DETROIT BUSINESS MAIN 07-02-07 A 1 CDB 6/29/2007 6:34 PM Page 1 ® http://www.crainsdetroit.com Vol. 23, No. 27 JULY 2 – 8, 2007 $2 a copy; $59 a year ©Entire contents copyright 2007 by Crain Communications Inc. All rights reserved THIS JUST IN Silicon Valley Bank to invest up to $7.5M Biz tax done, but in Renaissance VC fund firm picks Ann Rebecca Smith, president of the Troy-based eastern region of Huntington Bank, will announce today that Arborforoffice the bank is making the first debate isn’t over institu- BY TOM HENDERSON tional in- CRAIN’S DETROIT BUSINESS vestment in a $100 Barracuda Networks Inc., a fast-growing Some are still unclear on its effects million Silicon Valley company that provides anti- BY AMY LANE Department of Treasury gears up to administer the venture- spam and anti-virus software for business- CAPITOL CORRESPONDENT tax, and accountants and lawyers pore over de- capital es, has opened an engi- tails in the tax passed last week. fund an- neering and software- LANSING – The dust may be settling on nounced development office in Michigan’s newly minted business tax, but ac- The Michigan Association of CPAs, for example, last downtown Ann Arbor tivity — and debate — is by no means over. has been in continual communication with its Smith month by and hopes to employ up As the new Michigan Business Tax heads to members and is developing a way for CPAs to Detroit Renaissance Inc. to to 60 engineers and de- Gov. Jennifer Granholm’s desk, business inter- submit questions on its Web site, with respons- spur innovation and help velopers there within ests are looking at what needs es provided by knowledgeable CPA tax volun- two years. emerging companies grow. to be addressed in the coming teers. Upcoming conferences will also focus on Barracuda was found- The bank will invest up months, from legislation to ed in 2003 by president the issue, as will workshops and sessions to $7.5 million. The first $5 correct perceived tax in- and CEO Dean Drako, a throughout the summer and fall, and the associ- million is contingent on the Drako equities, to clarification and 1987 electrical engineer- ation is looking at creating programs to which fund raising $50 million. interpretation of how the new ing graduate of the University of Michigan. It tax will unfold. member CPAs can bring clients, said Peggy The remaining $2.5 million now employs about 300 and claims to have Dzierzawski, president and CEO. will be given when the fund “I have one member who more than 40,000 customers in more than “We’re working on this continuously. This is hits $75 million. has other facilities, compa- 80 countries. nies that they own outside the something … that we’ll spend a lot of time on, Renaissance officials Drako said he opened the Ann Arbor of- state, that sell into the state. and make sure that we try to touch every mem- hope to complete raising fice, at 912 S. Main St., on June 20 to ease Hadden And they have two different ber,” she said. “Every CPA needs to know about money for the fund, a so- recruiting by being close to a large pool of fiscal years on those two companies, and those it, and wants to know about it.” called “fund of funds” that talent, many of whom might prefer to stay two fiscal years are different than the state’s fis- Treasury plans to use its Web site as a central will invest in other ven- in Michigan if they could find a good job. cal year or when the tax takes effect, which is repository of information, and will be conducting ture-capital funds and not “We’re having trouble recruiting people the end of the year,” said Chuck Hadden, vice in individual companies, to maintain our growth. We felt it was pru- president of government affairs for the Michigan roundtables and work with business and tax-pro- during the first quarter of dent to open a second office,” Drako said. Manufacturers Association. “So they just aren’t fessional groups like the CPA association, said 2008. They hope to surpass “I’d lived in Ann Arbor and I knew the en- quite sure when they pay.” Terry Stanton, public information officer. their minimum target and See Barracuda, Page 20 Such details will be ironed out as the Michigan See Tax, Page 21 raise as much as $150 mil- lion. “This is a perfect exam- ple of corporate leadership ... and I think it will come home to roost for them,” said Oakland County Exec- utive L. Brooks Patterson. Northwest’s unfriendly skies Oakland County had con- sidered a similar fund be- fore joining its efforts with Travelers make own travel plans Detroit Renaissance. “They’re making a bet on BY ANDREW DIETDERICH I retain control and the region,” said Detroit CRAIN’S DETROIT BUSINESS have no headaches Renaissance President wondering if I’ll be Doug Rothwell. “The unwrit- Kimberly MacAdam is changing the able to make my 9 a.m. ten story is that while the way she makes her monthly trips to Buf- meetings the next domestic auto industry is falo, N.Y., and Pittsburgh because of day,” MacAdam said. going through restructur- problems at Northwest Airlines Corp. Northwest said late ing, there are other sectors The sales consultant said she would Friday in a release that are growing and offer rather make the roughly four-and-a-half- that thunderstorms, an opportunity. This is not hour drive to both destinations than de- air control congestion a charitable fund. It’s a for- pend on Northwest. MacAdam and pilot absenteeism profit fund, and it’s good to On June 18, MacAdam was to make a were to blame. Absen- see they think they can one hour flight from Pittsburgh to De- teeism was 80 percent higher in June NEWSCOM make a profit here.” troit at 5:05 p.m. After numerous delays, 2007 than in June 2006. CHECK YOUR FLIGHT AT OUR SITE the plane took off at about 2:30 p.m. the Many companies said it’s too early to — Tom Henderson next day. She missed three meetings. tell if they’ll adjust to the problems. But To check the status of any flight, you can use the new widget on our Web site at www.crainsdetroit.com/flights, courtesy of She’s going to be driving from now on. See This Just In, Page 2 Flightstats.com. “It’s 4.5 hours to both places by car but See Flying, Page 22 Waterfront living CRAIN’S LISTS appeals to young and Largest home builders, Page 10 NEWSPAPER old, Page 13 Largest office furniture dealers, Page 16 DETROIT BUSINESS MAIN 07-02-07 A 2 CDB 6/29/2007 6:46 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS July 2, 2007 Soccer center breaks ground buy membership in the other for for leave to appeal, ending the troit Regional Economic Partnership, THIS JUST IN Construction will begin today $150. seven-year legal battle, partner- Detroit Renaissance President in Pontiac on what’s being billed This will allow businesses to ship attorney H. Adam Cohen of Doug Rothwell said in the an- ■ From Page 1 as the largest indoor soccer facili- receive networking and advertis- Birmingham-based Steinhardt, nouncement. ty in North America. ing benefits in the other cham- Pesick & Cohen P.C., said. The $34 The findings of the study will United Way taps Turner Ultimate Soccer Arenas L.L.C. ber’s market at a reduced cost, million includes interest, costs be completed this fall, he said. said Thursday it will break Detroit Chamber Chairman Den- and attorney fees, Cohen said. Site location factors to be com- to lead board of directors ground on a $15 million, 266,000- nis Archer said. — Robert Ankeny pared include: Operating costs, United Way for Southeastern square-foot climate-controlled More information is available regulatory climate, economic-de- from either chamber. velopment effort, image, business Michigan’s board of directors has building at 867 South Blvd. It will — Robert Ankeny Study to benchmark business infrastructure and workforce. elected Reginald Turner, a member include three large fields, all of — Robert Ankeny of Clark Hill plc, chairman of its which can be broken down into climate in SE Michigan board. smaller fields. The fields will City to pay $34M for land Detroit Renaissance Inc. an- He is the first African-Ameri- have turf two-toned to simulate nounced Tuesday that it has AT&T to spend $34M on wireless The city of Detroit must pay can to hold the position in the European soccer pitches. hired Arlington, Va.-based Busi- $34 million to Detroit Plaza L.P. for agency’s 90-year history, it said The fields are intended for ness Development Advisors to operations in SE Michigan 6.3 acres of east riverfront prop- in a release. recreational, club and team soc- benchmark how the Southeast AT&T Inc. plans to spend $32 mil- erty that the city took by condem- Turner replaces DTE Energy Co. cer Michigan business climate com- lion this year in Southeast Michi- nation in September 2000 for the Chairman and CEO Anthony Earley Other features slated for the fa- pares to key competitor regions gan on its wireless operations. failed casino district. The limited Jr., who served as chairman from cility include a strength, speed on site-location factors that busi- The company’s plans include and agility training center, a pro partnership includes James Blain, April of 2005 through May of this nesses use to decide where to in- expanding its mobile wireless shop, party rooms, arcade, coach- a Livonia-based architect; Jerry year.