20090928-NEWS--0001-NAT-CCI-CD_-- 9/25/2009 6:46 PM Page 1 ® www.crainsdetroit.com Vol. 25, No. 38 SEPTEMBER 28 – OCTOBER 4, 2009 $2 a copy; $59 a year ©Entire contents copyright 2009 by Crain Communications Inc. All rights reserved Page 3 Crittenton family medicine “ (The(The recession’s)recession’s) residency denied funding impactimpact isis farfar lessless becausebecause Kojaian splits ‘Big 4’ ready to move toward of our market share. regional transit authority We’re able to increase our advertising and open Special Section our advertising and open newnew stores.stores. with Lehman Automation ” Alley ArtArt VanVan Elslander,Elslander, Art Van Furniture Awards, Art Van Furniture Developer, bankrupt firm Page E1, divide joint-venture properties following Page 12 BY DANIEL DUGGAN ly to Lehman’s bankruptcy. In CRAIN’S DETROIT BUSINESS the end, he said, it was just too difficult to deal with a business Bloomfield Hills developer partner in a massive Chapter 11 Michael Kojaian has parted ways bankruptcy pro- with bankrupt Lehman Brothers Inside NATHAN SKID/CRAIN’S DETROIT BUSINESS ceeding. Holdings Inc., ending a 13-year re- WHO OWNS “On Sept. 15 Time Inc. Detroit project lationship that helped the local WHAT? (2008), the nature draws attention, Page 18 developer finance much of his of a very good re- real estate empire. Property list: lationship In settling the split-up, Kojaian Lehman’s changed,” he said Crain’s health summit will have full ownership of at and Kojaian’s of the date Art Van has holdings, least 14 buildings and parcels of speakers stress value of Page 22 Lehman filed for land that were previously under bankruptcy. “At wellness programs, Page 20 joint ownership. He also paid $8 that point, they million in cash, according to couldn’t provide capital any- court documents. more. And we weren’t sure who This Just In a new brand Lehman Brothers will, in turn, was calling the shots.” have full ownership of 15 build- Loans attached to some of the Business groups back ings and parcels of land, includ- properties ended and refinanc- Retailer seeks growth with mattress chain ing five occupied office develop- ing was needed. prison boot camp plan ments across metro Detroit, Kojaian said the long settle- including the Travelers Towers Business organizations BY DANIEL DUGGAN ment talks began so that both in Southfield and One Woodward and other groups on Friday WEB EXTRA CRAIN’S DETROIT BUSINESS groups could go separate ways Ave. in Detroit. and control their own properties. called for Senate action on a Interview: What bill that they said could save With 2008 revenue down 31 percent from its peak in Kojaian, president of Kojaian “This turned out to be an ex- was it Ventures and chairman of Santa the state $40 million to $50 like 2000, furniture retailer Art Van Furniture has no plans tremely good economic outcome million a year in new prison when to stop growing the chain of stores. Ana, Calif.-based Grubb & Ellis Co., for Kojaian Ventures,” he said. costs. Art The company has continued its advertising pro- said the deal was the result of an “We were allowed to cherry-pick The legislation would keep Van grams, opened a new store in west Michigan and is amicable split. and separate properties that open a prison boot camp near Furniture had launching a new line of 12 standalone mattress stores Over the past 13 years, Kojaian were in the joint-venture rela- Chelsea that is slated to close only one store? across Michigan over the next year. had more than 100 deals with tionships. We now control our Art Van if a boot camp program ends “Are we impacted? Sure, we’re impacted,” said Art Lehman as either lender or equi- own entities.” Elslander Van Elslander during an interview with Crain’s. ty partner. At any given time, Under the terms of the deal, Wednesday as scheduled. reminisces The groups, an informal “But our impact is far less because of our market there might be 50 deals in place, partially disclosed in filings as on video, he said. coalition that has advocated www.crains share. We’re able to increase our advertising and part of Lehman Brothers’ bank- corrections reforms, say the detroit.com open new stores.” Kojaian stressed that the deal ruptcy case, Kojaian and ending the relationship was con- closure would mean moving /multimedia See Art Van, Page 21 See Kojaian, Page 22 camp inmates to more expen- sensual on his part and due sole- sive prison settings that would add new expense to the state’s correctional bud- get. Members of the coalition include the Detroit Regional Foundations fund efforts for accurate census Chamber; Presidents Council, State Universities of Michigan; BY SHERRI BEGIN WELCH pass-through to other non- to MNA for the census Michigan Association of Real- CRAIN’S DETROIT BUSINESS profits for census promo- campaign. tors; Center for Michigan; Grand tion initiatives. We think 2010 is For every person Rapids Area Chamber of Com- Michigan nonprofits are being asked to play Those foundations are “ missed in the official merce; Small Business Associa- an unprecedented role to make sure each per- the Troy-based Kresge different than any other count, an estimated tion of Michigan; Michigan son in the state gets counted in the 2010 census. Foundation, the W.K. Kel- $12,000 in federal funding Manufacturers Association and In the absence of the typical $500,000 or so in logg Foundation in Battle census we’ve had in the will be lost over the next state funding for census promotion, four foun- Creek, the Charles Stewart decade, he said, or about See This Just In, Page 2 dations have stepped up with $300,000 in grants Mott Foundation in Flint history of this country. $1.2 million for every made to the Michigan Nonprofit Association for and the Chicago-based ” 1,000 people not counted. Joyce Foundation. Sam Singh, Public Policy Associates An accurate census “While the current count also is critical in (state) budget discussions are important, they making sure Michigan has the congressional won’t be as long-lasting as the consequences of representation it is due. The state lost one con- the census,” said Kyle Caldwell, president of gressional seat in the 2000 census and is expect- the Michigan Nonprofit Association. ed to lose at least one, and possibly two more, Federal funding for the region and state for this year. the next decade will hinge on the census count, “We think 2010 is different than any other NEWSPAPER said Sam Singh, former president of MNA and a consultant with Public Policy Associates, on loan See Census, Page 22 20090928-NEWS--0002-NAT-CCI-CD_-- 9/25/2009 6:23 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS September 28, 2009 The refitted fleet should be more Coast Guard could not adequate- months ago for 1,750 square feet Lipson Neilson opens 4th office THIS JUST IN effective in combat than the cur- ly maintain the shipping lanes,” of office space for two of its port- rent one and greatly reduce “obso- wrote James Weakley, president of folio companies. Bloomfield Hills-based Lipson, ■ From Page 1 lescence” or outmoded parts and Rocky River, Ohio-based Lake Car- “We are creating a critical Neilson, Cole, Seltzer & Garin P.C. systems within vehicles, said Pe- riers’ Association, in a statement mass of entrepreneurship here,” opens its fourth office next week, the Michigan Chamber of Commerce. ter Keating, vice president of com- lauding Oberstar’s provision. said Randal Charlton, executive di- this one in Grosse Pointe Farms, House Bill 5311, sponsored by munications at GDLS. The trade group represents 18 rector of the Wayne State Universi- where Managing Partner Jeffrey Alma Wheeler Smith, D-Salem Town- — Chad Halcom U.S. vessel operators on the Great ty-affiliated tech park and incuba- Neilson will practice along with ship, is supported by the Michigan Lakes with a total of 65 ships. tor. “Bizdom U. has a different two of the firm’s other attorneys. Department of Corrections. It passed — Bill Shea approach to entrepreneurship Neilson, co-founder of the firm the House Sept. 10 in a 65-40 vote Icebreaker funds in budget bill than we do, but both approaches and longtime Grosse Pointe-area and is in the Senate Judiciary are valid. This gives entrepre- resident, said he will join Kay Bul- Congress could approve con- First new CEO named ter and Mark Phillips at the new of- Committee, chaired by Wayne struction of a new U.S. Coast Guard neurs more choices.” — Tom Henderson fice along Kercheval Avenue, Kuipers, R-Holland. icebreaker for the Great Lakes, at Sterling Group — Amy Lane though he expects the firm’s oth- which could extend the shipping A new CEO has been appointed Construction begins er attorneys will make use of the season and improve safety for ves- for the first time in the 20-year location as needed. General Dynamics wins sels carrying commodities used lo- history of the Detroit-based Ster- for retirement community He called the expansion an op- cally, such as iron ore and coal. ling Group real estate investment Construction is under way on a portunity “to become more en- Abrams tank contract U.S. Rep. James Oberstar, D- and consulting company. 60-unit retirement community in gaged in the area,” cultivating Minn, added a provision in the Sterling Heights-based General Gary Torgow, who has held the Dexter. clients looking for local repre- Coast Guard Authorization Act Dynamics Land Systems won a $7 positions of CEO and president Chelsea-based United Methodist sentation and a work location for budget bill that would give the million contract for design and en- since he founded the firm in 1988, Retirement Communities is devel- attorneys who have business in service $153 million to build a gineering work on a fleet of M1A2S has named Danny Samson to the oping the Cedars of Dexter, made the area.