Masters of Arts

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Masters of Arts Steve Ballmer, ‘Hamilton’ producer highlight Detroit Homecoming; watch online, details on Page 4 SEPTEMBER 12 - 18, 2016 Washington Blvd.: Building on a vision By Kirk Pinho Book Tower restoration just one part of developers’ ambitious plans Estate Services LLC said total cost esti- [email protected] mates have not yet been determined, A century has passed since the Grand Circus Park, amounting to at e most ambitious and perhaps but did say that historic tax credits are three Book brothers embarked on an least $600 million in real estate invest- the most architecturally complex proj- expected to be part of the nancing ambitious eort to remake Washing- ment on Washington and several hun- ect is Dan Gilbert's restoration of the mix). ton Boulevard downtown, creating an dred million more in projects com- Book Tower, the haunting Italian Re- But what laid the groundwork for opulent thoroughfare unrivaled by pleted or underway around it. naissance-style skyscraper looming the Gilbert project is almost certainly any other in the world with dazzling e projects range from new apart- over downtown with its aged copper the renovation of the Westin Book Ca- skyscrapers, architecture and shops. ments, to retail, to renovated housing roof and ornate details designed by ar- dillac Hotel a decade ago, which was Now new developers have their for low-income seniors in what devel- chitect Louis Kamper. the rst in what would be a long string own plans for the four-block stretch opers predict is going to build upon It will almost certainly be the most of real estate acquisitions, redevelop- north of Michigan Avenue leading to the brothers' original vision. expensive of the crop, with develop- ments and renovations that have ment experts saying Gilbert's overall made Washington Boulevard and the LARRY PEPLIN redevelopment of the Book Tower and area generally west of Woodward Ave- The ornate architecture and long neglect will give the Book Tower and adjoining Book adjoining Book Building could cost nue far more connected. Building an estimated renovation price tag of $400 million or more. $400 million or more (his Bedrock Real SEE BOOK, PAGE 36 Icahn’s Federal-Mogul bid likely to end in split Experts say $281 million oer an exit play By Dustin Walsh Consultants and executives scram- [email protected] bled over the long Labor Day weekend Billionaire investor Carl Icahn is to prepare the going-private deal be- taking Southeld-based auto supplier cause a buyer is likely waiting in the Federal-Mogul Holdings Corp. private wings, said Pat O’Keefe, managing after months of raising his oer price member of Bloomeld Hills advisory to the company’s other shareholders. rm O’Keefe and Associates LLC. What’s his game? He is likely to res- “Maybe he already has an exit (a urrect a plan scrapped last year to split buyer) in his back pocket,” O’Keefe the company’s powertrain and after- said. “is is absolutely an exit play; market divisions, with intentions of why else would he oer so much so selling at least one. e investor also quickly?” may parlay part of Federal-Mogul into In February, Icahn oered $7 per his recently acquired Pep Boys au- share for the remaining shares, then to-parts chain to create larger prot upped the bid to $8 per share in June. margins for both. A deal never materialized. e majority shareholder in the e $9.25-per-share bid is an 86 LARRY PEPLIN maker of Wagner brakes and Champi- percent premium over the supplier’s Wayne Brown, president and CEO of Michigan Opera Theatre, sees changes in Detroit creating “an exciting climate for us.” on spark plugs, Icahn Enterprises LP, share price of $4.98 in February. oered $9.25 per share for the remain- e bids show Icahn is desperate to ing 18 percent stake it does not already gain total control of Federal-Mogul own in a deal valued at roughly $281 and to nally make a move to rid him- million. self of at least part of the business, said Supported by the Federal-Mogul Matteo Fini, senior manager of com- Masters of arts board, the deal will take the publicly ponent forecasting for IHS Automotive New leaders of major cultural institutions look to build audiences, revenue traded company, which also makes Inc. in London. pistons, bearings and aftermarket “I don’t think (Icahn) wants to con- By Sherri Welch et and a better experience for residents and parts, private under Icahn’s control. tinue to run an automotive business [email protected] visitors. Special Federal-Mogul declined to com- for the rest of his days,” Fini said. “Spin- As Wayne Brown, president and CEO of A raft of leadership changes have put Report: Arts & ment because the deal is not yet nal- ning o one or both of the businesses the Michigan Opera Theatre, watches con- new faces like Brown in charge of some of ized. SEE ICAHN, PAGE 33 struction workers lay track for the M-1 Rail’s the region's largest cultural institutions, in- Culture streetcar project in downtown Detroit from cluding the MOT, the Detroit Institute of The business of arts © Entire contents copyright 2016 his oce window, he’s thinking about con- Arts, and the University Musical Society. and culture is a big deal by Crain Communications Inc. All rights reserved nections. And they are thinking big when it comes to in metro Detroit, and crainsdetroit.com Vol. 32 No 37 $2 a copy. $59 a year. A year from now, M-1 will be transporting collaboration and a new generation of au- many local institutions new patrons into the downtown corridor diences while attracting a new generation are working on and cultural center. of revenue. programming and ose additional visitors might be lured “at’s an exciting climate for us ... as we fundraising tactics that by not only the opera theater, but nearby arts try to advance our work over time,” said play to a more diverse organizations, restaurants and boutiques. Brown, who took the reins of MOT in Janu- audience. And that conjures up thoughts of how cul- ary 2014 after 17 years as director of music NEWSPAPER Stories begin on tural groups can leverage what each brings and opera at the Washington, D.C.-based Page 11 to the table —for both mutual nancial ben- SEE LEADERS, PAGE 35 2 CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016 MICHIGAN MICH-CELLANEOUS estream Ventures. Wakestream will INSIDE n Recreation apparel and gear re- make early-stage investments of THIS ISSUE tailer Moosejaw will open a pop-up $100,000 to $500,000, with a focus on CALENDAR ........................................32 store in downtown Grand Rapids on high-growth technology, the conver- CLASSIFIED ADS ..............................33 Sept. 19, just in time for the rst week- gence of hardware and software and DEALS & DETAILS ............................32 KEITH CRAIN.......................................8 end of ArtPrize. e 4,000-square-foot e-commerce. Spinning o the for-prot store is connected to Moosejaw’s larg- VC fund allows Wakestream to focus OPINION ..............................................8 PEOPLE ..............................................32 BRIEFS est “High Altitude Lounge,” a place solely on high-growth, high-risk nan- RUMBLINGS ......................................38 the opportunity to add their markers where the company plans to host cial investments. Pure Michigan adds WEEK ON THE WEB .........................38 online road trip planner in the database for Roadtrippers.com. events and activities. e store is part n Patrons could bring their dogs Chris Ehrmann of the Madison Heights-based retail- along while eating in outdoor areas of It might still feel like summer, but er’s new strategy to test markets and restaurants under legislation advanc- COMPANY INDEX: the state isn’t waiting for cooler tem- Lawsuit asks billions in state retail concepts with short-term leases ing in Michigan’s Legislature, AP re- SEE PAGE 37 peratures to launch its Pure Michigan before investing in a permanent space. ported. State law generally prohibits travel marketing eorts for fall. Pure aid shi to municipalities n e U.S. Supreme Court has de- live animals at restaurants, but the leg- ment of Environmental Quality in the Michigan has teamed with Roadtrip- A lawsuit led last week says the clined to let Michigan’s new ban on islation — which supporters say could wake of Flint’s water crisis, AP report- pers.com, an online road trip planner, state is shortchanging local govern- straight-party voting take eect for the boost tourism — was approved 32-4 by ed. Heidi Grether, a former BP lobbyist to get travelers to explore what the ments in what could amount to bil- November election, AP reported. e the Senate last week and sent to the whose appointment has been criti- state has to oer. lions of dollars. court rejected a request by state o- House for consideration. e bill would cized by environmentalists and Dem- Some of the highlighted areas in e lawsuit, led in the Michigan cials to halt lower court rulings that allow dogs on restaurant patios under ocrats, took questions last week from Michigan include the Keweenaw Pen- Court of Appeals, claims that the state blocked the Republican-sponsored certain circumstances, among which the Senate Natural Resources Com- insula, West Michigan shoreline, Sun- improperly includes payments made law signed by Gov. Rick Snyder. e would require them to be leashed and mittee. e panel didn’t vote, which rise Coast and U.S. 12 route. Attrac- to school districts, charter schools and court’s decision means Michigan vot- not to sit in chairs or on customers’ laps. means Grether’s appointment will tions accessible along each route are other units of government in the share ers will still be able to use the popular n Michigan’s public universities take eect automatically as expected.
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