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Tech Hustles Harder 20140505-NEWS--0001-NAT-CCI-CD_-- 5/2/2014 7:36 PM Page 1 ® www.crainsdetroit.com Vol. 30, No. 18 MAY 5 – 11, 2014 $2 a copy; $59 a year ©Entire contents copyright 2014 by Crain Communications Inc. All rights reserved Page 3 43 The percentage of Michigan residents – in more than 120 Drip by drip: Region’s ISTOCK PHOTO communities and covering 1,079 square miles – who live in Auto supplier’s new business the area served by the Detroit Water plan is locked and loaded and Sewerage Department water challenges 50 Bad bonds, late bills among DWSD problems Roughly the BY CHAD HALCOM Rhodes made the April 17 mediation order. Local soccer owner gets a percentage of total CRAIN’S DETROIT BUSINESS “No deal is better than a bad deal,” Oak- customer accounts that are land County Executive L. Brooks Patterson leg up on Britain’s big leagues delinquent, including an federal mediators, or the state, help said in marketing materials. residences and some large broker a deal to create a regional water municipalities and Crain’s reviewed hundreds of pages of doc- New crowdfunding rules: organizations such as C authority for Southeast Michigan? uments and interviewed a half-dozen subur- Detroit Public Schools U.S. District Judge Sean Cox held separate Social media won’t like it ban leaders to identify the chief concerns over meetings with negotiators for Oakland, Ma- a proposed 40-year deal for a new regional comb and Wayne counties last week. Detroit Great Lakes Water Authority to manage the De- This Just In officials expect to have their own mediator troit Water and Sewerage Department. $142.5 meeting this week. Tecumseh stock up after Some highlights: The system’s bonds are The talks, court-ordered mediation as The amount, in millions, of now junk status, its infrastructure is in tatters shareholders OK recap plan the total unpaid balance part of bankruptcy proceedings, are con- and it’s shipping about 50 percent of the city Tecumseh Products Co.’s new from delinquent accounts fidential. consumer water that flowed just 15 years ago. shares closed up almost 28 per- of residents and But suburban concerns have been businesses in the city of cent Friday after shareholders aired long before U.S. Bankruptcy Judge Steven See Water, Page 30 at an annual meeting voted to Detroit approve a recapitalization plan that consolidated its two classes of stock. Shareholders of Tecum- seh’s former Class A stock and Class B stock last week ap- DIA to stage Rivera-Kahlo proved the consolidation, with 1.5 million shares of B shares voting against the proposal exhibit of their time in Detroit and just over 580,000 of Class A shares voting against it. Tecumseh (Nasdaq: TECU) BY SHERRI WELCH not been shown for 30 years, will be is an Ann Arbor-based manu- CRAIN’S DETROIT BUSINESS the centerpiece of the exhibition. facturer of compressors for And many of the works Kahlo the commercial refrigeration A year from now, the Detroit Insti- created while living here will be and residential and specialty tute of Arts plans to launch a major shown for the first time in Detroit, air-conditioning industries. exhibit that no other museum could DIA Director Graham Beal said. Former CEO Todd Herrick, the stage. That creative period, from April nonprofit Herrick Foundation And other museums and private 1932 through March 1933, was a and Herrick family trusts collectors are stepping up to help. pivotal time for both artists. owned about 33 percent of the The exhibition will highlight “When Rivera was here, he was Class B shares. And Todd’s the time Diego Rivera and his wife regarded as one of the most impor- son, Kent Herrick, was chair- and fellow artist Frida Kahlo spent tant artists in the world of western man of the board until his res- here while Rivera created the ven- art at that time,” Beal said. ignation in January 2013. The erable “Detroit Industry” murals Edsel Ford paid for the murals, company said in a filing with on four courtyard walls at the DIA which wound up costing just less the U.S. Securities and Exchange — and Kahlo pursued her own art. than $21,000 at the time, according to the DIA. Commission that Todd Herrick Rivera’s preparatory drawings expressed concerns about a for “Detroit Industry,” which have See DIA, Page 29 perceived deterioration of the company generally since his son’s departure; he opposed the stock plan. Shares of Tecumseh closed at $7.74 on Friday, up $1.67 from Thursday. COURTESY OF DETROIT INSTITUTE OF ARTS — Chad Halcom While Diego Rivera was doing preliminary drawings of Detroit Industry (above), his wife, Frida Kahlo, was in Detroit working on her own art. PIERRETTE DAGG/CRAIN’S DETROIT BUSINESS tech hustles harder 19-25 MAY INAUGURAL TECHWEEK DETROIT COMING IN MAY LEARN MORE & GET YOUR TICKET AT TECHWEEK.COM/DETROIT NEWSPAPER 20140505-NEWS--0002-NAT-CCI-CD_-- 5/2/2014 4:11 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS May 5, 2014 MICHIGAN BRIEFS A biz plan for fashion crisis: What ed to make President and CEO John Bryant the new board chair- to do with gowns after graduation Design: It’s more than just a pretty face – it’s jobs man, succeeding James Jenness, If you’ve ever pondered how to beginning July 1. Jenness will stay get a second wearing out of a wed- “If you ask me, ‘Do you think a designer is more and design is about meeting the needs of the cus- on the board as a nonexecutive di- ding gown or prom dress, consider important than an engineer?’ the answer is yes.” tomer. The more you do that, the more you’re able to rector. the challenge presented by the That’s a bold statement coming from George Erick- increase your margin on the price and make a prof- Ⅲ Grand Valley State University es- graduation gown. MLive.com re- cek, senior regional analyst at the Kalamazoo-based it,” Erickcek said. timates that it has an annual eco- ported last week on a Grand W.E. Upjohn Institute for Employment Research. But he The ability of design thinking to bolster West nomic impact of $730.1 million on Rapids businessman’s ambition to studies West Michigan’s economy, so hear him out. Michigan’s manufacturing sector has more economic Kent, Ottawa and Muskegon coun- send 1 million gowns back to “I see designers as a means to keep manufacturing development groups paying attention to design, he ties, according to an annual report school, in a manner of speaking. here,” Erickcek said in a MiBiz report. In the global said, citing The Right Place Inc.’s recent inclusion of de- issued last week during a meeting Seth Yon founded Greener Grads economy, manufacturers cannot base their business- sign as a foundation of the region in its strategic plan. of the board of trustees. to “recover, reuse and repurpose es on competing on price alone, he said. Having Southwest Michigan First in Kalamazoo also leveraged Ⅲ The antitrust division of the graduation gowns through part- strong design capabilities is a way to hedge against the region’s design strengths to attract Newell Rubber- U.S. Justice Department cleared Ok- nerships with Goodwill Industries becoming just another commodity producer. maid Inc. to locate its design center at Western Michigan lahoma City-based Chesapeake En- and a growing number of universi- “Your product has to be wanted by the customer, University’s Business and Technology Research Park. ergy Corp. and Calgary, Alberta- ties.” More than 5 million gowns based Encana Corp., two of the are worn every year — presum- nation’s largest natural gas pro- made The Build 100 list of sus- ducers, of trying to cheat the state ably all by students, given the ap- tained-growth companies as com- parent limitations with accessoriz- during shale drilling auctions, CORRECTIONS piled by Inc. Magazine: Transnation Bloomberg News reported. The ing. Yon notes that the gowns are Title Agency of Michigan and Open Ⅲ Because of incorrect information provided to Crain’s, an April 28 state is proceeding ahead with bid- made mostly of polyester and are Systems Technologies Inc., both People item should have said Betty Chu, M.D., is a former associate rigging charges against both com- not biodegradable. The recycled based in Grand Rapids; Lansing- professor of obstetrics and gynecology at the Oakland University William panies. gowns would be sold for $20 to $30. based SWAT Environmental; and Ann Beaumont School of Medicine in Rochester Hills. Ⅲ U.S. News & World Report last Arbor-based Underground Printing. Ⅲ A story on Page 1 of the April 28 issue, “Biz tied to Libya wins air- week said Kalamazoo is one of The Inc. list honors companies of port deal,” should have said Alfred Glancy III, chairman of the Wayne eight cities with underrated beer MICH-CELLANEOUS 85-999 employees that have ex- County Airport Authority, abstained from a vote that awarded a landscap- scenes. The magazine cited the six Ⅲ The Right Place Inc., the Grand panded employment in each of the ing care contract to Rentokil Initial PLC. The story said he voted against breweries that were added in 2013 Rapids area’s economic develop- past five years. the contract. and the city’s being the home of ment organization, announced Ⅲ The Ella Sharp Museum of Art Ⅲ The age for John Bommarito, a finalist for the General and In- Bell’s Brewery Inc. Then there’s the three business expansions last and History, with help from the House Counsel Awards in the category of $10 million to $100 million, obvious reason: The news media week that it said would bring 446 Michigan Department of Corrections, should have been given as 36.
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