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DETROIT BUSINESS MAIN 02-18-08 a 1 CDB.Qxd DETROIT BUSINESS MAIN 02-18-08 A 1 CDB 2/15/2008 7:00 PM Page 1 ® www.crainsdetroit.com Vol. 24, No. 7 FEBRUARY 18 – 24, 2008 $2 a copy; $59 a year ©Entire contents copyright 2008 by Crain Communications Inc. All rights reserved THIS JUST IN Detroit to host creative DMC, WSU still at odds cities summit lion to $7 million, retroactive to Detroit is to host the sec- WSU seeks review of payment cuts, may sue Oct. 1 because it believes the pay- ond International Creative ments violate federal laws on ex- Cities Summit on Oct. 13-15. cessive compensation to doctors. BY JAY GREENE medical school. the potential lawsuit and layoffs. The Michigan State Housing Disproportionate share payments CRAIN’S DETROIT BUSINESS The medical “We receive two checks per Development Authority is or- compensate hospitals and doctors school also is month with $500,000 to $600,000 less ganizing the Creative that treat a high number of low-in- Wayne State University’s School of working on a each time,” Frank said. “We are Cities 2.0 summit with come patients. Medicine is asking for an indepen- plan to reduce geared up to look at each job catego- Tampa Bay, Fla.-based Cre- WSU has since received two dent review to determine whether expenses, which ry to see where we can cut. We can- checks from DMC that total less ative Cities Productions. Or- Detroit Medical Center is justified in may include not tolerate this type of cut.” than half what it expected under a ganizers expect more than withholding $12 million in funds cutting services In a Feb. 1 letter, DMC notified 1,000 people to attend each 3½-year-old contract it signed in for indigent care and Medicaid. and research WSU it is reducing annual Medic- November 2006, Frank said. WSU day. WSU also is considering a and possibly aid disproportionate share pay- is paid twice a month. The summit focuses on breach of contract lawsuit against laying off facul- ments to the medical school and Frank “We feel we have a binding con- how communities are us- the DMC if funding is not restored, ty and staff. A Wayne State University Physicians ing innovation, social en- said Robert Frank, vice dean of the decision is expected this week on Group by $12 million, from $19 mil- See Payments, Page 23 trepreneurship, arts, cul- ture and business to stimulate economies. Dis- cussion topics are to in- clude promoting local as- sets and destinations, talent attraction and reten- Growing tion strategies and best practices for economic and social development. Salsa sales hot St. Petersburg, Fla., host- YP groups ed the first creative sum- mit in 2004. Garden Fresh For more information, visit www.creativecities- crowd summit.com. cooks up big deal — Jonathan Eppley The Hayman Co. buys with Margaritaville calendars apartment properties BY BRENT SNAVELY BY CHAD HALCOM The Hayman Co. based in CRAIN’S DETROIT BUSINESS CRAIN’S DETROIT BUSINESS Troy has bought two apart- ment properties in Ann It’s party time at Garden Fresh Break out the day planners, everyone. Arbor and Southfield, con- Gourmet Inc. The number of groups forming taining 240 units, for $14.6 The Ferndale-based fresh salsa-, hummus- and tortilla-chip-maker has around young professionals — YPs million. experienced tremendous success over for short — is growing in South- Both the 106-unit Monti- the past 11 years, with annual sales east Michigan, cello-Southfield, at 22700 increasing from $6 million in 2002 to adding events and Civic Center Drive, and the A NETWORK $46 million in 2007. after-work net- 134-unit Ponds at George- But now, Garden Fresh is prepar- OF GROUPS working for 22- to town, 2511 Packard, Ann ing for the possibility that its revenue 40-year-olds. Arbor, were built in 1988 More than 30 will balloon over the next two years to area groups Networking and and contain one-, two- and more than $90 million. are geared volunteerism three-bedroom units. The On Dec. 21, Garden Fresh signed a toward young group Detroit Young seller was New York-based manufacturing and production deal professionals. Professionals has Centennial Real Estate, to produce a full line of salsa, hum- Partial list, dodged a time con- Page 24. which had bought the prop- mus, tortillas and dips for singer and flict between its erties as part of a REIT last songwriter Jimmy Buffett’s Margari- panel discussion this week and a year, said Andrew Hayman, taville Foods. nearly identical event hosted by Af- executive vice president of “It’s really a great move for us. We ter 5 Detroit when the latter group The Hayman Co. have a shot at doubling the size of our chose to reschedule. Hayman plans to spend company in 18 months,” said Garden Tickets sold out for the 100-ca- approximately $1 million Fresh Vice Chairman Dave Zilko. pacity DYP Leadership Summit on renovations at the two Margaritaville Foods, inspired by Thursday evening at the Detroit properties, he said. songs written by Buffett, already has Renaissance Club downtown; Af- — Robert Ankeny several other lines of food and drinks ter5 Detroit, which planned its that include frozen seafood, beer, NATHAN SKID/CRAIN’S DETROIT BUSINESS “Gen Y: We Chose Detroit” event Annette and Jack Aronson, creators of Garden Fresh salsa, look for for the same evening, bumped it to See This Just In, Page 2 even greater sales after signing a deal with Margaritaville Foods. See Salsa, Page 25 See Groups, Page 24 Thinking beyond the How to stay in business Detroit 3 pays off, for a century, NEWSPAPER Page 3 Page 11 DETROIT BUSINESS MAIN 02-18-08 A 2 CDB 2/15/2008 6:54 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS February 18, 2008 during the year in its staffing con- sion’s Riley Broadcast Center in Each of the plans include a a weekly business health care tracts with various state govern- Wixom. long-term proposal for a new hos- news magazine, and its sister TTHISHIS JUST JUST IN IN ment agencies. The station also is leasing space pital. Without new standards, publication Modern Physician. th ■ From Page 1 The figure represents an 18 to Interslice Studios, a multimedia the companies now face either Both are owned by Crain Communi- consecutive year of revenue firm, said Publicity Manager John the unlikely proposition of ob- cations Inc. growth for S-3, which operates 21 O’Donnell. taining a certificate of need in vi- In addition to his health care DTE Energy awards $7.6 million branch offices in 20 cities of North The lease arrangement isn’t olation of those guidelines or go- experience, Greene has worked at in grants to state nonprofits America and Europe. During the just a landlord-tenant situation, ing to the state Legislature for newspapers in Florida, Massa- year the company opened new fa- said ArtServe President and CEO special action. chusetts and Minnesota. The DTE Energy Foundation said cilities in San Antonio, Dallas and Neeta Delaney. — Chad Halcom A native of Sarasota, Fla., it awarded nearly $7.6 million to Tallahassee, Fla. and became a li- Both ArtServe, an arts promo- Greene is a graduate of the Uni- Michigan nonprofits last year. censed staffing vendor in tion and education organization, Greene joins Crain’s staff versity of Florida in Gainesville. Among the grants was $1.5 mil- Louisiana. and Detroit Public Television “re- He can be reached at lion to the University of Michigan — Chad Halcom ally see this as a chance to work Jay Greene, 53, has joined Crain’s [email protected] or at (313) College of Engineering to estab- together on programs.” as the reporter covering health 446-0325. lish the DTE Energy Professor- — Sherri Begin care, the envi- Other coverage changes: ship of Advanced Energy Re- WSU hires head of mechanical ronment and Sherri Begin will cover ser- search. engineering department the insurance vices in addition to nonprofits. Other grants included: $385,000 William Beaumont, McLaren industry. Chad Halcom will cover edu- The College of Engineering at to 20 Michigan middle schools for Greene previ- cation, non-automotive manufac- Wayne State University has hired take a pass on state panel innovative math programs that ously was a turing and defense contracting. William Beaumont Hospitals and improve student math skills and Walter Blyzik, 62, former chief sci- writer and edi- He will continue to cover Oak- McLaren Health Care Corp. have $600,000 to the Cranbrook Institute entist for the U.S. Army Tank Auto- tor for several land and Macomb counties. passed on the chance to lobby the of Science to establish the DTE En- motive Research, Development and publications, Tom Henderson adds biotech- state Certificate of Need Commission ergy Watershed and Great Lakes Engineering Center in Warren, as including Mod- nology to his banking, finance Education program. its department chairman of me- for new regulations that might Greene ern Healthcare, and technology coverage. — Sherri Begin chanical engineering. He suc- have made it easier to build two ceeds Trilochan Singh, who held the new hospitals in Independence Strategic Staffing announces post as interim chair for more Township. than a year and now resumes his The CON commission voted CORRECTIONS faculty position. unanimously against creating a increased 2007 revenue Ⅲ The acquisition of the Southfield law practice of Steven H. Malach by Blyzik, 62, of Grosse Pointe, as- review committee to examine Detroit-based Strategic Staffing Lipson, Neilson, Cole, Seltzer & Garin P.C., Bloomfield Hills, was incor- sumed the post this month after standards on hospital bed counts Solutions Inc.
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