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20150518-NEWS--0001-NAT-CCI-CD_-- 5/15/2015 6:38 PM Page 1 CRAIN’SReaders first for 30 Years DETROIT BUSINESS May 18-24,2015 Former churches BEAUMONT, CREAM AND find new HENRY FORD SUGAR? ... uses in the afterlife POST PROFITS VITAMINS? Page 3 PAGE3 PAGE3 Van Buren Township is suing Visteon Corp. after a failed bond deal that could bankrupt the Poll: Biz willing community. Should the company share blame? to pay more Visteon: Lesson in caution By Dustin Walsh The case isn’t the first time economic development [email protected] desires have burned municipalities, but experts say this for better roads A lawsuit between Van Buren Township and its case should serve as a cautionary tale. The biggest issue: largest corporate resident, Visteon Corp., underscores vague language about shared risk and the dollars in- the risks of government-led investment in economic volved. Legal experts in this area of law say indemnity Fuel or sales tax hikes are favored options development — and whether corporations should be clauses in any contract like this must be ironclad. held accountable when these kinds of projects go awry. The Visteon development opened in 2004. When The suit, filed May 12 in U.S. Bankruptcy Court in the Visteon Village campus was envisioned, it wasn’t By Lindsay VanHulle Delaware, alleges the multinational auto supplier known that Visteon would ultimately end up in bank- Crain’s Detroit Business/Bridge Magazine breached its contract over bonds tied to the construc- ruptcy court or that the commercial real estate market Metro Detroit businesspeople say tion of Visteon’s opulent 263-acre campus near they would be willing to pay more Ecorse Road and I-275. See VISTEON, Page 22 out of their own pockets to repair Michigan’s failing roads and bridges, The road both in the form of higher taxes and fees — and nearly half of them to funding would even consider corporate in- come tax changes. Survey: Biz owners, The roads, they agree, are broken. managers would pay for What they don’t agree on is just roads, if plan is right what Plan B for roads should look like. 4% Of the 300 business owners and managers surveyed in a poll com- 10% missioned by Crain’s Detroit Busi- ness and law firm Honigman Miller Schwartz and Cohn LLP, a majority, 56 percent, believe some combina- 31% 56% tion of fuel tax and fees could fill the funding gap. The polling was con- ducted by Lansing-based Epic-MRA. Respondents said lawmakers and Gov. Rick Snyder must make reaching a deal on an alternative It will be necessary to raise state funding plan a priority in the wake taxes,fees or both [LARRY PEPLIN] of Proposal 1’s defeat this month. Denita Donahoo (left) gets a grip lesson from instructor Terri Anthony-Ryan last week at the Belle Isle Golf Range. These respondents to the Crain’s Funding can be raised by cutting existing programs and services poll said coming up with Plan B quickly is essential. But they nearly It will take a combination of both uniformly opposed cuts to some cuts and new taxes New owner aims high for Belle Isle golf, existing state programs to match Undecided/refused the $1.2 billion that Proposal 1 Source: Crain’s/Honigman poll See ROADS, Page 25 [ISTOCK PHOTO] but expenses put her in the rough © Entire contents copyright 2015 By Bill Shea ticipated,” she said. “The state underestimated what by Crain Communications Inc. All rights reserved. [email protected] it would cost to open the doors here.” crainsdetroit.com Vol. 31 No 20 $2 a copy. $59 a year. Since she took over the Belle Isle Golf Range on Michigan, which made the island a state park last April 1, Francine Pegues said she has had only year, gave Pegues a three-year contract in February enough time to hit a single bucket of range balls. to operate the golf facility, and her intent has been to That’s distressing for the president of the Michigan use the center as a tool to bring golf to underserved Women’s Golf Association who first took up the game populations, especially children, she said. 39 years ago, but her time has been occupied by Unexpected expenses and troubles have made keeping the driving range and golf training center that a difficult goal. open and maintained. NEWSPAPER “At this point, I have spent more money than I an- See GOLF, Page 21 20150518-NEWS--0002-NAT-CCI-CD_-- 5/15/2015 3:49 PM Page 1 2 CRAIN’S DETROIT BUSINESS // May 18, 2015 scores. But consumers who hadn’t requirement that automakers sell MICHIGAN signed up for the services were being through franchised dealers only, INSIDE billed anyway, according to the Fed- The Detroit News reported. The law THIS ISSUE eral Communications Commission has been criticized by electric car BANKRUPTCIES . 7 and several state attorneys general. maker Tesla Motors. Ⅲ BUSINESS DIARY . 19 Both companies said in statements The coal-fired SS Badger pas- CALENDAR . 20 that they had stopped allowing pre- senger ferry is set to return to serv- CLASSIFIED ADS . 21 mium text messaging before the gov- ice after undergoing a makeover to CRAIN’S LIST . 17 BRIEFS ernment investigation began. meet terms of a deal with the U.S. MARY KRAMER . 9 Environmental Protection Agency, OPINION . 8 The lesson here: Beware … well, call it bacchanalia, in keep- That’s all,for Holland mall; the Ludington Daily News reported. PEOPLE . 19 of Greeks bearing ski poles ing with the overall Greek theme. enter,the shopping center The Badger, which sails between RUMBLINGS . 26 The Detroit Free Press reported that Ludington and Manitowoc, Wis., WEEK ON THE WEB . 26 Perhaps this explains why Greeks Sigma Alpha Mu paid Treetops From the Mall of America to de- will have a new ash retention sys- tend not to excel at the Winter $11,500 for damages and for having mall of Holland. Starting next tem as part of a requirement to stop Olympics. Upon further review, offi- too many guests in 2014. month, Westshore Mall will undergo discharging ash into Lake Michigan. COMPANY INDEX: cials at Treetops Resorts in Gaylord Treetops attorney Paul Dillon said about $20 million of work to turn an Ⅲ A $75 million settlement was SEE PAGE 25 last week said they would file a civil the fraternity was invited back be- enclosed mall along U.S. 31 into an reached with Enbridge Energy over lawsuit against individual members cause 2014 problems weren’t seen as exterior-designed shopping center the 2010 oil spill that sent 800,000 gal- of the Sigma Alpha Mu and Sigma “intentional acts.” To the credit of known as The Shops at Westshore. lons of oil into Talmadge Creek and ny based in Durham, N.C., for $34 Delta Tau fraternities at the University both fraternities, no such ambiguity Greg Erne, a principal at South- the Kalamazoo River, the Kalamazoo million in cash, The Holland Sen- of Michigan for their alleged roles in was present this year. field-based Versa Development, the Gazette reported. The spill affected tinel reported. the destruction of nearly 50 rooms at parent company of Westshore Mall more than 38 miles of the Kalamazoo Ⅲ A Michigan Senate committee the ski resort during the Jan. 17-18 Verizon,Sprint to pay back Investors, told WZZM-Channel 13 in River and 4,435 acres of shoreline voted to let the filing deadline for weekend. customers over ‘cramming’ Grand Rapids that the switch is a re- habitat. Flint’s mayoral primary be extended The Otsego County prosecutor al- sponse to, naturally, shoppers in the Ⅲ Atlanta-based Georgia-Pacific after city Clerk Inez Brown told can- ready had criminally charged three Michigan is to receive $538,934 area. will close its packaging plant in didates their nominating petitions members of Sigma Alpha Mu when from Verizon Wireless and Sprint The entire project is expected to Parchment just north of Kalamazoo with at least 900 valid signatures Treetops lawyers issued a statement Corp. as part of a $158 million na- last about 18 months. Upon com- by the end of the year, eliminating were due April 28. The actual dead- that said, “Several facts … now sug- tionwide deal to settle charges that pletion, the shopping center will 57 jobs, MiBiz reported. line was April 21. gest that legal action beyond the the mobile giants allowed phony have about 20-25 stores ranging Ⅲ Elkhart, Ind.-based Forest Ⅲ Frankenmuth Brewery’s Batch criminal matter should be pursued.” charges on their customers’ month- from large department retailers to River Manufacturing Inc., whose 69 American IPA was awarded the Treetops officials said they decided to ly bills so they could keep a cut of small businesses, Erne said. West- products include travel trailers and 2015 Gold Medal for Best IPA (neo- pursue a civil suit partially because the profit, The Associated Press re- shore Mall Investors purchased the pop-up tent campers, broke ground phytes can Google it) at the World only three people have been charged. ported. In total, Michigan has re- mall from Coastline Michigan LLC in on a $7 million plant in White Pi- Expo of Beer, considered the largest Treetops estimates $430,000 in costs ceived nearly $1.3 million as a part 2012 for about $5.5 million. geon west of Kalamazoo, the Kala- beer sampling event in Michigan. from the vandalism. of four national cramming settle- mazoo Gazette reported. Forest Ⅲ Faced with a $21.9 million So assuming your hackles have ments with major carriers.