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Bridge Duel Continues Between State, Moroun 20090202-NEWS--0001-NAT-CCI-CD_-- 1/30/2009 6:04 PM Page 1 ® www.crainsdetroit.com Vol. 25, No. 5 FEBRUARY 2 – 8, 2009 $2 a copy; $59 a year ©Entire contents copyright 2009 by Crain Communications Inc. All rights reserved Inside State’s UI debt could Bridge duel continues mean higher taxes, Page 3 between state, Moroun Government gives nod for Rehab agency on the road both spans to fiscal recovery, NATHAN SKID/CRAIN’S DETROIT BUSINESS BY BILL SHEA Page 3 Christos Moisides (left) and Michael CRAIN’S DETROIT BUSINESS Sinanis of 23rd Street Studios have a studio site at 23rd and Michigan. The high-stakes standoff be- This Just In tween Manuel Moroun and an international coalition of gov- ernments continues as both Comerica economist: make incremental progress to- Recession is widening Motown ward competing billion-dollar Detroit River crossings. Dana Johnson, the chief The situation got fresh impe- economist for Comerica Bank, tus in recent weeks, thanks to a NATHAN SKID/CRAIN’S DETROIT BUSINESS said the current recession is movies pair of U.S. Department of Trans- Matthew Moroun, vice president of the Detroit International Bridge Co., stands in front of construction of the new bridge span, which will run next to the almost certain to become the portation approvals for the si- current bridge. longest since the 16-month multaneous bridge projects — downturns of 1973 and 1981, 2 groups shooting which include Michigan jointly four-lane structure. tion of infrastructure work on a which would make it the funding infrastructure at one Moroun’s Detroit International new highway interchange serving longest since the Great De- while seeking to build the other Bridge Co. was pre-approved on the crossing, said Mickey Blash- pression. to have 1st studio itself just a mile away. Jan. 6 for up to $787.4 million in field, the bridge company’s direc- In an economic brief, On one side is Grosse Pointe private activity bonds, similar to tor of governmental relations. Johnson wrote that the re- land baron and trucking tycoon tax-free municipal bonds. The first The other project is the $1.5 bil- cession, al- BY DANIEL DUGGAN Moroun, who owns the 80-year- phase of the bridge project was ap- lion plan to build a government- ready 13 AND BILL SHEA old Ambassador Bridge and is proved for $212.6 billion in private owned bridge, the Detroit River In- months CRAIN’S DETROIT BUSINESS building a $1 billion, six-lane activity bonds on June 4, which ternational Crossing, in Detroit’s old, As momentum for Michigan’s second span to replace the old covered the bridge company’s por- See Bridge, Page 20 “shows no film industry grows, two groups signs of are vying to have the state’s first abating.” studio complex. Worse, In Oakland County, Ferndale- “the con- based S3 Entertainment Group has traction is narrowed its search for a studio to gaining in Johnson a short-list of two sites. In Detroit, Esperion hunts biotech bargains breadth. 23rd Street Studios expects to start From its roots in the housing construction on its project by sector, it has spread to ex- spring. ports, capital spending and Both projects have initial bud- Revamped company looks for next Lipitor state and local government gets of $40 million and both expect budgets.” to be a go-to place for film-oriented BY TOM HENDERSON quarters. The Johnson said another businesses to be located. CRAIN’S DETROIT BUSINESS new, scaled- prong in the attack on the “These are the pioneers,” said down Esperion economy, dwindling wage Esperion Therapeu- Mark Adler, owner of VAI Digital The reborn needed only gains, will get worse later and director of the Michigan Produc- tics Inc. began growing tissue cul- about 7,000 this year. tion Alliance, a Novi-based trade ture in its new lab in Plymouth square feet, in- Johnson said the prospects group that lobbies on behalf of the Township this week, an impor- cluding 5,000 for 2009 aren’t entirely bleak, state’s film industry. tant step for one of the most suc- square feet of though, thanks to the sharp “Everyone is waiting to see cessful biotechs in state history remodeled lab reduction in gas prices, low what someone else does.” as it continues its reinvention space, of the mortgage rates and a fiscal A studio would be part of a se- and takes aim at creating what 58,000-square- stimulus package sure to be Newton ries of moves by S3 to create a per- founders and investors hope foot-building passed by Congress. could be the next Lipitor. off Beck Road, just north of M-14. — Tom Henderson manent movie infrastructure in Michigan. And while the studio is “It’s a big milestone,” said CEO (See story, Page 21.) important, Managing Partner Jeff and President Roger Newton. The building, now called the See This Just In, Page 2 See Movies, Page 19 “The deal to acquire this building Michigan Life Science and Innova- was a roller-coaster ride. Numer- tion Center, was sold by Pfizer in a ous times we came within 24 $3.5 million deal involving the hours of getting kicked out of Wayne County Economic Develop- here.” ment Corp., Ann Arbor Spark and the Last May, Pfizer Inc. announced Michigan Economic Development MARK LEWIS/CRAIN’S DETROIT BUSINESS it had sold Esperion back to New- Corp. Steve Pinkosky (left), a scientist in ton. In October, following months The rest of the building, includ- Esperion’s biology department, uses ing three labs totaling 25,000 a pipette to transfer liquid into a vial of on-again, off-again negotia- while Clay Cramer, Esperion’s tions, a deal closed that allowed square feet, is being developed as NEWSPAPER director of biology, watches. Esperion to remain in its head- See Esperion, Page 21 20090202-NEWS--0002-NAT-CCI-CD_-- 1/30/2009 6:03 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS February 2, 2009 than $1.7 billion over 10 years. have 30 percent of their retire- on entertainment trade publica- cations Inc., was not taxable under THIS JUST IN — Amy Lane ment health care premium paid tions Pollstar and Billboard, own- SBT for late payment fees collect- by the state. Each year of addi- er Palace Sports & Entertainment ed from its customers. ■ From Page 1 Huron Capital to announce deal tional service would add 6 per- said. At issue was an audit by the cent more coverage, up to a maxi- The amphitheater sold out 20 of Michigan Department of Treasury of State budget coming Feb. 12 Detroit-based Huron Capital Part- mum 90 percent coverage after 14 its 65 events and saw more than its balance sheets for 1999-2002, ners L.L.C., a private-equity firm, years of service. 785,000 attendees last year. which resulted in a 2004 refund State officials have set Feb. 12 as is expected to announce today its Lawmakers would become eli- — Bill Shea payment of $301,362 for overpaid the day to unveil Gov. Jennifer purchase of a Lansing patient gible for the benefits at age 55. SBT taxes. Granholm’s proposed fiscal 2010 care business for one of its portfo- Currently, six years of service The company contended it budget. lio companies, Michigan Orthope- qualifies them for 90 percent cov- AT&T getting SBT refund State Budget Director Bob Emer- dic Services Inc. of Livonia. erage at that age. AT&T Michigan is entitled to re- should have received more, since son will make the budget presenta- O&P Professional Care will oper- — Amy Lane ceive an additional refund of the state erroneously counted its tion, which follows by a little more ate under the MOS name. MOS nearly $500,000 on overpaid back late payment fees from customers than a week Granholm’s State of operates 11 patient-care centers taxes under the state’s former as “interest income” for tax pur- the State address this Tuesday. that design, fit and make orthotic Conway MacKenzie expands Single Business Tax, the Michigan poses. — Amy Lane and prosthetic devices. This is consulting services to Europe Court of Appeals ruled Friday. AT&T has claimed it is entitled the fifth new center since Huron A three-judge panel upheld a to up to $775,474 plus other fees Conway MacKenzie & Dunleavy, a bought MOS in December 2007. Court of Claims ruling that the and costs. The case returns to the Plan would increase school turnaround and consulting firm Terms were not announced. Michigan Bell Telephone Co., lower court for further review. in Birmingham, is turning the retirements, budget savings This is the company’s first deal known at the time as SBC Communi- — Chad Halcom global recession into a global op- The Michigan Education Associa- this year, although managing di- rector Brian Demkowicz said letters portunity for referral business. tion and a bipartisan group of law- Last week, the firm announced makers are moving forward a pro- of intent have been signed on two CORRECTIONS more. it had affiliated with Bryan Tappy & posal designed to stimulate school Ⅲ A photo caption on Page 27 of the Jan. 26 edition — Tom Henderson Tilley, a consulting firm in London, retirements and produce savings. to provide services to European misidentified Stephen Cassin, executive director of the The proposal, which requires firms and to better serve U.S. Macomb County Planning and Economic Development legislation, would offer an en- Legislation would limit health firms with European operations. Department, as his deputy director. hanced retirement benefit to Closer to home, CMD is expect- Ⅲ A story on Page 30 of the Jan.
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