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Dbpagead.Qxd 10/5/2006 11:50 AM Page 1 DETROIT BUSINESS MAIN 10-09-06 a 24,25 CDB 10/5/2006 4:56 PM Page 1 DBpageAD.qxd 10/5/2006 11:50 AM Page 1 DETROIT BUSINESS MAIN 10-09-06 A 24,25 CDB 10/5/2006 4:56 PM Page 1 Page 24 CRAIN’S DETROIT BUSINESS October 9, 2006 FOCUS:ELECTION GUIDE Prop 2 not likely to change many Detroit contracts, officials say BY ROBERT ANKENY utive order or portunities for vice came to the attention of these minority-owned businesses.” CRAIN’S DETROIT BUSINESS an ordinance minorities and institutions via outreach pro- Last year, Green said, the pub- that offers help women with grams,” he said. lic-sector members of MMBDC re- Passage of Proposal 2 — the based on geogra- passage of Pro- “I suspect that the outreach pro- ported that they spent more than Michigan Civil Rights Initiative — phy rather than posal 2. grams to identify and encourage $49.3 million in contracts with mi- could undercut gains made by the race or gender, “My estimate minority owners to bid, which in- nority-owned businesses. state’s minority businesses that said Sharon is in the range of creased the competitive scenario Both Green and McPhail said work with colleges and universi- McPhail, De- 25 to 33 per- and therefore lowered prices, that the broad language of the bal- ties, but might have little effect on troit general cent,” Green would be illegal with the passage of lot proposal will likely lead to the city of Detroit’s efforts to assist chief counsel. said. “Many of MCRI. Furthermore, those institu- court challenges from both critics minority- and woman-owned busi- Louis Green, McPhail Green the minority- tions (the universities and colleges) and supporters of the measure. nesses. president of the nonprofit Michigan and woman-owned businesses that may not be able to remain members “As a nonprofit, we cannot take Detroit already is working to re- Minority Business Development Coun- have been able to provide the uni- of MMBDC, and they wouldn’t be a position pro or con on the ballot cast its methods of aiding Detroit cil, predicts there would likely be a versities with services by provid- able to participate in the cost-sav- proposal,” Green said. “But I don’t businesses with either a new exec- strong reduction in business op- ing cost savings and quality ser- ings programs we have utilizing think enough attention has been paid to the far-reaching implica- tions on quality of life here. Will we have a sweeping image of our region constrained by perception that Michigan is hostile toward di- versity and diverse populations?” He said Detroit and Southeast Michigan have reaped economic benefits from growth of minority businesses with the help of out- reach and contract preferences from the public sector. Two examples of companies that grew this way, Green said, are MPS Group Inc. and Saturn Electronics & Engineering Inc. Detroit-based MPS reported revenue of $99.8 million in 2005. Auburn Hills-based Saturn had $189 million in 2005 revenue. Black businesses have only had broad access to business oppor- tunities for a Business-efficient short few decades, said Jon Barfield, chairman and CEO of Livonia- based Bartech is now Group Inc., speaking during Barfield the Rev. Jesse Jackson’s RainbowPush Coalition’s seventh annual automotive sym- cost-efficient. posium Sept. 28 in Detroit. “In the early 1970s, there were no opportunities for black (auto- Spend less, and get more productive, with a feature-rich The complete motive) dealers and black business people,” Barfield said. Finally, mi- bundle of communications tools for small business from small business nority-purchasing programs run bundle for under the new AT&T. For less than $95 a month, you’ll get by the Big Three and tier-one auto- motive suppliers helped minority- unlimited local and nationwide calling, high-speed Internet owned suppliers to get a foot in the door so that they have the opportu- and Unified MessagingSM — a service that consolidates $ /month nity to compete head-to-head. 95 Jackson said that although “in- messages from your email, fax, office phone and wireless phone into a single mailbox. All consolidated onto a single An 18% savings telligence and hard work and in- for the first year tegrity matter, inheritance and ac- bill and backed by the complete and secure network of cess matters more.” And that, he said, is why diversity programs the new AT&T. To order, call your local AT&T small business must be maintained and why the expert at 1-888-ATT-8339 or go to att.com/essential. Michigan Civil Rights Initiative must be defeated. The MMBDC, the largest of 39 such business-development agen- cies in Michigan, deals largely with private-sector contracts. Green said this year, participating companies will do about $14.5 bil- lion with MMBDC-certified minor- ity-owned businesses. “This is heavily automotive, but even backing out the Big Three, we’ll still have about $5 billion. And taking out the tier-one suppli- ers would still leave around $2.4 billion,” Green said. MMBDC rep- resents about 1,900 minority- att.com/essential owned businesses and deals with 680 corporations seeking to con- tract with them. $95 Bundle Offer — Available to businesses with 1–10 lines. Promotion requires one-year term. Rate specified is for first line only. Taxes and other charges extra. For McPhail said the city of Detroit details of additional charges, restrictions and requirements, call 888-288-1405 toll-free. Long Distance provided by AT&T Long Distance. AT&T Yahoo!® High Speed Internet has changed how it attempts to Service Business Edition provided by AT&T Internet Services. AT&T Unified Messaging provided by AT&T Messaging. ©2006 AT&T Knowledge Ventures. All rights reserved. See Prop 2, Page 25 DETROIT BUSINESS MAIN 10-09-06 A 24,25 CDB 10/5/2006 5:00 PM Page 2 October 9, 2006 CRAIN’S DETROIT BUSINESS Page 25 FOCUS:ELECTION GUIDE Prop 2: Detroit changing programs TO LEARN MORE ABOUT PROPOSAL 2 ■ A debate featuring Proposal 2 supporters Ward Connerly and Jennifer ■ From Page 24 Gratz and opponents Jon Barfield and former Michigan lawmaker Maxine help minority and other disadvan- erally required,” she said. McPhail said that so-called vol- Berman will be held 7-9 p.m. at the International Institute at 515 Stevens taged businesses grow and prosper McPhail called the initiative untary “set-asides,” such as those St. in Flint. since 1989, when the U.S. Supreme “ill-advised.” “Logically there in the casino agreements that in- ■ A two-part forum on the initiative is scheduled for Oct. 19 at Historic Court ordered strict scrutiny of should be no preferences. … It is clude “best efforts” provisions to Second Baptist Church of Detroit, 441 Monroe St. The event is open to the race classifications made by state not fair, and you don’t want to hurt public with registration beginning at 5 p.m. Complimentary validated parking get business to minority and is available in the Greektown Casino parking garage, 1001 Brush St. or local governments. people who have not done any- women-owned companies, are The city puts supplier or con- thing to hurt others. ■ A panel will gather from 4-6 p.m. Oct. 19 at the University of Michigan to probably not vulnerable to the ini- tractor businesses in five cate- “But there are still some hurdles discuss the effects of affirmative action on law, medicine, journalism and tiative’s restrictions. other professions. The panel includes Dr. James Curtis, author of gories for bidding on contracts: that exist for minorities,” she said. “But they’re probably not very Affirmative Action in Medicine: Improving Healthcare for Everyone, and businesses with offices or other fa- “Since most people are more com- enforceable, either,” she said. Kimberlé Crenshaw, law professor at University of California, Los Angeles, cilities in Detroit but not head- fortable with and want to do busi- Robert Ankeny: (313) 446-0404, Law School and an American Civil Liberties Union fellow. The free event is quarters; Detroit-headquartered ness with others like themselves, to be held in UM’s Modern Language Building, Auditorium 3. businesses; minority-owned enter- we do need ways to bring minori- [email protected] prises; woman-owned enterprises; ties and women along to equalize Reporter Brent Snavely con- For more election events, see www.crainsdetroit.com. and Detroit small businesses. opportunities.” tributed to this story. McPhail said the city has not been enforcing the race and gen- der goals but is working to strengthen residency standards to enable the city to give preference to companies that bring substan- tial business to the community. McPhail said she is concerned that passage of Proposal 2 might adversely affect federally funded programs that always have race and gender requirements. “We will have to make it clear that this is not city policy, but fed- HOW THE CASINOS SCORE Detroit’s three casinos have development agreements with the city that require involvement of “targeted businesses” — Detroit- based, minority or woman-owned business enterprises, or small business enterprises — as vendors and contractors, as well as inclusion of minority workers in employment ranks. With opening of the permanent casino/hotels in the next two years, Detroit casinos collectively will likely be the biggest private employer in the city. Here’s what the casinos currently report: ■ MGM Grand Detroit L.L.C. reports that in 2005, 70 percent of its operating expenses were made with targeted businesses, and 63 It’s not always wise to follow percent with Detroit-based businesses. conventional wisdom. On the worker rolls, 66 percent of the total work force is minority, including 53 percent of the supervisory personnel or higher positions.
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