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20130304-NEWS--0001-NAT-CCI-CD_-- 3/1/2013 6:53 PM Page 1 ® www.crainsdetroit.com Vol. 29, No. 9 MARCH 4 – 10, 2013 $2 a copy; $59 a year ©Entire contents copyright 2013 by Crain Communications Inc. All rights reserved Page 3 Right-to-work workaround running into flak Fewer regs on tap for alcohol “There is no question that right now, I think that the rules and regulations we have in place Wholesalers opposed; retailers split are a hindrance to market access,” Walker said. BY CHRIS GAUTZ AND NATHAN SKID Some of the changes included in Senate Bill “The thrust of this is to allow more access for CRAIN’S DETROIT BUSINESS 216, sponsored by Sen. Howard Walker, R-Tra- more entrepreneurs to produce more Michigan verse City, would speed up the time it takes to beer, wine and spirits. And provide that prod- A major fight is brewing in Lansing over the transfer a liquor license, allow liquor license uct to Michigan consumers.” way the state handles liquor licenses, as well as transfers between adjacent counties, give small Wholesalers, some of the most powerful lob- a variety of alcohol regulations that supporters breweries the same ability as wineries to sell byists in Lansing, oppose the bill. Retail groups Sequestration equation say will make it easier on small businesses and their product to retailers and customers direct- are split, depending on their area of business. allow the growing craft beer industry to expand ly without using a wholesaler, and allow more for Michigan cuts in Michigan. gas stations to sell alcoholic beverages. See Alcohol, Page 22 Inside Capitol Briefings: Snyder entertains sales tax plan, Page 6 Crain’s Lists Largest hotels, meeting facilities, Page 17 Managers get to core of redevelopment BY KIRK PINHO This Just In CRAIN’S DETROIT BUSINESS Hotel on the registry Post-World War II, the city of Pontiac was a booming metropolis as General Motors Corp. and the auto industry flourished, bringing with them for historic firehouse site jobs to the Oakland County seat. And then it all wilted. A $23 million boutique ho- Fast-forward six decades, through years of financial turmoil for tel is in the works for the his- GM and the city, and Pontiac may be on the They will come toric firehouse site in down- “ town Detroit. DETROIT VENDORS verge of a renaissance, thanks to the sense of to Pontiac if we fix A development group led Wait for pay may be stability afforded by the rule of emergency fi- by Walter Cohen and his South- longer with an EM, nancial managers in place since 2009. the core. field-based 21 Century Holdings Page 25 Some members of the Pontiac Downtown ” LLC has agreed to pay $1.25 Louis Schimmel million for the 1929 building Business Association and others are crediting renewed interest in that serves as the Detroit Fire the city to improved governance under its three emergency Department headquarters, said Beth Duncomb, director of the managers: Fred Leeb, Michael Stampfler and, most specifically, Detroit Building Authority. Louis Schimmel, the current EM. The five-story building is More than $28 million in commercial investment came to at the corner of Washington Boulevard and Larned Street downtown Pontiac last year, according to Robert Donohue, Cohen, who also owns Arco principal planner for Main Street Oakland County, which helps Construction in Southfield, See Pontiac, Page 24 said $23 million or more is likely to be spent to renovate the property in time for the GLENN TRIEST 2015 auto show. The city’s fire department is set to move to the former MGM Grand Detroit temporary Local center wants more auto jobs for South; MEDC not happy casino. 21 Century Holdings is BY DAVID SEDGWICK suppliers. “The competition is with Mexico, not working with Chicago-based CRAIN NEWS SERVICE “We want the engineers to be here,” the North,” Baron said. “We do not pro- Aparium Hotel Group on the Baron said. “These technicians and engi- mote the idea that anybody should move concept for the 75-80-room Ann Arbor-based Center for Automotive neers are higher-end jobs.” from the North to the South. We are try- boutique hotel. Research is leading an effort to attract Southeast Michigan, with its pool of ing to make the pie bigger.” The sale is scheduled to go more overseas automakers and suppliers engineering talent, has been a magnet for However, the plan is drawing criticism before the Detroit City Coun- to eight Southern states. R&D centers built by foreign automakers locally. cil for approval Tuesday. Center President Jay Baron said the such as Toyota, Nissan and Hyundai. “It’s a wake-up call,” said Tom Man- — Sherri Welch coalition is intended as a counterweight But Baron says the coalition does not ganello, partner at Warner Norcross & Judd to Mexico, which has attracted consider- intend to lure existing centers away from Baron able investment from automakers and Michigan and other Midwest states. See Jobs, Page 26 Honorees will be recognized for excellence in fi nancial or other corporate operational management and their contributions to the community. Deadline: March 15 | www.crainsdetroit.com/nominate NEWSPAPER 20130304-NEWS--0002-NAT-CCI-CD_-- 3/1/2013 3:03 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS March 4, 2013 MICHIGAN BRIEFS The Spring Arbor promise: We’ll reported. Ⅲ Two Men and a Truck, a nation- pay loans if you can’t afford to Studies: Promising results for Kalamazoo Promise ally franchised moving company Starting with its incoming fresh- based in Delhi Township near man class this fall, Spring Arbor Uni- Studies by the W.E. Upjohn Institute for Employment students who qualify for the The Promise compared Lansing, was awarded a grant of versity will offer to pay back loans Research suggest that the Kalamazoo Promise is help- to those who don’t. up to $350,000 for job creation from the Michigan Strategic Fund, accord- for students after graduation if ing the community as well as the students in the Ⅲ The Promise has steered more Kalamazoo stu- ing to the fund’s website. The com- they cannot earn enough money to Kalamazoo Public Schools, MLive.com reported last dents to in-state public universities, meaning they pany said an office expansion will reach certain financial bench- week. are more likely to stay in Michigan after gradua- marks, the Grand Rapids Business “There’s a steady drumbeat of good news about allow it to hire an additional 125 tion. employees. Journal reported. All students at the Promise” and the studies reinforce that, said Ⅲ It has created more positive media coverage of the 4,000-student Christian college, Michelle Miller-Adams, who works for the Upjohn Ⅲ @properties, the largest Chica- the school district. in Spring Arbor near Jackson, will Institute and is an associate professor at Grand Valley go real estate broker by transac- Ⅲ It appears to have raised the role of education be automatically enrolled in the State University. tions and sales volume, has opened program. The Promise, a scholarship program for gradu- in the community’s identity. an office in New Buffalo near the The program resulted from dis- ates of the district, was introduced in November One study found that the Promise appeared to re- Michigan-Indiana border, the cussions with alumni and from the 2005. The program pays for four years of tuition at duce suspensions among students and increase the Grand Rapids Business Journal re- university’s desire to keep college Michigan’s public colleges and universities and is likelihood that students would pass their classes. ported. The area is popular for sec- affordable, said Malachi Crane, as- funded by anonymous donors. The researchers also found “large improvements” ond-home purchases because it’s sistant vice president for commu- The studies and the findings show: in grades among African-American students, near Lake Michigan and Chicago nications. According to the Spring Ⅲ Academic achievement has improved among Miller-Adams said. and offers outdoor recreation, a Arbor website, tuition is about slower-paced lifestyle and spectac- $22,000 a year and room and board ular views. $7,900. fires and water main breaks, the ported in November about the sized swimming pools, the paper Ⅲ A man who handled finances If graduates make below $20,000 Flint Journal reported. rapidly emerging industry sur- said. at Village Market Food Centers plead- a year, Spring Arbor will make full Kurtz hasn’t decided whether rounding what’s formally known The Michigan Department of Envi- ed guilty last week to stealing reimbursements for their loans water rates will change for the fis- as hydraulic fracturing but com- ronmental Quality said the amount more than $6 million from the quarterly, Crane said. cal year that starts July 1. The city monly known as “fracking.” One of water being used fits within the South Haven-based grocery chain. Christopher Pratt said he con- has raised its average water and thing that bugs opponents of frack- range of safe withdrawals predict- cealed his crime by manipulating sewer rates more than 110 percent ing is the amount of water needed ed by a state of Michigan water re- Flint’s losing up to 30% of water? the books. Apparently, someone since January 2011. Officials said to extract oil and natural gas from source assessment tool. got wise when they noticed he had Could be emergency to manager the increases are due to rising shale. How much, you ask? legacy costs, population loss, rate bought or leased more than 50 One problem with emergency fi- According to public documents cars.

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