Jett Ferm's Business Plan
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DETROIT BUSINESS MAIN 12-10-07 A 1 CDB 12/7/2007 7:24 PM Page 1 ® http://www.crainsdetroit.com Vol. 23, No. 50 DECEMBER 10 – 16, 2007 $2 a copy; $59 a year ©Entire contents copyright 2007 by Crain Communications Inc. All rights reserved THIS JUST IN Group buys major stake Push is on for road funding in Morley Brands L.L.C. A group of executives sents road and bridge builders, un- and a couple from Indi- Shifting sales tax on gas is one option derground contractors and other anapolis announced Fri- construction interests, and is a leader of a coalition seeking in- day the purchase of a ma- BY AMY LANE wake of Michigan’s recent $1.5 bil- bridges. creased transportation funding. jority position in Morley CAPITOL CORRESPONDENT lion in tax hikes that could make a Given new increases in the Brands L.L.C., makers of sought-after increase in Michi- state income tax and Michigan Ledbetter said MITA officials chocolate candy and LANSING — Supporters of in- gan’s gasoline tax a tougher sell. Business Tax, funding proponents and members have met with Gov. Jennifer Granholm and legislative Sanders products, from De- creased Michigan road funding One idea: To raise Michigan’s are looking at how to “come up leaders and soon plan to present “a troit-based Peninsula Capital continue to make a strong push in gas tax but offset it with a reduc- with a plan that is palatable to res- number of different options … in Partners L.L.C. the Capitol, as the Legislature’s tion in Michigan’s sales tax on idents,” said Keith Ledbetter, di- terms of how we can provide addi- Brian Jefferson and his immediate attention turns beyond gasoline, mitigating the pocket- rector of legislative affairs for the tional dollars for transportation.” wife, Karen, acquired a budget crises and taxes. book pain for motorists but send- Michigan Infrastructure & Transporta- In February, MITA proposed a 9- majority stake in Morley Road builders and others also ing more money toward maintain- tion Association, or MITA. on Nov. 27. Four current are looking at new options in the ing and building roads and The Okemos-based group repre- See Funding, Page 24 executives also became partners. Jefferson de- clined to disclose the pur- chase price. Brian Jefferson, who grew up in Royal Oak, has HAP joins list previous sales and market- ing experience in the in- surance industry with In- dianapolis-based JWF Cos. of opponents and has been an indepen- dent sales consultant for the past 18 months. He said he plans to use his sales ex- to Blues bills perience to help Morley boost revenue. “I just think the people BY SHERRI BEGIN in Michigan love Sanders AND AMY LANE and Morley’s … . I think we CRAIN’S DETROIT BUSINESS have an opportunity to se- Health Alliance Plan late last week joined the cure more jobs for the re- growing slate of companies and organizations gion and export some lining up to oppose state legislation backed by things nationally,” Jeffer- Blue Cross Blue Shield of Michigan. son said. HAP is taking issue with House Bills 5282 This year, Clinton Town- and 5283, which would set new rules in the ship-based Morley Brands growing market for individual health insur- is expecting sales of about ance. $15 to $20 million, down In talking points forwarded to Crain’s, HAP from about $40 million in BILL PUGLIANO said any initiative to reform the individual 2002. Keith Famie’s documentary on the Arab-American community is the latest for the filmmaker. market should be based on three objectives: Much of that sales de- Ⅲ Reducing the number of uninsured in cline is due to a decision to Michigan. shut down the company’s Ⅲ Making health care coverage less costly fundraising arm, said Ron and more affordable. Rapson, president of Mor- Ⅲ Promoting competition ley Brands. Second success in the individual market. Morley acquired the The Blues’ legislation falls Sanders brand and its Food paves path for chef to become filmmaker short on all three objectives, recipes in 2002 and has HAP said. opened four Sanders retail The legislation “was craft- BY BRENT SNAVELY The first hour-long documen- stores since then. In addi- ed by a single carrier, per- CRAIN’S DETROIT BUSINESS tary was “Our Italian Story.” tion, Morley has landed na- MORE ON THE WEB haps disguised as a solution tional distribution deals Since then, Famie has complet- You can read more for the issue of uninsured with Kohl’s and Bed Bath & Keith Famie, the Oakland ed Polish, Greek and Arab- about the people and the cost of individual Beyond, Rapson said. County chef who became na- American versions. The latest, featured in Keith health care in our market,” tionally known as a “Survivor” “Our Arab-American Story,” is Clement Rapson said he believes said Jon Clement, vice presi- Famie’s documentaries contestant, has staked out a sec- scheduled to air Saturday at 7 the new owners will help to dent of finance at HAP. and listen to an audio ond career as successful docu- p.m. on WXYZ, Channel 7. reinvigorate Morley “But after simple analysis, it’s more a solu- clip by a group of Arabic mentary filmmaker. “Our Italian Story” won Brands because they will drummers that tion for the Blues,” he said. Last year, Famie embarked three Emmys from the Michigan be actively involved as performed at a recent HAP’s concerns follow others raised last on a project called “Our Story Chapter National Academy of Tele- managers. pre-screening event at week by Michigan Attorney General Michael Of” — a series of documen- vision Arts & Sciences in May, — Brent Snavely www.crainsdetroit.com/ Cox, AARP Michigan, health advocacy nonprofit and Famie’s programs have See This Just In, Page 2 famie. taries about metro Detroit’s ethnic communities. See Famie, Page 22 See HAP, Page 25 Legal firms urged Dome bidder has to bulk up, plans, still needs NEWSPAPER Page 11 money, Page 3 DETROIT BUSINESS MAIN 12-10-07 A 2 CDB 12/7/2007 7:25 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS December 10, 2007 Doner names new executive ing awards such as the Arc of Oak- financially, AAFF launched an Tool and die supplier’s plant THIS JUST IN land County Lifetime Achievement online fundraising campaign, En- Greg Clausen has joined South- Award in 2005. JARC operates 20 dangered, to raise $75,000 by the designated for tax abatements ■ field-based advertising agency From Page 1 group homes and a variety of in- end of January. The campaign Ronart Industries Inc. of Detroit, a W.B. Doner & Co. dependent living programs for has raised half the funds needed, as executive 50-year-old family business supply- adults with developmental dis- the festival said. Bureau wants businesses on vice president, ing tool and die work to the auto in- abilities. — Leah Boyd chief media of- dustry, won approval last week Detroit’s brandwagon — Leah Boyd ficer. from the Detroit City Council for a A group of marketing consul- Clausen, 44, Tool and Die Recovery Zone desig- tants and business leaders will starts today State, Ann Arbor Film Festival Judge approves changes nation for its northeast side plant. hold an event in February to and will be in in Delphi stock-purchase plan It’s an example of using tax show businesses how to use the charge of Don- reach settlement breaks to retain businesses as “D Brand” branding campaign er’s planning, The Ann Arbor Film Festival an- Troy-based Delphi Corp., the well as attract new ones, said Dou- developed by the Detroit Metro buying, re- nounced a settlement on a federal biggest bankrupt auto-parts mak- glass Diggs, director of the Detroit Clausen Convention & Visitors Bureau. search and dig- First Amendment lawsuit it had er, won federal court approval on Planning and Development Depart- The Feb. 1 D Brand Summit ital media groups. He replaces filed against the state of Michi- Friday for changes to a $2.55 bil- ment. will give examples of businesses Shane Ankeney, who left for the gan. lion stock purchase agreement The zone requires approval that are using Detroit’s new TBWA\Chiat\Day agency. The organization had chal- with a group led by Appaloosa from the state. tourism and community develop- Clausen comes to Doner from lenged state arts funding restric- Management L.P. It gives Ronart local and state tions. The lawsuit, filed in March ment brand to support their own Chicago’s Spark Communications U.S. Bankruptcy Judge Robert tax abatements on its property at Inc., where he was executive vice in U.S. District Court in Detroit by brand and business initiatives. Drain in New York approved the 19365 Sherwood near Seven Mile president, managing director. the American Civil Liberties Union on “Detroit is at the forefront of changes over the objections of a Road for 12 years. In exchange, — Bill Shea behalf of AAFF, claimed the state both branding itself and creating group of bondholders including Ronart agrees to provide at least opportunities for companies to unconstitutionally punished the Sailfish Capital Partners L.L.C. and 21 new jobs use the brand to tell their own AAFF for screening “objection- Leader of nonprofit to retire Caspian Capital Advisors L.L.C., Ronart will get help in filling story,” said Jim Townsend, execu- able” films by withdrawing Michi- gan Council for Arts and Cultural Af- which argued the deal’s terms the positions from the Detroit tive director of Tourism Economic Joyce Keller, executive director fairs program grants.