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Financial Woes Simmered Before DSC's 20111003-NEWS--0001-NAT-CCI-CD_-- 9/30/2011 6:14 PM Page 1 ® www.crainsdetroit.com Vol. 27, No. 41 OCTOBER 3 – 9, 2011 $2 a copy; $59 a year ©Entire contents copyright 2011 by Crain Communications Inc. All rights reserved Page 3 Supply base on edge over Furukawa probe A window opens Wayne County development organizations too chummy? NATHAN SKID/CRAIN’S DETROIT BUSINESS for homebuilding “You have a nonprofit trying to run like a business but forced to account like a nonprofit,” said former President and CEO Kevin Prihod of the Detroit Lots bought Science Center’s challenges. in recession Financial woes are fertile fields BY DANIEL DUGGAN simmered CRAIN’S DETROIT BUSINESS Homebuilders are building again. before DSC’s Fewer existing homes listed for Whelan, other warehousers sale, combined with prices that put stock in parts storage are starting to increase, have giv- en builders the green light. quick closure The 2,000 homes permitted in the first half of 2011 Inside BY SHERRI WELCH LOSER outpaced 2010 by CRAIN’S DETROIT BUSINESS C 18.5 percent, and LOOK developers expect a Council, DEGC agree The Detroit Science Center’s two- strong third quar- on outline of rail-building week closure and the resignation of The ter: July had the its president and CEO were sudden numbers: second-most per- Housing authority, Page 6 — but its problems were not. mits of any month As its operations and campus permits by county, city, since 2007. August grew to include a 4-D theater, the builder, was fourth. This Just In University Preparatory charter mid- Page 45 But there’s a dle school, an exhibit-building sub- catch: The deals are sidiary producing sponsored ex- only economical for builders Dykema Gossett elects hibits for the museum and outside when they use land purchased at new chairman, CEO clients and its first-ever traveling ex- deep discounts in the recession. hibit, the Accidental Mummies of And it’s left some wondering Dykema Gossett PLLC has Guanajuato, the economy slid into whether the building trend can named Litigation Depart- recession. continue. ment Director Peter Kellett to The ensuing financial problems “Those of us who are left have led the center last year to violate a become chairman and CEO a nice backlog of inexpensive GLENN TRIEST of the law firm Jan. 1, when loan covenant on its $1 million credit Howard Fingeroot of Farmington Hills-based Pinnacle Homes says Northville is Rex Schlaybaugh steps down line, which is bundled with a $4.8 See Building, Page 45 one place where home prices have risen enough to support development. from that million mortgage tied to a 2001 ex- position pansion and held by Flint-based Citi- after 10 zens Republic Bancorp Inc. years. The loans went into default. The Kellett, bank canceled the science center’s 54, mem- remaining credit on the line and ber at the downgraded the loans before telling firm’s De- the center it needed to find another troit head- lender to take over the debt, former quarters, President and CEO Kevin Prihod said. was ap- Citizens is currently in discussions Kellett proved by with several interested parties to take a vote of the firm’s partners over the $5.55 million in debt, said the last week. science center’s interim president He was a former managing and CEO, John Miller. The center has partner at Bloomfield Hills- For some, it only got better; for others, well … been appraised at $20 million within based Feeney Kellett Weinner & the past 12-18 months, he said. BY TOM HENDERSON replaced by CDs, which are being replaced Bush PC before Dykema ab- Part of the issue in managing CRAIN’S DETROIT BUSINESS by iTunes downloads. And Top 40 AM radio sorbed 15 of that firm’s 24 at- PROFILES the center’s finances was the diffi- is a distant memory. torneys through hires in 2003. culty of presenting straightfor- Twenty years ago, Crain’s launched its But talented young professionals keep Then and now: Meet the new 40s See This Just In, Page 2 annual 40 under 40 awards program with cranking out the hits in terms of business See Science Center, Page 41 some fanfare and suspected it would be and catch up on achievements — and this year’s crop is no past winners, popular with readers. But who knew how exception. A look through the first 20 spe- Page 11 big the section and its accompanying cial sections shows that many of Crain’s awards event would become over the past 40s honorees continue to crank out years? Not us. the hits, as well. Some are long forgotten, ALUMNI VIEWS That first section was launched with a and a few others can be remembered for Survey: How past musical theme and included an image of a the wrong reasons. 40s honorees see record with a tagline: “Moving Up the metro Detroit, and Charts.” whom they admire, 20 years of highlights and lowlights, Page 44 Page 44 NEWSPAPER Twenty years later, records have been 20111003-NEWS--0002-NAT-CCI-CD_-- 9/30/2011 5:51 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS October 3, 2011 based Kojaian Management Co. in 2008. Tony Schmitt, a principal Time to vote on Hatch Detroit semifinalists THIS JUST IN with West Bloomfield-based Mid- America Real Estate-Michigan rep- BY GARY ANGLEBRANDT Zingerman’s Community of Business- store would go into the Capitol ■ From Page 1 resented Granite City in the deal. CRAIN’S DETROIT BUSINESS es co-founder Paul Saginaw. Park area of downtown with the — Daniel Duggan “The point of the panel is to ask intent of serving as the beginnings Schlaybaugh, 62, will advise What new retail business idea the tough questions,” Gorga said. of a future garment district. Kellett as the appointed succes- for Detroit is going to be funded The session will be recorded and Ⅲ Pot & Box Detroit: The Ann Ar- sor during a transition period State approves funds for rail with a $50,000 prize? posted online for the final round of bor garden and flower shop would and remain active in the firm’s projects, payment on UI debt Hatch Detroit has narrowed the public voting. The winner will be open a second location, in Detroit. corporate and transactional list of possible winners of its retail named Nov. 15 at Wayne State Uni- Ⅲ Woodbridge Gypsy Den and Tea practices and on various local Matching funds for high-speed idea contest to 10 semifinalists af- versity’s Get Launched event. Room: A vegan café and tearoom boards after he steps down at rail projects and money to help ter accepting more than 200 sub- The nine other semifinalists will that would open in the Woodbridge year’s end. pay interest on Michigan’s federal missions throughout the summer. be connected to business owners, neighborhood, west of Midtown. Kellett was a Dykema associ- unemployment debt is official, Hatch Detroit is a nonprofit set government contacts and commu- Ⅲ Detroit Institute of Bagels: ate for four years after graduat- with the signing last week of a up by Nick Gorga, a lawyer at nity leaders to provide guidance. Brothers Dan and Ben Newman ing from law school but went on state appropriations bill. Honigman Miller “We’re hoping the other nine, have been making bagels in their to a legal staff position at the for- Senate Bill 237 includes Schwartz and due to weeks of public exposure to Corktown home and delivering mer CMI Corp., a Dykema client, $39.2 million in local, private and Cohn LLP in De- their ideas, will be able to reach an them to customers. The prize mon- then formed the Feeney Kellett state funds to match federal troit (profiled as audience of potential funders.” ey would go toward a storefront. firm along with current Dykema grants awarded for rail projects. a member of this The 10 semifinalists are: Ⅲ Anthology Coffee: Coffee roast- member James Feeney. He was a They include the purchase and re- year’s class of Ⅲ Alley Wine: Plan to turn a ers Josh and Annie Longsdorf litigation practice group leader habilitation of track between Crain’s 40 under garage in Midtown that’s facing an would open a café for customers to four years before becoming de- Dearborn and Kalamazoo, a pro- 40, Page 22), and alley into a wine café. Three part- enjoy the pair’s coffee. The mar- partment director. ject that will rework congestion Ted Balowski, ners — Lynne Savino, David ried couple moved from California — Chad Halcom points to separate passenger and an account exec- Knapp and Kurt Cieszkowski — al- to Fenton, where in their home freight trains and provide faster utive at ready own the brick 19th century they roast the coffee they sell to lo- Minneapolis chain to build passenger train speeds. CareTech Solu- Gorga structure and are awaiting zoning cal coffee shops. — Amy Lane tions Inc. in Troy, to encourage eco- approval and a liquor license. Ⅲ Bubble Love: Royal Oak spe- restaurant-brewery in Troy nomic revitalization in the city. Ⅲ Hugh: Plan by furniture retail- cialty toy store Lift Designer Toys & Profiles of the semifinalists er and blogger Joe Posch to give a Gallery would open a bubble tea bar Construction will start this were posted Friday at hatch permanent home to a pop-up store in Detroit that also would sell toys. week on a new restaurant and CORRECTION detroit.com, where visitors can called Hugh, which Posch has op- Ⅲ Little Dove Bakeshop: Bethany brewery in Troy. The 40 under 40 Looking vote on the 10 ideas.
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