City Schools Coalition Will Hit Books in a Hurry
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20141215-NEWS--0001-NAT-CCI-CD_-- 12/12/2014 5:42 PM Page 1 ® www.crainsdetroit.com Vol. 30, No. 50 DECEMBER 15 – 21, 2014 $2 a copy; $59 a year ©Entire contents copyright 2014 by Crain Communications Inc. All rights reserved Page 3 COMMUNITY BENEFITS PACTS Community benefits agreements How TriMas sees dividing are legally binding pacts between City schools coalition communities and developers that itself as a growth formula guarantee things like jobs, wages and local contracting development Can you in exchange for grants, tax abate- strike VC ments, property transfers or other assistance from local gold twice? will hit books in a hurry governments. House Bill 5977 would make Sooch aims illegal local ordinances that to find out more schools that remain are actu- require developers to enter into Snyder wants ally delivering better results. community agreements with St. John Providence Park With the city’s historic munici- employment or wage conditions. pal bankruptcy squarely in the plans Livingston expansion panel’s input rearview mirror, Snyder and oth- ers are turning a greater focus to- ward repairing Detroit’s vast net- Social Media and Marketing early in ’15 work of publicly financed schools Bill aimed run by 14 different operators: De- BY KIRK PINHO troit Public Schools, the Education CRAIN’S DETROIT BUSINESS Achievement Authority and a dozen Two hands is all you need to DAVID HALL/CDB different charter school authoriz- at CBAs may In an interview with Crain’s, Gov. count the number of publicly fi- ers. Although fixes to a host of Rick Snyder said he wants problems won’t be easy, Snyder nanced schools in Detroit with recommendations for improving Michigan Educational Assessment Detroit schools – public and charter and others hope the Coalition for the Program scores above the state av- alike – by the first half of next year. Future of Detroit Schoolchildren, an- also negate How companies can build a erage, in spite of more than two nounced last week, can provide vi- brand they’ll ‘like,’ Page 11 decades of experimentation that broad coalition — including busi- able recommendations to mend included increasing competition ness, teachers unions, nonprofit the city’s education woes — and for students with charter schools. and civic leaders — to see if they provide them fast. abatements This Just In Now, Gov. Rick Snyder and May- can agree on ways to solve overca- or Mike Duggan are looking to a pacity issues while ensuring that See Schools, Page 21 BY CHAD HALCOM Westborn Market to add CRAIN’S DETROIT BUSINESS store in Plymouth A bill that bars local govern- ments from attaching local job Westborn Market, a family- hires, contracting or employee owned grocer with stores in wages to tax incentives or local de- Dearborn, Livonia and Berk- velopment approvals is dead for ley, is adding a fourth in Ply- now, but it is expected to be rein- mouth that is expected to DAVID HALL/CDB troduced early next year. open next summer. House Bill 5977 is aimed primari- The company plans to move ly at heading off a pending commu- into the former U.S. post office nity benefits ordinance proposal in at 860 Penniman Ave. West- Detroit, but it likely would have born signed a lease last week, ramifications far outside the city. said Mark Malcolm, president That’s because local govern- and CEO of Tower International ments routinely attach job require- Inc. He, along with his wife, ments to tax abatements, and the Patty, bought the historic bill as proposed would no longer al- building from the U.S. Postal low that. Some believe it also would Service this year, coinciding negate agreements already in place. with the post office’s reloca- That’s the position of Tim Wolff, tion to a smaller space nearby. manager of rural Isabella County The nearly 11,000-square- village Lake Isabella, who said he foot building was construct- believes the proposal would also ef- ed in 1936. fectively cancel a 2010 village coun- — Laura Cassar How did the D become cil resolution creating guidelines for industrial tax abatements. Wolff said the village of 1,700 No issue next a garden of eatin’? people used those guidelines to week, but benefit Isabella Pellet LLC based on four criteria, one of which is the news will be a hen Dave Kwiatowski (above left) and Marc Djozlija opened Wright & Co. this summer, number of jobs that pay at least 125 click away they were in the shallows of a growing dining wave now crashing over Detroit. In the past percent of the federal poverty level Wyear, more than a dozen restaurants have opened, from big players such as HopCat De- for a family of three. Crain’s will not Isabella Pellet, which makes an- publish an issue until the troit and Punch Bowl Social (left), to local entrepreneurs, such as Antietam and Selden Standard. imal bedding and home heating Book of Lists on Dec. 29. But can the Motor City handle all of these new neighborhood joints and temples to seasonal fuel for stoves from sawmill waste, But we’ll have plenty to fare and quality ingredients? Will palates be fickle? Will restaurants cannibalize each other? is expected to grow to 25 jobs and report and to say until the currently employs 18-20 people, next regular issue Jan. 5. Find out how local restaurateurs perceive Detroit’s burgeoning restaurant scene. Visit crainsdetroit.com. SEE STORY, PAGE 18 See Pacts, Page 19 NEWSPAPER 20141215-NEWS--0002-NAT-CCI-CD_-- 12/12/2014 1:39 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS December 15, 2014 MICHIGAN BRIEFS Ski industry hopes to repeat spewed more than 800,000 gallons of crude oil in July 2010, resulting last winter’s strong season Stryker to pay $80M to end inquiry of subsidiary in one of the costliest onshore oil Although the first snow that spills in U.S. history. came in November is long gone, ski Kalamazoo-based Stryker Corp. faces stiff penal- ture. OtisMed also agreed to pay $40 million in a sep- Ⅲ Toledo-based ProMedica plans hills throughout Michigan have ties, including $80 million in fines and settlements, arate but related civil settlement. to open a full-service hospital in taken advantage of the early cold related to allegations that a subsidiary distributed a OtisMed will be excluded from participation in Lenawee County’s Adrian Town- snap to begin their season and build device used in knee replacement surgery without Medicare and Medicaid for 20 years, the U.S. Depart- ship, The Daily Telegram of Adri- momentum for the months ahead. approval from the U.S. Food and Drug Administration, ment of Justice said. In a statement, Stryker noted an and The Blade in Toledo report- Crystal Mountain Resort near Tra- reported Modern Healthcare, a sister publication of that the criminal conduct occurred before Stryker’s ed. The hospital, which would verse City is one of the resorts that Crain’s Detroit Business. 2009 acquisition of OtisMed. replace ProMedica Bixby Hospital in launched ahead of schedule, open- OtisMed Corp., a Stryker subsidiary, and former Surgeons used the device, the OtisKnee orthopedic Adrian and Promedica Herrick Hos- ing some slopes before Thanksgiv- CEO Charlie Chi pleaded guilty to distributing knee cutting guide, to help them make accurate bone cuts pital in Tecumseh, will have up to ing, its earliest in more than 15 replacement surgery cutting guides despite the in patients before implanting artificial knee prosthe- 80 acute care beds, an emergency years, CEO Jim MacInnes said. FDA’s rejection of an application for marketing ses. Justice said none of the company’s claims about department, surgical capabilities, Ski hills typically plan to open clearance. A federal judge fined the company $34.4 the tool were evaluated by the FDA before they were cancer and women’s health cen- by the first of December, Mickey million and ordered $5.16 million in criminal forfei- used in ads and other promotional materials. ters, and an inpatient psychiatric MacWilliams, executive director unit. Work is to start in 2016. of the Clarkston-based Michigan the West Michigan community of “strongest jobs prospects” for win- for a 2010 oil spill into the Kalama- Find business news from Snowsports Industries Association, Lowell and also is known by the ter, according to the Manpower zoo River, will pay about $6.8 mil- around the state at crainsdetroit told MiBiz. Last year, Michigan’s name Spart. (Of course, it is.) Employment Outlook Survey. The lion to settle a class-action lawsuit, .com/crainsmichiganbusiness. ski hills saw nearly 2.4 million vis- outlook takes the percentage of the Kalamazoo Gazette reported. A Sign up for the Crain’s Michi- itors — making it one of the best employers expecting an increase federal judge still must approve gan Morning e-newsletter at seasons on record in the state. MICH-CELLANEOUS in hiring activity and subtracts the settlement. A pipeline leak crainsdetroit.com/emailsignup. Ⅲ In August 2013, Crain’s Michi- the percentage of employers ex- Generate energy from cows? gan Business reported that Mark pecting a decrease, the Grand Sellers, owner of the Grand Rapids- Rapids Business Journal reported. There’s methane to this madness based Hopcat bar chain and board Ⅲ Growth in West Michigan’s in- CORRECTIONS dustrial sector slowed last month, A large farm in the West Michi- chairman of the traveling museum Ⅲ In a story on an investment in Moguldom Media Group LLC in the Dec. 8 according to the monthly survey of gan community of Coopersville exhibit company Premier Exhibitions, issue, the name of one of the company’s websites was misspelled.