
wellness incentives, the survey offered by 22 percent of companies, — 36 percent, up from 23 percent. spend on health benefits and allo- Plunkett Cooney . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
said. up from 17 percent a year ago. The When asked if they expect to of-
Seneca Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
The survey showed that nation- trend is more pronounced in com- fer a consumer-directed plan five See Survey, Page 23
SkySpecs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
UAW Retiree Medical Benefits Trust . . . . . . . . . . . . 6
Seneca’s amicable split creates more VC options United Way for Southeastern Michigan . . . . . . . . . 23
University of Michigan . . . . . . . . . . . . . . . . . . . . . . 4
Vitro SA de CV . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
BYTOMHENDERSON Skaff, will continue as managing vest in future deals. And Cox and Department index
CRAIN’S DETROIT BUSINESS directors at Seneca. Alfred Robert- Kothari will continue to serve on
son will also remain at Seneca as a the investment committee for BRIEFLY. . . . . . . . . . . . . . . . . . . . . . . 4
The co-founders of Birmingham- managing director. Seneca Health Partners. BUSINESS DIARY. . . . . . . . . . . . . . . . 19
based Seneca Partners Inc., an in- One result of the breakup is that “I’m confident we’ll continue to
CALENDAR . . . . . . . . . . . . . . . . . . . . 19
vestment banking and venture entrepreneurs will have one more invest together, possibly as early
CLASSIFIED ADS. . . . . . . . . . . . . . . . 21
capital firm, have agreed to an am- option when looking for venture as next month,” said Zambelli.
icable breakup that will create an capital. Seneca has invested near- “Mike and I had one take on how JOB FRONT. . . . . . . . . . . . . . . . . . . . 20
additional venture capital fund in ly all of the $14.1 million in its first best to move the company forward, KEITH CRAIN. . . . . . . . . . . . . . . . . . . . 8
Southeast Michigan. fund, Seneca Health Partners, and Raj had another. LETTERS. . . . . . . . . . . . . . . . . . . . . . . 8
Rajesh Kothari and Thomas had been planning on a new fund. Kothari Zambelli “It was as friendly as you can MARY KRAMER. . . . . . . . . . . . . . . . . . 9
Cox, who helped co-found Seneca That fund, targeting $15 million get. Raj stayed in our offices for
OPINION. . . . . . . . . . . . . . . . . . . . . . . 8
in 2002, have formed a new invest- to $35 million, is still on track to Principals at both firms say the three months while he looked for
PEOPLE . . . . . . . . . . . . . . . . . . . . . . 20
ment banking and VC firm, Cas- begin raising money early next breakup at Seneca, over philosoph- office space and was getting orga-
cade Partners LLC, on Northwestern year, according to Zambelli. ical differences over how best to nized,” he said. “I’ll still be invit- RUMBLINGS . . . . . . . . . . . . . . . . . . . 26
Highway in Southfield. Kothari said Cascade will also grow the company and manage a ing Raj to my tailgate parties.” WEEK ON THE WEB . . . . . . . . . . . . . . 26
The two other Seneca co- raise a fund, of between $25 mil- new fund, was friendly enough
founders, Tony Zambelli and Mike lion and $50 million. that the two firms likely will co-in- See Seneca, Page 23
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20121119-NEWS--0004-NAT-CCI-CD_-- 11/16/2012 6:12 PM Page 1
Page 4 CRAIN’SDETROITBUSINESS November 19, 2012
B
Let Olympia Entertainment RIEFLY
add the Sparkle to your Season
Fisker Automotive plans of the bond, was also at a record tionwide search for a chef. Once
high of 11.501 percent. they find one, he said, they will de-
tech center, possibly in region
The rating doesn’t affect day-to- cide what kind of food Gold Cash
Unforgettable Holiday Celebration Ideas to Fit Every Size and Style
day operations, as the bond was is- Gold will serve.
Fisker Automotivesays it plans to
For a list of ideas visit: OlympiaEntertainment.com/HolidayParties open a tech center in the Midwest, sued on a 9.5 percent fixed rate. — Nathan Skid
But the decreased value and high-
possibly in Southeast Michigan, to
aid development of the Atlantic, er rate will affect the company if it GVSU, EMU add to boards
goes back to the lending market,
the hybrid automaker’s second ve-
hicle. said Bob Schwartz, partner at Clark Gov. Rick Snyder made appoint-
A company statement offered no Hill PLCin Birmingham. ments to the governing boards at
details about the center’s size or The company “is unaware of Grand Valley State University and
expected number of employees. It any deaths proven to have been Eastern Michigan University.
was unclear if Irvine, Calif.-based caused by the consumption of 5- Appointed at Grand Valley were
Fisker would build a center or Hour Energy,” Living Essentials Crain’s Detroit Businesspublisher
lease existing space. said in a statement to Bloomberg. Mary Kramer and CEO John Rus-
Almost three years ago, Fisker “It is important to note that sub- sell of CMS Energy Corp.
decided to close its Pontiac engi- mitting a serious adverse event re- Kramer and Russell were ap-
neering office and moved about 30 port to the FDA, according the pointed to fill eight-year terms ex-
full-time employees to California. agency itself, is not construed by piring Dec. 31, 2020. The appoint-
Creating Championship Level Events A spokesman declined to give FDA as an admission that the di- ments are subject to state Senate
Call For Details: 313-471-3333 specifics on the new center. He etary supplement was involved, approval.
said many of Fisker’s key suppli- caused or contributed to the ad- Kramer replaces trustee Kate
ers are in the upper Midwest, and verse event being reported.” Pew Wolters. Russell replaces
a tech center in the region would — Dustin Walsh Noreen Myers.
be more convenient for the compa- Appointments at EMU were
ny’s factory in Delaware. UM plans $17.5M investment Mary Treder Lang, director of new
Fisker has delayed Atlantic pro- to expand research space business development for Baker
duction for at least two years and Tilly Virchow Krause, an accounting
now plans to start in late 2014 or The University of Michiganplans and advisory firm; and James
2015, Reuters reported. to invest $17.5 million to further Webb, chairman of Aon Risk Ser-
The Atlantic is a mid-sized plug- expand research space at its North vices Inc. of Michigan. They also will
in hybrid sedan expected to cost Campus Research Complex. fill eight-year terms once approved
$50,000 to $60,000. The school said its Board of Re- by the Senate.
— Automotive News gents on Thursday approved a pro- Treder Lang replaces Roy
ject to renovate and open 68,000- Wilbanks, the current chairman.
Rance Crain to join square feet of biomedical research Webb replaces Thomas Sidlik.
space on the site.
advertising hall of fame Nearly 1,700 people already Oxford Bank sold to Level One
work in the laboratories and of-
Rance Crain— president of Crain fices at NCRC, and hundreds more The shareholders of Oxford Bank
Communications Inc., parent compa- are preparing to move to the site. Corp., the oldest bank in Oakland
ny of Crain’s De- — Associated Press County, last week approved its
troit Business, sale to Level One Bancorp Inc. of
and editor-in- Slows co-owner strikes ‘gold’ Farmington Hills, a deal an-
chief of Adver- nounced Sept. 13.
tising Age, The golden pawnshop building The sale is subject to the ap-
Crain’s Chicago on the corner of Wabash Street and proval of the Federal Reserve Bank
Business, Michigan Avenue in Detroit’s of Chicago and the Michigan Office
Crain’s New Corktown neighborhood is set to of Financial and Insurance Regulation.
York Business be the latest endeavor by Ryan Coo- Approval is expected to be a for-
and Television- ley, co-owner of the well-known mality, and the deal is expected to
Week.com — Crain Slows Bar BQ. close in the first quarter next year.
has been named Once owned by the Gold family After the close, Level One would
to the American Advertising Federa- of “Hardcore Pawn” fame, the have about $750 million in assets
tion’s Advertising Hall of Fame. building is set to be a restaurant and 15 branches. Oxford has eight
Crain joins his father, G.D. with six residential lofts above. Af- branches and $385 million in as-
Crain; his mother, Gertrude Crain; ter the $2 million makeover, it will sets.
and Sid Bernstein, former editor, be known as Gold Cash Gold. Level One President and CEO
editorial director and publisher of Cooley, a partner in Slows with Patrick Fehring told Crain’s in
Advertising Age, as hall of fame in- his brother, Phillip, and co-owner of September that all of Oxford’s
ductees. Rance Crain is the broth- O’Connor Real Estate,said the own- branches would remain open.
er of Keith Crain, chairman of ership group is currently on a na- — Tom Henderson
Crain Communications and edi-
tor-in-chief of CDB.
Bond rating falls in wake
of deaths tied to 5-Hour Energy
The 13 deaths associated with 5-
Hour Energy drinks took a toll last
week on at least one aspect of its
Farmington Hills-based maker Liv-
ing Essentials LLC— the rating of its
$450 million in bonds, issued in
July.
The energy shot was linked to 92
adverse event reports, including
13 deaths and 32 hospitalizations,
Shelly Burgess, a U.S. Food and Drug
Administration spokeswoman, told
Bloomberg News.
On top of the possible public
backlash, Living Essentials was
also contending with a dropping
bond rating. The worth of the bond
dropped to its lowest rating since
being issued, to 90.75 percent of its
initial value, according to
Bloomberg data. It dropped 1.25
percentage points Thursday morn-
ing, following the report.
The yield price, or interest rate
DBpageAD.qxp 8/9/2012 5:50 PM Page 1
20121119-NEWS--0006-NAT-CCI-CD_-- 11/16/2012 5:38 PM Page 1
Page 6 CRAIN’SDETROITBUSINESS November 19, 2012
Sluggish stocks leave UAW trust short
BYJAYGREENE rising medical costs did not con-
CRAIN’S DETROIT BUSINESS “This means they tribute materially to the increase
in underfunding.
A second straight year of poor either kick it on “Our obligations did not in-
stock market performance has in- crease due to any increase in actu-
creased the funding shortfall to $33 down the road (to al or expected health care infla-
billion for the Detroit-based UAW tion,” the trust said. “To the
Retiree Medical Benefits Trust, find a solution), or contrary, if we were to measure
which covers about 809,000 retired the obligations excluding the pre-
autoworkers, according to federal something needs to viously mentioned discount rate
documents. effect, they would have decreased
At the end of 2011, medical cost change.” by about $5.4 billion in total.”
obligations to cover the retirees The UAW trust — known as a
rose 8 percent to $85.3 billion, VEBA, or voluntary employee ben-
Doug Bernstein, Plunkett Cooney PC
while the assets of the trust eficiary association — was created
dropped 11 percent to $52.4 billion, in 2007 as part of a collective bar-
said financial audits filed with the gaining agreement among the
U.S. Department of Labor. leader in banking with Bloomfield UAW and Detroit Three automak-
Continuity
The $33 billion long-term pro- Hills-based Plunkett Cooney PC, said ers General Motors Co., Ford Motor
jected shortfall is up 63 percent underfunding of trust accounts is Co.and Chrysler Group LLC.
from $20 billion in 2010, the first not unusual because of the ups and The trust manages health care
year the trust began delivering downs of the stock market. costs as a single fund that com-
benefits to retirees. “The magnitude is the alarming bines all the automaker contribu-
Trusted for 70 years.We’ll be here for generations.
“The primary driver of the part; but given the lack of avail- tions, although it has separate ac-
change in funded status for the able investments, it is not surpris- counts for GM, Ford and Chrysler
plans was the change in the rate by ing,” Bernstein said. “This means to pay the medical benefits for
We work with our clients and their advisors to: which the plan obligations were they either kick it on down the each company’s retirees.
discounted,” according to a state- road (to find a solution), or some- To deliver benefits to retirees,
Reduce estate and income tax Enhance fixed income ment from the trust to Crain’s. thing needs to change.” the trust contracts with four
“Lower discount rates account- Bernstein said the trust has sev- health plans in Michigan and Blue
yields Solve family and business issues Improve ed for almost $6 billion of the eral options: reduce medical costs, Cross Blue Shield of Michigan. Annu-
change,” the statement said. “The alter retiree benefits, modify in- al health care costs average about
existing life insurance policies.
remaining change of $6.5 billion vestment strategy or wait for the $4.4 billion and have been rising at
compared to 2010 was due to the economy and investment returns about a 5 percent yearly clip.
performance of assets during to improve. The four health plans in Michi-
2011.” “As a practical matter, they gan are Health Alliance Plan of Michi-
The trust statement said stock need to do everything. There is gan, HealthPlus of Michigan, Blue
market performance varies during nothing they can do to make im- Care Networkand Priority Health.
the year and “2011 was challenging provements overnight,” Bernstein Jay Greene: (313) 446-0325,
due to market conditions.” said. [email protected]. Twitter:
BIRMINGHAM, MI 248.731.9500 WWW.SCHECHTERWEALTH.COM Doug Bernstein, practice group But the trust said unexpected @jaybgreene
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DBpageAD_DBpageAD.qxd 11/12/2012 3:27 PM Page 1
Association of Fundraising Professionals Greater Detroit Chapter
Congratulates the 2012 National Philanthropy Day Honorees!
2012 Philanthropy Awardees
Max M. Fisher Award for George W. Romney Award for Lifetime Edmund T. Ahee Jewel Award for
Outstanding Philanthropist Achievement in Volunteerism Outstanding Volunteer Fundraiser
Lynn and Paul Alandt - Eugene A. Gargaro Jr. - Nominated by: Matthew P. Cullen - Nominated by: Henry Ford
Nominated by: College for Detroit Institute of Arts Health System
Creative Studies
Neal Shine Award for Media Dr. John S. Lore Award for Outstanding Corporation Award
Commitment to Philanthropy Outstanding Fundraising Executive PNC Bank - Nominated by:
Mitch Albom - Nominated by: College for Dan Alpert - Nominated by: Detroit Starfi sh Family Services and the
Creative Studies Public Television Detroit Public Schools Foundation
Sparky Anderson Award for Youth Outstanding
In Philanthropy Foundation Award
Teen Grant-Making Initiative at the Center for Fred A. and Barbara M. Erb Family Foundation -
Arab American Philanthropy - Nominated by: The Heidelberg Project
Nominated by: ACCESS
2012 Distinguished Volunteers
Mary Abouljoud - Henry Ford Health System Geoff rey and Mary Ann (Mixie) Hockman - Beaumont MemberFocus Community Credit Union - Henry Ford
Adrianne L. Abrams - Lawrence Technological University Foundation/Beaumont Health System Community College Foundation
Cindy Alix - CARE House of Oakland County Denise Hubbard - St. John Providence Health Allan Nachman - Jewish Federation of
Mario Apruzzese - Society of St. Vincent de Paul System Foundation Metropolitan Detroit
Robert E. Baker - Rose Hill Center Jean Ice - Macomb Community College Foundation Charles Neal - Detroit Inter-Alumni Council of the United
James Bernacki - Vista Maria Mark Jacobs - Jewish Family Service Negro College Fund (DIAC/UNCF)
Carl Bloom - Grace Centers of Hope Christopher Kelly - Planned Giving Roundtable of Dr. Anthony Nehra - Crittenton Hospital Medical
Jane Bolender - Presbyterian Villages of Southeast Michigan Center Foundation
Michigan Foundation Cindy Kochendorfer - Grace Centers of Hope Paul Palazzola - McLaren Macomb Healthcare Foundation
Rebecca Boylan - Starfi sh Family Services Cynthia Kot - Walsh College Gina and Jeff rey Petherick - Oakland University
Barrett O. Brink - Beaumont Foundation/Beaumont Sally Krugel - Jewish Federation of Metropolitan Detroit Nancy Philippart - Girl Scouts of Southeastern Michigan
Health System Mary Jo Kurily - Grace Centers of Hope Leroy Richie - Detroit Public Schools Foundation
Julius Cicchini - Macomb Community Colleen and Richard Landry - Vista Maria James I. Rosenthal - Beaumont Foundation/Beaumont
College Foundation John Latella - The Salvation Army Health System
Jonathan Citrin - Starfi sh Family Services Bernice Lindke - Women in Philanthropy at Eastern Gay Ann Schirs - McLaren Macomb
Susan Citrin - Starfi sh Family Services Michigan University Healthcare Foundation
Ellene (Nina) Tratras Contis, PhD - Women in Mykel Lindsay - E.A.S.Y. Incorporated Cathy and Norman Schmitt - University of Detroit Mercy
Philanthropy at Eastern Michigan University Kristen Lingenfelter - Alzheimer’s Association Jane Schwyn - Oakwood Healthcare Foundation
Ella and William “Pip” Dooley - Think Detroit PAL Vicki Lock - St. John Providence Health Jeff rey Seregny - University of Detroit Jesuit High School
Steve Dunbar - St. Vincent and Sarah Fisher Center System Foundations and Academy
Suzanne Elder - Crittenton Hospital Medical Pam Lowry - Lawrence Technological University Howard Sherizen - American Technion Society
Center Foundation Dr. Aaron Lundgaard - Presbyterian Villages of Jason Torrez - The Children’s Center of Wayne County
Rose Fenster - St. John Providence Health Michigan Foundation Loren Treadwell - First Step
System Foundations Laurie Maass - Marian High School Lisa Vallee-Smith - St. John Providence Health
Dr. Lynette Findley - Women in Philanthropy at Eastern Barbara J. Mahone - Beaumont Foundation/Beaumont System Foundations
Michigan University Health System Wendy Waszkiewicz - Grace Centers of Hope
Barb Fioravante - Marian High School Dr. Richard E. Marburger - Lawrence Technological Ed and Rhonda Welburn - College for Creative Studies
Gayle Good - LEAVE A LEGACY® Southeast Michigan University Janice Westenberg - The Holley Institute
Allen and Barbara Gough - Oakland University Webb Martin - Presbyterian Villages of Rob Whitty - Marian High School
Jeff rey Groen, CPA - Walsh College Michigan Foundation Sharon Wood - Grace Centers of Hope
Phyllip Hall - Cranbrook Schools Horizons- Jackie Mauro - Marian High School William Zweng - St. John Providence Health
Upward Bound System Foundations
Thank you to the 2012 AFP National Philanthropy Day Sponsors
Presenting Sponsor Silver Sponsors Lawrence Technological University
Crain’s Detroit Business Children’s Hospital of Michigan Foundation Macomb Community College Foundation
Clark Hill PLC McClaren Macomb Healthcare Foundation
Edmund T. Ahee Jewel Award for Outstanding Gary Dembs – 4th Sector Consulting Presbyterian Villages of Michigan Foundation
Plante & Moran PLLC Rose Hill Foundation
Volunteer Fundraiser Sponsor
Starfi sh Family Services
Edmund T. Ahee Jewelers
Bronze Sponsors The Salvation Army
Think Detroit PAL
The Children’s Center
Platinum Sponsors
UHY Advisors of Michigan
College for Creative Studies
Beaumont Foundation
University of Detroit Jesuit High School and Academy
Community Foundation for Southeast Michigan
Rock Ventures LLC
Walsh College
Cranbrook Schools Horizons – Upward Bound
Wayne State University
Crittenton Hospital Medical Center
Gold Sponsors
Detroit Free Press
Honigman Miller Schwartz and Cohn LLP
Detroit Public Television
Richard and Jane Manoogian Foundation Sponsors listed as of 11/7/12.
Franco Public Relations Group
St. John Providence Health System
Henry Ford Health System
Strategic Staffi ng Solutions
20121119-NEWS--0008-NAT-CCI-CD_-- 11/16/2012 5:36 PM Page 1
Page 8 CRAIN’SDETROITBUSINESS November 19, 2012
O L
PINION ETTERS
For Sonny days and Give Port Authority support
Editor: Pension tax hurts Hoekstra loss
more, we say thanks
It is about time our port has the
necessary tools to help its con- Editor: not about money
stituent companies and region Please allow me to add some bal-
Editor:
with economic development. The ance to the recent Other Voices ar-
In the Nov. 12 article “Money a
key word here is “help,” as it ticle by Rob Fowler, president and
key factor in Stabenow’s defeat of
As we roll into the long Thanksgiving holiday weekend, should be a collaborative effort CEO of the Small Business Associ-
Hoekstra,” Amy Lane quoted Greg
the reporters and editors of Crain’s Detroit Businessof- (“Port Authority, DEGC at odds ation of Michigan (“State gives big VanWoerkom, Hoekstra campaign
over bonding bills,” Nov. 5). boost to small businesses,” Nov.
fer humble thanks for many blessings, including: manager, as stating “the funding
(cid:2) The gift of Sonny Eliot and his decades of Sonny-isms on We are a part of port Detroit and 5). difference was a major factor” in the
take great pride in our company Mr. Fowler lavishly praised Hoekstra loss. I would suggest mon-
TV (cid:2)and, later, radio. being a recognized global leader in Gov. Rick Snyder and the Michi- ey was not the major issue at all. It
That the election is over and we are blessed by the ab- our business. However, we also gan Legislature for overhauling was the poor messages that his cam-
sence of persistent robo-calls and poorly produced campaign recognize the importance of our the state’s tax policy to favor paign was sending, particularly the
commercials — or as we like to think of them, ads nauseam. port being a global leader. The De- small business. However, he failed “Asian” TV ad and the “Debbie
(cid:2) That the auto industry continues to rebound; Chrysler troit Wayne County Port Authori- to acknowledge the Michigan pen- Spend It Now” nonsense. Chalk up
ty has been proactive in reaching sion tax that went into effect this the loss to his campaign approving
has announced adding a third shift at its Warren Truck plant out to the companies that make up year, along with the burden those messages, not the money. Peo-
and more investment at the Mack Engine complex in Detroit. port Detroit and offering its ser- placed on retirees living on a fixed ple will only buy what you’re selling
News like that — and growth from second-stage companies vices. income. The amount of state in- if they buy what you’re saying.
(Page 11) and startups (Page 15) — supports the University of To say that the port is a failure come tax withheld from my pen- Ed Szykula
Michigan economic forecast released last Friday that Michi- demonstrates how misinformed sion check every month equates to Berkley
DEGC President George Jackson
an extra car payment … without
gan will add an estimated 111,000 jobs in 2013-14. is. We take great pride in our port Send your letters: Crain’s Detroit
(cid:2) the car.
That baseball writers got it exactly right by naming De- and just want our city of Detroit to Business will consider for
I would have spent every last
troit Tigers slugger Miguel Cabrera the American League’s compete effectively with our publication all signed letters to the
penny supporting our local econo-
neighboring Great Lakes cities. editor that do not defame
Most Valuable Player. It was the second consecutive year a my. Raising taxes on seniors as we
Our port authority is a critical individuals or organizations.
Tiger got the nod from members of the Baseball Writers Asso- try to ramp up our economy is pen-
component to making that happen. Letters may be edited for length
ciation of America; pitcher Justin Verlander won last year. David Usher, ny wise and pound foolish. and clarity. Email
On more personal notes: Chairman, Marine Pollution Control John Vraniak [email protected]
(cid:2) Detroit Plymouth
Food beat reporter Nathan Skid — who hails from St.
Louis, no less — is thankful for Michigan’s craft breweries.
Take that, Anheuser-Busch!
(cid:2) Retail reporter Sherri Welch is thankful for new pop-up T W
ALK ON THE EB
stores downtown, convenient for lunch-hour gift shopping.
(cid:2)
And, though Twinkies may not be on the national menu
much longer, those with a sweet tooth need have no fear: De- From www.crainsdetroit.com
troit’s Avalon International Breads LLC is expanding with a
baking and distribution center, and Ann Arbor’s Zingerman’s Re: Reports of deaths impact Reader responsesto stories and The cars will have to do the same,
Deli is expanding, too. (Maybe there’s an index here for Uni- bond rating of 5-Hour Energy blogs that appeared on Crain’s or you’ll continue getting dissatisfied
website. Comments may be customers. But maybe it’s a back-
versity of Michigan economists). Ninety-two adverse reports in edited for length and clarity. handed way to make money by get-
Is it a fair name or fowl? four years. They sell 9 million bot- ting people into the dealerships for
tles a week. There probably are sort communities begin to expire. repairs. The tech stops working
more deaths attributable to eating If 10,000 baby boomers are retiring without the update, so people are
salami sandwiches than 5-Hour En- every day, then at some point forced to go to the dealership to get
Michigan lawmakers have a full plate on their lame-duck ergy drinks. there is going to be a correspond- the upgrades and get the tech
Michael Weinstein ing culling of baby boomers. The working again. While you’re there
menu, Crain’s new Capitol reporter Chris Gautz reports on
other thing not cited in the article — “oh, we noticed you need an
Page 1.
Re: Brewster-Douglass towers to fall is that many college grads are not alignment, a new air filter, oil fil-
But is it really a lame duck? The political balance remains sticking around Michigan. ter, tires ...”
in Republican control after Jan. 1, after all. $6.5 million just to take buildings mkogrady Sknygrydg07
down. Pretty sickening when you
So where does the phrase “lame duck” come from?
think about it.
Tied today to outgoing politicians in their waning days of john md Re: Mulally on auto gadgets
Re: Financial emergency process
office, the original term may in fact have described financially The MyTouch tech is great, but
in limbo after Prop 1’s defeat
ruined stockbrokers in 18th century London. Brokers in Ex- Re: Blue-collar vacation home it needs a lot of improvement. As
change Alley came in two flavors — bears and bulls. But when dreams fade with auto jobs far as going to the dealership every I believe the electorate has spo-
brokers lost it all, they became known as “lame ducks” — be- six months to upgrade, most peo- ken: No government intervention,
The vacation home market will ple aren’t going to do that. It’s a let Detroit succeed or fail on its
cause they couldn’t fly with the rest of the flock or, in one ac-
experience another slowdown as major inconvenience, when smart- own. No oversight, no monetary
count, because of the way they waddled out of the alley. baby boomers who own vacation phones and computers auto-up-
It may be time for a new term. homes or residences in these re- date through Internet connection. See Talk, Page 9
K C :
EITH RAIN There appears to be no bright spot for city
I still haven’t figured out the De- lion (with a “B”) dollars for bankruptcy. Sadly, ing to all of us who have watched who hired him. He saved the DMC.
troit City Council. I haven’t fig- to tide them over until it looks like we now will the city spiral out of control for But for him, Dave Bing and
ured out the top lawyer for the somehow things turn watch that process hap- decades. Only it finally has come maybe others who are circling the
city, either. I think the mayor around. pen. home to roost. city to declare their interest in be-
knows what’s going on and is mys- It doesn’t seem to No one knows how It is impossible for me to under- ing the next mayor, you need a cer-
tified as to how to effect any matter how many peo- dire it will be once stand why anyone would actually tain experience and temperament
change. ple tell them that they bankruptcy is deter- be interested in running for the that few if any others beside Dug-
The city of Detroit is sinking are wrong. The few mined. It will be ugly; mayor of Detroit. Mike Duggan gan and Bing have in their charac-
faster than the Titanic. folks in City Hall who all those politicians will was in our offices last week, talk- ter.
No one seems to care or believe have a grip on reality be out of work. Or ing about a run. For him, taking on They don’t even know if there
it. I can only assume that those and the city’s finances maybe they’ll have an the Detroit Medical Center almost will be a job as mayor if the city
poor lost souls in Detroit govern- have to be tearing their unpaid job and nothing a decade ago is not unlike running falls into bankruptcy. Under bank-
ment think that they’re going to hair out. to do. It will be a bank- the city of Detroit. He was a great ruptcy, all bets are off.
get a Christmas card from Presi- Along with many others, I have ruptcy judge making decisions. hire, and I should know. I was one The ship is sinking. No one
dent Obama with a couple of bil- predicted that the city is heading The whole ordeal is so frustrat- of many on the board of trustees knows how long it will stay afloat.
20121119-NEWS--0009-NAT-CCI-CD_-- 11/16/2012 11:16 AM Page 1
November 19, 2012 CRAIN’SDETROITBUSINESS Page 9
M K :
ARY RAMER The unlikely – and likely – mayor
Will he or won’t he? Second, the other po- ple from his stint as in- tion. Voila! Maintenance costs ly — or for free — to city-owned
What a tease. Is there really a tential candidates — in- terim manager of the dropped, and with turnover of 12 homes.
doubt that Mike Duggan will run cluding Wayne County heavily unionized percent, the overall headcount As for race, Duggan said one
for mayor of Detroit in 2013? Sheriff Benny SMART system: He dropped, too. black pastor told him he was re-
Duggan appeared a confident Napoleon — will look to found mechanics play- On the issue of land control, considering the notion of “black
candidate in a Crain’s editorial voters like “more of the ing cards in a mainte- Duggan says: “The most asinine empowerment” from meaning
board last week, buoyed by sup- same.” nance garage while thing is the Wayne County trea- blacks running the show to mean-
port gathered through his exten- Duggan is pushing buses sat idle, waiting surer auctioning off 20,000 parcels ing black people in control of se-
sive community and business ten- his ability to find win- to be fixed. He learned to speculators.” lecting the best person for mayor.
tacles and through the more than wins with organized la- that mechanics worked He would try to stop the county I suspect other Detroiters will
20 meetings he has held in homes bor and getting control under narrow job clas- auctions and begin aggressive weigh that same thinking.
all over the city. of Detroit’s land. sifications — just like code enforcement on negligent Mary Kramer is publisher of
He suspects he will have to raise He argues that De- the auto companies property owners. Crain's Detroit Business. Catch her
between $5 million and $7 million troit doesn’t need an once had. A transmis- Neighbors of city-owned homes take on business news at 6:10 a.m.
to make a successful run. Again, emergency manager — just a may- sion mechanic could sit around if would be encouraged to entice Mondays on the Paul W. Smith show
any doubt he can do that? or who can find the common the bus needed, say, brake work. friends and relatives to buy cheap on WJR AM 760 and in her blog at
Barring some huge misstep, ground in workers’ interests and So Duggan negotiated job security housing, and people in blighted www.crainsdetroit.com/kramer.
Duggan will make history and be- management’s. He uses an exam- in exchange for a single classifica- neighborhoods could move cheap- E-mail her at [email protected].
come the first white mayor of De-
troit since 1973. Here’s why:
First, despite the “professional
protestors” you hear at every pub-
lic meeting, Detroit residents are
yearning for someone who can
actually make the city work.
Duggan will run on a fix-the-neigh-
borhoods campaign, using his
turnaround experience at DMC
and the SMART bus system to set
him apart from other candidates.
T
ALK CONTINUED
■ From Page 8
assistance from the government.
Business in the burbs
The state should not merely alle-
viate Detroit’s problems. Unless
the City Council demonstrates
that it is willing to sacrifice its as-
set control, it should not receive
additional assistance. Detroit
management allowed the crisis to
build over many years. They need
to recognize that, like any busi-
ness or household, when you have
excessive assets and spending, you
have to shed those obligations in
order to survive.
David Ameel
Re: Money key in Hoekstra’s defeat
It appears that Hoekstra’s camp is
in denial. For a candidate who
served in Congress for 17 years to
blame lack of name recognition
and inability to establish himself
as a “credible candidate” due to
lack of airtime sounds like sour-
grapes excuses. His message was
negative. Calling Debbie Stabenow
the worst senator ever puts Hoek-
stra in the same class as Rush Lim-
baugh with his “The Anointed
One,” “The Messiah” and “Oba-
ma’s regime.” The American pub-
lic is sick of politicians and party YOUR BUSINESS ISN’T JUST A JOB — IT’S A PASSION. You get to know your
spokesmen who have nothing
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too uncommon in today’s world. I
am thankful for Dan Gilbert and (cid:53)(cid:51)(cid:38)(cid:34)(cid:52)(cid:54)(cid:51)(cid:58) (cid:46)(cid:34)(cid:47)(cid:34)(cid:40)(cid:38)(cid:46)(cid:38)(cid:47)(cid:53) (cid:114) (cid:52)(cid:49)(cid:38)(cid:36)(cid:42)(cid:34)(cid:45)(cid:53)(cid:58) (cid:39)(cid:42)(cid:47)(cid:34)(cid:47)(cid:36)(cid:42)(cid:47)(cid:40) (cid:114) (cid:56)(cid:38)(cid:34)(cid:45)(cid:53)(cid:41) (cid:46)(cid:34)(cid:47)(cid:34)(cid:40)(cid:38)(cid:46)(cid:38)(cid:47)(cid:53)
his group of visionaries. And I will
definitely be shopping downtown
on my biweekly trips to Detroit, 1-800-946-2264
which I call my fix. There is no
place like Detroit, and I for one CITIZENSBANKING.COM/BUSINESS
love it.
jpd101
DBpageAD_DBpageAD.qxd 10/17/2012 12:22 PM Page 1
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