DETROIT BUSINESS MAIN 04-28-08 A 1 CDB 4/25/2008 6:00 PM Page 1 ® www.crainsdetroit.com Vol. 24, No. 17 APRIL 28 – MAY 4, 2008 $2 a copy; $59 a year ©Entire contents copyright 2008 by Crain Communications Inc. All rights reserved THIS JUST IN State college construction $30M VC funding bill passes House Several big higher-edu- cation construction pro- jects are working their way through the state Legisla- ture for state funding ap- proval. fund coming The state House voted 58- 45 last week to pass a bill designating capital outlay projects statewide, includ- ing 41 projects for Michi- gan’s colleges and univer- sities. The bill now goes to the Senate. to OU Inc. Among the projects de- tailed in the bill are: $36 million for renovation and improvements at the Sci- Growth companies targeted NATHAN SKID/CRAIN’S DETROIT BUSINESS ence Building and the MDEQ’s George Shaffner expects to hear plenty of discussion about jobs and the Computer Information Sci- environment at a hearing on a proposed oil refinery expansion in southwest Detroit. BY TOM HENDERSON orandum of ence Building at University CRAIN’S DETROIT BUSINESS understand- of Michigan-Dearborn; a $15 ing, so con- million renovation to the Venture capitalist Ian Bund, verting that Science Building at Henry founder and chairman of Ann into a contract Ford Community College; a Arbor-based Plymouth Manage- won’t be diffi- $57 million addition and 2 cities, ment Co., has agreed to base his cult,” said modernization to the Pray- new $30 million fund at Oakland Mark Horne, Harrold building at Eastern University’s SmartZone business CEO of Ply- Michigan University; a $180 incubator, OU Inc. mouth Man- The OU Board of Trustees au- million biomedical re- Bund agement. “We search building at Wayne thorized the university to enter should have it State University; a $15 mil- into an agreement with Ply- done in the next few weeks. lion public-safety complex $3 billion mouth Management on April 15. at Schoolcraft College; $61.2 “We’ve signed a lengthy mem- See Fund, Page 24 million for a new human Dearborn, Detroit share plans to health building at Oakland University; and a new biolo- gy building at UM’s Ann improve steel, oil, auto plants by 2010 Arbor campus for $175 mil- lion. Some nonprofits pay their BY CHAD HALCOM “We’ve seen a lot of interest in More than $108 million CRAIN’S DETROIT BUSINESS the jobs that will be generated. is also identified for pro- That seems to be the biggest con- jects at Oakland Community A three-square-mile area in cern in the region,” he said. “At College, Macomb Community southwest Detroit and south Dear- the hearings, you get a more mixed board membersthousands College, Washtenaw Commu- born could see more than $3 billion turnout because of the activist nity College and Wayne Coun- in improvements to industrial presence. Unions will support the BY JONATHAN EPPLEY ty Community College landmarks by the time construc- project for jobs, and the (environ- SPECIAL TO CRAIN’S DETROIT BUSINESS District. tion wraps up in 2009-10. mental groups) seem to be against THE LATEST ON The project requests call Topping the list is Marathon Pe- any refinery expansion.” Most nonprofit organizations ask direc- NONPROFIT PAY for varying state funding, troleum Co. L.L.C.’s Detroit Heavy The Sierra Club has previously tors to serve without compensation. But a ■ but the bill allocates only a Oil Upgrade Project between Fort voiced opposition to the project. Crain’s survey of 2006 tax returns for more Promoting from within can save money, help nominal amount to each Street and Oakwood Boulevard Meanwhile, Dearborn-based Sev- than 200 nonprofits found a number that focus. project for now. If the legis- east of Schaefer Road in southwest erstal North America Inc., a sub- pay them — sometimes thousands of dol- ■ Bonuses are on the lation is passed, each af- Detroit. sidiary of Russian steel giant OAO lars over the course of a year. rise. fected college or university It’s a $1.9 billion proposal to ex- SeverStal, expects to ramp up the It isn’t usual. While none of the board ■ Total compensation would have up to three pand production capacity at last two of its six modernization members for the social service nonprofit for the best-paid execs. years to return to Lansing Michigan’s only oil refinery. The projects totaling more than $1 bil- organizations included in Crain’s com- Focus report begins on and seek funding for up to project will be the subject of a pub- lion in the coming months at the pensation research are paid for board Page 11. 50 percent of the total pro- lic hearing Wednesday by the former Rouge Steel Inc. facilities in services, directors of some foundations, ject cost. Michigan Department of Environmen- southeastern Dearborn. hospitals and a handful of specialized The state has not passed tal Quality at the Kemeny Center Just north of the Severstal site nonprofits are. The Troy-based Kresge capital outlay projects leg- gymnasium in Detroit. along Miller Road in Dearborn, Foundation, for example, paid a total of islation for Michigan’s col- DEQ division manager George state officials say, Ford Motor Co. $365,000 to 12 board members in 2006, leges and universities Shaffner at the Detroit facility said Top-paid: could begin collecting this year on making it the most expensive board Joseph since 2005. he will attend that hearing and ex- a tax credit for converting the for- among the organizations Crain’s re- Swedish, — Chad Halcom pects a fair amount of discussion mer Dearborn Glass Plant into its viewed. Trinity See This Just In, Page 2 about jobs and the environmental Health impact. See Cities, Page 25 See Nonprofits, Page 25 Boat sales, slip rentals MDOT spending $11.5 million down across area, state, to ease traffic congestion, NEWSPAPER Page 3 Page 3 DETROIT BUSINESS MAIN 04-28-08 A 2 CDB 4/25/2008 5:58 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS April 28, 2008 foot building has been leased and the Mexican degree, students can ward the end of the first quarter when they are about to leave the THIS JUST IN the Charter One lease leaves only take about one-third of their re- aboard Navy surface ships. roadway, risk colliding with an- one vacant retail space. quirements at UDM Law School “It’s an extremely lightweight other vehicle during a lane ■ From Page 1 — Daniel Duggan from Spanish-speaking instruc- product with a very strong chas- change, or are in danger of collid- tors, he said. “This is good for De- sis, which is one reason why (the ing with the vehicle ahead. It State VC fund OKs investment troit too, bringing together Navy) liked the design,” said Nan- uses information gathered by UDM to offer joint law degree strengths of our region and defin- cy Block-Tomlinson, vice president video and radar sensors, plus a The board of the Michigan Strate- program with Mexican school ing it as a real international gate- of business development for Rave global positioning system. gic Fund approved on Wednesday way,” Gordon said. Computer. About $25.2 million in funding The University of Detroit Mercy an investment of $10 million by the — Robert Ankeny Discussions are under way on comes from the U.S. Department of School of Law is offering a new state’s 21st Century Investment Fund options to renew or expand the Transportation, with the remain- joint-degree program called The in the Chicago-based Midwest Mez- contract for similar servers ing $7.1 million from the partici- North American Lawyer Multiple RGIS buys British software firm zanine Fund IV L.P. aboard additional Navy vessels, pating companies and public Degree Program to give students It was the first investment Auburn Hills-based RGIS L.L.C. Block-Tomlinson said. agencies. The first phase focused from the fund in a mezzanine an educational background to announced Friday that it has pur- — Chad Halcom on product development and the fund, which loans companies qualify for law practice in the U.S., chased U.K.-based PDSRS, the de- second phase focuses on testing. money to help them grow. Previ- Mexico and Canada, UDM Law veloper of StorPlanner, a soft- — Chad Halcom ous investments from the fund, School Dean Mark Gordon said. ware that helps retailers better Funding approved to develop which has committed up to near- Formal signing of agreements use store space. system to prevent car crashes ly $69 million of its $109 million, between UDM and officials of In- RGIS, founded in 1958, claims Beene joins Crain’s staff had gone to venture capital and stituto Tecnológico y de Estudios Su- to be the largest provider of retail The University of Michigan Trans- Ryan Beene has joined Crain’s private equity companies. periores de Monterrey, a leading and inventory solutions in the portation Research Institute has re- Detroit Business as the reporter Since 1992, Midwest Mezzanine private law school in Mexico, is world, with 40,000 employees in ceived federal funding approval covering auto has invested more than $41 mil- scheduled Tuesday. 400 offices worldwide. for an innovation meant to help suppliers and lion in eight Michigan-based A juris doctor from UDM and a — Tom Henderson prevent car crashes. steel. companies from its funds. licenciado en derecho degree from UM is in the second phase of a Beene, 23, — Tom Henderson Mexico are earned in five years, Rave fulfills Navy contract project to design and test a video- joins Crain’s three in Detroit and two in Mexi- and radar-powered warning and from sister co.