DETROIT BUSINESS MAIN 08-04-08 A 1 CDB 8/1/2008 6:41 PM Page 1
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www.crainsdetroit.com Vol. 24, No. 31 AUGUST 4 – 10, 2008 $2 a copy; $59 a year
©Entire contents copyright 2008 by Crain Communications Inc. All rights reserved THIS JUST IN Olympics may give gold State scrambles to fund roads to state businesses The 2008 Summer Olympics in Beijing has Local taxes, fees among options proven to be a source of BY AMY LANE real-estate transfer tax based on a new business leads for CAPITOL CORRESPONDENT home’s value, and local driver’s license Michigan businesses. and vehicle-registration taxes. The tax- C. Peter Theut, a partner LANSING – A long-targeted piece in a es are subject to local voter approval. at Detroit-based Butzel patchwork of solutions to fund Michi- Oakland County and many business- Long, said the firm plans to gan roads has dropped into the Legisla- es are among longtime proponents. Lo- open a new office in Bei- ture. cal options are a way to fund some $1.5 jing by early January. And it’s none too soon, as state and lo- billion to $2 billion in Oakland County Theut says the Olympics at cal road agencies juggle budgets projects needed over a 10-year period to least in part made the city strained by reduced gas-tax revenue, es- alleviate congestion, said Craig Bryson, a more attractive choice calating construction costs and continu- public information officer at the Road for the firm. ing road needs. Commission for Oakland County. “Had China not been State House bills introduced in late He said a half-percent local sales tax putting on the Olympics, July would give counties a host of local in Oakland County, if approved by vot- PHOTO COURTESY OF M-DOT funding options, including a 3-cent per- and therefore really im- Bridge work at I-96 and Wixom Road is among the many projects gallon gas tax, a 1 percent sales tax, a proved the infrastructure under way in the region. See Roads, Page 39 of Beijing, we may have looked more at Shanghai,” he said. “(Beijing is) mak- ing tremendous strides in terms of trying to clean up Groups seek air pollution, traffic con- trol, updating buildings in- frastructure, and most im- Birdie or bogey portantly they have one of funds to raise the most modern airports in the world.” Theut heads Butzel Some nonprofits Long’s China initiative high school and said the concentration of government and regula- score with PGA tory power in the city was grad rates another draw. In Beijing, the firm can Championship, others BY SHERRI BEGIN better assist clients doing business in the country can’t get off the tee CRAIN’S DETROIT BUSINESS with government regula- United Way for Southeastern Michi- tion issues. gan has launched an effort to raise Meanwhile, media atten- BY SHERRI BEGIN $10 million to help low-performing tion brought to Beijing in CRAIN’S DETROIT BUSINESS high schools in the region improve connection with the their graduation rates. Olympics, specifically re- While some local nonprofits have al- The agency and the Detroit-based ports lambasting the city’s ready brought in extra revenue from Skillman Foundation have con- air quality, could help se- the 2008 PGA Championship, other pro- tributed $1.5 million each. cure new work for Michi- grams are still looking for dia- The AT&T Foundation today is to gan environmental tech- monds in the rough. MORE announce another $1 million grant nology firms. The PGA of America expects to the Greater Detroit Education Ven- The Wayne County-Butzel the PGA Championship to ON THE PGA ture Fund, bringing the total invest- Long Environmental Initiative, bring in an estimated ment to $4 mil- a joint project between the $400,000 for nonprofits. Stories on Michigan's PGA heritage, other tournaments lion. offices of Wayne County As of last week, the 120 The three orga- local nonprofits that were and the small businesses Executive Robert Ficano, working the fairways nizations plan Wayne County Department given a total of about 1,000 begin on Page 17. jointly to pursue of Energy Director Kurt tickets by the PGA to auction additional grants Heise and Butzel Long, is off have collectively brought in to reach the $10 working to get contracts between $175,000 and $200,000, said million mark, for local environmental Earnie Ellison, director of business and said United Way community relations. Oakland Hills Coun- CEO Michael See This Just In, Page 2 try Club in Bloomfield Township hosts Brennan. Torreano the tournament today through Sunday. “If we are go- Twelve of those charities, chosen ing to compete as a country in this CRAIN’S SEEKS BEST- through surveys of nonprofits that Oak- global society, we have to have a MANAGED NONPROFITS land Hills members support, were given workforce that’s ready,” said AT&T access to the championship with a block JOHN F. MARTIN Michigan President Gail Torreano, a For details, see Page 38. Tony Rubino and his brother leased a home near the course to host a See Nonprofits, Page 38 fundraiser for the MS Society, but ticket sales have been slow. See Funds, Page 41
Mayor-council dispute holds CRAIN’S LIST nonprofit grants hostage, Largest Oakland employers,
NEWSPAPER Page 6 Page 14 DETROIT BUSINESS MAIN 08-04-08 A 2 CDB 8/1/2008 6:39 PM Page 1
Page 2 CRAIN’S DETROIT BUSINESS August 4, 2008
IT firm Sircon Corp. sold last day in office. Irvin Reid named Court in Detroit. online news producer for THIS JUST IN Police Chief Anthony Holt to asso- Linamar Corp. of Guelph, On- mlive.com in Ann Arbor, where Sircon Corp., an Okemos-based ciate vice president and chief of tario, Friday filed a request for in- she was responsible for manag- ■ From Page 1 information-technology company police, while Director of Special junction to block Royal Oak-based ing Web con- with Detroit-area companies as Events Jeffrey Block was named FormTech Industries L.L.C. from its tent for several companies to help clean up Chi- investors, has been sold to Seat- assistant vice president of special alleged threats to suspend ship- Michigan na’s air. tle-based Vertafore Inc. Terms events. Both appointments were ment of steel forgings for Lina- newspapers. Theut, who is part of the initia- were not disclosed but benefitted to take effect Friday. mar. Linamar is a tier-one auto Before that, tive, said they have identified venture-capital firms that helped Jay Noren, 63, officially became supplier making transmission Lasek was a eight technologies in China that launch and grow the company WSU president on Friday with a components for Ford Motor Co., Web content need to improve air quality and that provides software services to swearing-in ceremony. He suc- General Motors Corp., Chrysler L.L.C. producer for at least three Michigan compa- the insurance industry. Local ceeds Reid, who stepped down to and American Honda Motor Co. Inc WXYZ-Channel 7 nies that can provide the technol- firms that invested included: Ann become the Eugene Applebaum At issue in a lawsuit filed television in ogy, including Ann Arbor-based Arbor-based EDF Ventures, Ann chairman of community engage- Thursday is a dispute over raw- Southfield. Lasek firm Atwell-Hicks. Arbor-based Avalon Technology ment at Wayne State. material surcharges in As Web edi- Theut declined to identify oth- L.L.C., Ann Arbor-based Arbor Part- — Chad Halcom FormTech’s 2006 supplier con- tor at www.crainsdetroit.com, er Michigan firms, but he said ners L.L.C., and Grosse Pointe tract with Linamar. The case is Lasek will write and post Web there will be a trade mission or- Park-based Ralph Wilson Equity assigned to U.S. District Judge stories, improve the design and ganized by the initiative to China Fund L.L.C. State beverage group John Corbett O’Meara. function of the site, and create in November to make deals. —Tom Henderson names executive director — Chad Halcom custom content to complement — Ryan Beene print coverage. The Michigan Licensed Beverage Crain’s names Web editor A native of Troy, Lasek earned New degree at Madonna Association has named Lance Bi- Christine Lasek has joined her bachelor’s degree in English Preservation Wayne seeks Officials at Madonna University noniemi, previously the group’s Crain’s Detroit Business as Web from the University of Michigan. in Livonia announced a new doc- new executive director director of government affairs, to editor. She can be reached at (313) 446- tor of nursing practice degree on be executive director. Binoniemi The Detroit architecture Lasek, 27, was previously an 0473 or at [email protected]. Friday. replaces Cathy Pavick, who left the preservation group Preservation The program will be the uni- Lansing-based association of Wayne is conducting a search for versity’s first Ph.D. program It is liquor licensees in February. Bi- CORRECTIONS a new executive director after a 36 semester-hour curriculum Francis Grunow resigned from the noniemi had been interim execu- The first name of Oakland Community College board Chairwoman and will take about two years to tive director. position in July. complete, said the university’s Anna Zimmerman was misspelled in a Page 1 story of the July 28 edi- — Amy Lane tion. Grunow was executive director marketing director, Karen San- for nearly four years and re- born. Application begins Oct. 1, The list of publicly held companies published July 28 should have signed to pursue other interests, and classes start in May 2009. FormTech faces court battle listed the end of the fiscal year as Feb. 2, 2008, for Borders Group Inc. and said board president Karen — Christiana Schmitz Jan. 31, 2008, for Hayes Lemmerz International Inc. Nagher. She said the search is un- with Canadian customer A story on Page 3 of the July 28 edition incorrectly stated that offi- der way, though there is no set A Royal Oak manufacturer cials at William Beaumont Hospitals in Royal Oak indicated that 80 per- timeline. “It’s a big job, so we Reid makes WSU promotions may be forced by court order to cent of the projected 1,500 patients to be treated at Beaumont’s planned have to find the right person,” Wayne State University’s outgo- continue producing forgings for a proton beam therapy cancer center would be treated for prostate can- Crain’s she said. ing president promoted two uni- Canadian auto supplier under an cer. Beaumont officials told the actual number is 20 percent to — Daniel Duggan versity executives on Friday, his injunction request at U.S. District 25 percent.
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August 4, 2008 CRAIN’S DETROIT BUSINESS Page 3 Care for poor CRAIN’S grows heavier Loss of lease deals INDEX Taking Stock: Masco Corp. chairman expects housing crisis to get for downtown worse. Page 4. Real deal: “Virtual pros” bring in real money for StaffPro America. hospitals jolts auto dealers President Lesley Delgado BY JAY GREENE expects revenue to CRAIN’S DETROIT BUSINESS Many hope be up 19 percent When it comes to the national prob- this year. lem of caring for the rising numbers incentives will get Page 16. Delgado of uninsured, Detroit is the canary in Move ’em out: Land the coal mine. Bank Authority to help High unemployment, large num- customers to buy move Detroit’s many bers of uninsured, a sicker-than-aver- vacant parcels. Page 35. age population, the lack of a public BY NANCY KAFFER Blues in fight: hospital and a low proportion of fed- CRAIN’S DETROIT BUSINESS TheraMatrix Physical Therapy expected to file a erally qualified health centers are With the Detroit 3 automakers $10 million lawsuit among the reasons most experts be- against the Blues over lieve Detroit has one of the biggest ending, restricting or re-evaluating contracts. Page 36. challenges in the nation to fix its lease programs, the future looks overwhelmed primary care delivery rocky for some area auto dealers. These organizations appear in this system. Chrysler Financial L.L.C., the finan- week’s Crain’s Detroit Business: Three of the bigger canaries in De- cial arm of Chrysler L.L.C., rocked the troit are the downtown hospitals: De- auto industry last month when it an- AT&T Michigan ...... 1 troit Medical Center, Henry Ford Hospital nounced it would end its North Band of Angels ...... 38 and St. John Hospital and Medical American leasing program Aug. 1. Biggby Coffee ...... 37 Center. General Motors Corp. quickly fol- Birmingham Country Club ...... 22 Blaze Contracting Inc...... 24 All three hospitals reported nearly lowed suit, with GMAC Financial Ser- Blue Cross Blue Shield of Michigan 36 record-high levels of charity care and vices saying it would work to reduce Bluewater Technology Group Inc. . 24 uncompensated care in 2007, along the number of U.S. leases offered at Brighton Hospital ...... 30 with lower operating profits than in below-standard rates. Ford Motor Cannella Patisserie and Creperie . . 37 the previous several years, according Credit Co. L.L.C. said buyers should Center Line Electric ...... 24 to the latest financial reports and in- expect lease prices to increase. Charter One ...... 25 terviews with top executives. With leasing on the skids, much Chrysler L.L.C...... 3 “We sit in the epicenter of an ex- rests on the value of incentive pack- Detroit Medical Center ...... 3 tremely vulnerable population with ages designed to interest former lease Detroit Wayne County 200,000 people without any insurance customers in buying, dealers say. Health Authority ...... 34 Ford Motor Co...... 3 in our catchment area, that is under- GM and Chrysler announced General Motors Corp...... 3 represented in primary care physi- sweeping new packages last week, cians and does not provide sufficient Golling Chrysler Jeep Dodge . . . . . 41 relying heavily on cash incentives Greater Detroit Health Council . . . . 34 reimbursement,” said Dr. Padraic and discounts to entice former lease Henry Ford Hospital ...... 3 Sweeny, chief of emergency medicine customers to purchase vehicles. Highland DDA ...... 15 at DMC’s Detroit Receiving Hospital. GMAC plans to offer cash incen- WILLIAM PUGLIANO Indianwood Golf & Country Club . . 19 As Wayne County’s unemployment tives on GMC trucks and on some Tony Viviano, chairman of Sterling Heights Dodge, says leasing ranged from 90 Inforum Center for Leadership . . . 35 See Hospitals, Page 40 percent to 95 percent of monthly business. John Bailey & Associates Inc. . . . . 17 See Dealers, Page 41 Junior League of Birmingham . . . . 38 Kelly Services ...... 16 Land Bank Authority ...... 5 Les Stanford Chevrolet Cadillac . . 41 Lighthouse of Oakland County . . . . 38 Masco Corp...... 4 Meadowbrook Country Club . . . . . 22 Oakland Hills Country Club ...... 1 Orchard Lake Country Club ...... 19 A hotel for ‘can-do’ Moten PGA of America ...... 17 Plum Hollow Country Club ...... 22 Road Commission, Oakland County . 1 Pick-Fort Shelby is longtime developer’s latest achievement Rochester Hills Chrysler Dodge . . . 41 Emmett Moten Jr.’s list of Runco Waste Industries Inc...... 24 achievements in Detroit Skillman Foundation ...... 1 include GM’s Poletown BY ROBERT ANKENY ‘COMING FULL CIRCLE’ St. John Hospital ...... 3 plant, Chrysler’s Jefferson CRAIN’S DETROIT BUSINESS Star Lincoln Mercury ...... 41 Avenue plants, an StaffPro America ...... 16 expansion of Cobo Center The renovation of one of downtown Detroit’s most ne- Sterling Heights Dodge ...... 41 and the Ilitch family’s glected buildings — the long-shuttered Pick-Fort Shelby TheraMatrix Physical Therapy . . . . 36 business headquarters. Hotel on Lafayette Boulevard at First Street — is in the Trackspeed L.L.C...... 27 hands of one of the city’s most experienced developers. United Way ...... 1 Emmett Moten Jr., one-time development czar for for- Voices of Detroit Initiative ...... 34 mer Detroit Mayor Coleman Young, is handling the WSU School of Medicine ...... 30 building’s transformation to the new Hilton Doubletree Guest Suites Fort Shelby scheduled for completion in No- vember. BANKRUPTCIES ...... 4 Moten has had a hand in many of Detroit’s ma- BUSINESS DIARY ...... 28 jor development projects in the past 30 years. CALENDAR ...... 27 Some say that without his efforts, Detroit CAPITOL BRIEFINGS . . . . . 37 might not have had the General Motors Corp. Pole- CLASSIFIED ADS...... 34 town or Chrysler L.L.C. Jefferson Avenue auto KEITH CRAIN ...... 8 plants, the last Cobo Center expansion, or the Il- LETTERS ...... 8 itch family business headquarters in the Fox OPINION ...... 8 Theatre building downtown. Bella Marshall, Wayne County’s COO, worked OTHER VOICES ...... 9 with Moten in the Young administration. She PEOPLE ...... 26 said his talent for making people understand a vi- NATHAN SKID/CRAIN’S DETROIT BUSINESS RUMBLINGS...... 42 sion for development is now “coming full circle” The $80 million renovation of the Pick- WEEK IN REVIEW ...... 42 with his hotel project. Fort Shelby, headed by Emmett Moten Jr., is to be completed in November. See Moten, Page 40 ROBERT ANKENY/CRAIN’S DETROIT BUSINESS DETROIT BUSINESS MAIN 08-04-08 A 4 CDB 8/1/2008 5:59 PM Page 1
Page 4 CRAIN’S DETROIT BUSINESS August 4, 2008 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES Masco plans for continued slump in housing market
BY CHAD HALCOM remainder of the year. products and 27 percent at $508 mil- CRAIN’S DETROIT BUSINESS “The stock could be approach- lion for installation and other ser- ing a bottom, (but) we believe risk- vices, a segment Wadhams said is It doesn’t inspire confidence reward potential remains balanced “pretty much 100 percent” tied to when a company’s chairman says until tangible signs of recovery in the residential market. the housing market might get so housing markets appear,” he said Debra Behring, vice president of bad the government will intervene. in a report last week. operations at JB Cutting Inc. in Mt. But shares of Taylor-based Masco Baird is among nine of 11 re- Clemens, which makes cabinet Corp. rallied last week on news that search analyst firms that continue it cut more than 6,000 jobs in the to give Masco a neutral or “hold” components for other businesses, first six months of 2008 and took rating after the second-quarter agreed with the Masco leadership other measures to cope with a $107 performance. that the residential market isn’t million drop in net income on a The company reports net in- helping builders. weak home-construction market. come of $82 million, or 23 cents a “We’ve definitely seen more of “I think things share, on revenue of $2.64 billion the cabinet (parts) orders going to are going to be so for the period ending June 30. commercial rather than residential bad that we will That’s off from $189 million, or 51 customers right now,” she said. see more posi- cents a share, on revenue of $3.09 Manoogian told analysts last tive action taken billion for the year-ago quarter. In week the company is planning for by the (federal) the first six months of 2008, net in- government, and a flat or slightly “deteriorating” come was $84 million, or 24 cents a housing market through this year that might re- share, on revenue of $5.09 billion, and into next. quire a new pres- compared with $332 million, or 87 “There’s a good chance 2009 ident and new cents a share, on sales of $5.89 bil- administration,” might increase from 2008, but Manoogian lion for the first half of last year. said executive Wadhams and Rothwell also that’s going to take positive (gov- chairman Richard Manoogian dur- said Masco has closed 11 plants na- ernment) action,” he said. ing a conference call last week with tionwide and eliminated 17,000 po- Chad Halcom: (313) 446-6796, analysts on the company’s second- sitions since early 2007, with 6,000 [email protected] quarter earnings. jobs cut thus far in 2008. “But talking to people in Con- The company cut 80 or so posi- gress … I’d be very surprised if tions from its corporate headquar- things deteriorate (and) we don’t ters in Taylor and a research and see much more positive (govern- development lab it maintains a ment) action in 2009. And a lot of few miles away, trimming the total BANKRUPTCIES that could be directed to the hous- workforce from 630 to 550 at those The following business filed for Chap- ing industry as one of the key areas two buildings, she said. ter 7 or 11 protection in U.S. Bankrupt- that needs help.” North American sales in the sec- cy Court in Detroit July 25-31. Under A manufacturer of home fix- ond quarter were off 19 percent, Chapter 11, a company files for reor- tures, furnishings and paint prod- ganization. Chapter 7 involves total offset slightly by 6 percent growth liquidation. ucts, Masco primarily cites a large in the international segment, for a Healthy Hydration Corp., 8579 Oreview falloff in housing construction in 15 percent decline in total revenue. Ave., Brighton, voluntary Chapter 7. the U.S. and parts of Europe for its Sales were off 18 percent at $608 Assets: $8,763; liabilities: $68,172. slide in quarterly net income. million for cabinets and related — Compiled by Christiana Schmitz The company projects new U.S. housing starts in 2008 at between 900,000 and 1 million, compared with 1.3 million last year. Still, the job cuts and other STREET TALK moves may have restored investor confidence. Masco shares rebound- THIS WEEK’S STOCK TOTALS: 26 GAINERS, 35 LOSERS, 8 UNCHANGED ed from a five-year low of $13.92 in 8/01 7/25 PERCENT mid-July and climbed another $1 af- CDB’S TOP PERFORMERS CLOSE CLOSE CHANGE ter last week’s earnings release. NOWNOW LEASINGLEASING The stock closed at $16.62 Friday. 1. Meadowbrook Insurance Group $6.74 $5.80 16.21 “These are very difficult deci- 2. Energy Conversion Devices Inc. 68.41 62.87 8.81 sions,” said Masco CEO Timothy 3. Kelly Services Inc. 18.75 17.43 7.57 Wadhams. “But the (changes are) 4. ArvinMeritor Inc. 13.71 12.78 7.28 very consistent with us trying to 5. Ramco-Gershenson 21.68 20.32 6.69 right-size the business in a tough 6. TRW Automotive Holdings Corp. 18.17 17.05 6.57 economic climate.” 7. Pulte Homes Inc. 12.01 11.31 6.19 The company has also respond- 8. Comerica Inc. 29.50 27.86 5.89 ed to market contraction by shift- 9. Somanetics Corp. 22.40 21.17 5.81 ing executive compensation. 10. Masco Corp. 16.64 15.83 5.12 Wadhams and Sharon Rothwell, CDB’S LOW PERFORMERS 8/01 7/25 PERCENT Masco vice president of investor CLOSE CLOSE CHANGE relations, said the company this 1. Valassis Communications Inc. $8.65 $11.33 -23.65 year moved several top executives 2. First Mercury Financial Corp. 14.31 17.25 -17.04 CRYSTAL GLEN 39555 Orchard Hill Place, Novi, Michigan to lower base pay and greater in- 3. Kaydon Corp. 47.57 55.60 -14.44 centives to improve company per- • 242,290 SqFt building With 49,816 SqFt 4. General Motors Corp. 10.23 11.90 -14.03 formance — including Wadhams, Available For More Information, Please Call: 5. Amerigon Inc. 6.45 7.47 -13.66 Executive Vice President and COO • Various Suite Sizes Available 6. Lear Corp. 13.86 15.83 -12.45 – Up to 23,457 SqFt 248.324.2000 Donald DeMarie, and Vice Presi- • Award Winning Class “A” Office Building dent and CFO John Sznewajs. 7. American Axle 5.77 6.51 -11.37 • Excellent Access to I-275, I-696 and I-96 Peter Lisnic, senior analyst for 8. Credit Acceptance Corp. 16.80 18.92 -11.21 • Convenient to Shopping, Hotels, Restaurants Robert W. Baird & Co. in Chicago, 9. Caraco Pharmaceutical 14.05 15.60 -9.94 and other Area Amenities noted the share-price improve- 10. FNBH Bancorp Inc. 7.25 8.00 -9.38 www.friedmanrealestate.com ment but predicted market weak- Source: Bloomberg News. From a list of publicly owned companies with headquarters ness for housing builders will con- in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading at less than $5 are not included. tinue to dog Masco through the DBpageAD.qxd 3/10/200812:15PMPage1
© 2008 United Parcel Service of America, Inc. UPS, the UPS Brandmark and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved. Avery, Marks-A-Lot, the Crown Cap Design, and all other Avery brands are trademarks of, and used here under license from, Avery Dennison Corporation. DETROIT BUSINESS MAIN 08-04-08 A 6 CDB 8/1/2008 6:00 PM Page 1
Page 6 CRAIN’S DETROIT BUSINESS August 4, 2008 Mayor-council dispute holds up millions in block grants
BY SHERRI BEGIN funds affordable housing, anti- the federal agency last week to more than 1.5 years of entitlement “I’m worried that we’re going to CRAIN’S DETROIT BUSINESS poverty programs, infrastructure give Detroit until Sept. 19 to sub- funding at April 30, 2009. If it does go into our new fiscal (year), development and the like. The mit a jointly approved plan or lay and is identified as an untimely which starts Oct. 1, not knowing if Nonprofits and the Detroit resi- grants are subject to less federal out a timetable for doing so. grantee for two years in a row, the we’re going to get funding or how dents they serve are getting caught oversight and are used largely at “Given … the very public nature city forfeits its funding. much,” said in the crossfire between Detroit the discretion of state and local of the disagreements on the (block Delays also could have “serious Amy Good, CEO Mayor Kwame Kilpatrick and the governments. grant funding) budget, our office repercussions,” she said, on rent of Alternatives for Detroit City Council. Detroit is in line to receive cannot approve this action plan payments and shelter operations Girls. A disagreement between the two about $36.7 million in block grant until we receive assurances that for projects that serve the home- Her organiza- over who should allocate commu- funds in the coming fiscal year and the (block grant) portion is in ac- less or those with special needs. tion, which is nity development block grants this another $13 million or so in other cordance with the city budget pro- The delay in distribution and operating on a year is holding up distribution of entitlement funds for housing and cedures,” said Lana Vacha, HUD notification of grant awards could $2.8 million bud- more than $50 million in block emergency shelter. field office director, in a July 29 let- mean cuts in services many of get, received grant funding and other entitle- But the lack of a jointly submit- ter to the City Council. those agencies provide and the $83,000 in block ment funds to the city and to local ted spending plan for those funds Vacha cautioned that timely loss of other funds leveraged by Good grant funding this year and is nonprofits. Federal community-de- to the U.S. Department of Housing spending of the funds is a concern, the community block grant funds, slated to receive $67,000 next year velopment block grant money and Urban Development prompted since the city is allowed to have no nonprofits say. under the allocations approved by the City Council but not by the ad- ministration. “We cannot count on the funding unless this conflict is resolved,” which means the agency would have to cut about a third of its 30 emergency shelter beds for young women ages 15-21, Good said. Many nonprofits are fronting the funds to provide services the block grant funds pay for, and are counting on reimbursement to maintain them and remain finan- cially sound, said Maggie DeSan- tis, president of the Warren-Conner Development Coalition. Additionally, the grants enable Warren-Conner and other agen- cies such as United Community Hous- ing Coalition to leverage more mon- ey. Without the $151,000 block grant in the City Council-approved bud- get, United Community Housing would have a hard time coming up with the 20 percent match re- quired for an additional $611,000 grant through HUD’s Supportive Housing Program, said Executive Director Ted Phillips. With general categories of ap- propriations, “There is no commit- ment by the mayor to fund any Don’t Let the Waiting Game nonprofit,” Phillips said. General block grant appropria- tions in the budget “does not mean Shape Your Bottom Line that we will not go to contract with those groups approved (through the bid process),” said Thomacina Tucker, executive manager of fi- As the saying goes, “Time is money.” nancial and resource management Save money today! 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But the City Council and Plan- Blue Care Network of Michigan ning Commission were included as participants in the grant MiBCN.com/medicare process when the request for pro- posals went out, he said. H5883_08 O BCNADMAd_021508 Source Code: CRDB “How can you revoke that halfway through the process?” Sherri Begin: (313) 446-1694, [email protected] DBpageAD.qxd 7/29/2008 4:03 PM Page 1
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