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P001 CD 20170227UNITED WAY.Indd FEBRUARY 27 - MARCH 5, 2017 FROM OUR SPONSORS Making a di erence for 100 years A century ago, United Way for Southeastern Michigan ignited a social movement that has changed lives in metro Detroit. It feeds and educates children. It secures shelter for families. It helps job seekers nd work. It unites. As part of United Way's centennial celebration, we feature here 30 champions of its many causes - corporations and nonpro ts that embrace its mission and use its model of workplace philanthropy to show employees the importance of giving back. ® Read more about how your company can make a di erence in an 8-page section that commemorates United Way’s 100th anniversary, Page S1. © Entire contents copyright 2017 by Crain Communications Inc. All rights reserved crainsdetroit.com Vol. 33 No 9 $2 a copy. $59 a year. Crain’s Detroit Business top stories, page 3 Businesses in the footprint of the Howe Bridge wait, worry over prices on buyouts. NEWSPAPER State’s cash-strapped cities take aim at Proposal A’s limits. EMPOWERING WOMEN It takes a village to build the next generation of empowered women. As longtime partners and advocates, DTE Energy and United Way for Southeastern Michigan are providing the tools, resources and support to educate children and improve women’s lives. We’re proud to support Women United and its network of female leaders to accelerate this positive, life-changing work in our communities. Powered by Are Your Favorite Days of the Week Monday Through Friday? Then it must be because you love your job! Cool Places to Work in Michigan returns for another year. This prestigious program recognizes employers that go the extra mile to make their employees feel appreciated – as judged, in part, by the employees themselves. NOMINATION DEADLINE: APRIL 7, 2017 » Nominate your Cool Place to Work today at crainsdetroit.com/nominate FEBRUARY 27 - MARCH 5, 2017 More trouble for Technology Russell owner drove year’s Kefallinos’ tenants biggest moves want money in Michigan back from landlord, A look at Crain’s Biggest Page 5 Deals for 2016, Page 8 Government Real estate Strapped Many bridges le to cross cities take aim at Proposal A By Lindsay VanHulle Crain’s Detroit Business/Bridge Magazine LANSING — Dan Gilmartin has a warning for Michigan’s policymak- ers: e way the state funds its cities is squeezing them dry. Local governments across the state need to do a better job at shar- ing services and cutting costs, said Gilmartin, executive director and CEO of the Michigan Municipal League, which advocates on behalf of cities and villages. But cities also are limited in how much money they can bring in, even if residents were willing to tax themselves more — and that, he said, is something Lan- sing has to x. Gilmartin and some other lead- LARRY PEPLIN ers are oating a politically tricky The Central Transport trucking terminal on Je erson Avenue is owned by Ambassador Bridge owner Manuel “Matty” Moroun, a prominent foe of a new publicly owned bridge. x: An update to Proposal A, the voter-approved 1994 Michigan constitutional amendment that MDOT not paying enough for parcels in Delray, businesses say caps property tax increases. By Chad Livengood property that matches what I have,” at solution would be a hard sell, [email protected] said Ebsch, who has operated his but the fact that they’re talking about On a narrow and mostly deserted business in southwest Detroit since it at all is telling. street in southwest Detroit’s Delray 1988. “ ere’s such a big gap here. I It’s part of a backdrop of other neighborhood, Gordy Ebsch has run don’t know how it’s going to get extreme money measures being a small machine shop since 1999, solved.” bandied about in Lansing, includ- tailoring his services to nearby heavy More likely than not, the gap be- ing proposals to roll back or elimi- industrial clients. tween MDOT’s market-rate o er nate the state’s income tax — to the But the 20,000-square-foot build- and the cost of Ebsch to uproot his concern of Gov. Rick Snyder — and ing on South Post Street that houses small business will be decided by a restructure public retirement plans Ebsch’s Delray Mechanical Corp. sits Wayne County Circuit Court judge. that have become a nancial crisis. at the base of where the new Gordie “We’re going to litigate that for the e outcome will have rami ca- Howe International Bridge is sup- rest of our lives when they nally le tions for Michigan’s competitive- posed to land in Michigan. it,” said Alan Ackerman, an eminent ness nationally, not least of which at puts Ebsch’s business in the KURT NAGL/CRAIN’S DETROIT BUSINESS domain attorney who is represent- are the long-term scal health of crosshairs of the Michigan Depart- Delray Mechanical Corp. sits at the base of where the proposed Gordie Howe ing Delray Mechanical and several the state’s cities and their ability to ment of Transportation, which is in International Bridge is supposed to land in Michigan. other businesses in the pathway of attract talent. the midst of a massive undertaking to the bridge. Backers of updating Proposal A buy up 634 parcels of residential and fer for his building is not matching tion space in southwest Detroit near MDOT’s land acquisition for the are aiming for changes they say commercial land for the bridge, a the cost of relocating his welding his clients in the cement, asphalt, ag- bridge — estimated to cost upward won’t change the law’s original in- plaza and connection to I-75. fabrication and custom machining gregate, steel and railroad industries. of $370 million — faces a big and tent. Adopted partly to rein in bal- For Ebsch, MDOT’s purchase of- business to another suitable produc- “It’s very di cult in Detroit to nd SEE DELRAY , PAGE 25 looning property tax bills in the 1990s, the provision works by cap- ping annual growth in property values, but some local leaders say United Way turns 100 — and takes over our front page it’s holding down revenue in a way that hadn’t been seen until the re- he cover of this week’s Crain’s is a bit di erent. cession sent property values plum- e 30 companies whose logos are featured on this week’s Page 1 sponsored the eight-page meting. Tsection inside this week’s issue, which was produced by United Way for Southeastern Michigan in In exchange for limiting annual partnership with Crain Content Studio, the custom publishing division of Crain’s Detroit Business. growth in homeowners’ property tax In other words, these companies paid for an unprecedented takeover of our cover to celebrate a bills, voters agreed to raise the state’s milestone for an organization that has a history of building relationships that improve lives in met- sales tax by two percentage points — ro Detroit. it has been 6 percent ever since — ose companies are a small fraction of the more than 650 Detroit-area businesses that partner and dedicate the money to K-12 with United Way through corporate gifts, workplace campaigns or by encouraging employees to schools. volunteer. SEE PROPOSAL A, PAGE 29 e United Way tribute section paid for by those logos appears after Page 12. 4 CRAIN’S DETROIT BUSINESS // FEBRUARY 27, 2017 INSIDE MICHIGAN BRIEFS BANKRUPTCIES 30 CALENDAR 23 State Senate passes more than 3,000 across the U.S., has store company and took over opera- CLASSIFIED ADS 25 browneld cleanup bill locations in Troy, Taylor and Sterling tion of its three stores, in Muskegon, Heights, according to its website. It North Muskegon and Whitehall, DEALS & DETAILS 24 Michigan municipalities moved a also sells products online and MLive.com reported. Plumb Inc. KEITH CRAIN 6 step closer to getting incentives for through catalogs, and has run a vari- ceased operations Feb. 12 after more OPINION 6 developers to redevelop browneld ety of charitable initiatives. than 80 years. Plumb’s assets were OTHER VOICES 7 sites, as the state Senate passed leg- FILE PHOTO Family Christian struggled after it seized by secured creditor L.M. islation last week that assists devel- The stalled Wayne County jail site, led for bankruptcy in 2015, compa- Foods, but the assets’ value did not PEOPLE 24 opers with the nancial burden of ny President Chuck Bengochea said satisfy the debts owed. which has been proposed as a new RON FOURNIER 6 cleaning up such sites. home of a professional soccer facility, is in a statement. It had become a non- J e city of Muskegon continues to RUMBLINGS 31 e legislation would let develop- a potential browneld cleanup locale. prot business two years before pay infrastructure costs for a lan- ers keep a portion of taxes collected that. guishing proposed casino site down- WEEK ON THE WEB 31 after the projects are completed to they were substantially changed town, and the property owners con- recoup some costs of cleaning up the from bills that failed to clear the Leg- MICH-CELLANEOUS tinue to not pay property taxes that COMPANY INDEX: site. islature last year. MIrive adjusted J e Republican-controlled Michi- would oset those costs, MLive.com SEE PAGE 30 MIrive is a coalition of eco- the focus of the campaign from De- gan House last week failed to ap- reported. e Harbor 31 SmartZone nomic development organizations, troit and Gilbert to other Michigan prove an income tax cut, rejecting will cost the West Michigan city’s tax-exempt status on a medical cen- cities and chambers of commerce cities, in part to convince outstate the plan after a lengthy session and general fund an anticipated $275,000 ter in Grand Rapids Charter Town- from around the state that supports lawmakers and their constituents to the unsuccessful cajoling of some re- this year.
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