APRIL 3 - 9, 2017 What’s next Water, water for Silverdome, everywhere, Palace and but not from Summit Place tap (usually) Future nally begins to Bottled water in Michigan get clearer, Page 8 by the numbers, Page 3 Commentary Gilbert the father, and Gilbert the son f you want to truly understand pers with his brother, and it’s a foggy put his nger in his face and said, Dan Gilbert, ask him about fa- day, and his 10-year-old brother gets ‘You killed your brother. You should For Gilbert, his “What does therhood. run over, and it’s a priest who runs have watched your brother.’” Gilbert son’s condition money really I“I did not have a close relation- him over and kills him. It wasn’t the shook his head in sympathy for his mean? All the ship with my dad,” the titan of - priest's fault, and the priest is doing long-deceased dad, who would have was a reminder of nance and Detroit real estate told last rites over the body …” turned 100 years old this year. life’s limits. “What money in the me. “My dad was a World War II mil- Gilbert looked up from the table “You can imagine what my grand- world can’t x itary guy, and then he owned a bar in his oce at Quicken Loans, the father did to my father,” Gilbert said. does money really this thing he’s in Detroit.” Gilbert’s rat-a-tat ca- RON FOURNIER mortgage company that launched “So you can understand how any- mean? All the dence made it hard for me to keep Publisher and Editor his business empire and has driven a body who experiences that kind of got. Maybe one up with his hot urry of thoughts resurgence in downtown Detroit. He trauma would have a hard time get- money in the day, but it can’t and images. brother is 10. (He) was born and stared me in the eyes and continued. ting close to anybody, including his Including this chilling story: raised in Detroit, a very poor neigh- “e worst part of the story: His kids.” world can’t x this n o w .” “My dad is 12 years old, and his borhood. He is delivering newspa- immigrant father from Russia. He SEE GILBERT, PAGE 20 thing he’s got.” Dan Gilbert, about his son Sports Business No. 1 Miguel Cabrera Who are Detroit’s $28 million highest-paid No. 2 Justin athletes Verlander $28 million of 2017? Here’s a hint: Most start work today © Entire contents copyright 2017 by Crain Communications Inc. All rights reserved he Detroit Tigers, who open their crainsdetroit.com Vol. 33 No 14 $2 a copy. $59 a year. season this week, also dominate the 2017 Crain’s list of high- Test-paid Detroit athletes, making up six of the top 10, another legacy of their late owner Mike Ilitch. See who’s ranked where on the list of those NEWSPAPER No. 3 blessed both athletically and Justin Upton nancially, starting on Page 12. $22.125 million 2 CRAIN’S DETROIT BUSINESS // APRIL 3, 2017 INSIDE MICHIGAN BRIEFS CALENDAR 18 CLASSIFIED ADS 19 Senate OKs bringing back people who trade in their car for a DEALS & DETAILS 18 job-creation tax breaks new one. A 2013 law lets buyers subtract KEITH CRAIN 6 Michigan would provide tax in- some of the value of their trade-in OPINION 6 centives for business expansions from the purchase price of a new ve- OTHER VOICES 7 under legislation approved by the hicle for tax purposes. e change is Senate, e Associated Press report- being phased in until 2039. PEOPLE 18 ed. e Republican-controlled Sen- RON FOURNIER 1 Michigan has moved away from ate unanimously approved legisla- RUMBLINGS 23 such tax breaks under Gov. Rick tion Wednesday to accelerate the Snyder’s watch in favor of a smaller phase-in of the tax cut 10 years soon- WEEK ON THE WEB 23 pot of grants. But the Republi- er, by 2029. COMPANY INDEX: can-led Senate voted 32-5 for the SEE PAGE 22 new incentives Wednesday because Judge approves plan to economic development ocials say replace Flint water lines Michigan is losing business to states with generous incentives. A federal judge approved a deal their allies in the Legislature to tilt e bills would authorize Michi- Tuesday to replace water lines at the tax assessing system back in fa- gan to let companies keep part or all 18,000 homes in Flint to settle a vor of local governments, The As- of their employees’ income tax with- lawsuit over lead-contaminated sociated Press reported. holdings for ve or 10 years. e water in the troubled city, e As- The retailers have been success- businesses would have to create at sociated Press reported. fully reducing their tax bills in the least 500 jobs that pay the regional Flint will be responsible for re- Michigan Tax Tribunal since 2010, average wage. Companies also placing lead and galvanized-steel when the administrative court be- could qualify if they add at least 250 lines that bring water into homes. gan agreeing that the real estate jobs that pay 125 percent of the re- e cost could be as high as $97 should be compared to “dark,” or gional average. million with federal and state gov- A federal judge approved a deal to replace water lines at 18,000 homes in Flint. vacant, structures for tax purpos- Snyder supports the concept of ernments roughly splitting the bill. es. Bipartisan House legislation the legislation, which goes to the Pipes at more than 700 homes have for residents. Edwards told e As- Fight over big-box store reintroduced last month would re- House. been replaced so far. sociated Press that with improved taxes back in Legislature store fairness to the property tax Marc Edwards, an expert at Vir- water quality, temporary use of l- appeals system, according to sup- Speedier tax cut for car ginia Tech who in 2015 warned ters and new pipes, “Flint residents Municipalities that are collect- porters who contend that the buyers OK’d by MI Senate about dangerous lead levels after really have nothing to worry about ing substantially lower property problem has reached crisis pro- Gov. Rick Snyder’s administration other than the lost trust and history taxes than they used to from big- portions especially in smaller Michigan senators have voted to repeatedly dismissed the concerns, of this disaster, which may take a box stores must overcome opposi- communities unable to afford le- more quickly phase in a tax break for said the agreement is a good deal generation to repair.” tion from business interests and gal fights. Nominate your company POWERED BY as one of Michigan’s Cool Places to Work in Michigan returns for another year. NOMINATION This prestigious program recognizes employers that go the extra mile to make their employees feel appreciated – DEADLINE: as judged, in part, by the employees themselves. LAST APRIL 7, 2017 NOMINATE your Cool Place to WorkCHANCE today at crainsdetroit.com/nominate CRAIN’S DETROIT BUSINESS // APRIL 3, 2017 3 Regulations Seven-day auto insurance plans may end by April 15 in Michigan By Chad Livengood prolic in Detroit because of the clined to elaborate. [email protected] city’s high cost of year-round insur- “e seven-day policy is the sub- e future of seven-day auto in- ance. ject of an ongoing DIFS administra- surance plans in Michigan is in lim- e state’s notice said Integon’s tive review,” Miller said in an email. bo. e state insurance department ability to sell seven-day plans “erefore, I am not at liberty to has put the state’s largest carrier on through L.A. Insurance stores in comment.” notice that it may forbid the sale of Michigan would end on April 15, ac- State insurance regulators said In- one-week coverage starting April 15. cording to the March 15 notice. tegon’s seven-day coverage plan is e Department of Insurance and “ey’re trying to shut down the “designed” to skirt state law requir- Financial Services notied Integon seven-day insurance plan,” L.A. In- ing continuous no-fault auto insur- National Insurance Co. on March 15 surance CEO Anthony Yousif told ance coverage on state-registered that it was withdrawing the North Crain’s. vehicles. Carolina-based carrier’s license to Andrea Miller, a spokeswoman for Rhonda Fossitt, senior deputy di- sell seven-day “Jump Start” auto in- the insurance department, said the rector of the state insurance surance plans. Seven-day plans are matter is still under review. She de- SEE AUTO, PAGE 19 Nonprot A new innovation center will be located in the Durfee Elementary-Middle School building, converting the expansive school into a community hub with a gymnasium and auditorium for public use, on-the-job-training for high school students, entrepreneur education and new business investment through a developing social investment fund. Project targets Detroit neighborhood with connection to 1967 uprising By Sherri Welch But change could be on its way. blight removal, home repairs and a [email protected] New jobs, training, investment and signature renovation project that’s Fifty years after the 1967 uprising, other resources for entrepreneurs important to each community. the central Detroit neighborhood may be headed to the neighborhood is year it hopes to recruit 12,000 where it started is a world away from as part of an eort by the nonprot volunteers and hundreds of compa- the busy central business district Life Remodeled to convert a school nies to remove blight from 300 city downtown.