20081103-NEWS--0001-NAT-CCI-CD_-- 10/31/2008 6:40 PM Page 1 ® www.crainsdetroit.com Vol. 24, No. 44 NOVEMBER 3 – 9, 2008 $2 a copy; $59 a year ©Entire contents copyright 2008 by Crain Communications Inc. All rights reserved THIS JUST IN Focus: HOPE names CEO Rest of state after two-year search Focus: HOPE has named Chairman William Jones Jr. as CEO, effective Jan. 1, 2009. Jones, retired COO of Chrysler Financial, had served on the nonprofit’s board for several years and became a starting to feel candidate for the position af- ter his retirement during the search process. His appointment ends a nearly two-year-long na- tional search that began af- ter former CEO Keith Cooley left the nonprofit in Febru- Detroit’s pain ary 2007 to become director of the Michigan Department of Labor and Economic Growth. Timothy Duperron, former Jobless rates jump in other areas COO, had served as interim CEO and chose not to be a BY AMY LANE But just as the rest of the nation has candidate for the position. CAPITOL CORRESPONDENT moved toward economic downturn and In a statement, Focus: jobless-rate increases as previously HOPE said Duperron will LANSING – The state appears to be seen in Michigan, the rest of Michigan stay on to assist with the catching up to the Detroit area … in is sharing unemployment increases leadership transition. economic weakness. that previously hit hard in Detroit. — Sherri Begin Welch Over the year and over the third “One thing that we saw over the quarter, the state’s jobless rate took NATHAN SKID/CRAIN’S DETROIT BUSINESS quarter … and really building some- Sam Saleh said it cost him nearly $700,000 to distance himself markedly bigger hikes upward than did what throughout ’08, is the state minus Silverdome sale postponed and his restaurant from the troubles of La Shish founder Talal the rate in the Detroit area. the Detroit area somewhat catching up A closing scheduled for Chahine. And even areas of the state that histor- to the Detroit area,” said Jim Rhein, la- last week on the $20 million ically have been generally stable, like the bor market analyst with the Michigan sale of the Pontiac Silver- Ann Arbor area and parts of west Michi- Department of Labor and Economic Growth. gan, saw significant increases. “A lot of the weakness in the Detroit See This Just In, Page 2 To be sure, the potential of a consoli- area had been going on earlier.” Hard work dation or merger involving Chrysler The Detroit area’s third-quarter job- L.L.C. and General Motors Corp. casts un- less rate was 8.8 percent, up somewhat certainty over future job losses in the erases stigma Detroit area. See Economy, Page 33 Ex-La Shish owner hits streets to Mexicantown welcome center, clear association to tainted founder BY NATHAN SKID market struggling to survive ELECTION NEWS ONLINE CRAIN’S DETROIT BUSINESS BY BILL SHEA Visit www.crainsdetroit.com Nothing could have prepared Sam Saleh, COO of Water- CRAIN’S DETROIT BUSINESS on election night and ford Township-based Mezzattar L.L.C., for the challenges he throughout the week for our would face after buying into the popular Middle Eastern Jordi Carbonell doesn’t have much compa- Web election report. We’ll restaurant franchise La Shish. ny these days. provide results and Saleh spent nearly $340,000 in 2004 to convert his Sheik business reaction on local He’s co-owner of Café con Leche, a culturally races of interest, the two restaurant, at 4189 Orchard Lake Road in West Bloomfield vibrant coffee and pastry shop inside the Mer- state ballot proposals, Township, into a La Shish franchise. cado, or market, that’s part of the troubled $17 university board changes Then he was forced to spend another $350,000 in an effort million Mexicantown International Welcome Cen- and more. to transform the restaurant and distance his business from ter project next to the Ambassador Bridge in- Crain’s reporter Bill Shea La Shish after its founder, Talal Chahine, was indicted for terchange construction site in southwest De- also will write a political tax evasion in May 2006. troit. blog starting Monday. If you Saleh said La Shish’s woes cost him nearly $700,000 in lost Carbonell’s café is the lone occupied space have suggestions for our sales due to his apparent affiliation with Chahine and the inside the 13,000-square-foot Mercado. There coverage or would like to cost of disassociating himself and his business from La are stalls or space for at least a dozen other sound off on your election Shish. BILL SHEA/CRAIN’S DETROIT BUSINESS businesses, but all are empty or are in the fi- opinions, write to “We lost 70 percent in sales during a one-month period, Jordi Carbonell at Café con Leche, nal stages of being emptied. [email protected] the lone occupied space in the See La Shish, Page 30 market. See Mexicantown, Page 32 Renovated Fort Shelby is CRAIN’S LISTS big on small meetings, Meeting facilities, Page 15 NEWSPAPER Page 11 Metro employers, Page 24 20081103-NEWS--0002-NAT-CCI-CD_--.qxp 10/31/2008 6:57 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS November 3, 2008 All of the project managers dend of $17 million to the ac- ing from his fourth trade mission Review team to examine DPS will be accredited by the U.S. counts of about 133,000 members to China. THIS JUST IN A review team appointed to ex- Green Building Council’s Leader- the week of Jan. 5, bringing the Local companies will have an amine the financial condition of ■ From Page 1 ship in Energy and Environmen- total of dividend disbursements opportunity to interact and forge Detroit Public Schools is asking the tal Design (LEED) program, join- to more than $50 million during relationships with the China- district to adopt a consent agree- dome was postponed and will not ing President Joe Vig, who was the last three years. based companies, Ficano said. ment requiring the district to be rescheduled until the buyer recently accredited. The minimum will be $50, with The China-based companies take urgent action to resolve its can prove financing is in place While the group will be a re- the amount growing based on a are in Wuxi, a city of 4.5 million budget deficit. for the purchase and develop- source for clients, Vig hopes to member’s loan totals and deposit people, which Ficano is visiting A news release issued Friday ment, said David Domzal, special push a green agenda, offering al- amounts. According to DFCU, for the second time during the by the Michigan Department of counsel for the city of Pontiac. ternatives to conventional build- this will be the largest dividend China trade delegation trip to Treasury said that if DPS officials Under a City Council resolu- ing materials and processes. distribution ever by a U.S. credit four cities Nov. 7-16. His group accept the consent agreement by tion, the closing was required to The 1,800-square-foot space is union. DFCU is the state’s also is touring Chongqing, Wednesday, they will have four take place by Nov. 1. Domzal said a temporary precursor to a largest credit union. Changchun and Beijing, with an weeks to adopt and begin to en- the closing was postponed so that standalone facility, he said, — Tom Henderson option to visit Chengdu. act a comprehensive deficit elim- more environmental testing can which would be LEED-certified. The Nov. 18 event at the Auto ination plan under terms set be done by the buyer, Silver Stallion — Daniel Duggan Salon, 16630 Southfield Road in Quicken works with Fortress forth by the review team. Development Corp., run by civil Allen Park, is scheduled to begin Livonia-based Quicken Loans If the district rejects the con- rights attorney H. Wallace Parker. at 9 a.m. Local companies inter- Inc. and New York-based Fortress sent agreement, challenges its va- Before another closing can be Law firm branches into China ested in participating may call Investment Group L.L.C. have lidity in court or fails to comply set, the council must approve the Miller, Canfield, Paddock and Laura Drain, (313) 224-5797, or formed a joint venture to help with its terms, a financial manag- Stone P.L.C. was scheduled to email [email protected]. date. But first, Parker must veri- Fortress implement a refinanc- er will be appointed to take open an office in Shanghai, Chi- Preregistration is required. fy that financing is in place. ing and loan modification pro- charge of the district’s finances. na, Nov. 1, after winning ap- — Robert Ankeny During several interviews with gram for residential mortgage — Amy Lane Crain’s, Parker has declined to proval and licensing from the holders, said Fortress President disclose how the project will be fi- Ministry of Justice of the People’s Pete Briger in a press release. nanced. He plans to use the struc- Republic of China. Fortress raises and invests in CORRECTION Miller Canfield principal ture as an entertainment venue private equity funds, hedge Thomas Appleman, a corporate Ⅲ Leo Burnett Detroit Inc. is no longer represented by the Detroit law and build an adjacent horse-rac- funds and publicly traded alter- and securities law attorney, will firm Nemeth Burwell P.C. in an ongoing federal age discrimination ing track. Parker did not return a native investment vehicles. lawsuit. A story on Page 45 in the Oct.