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One Square Mile, Thousands of Lives

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One Square Mile, Thousands of Lives 20150921-NEWS--0001-NAT-CCI-CD_-- 9/18/2015 5:35 PM Page 1 Readers first for 30 Years A trend reset puts new spin CRAIN’S on bowling alleys, DETROIT BUSINESS PAGE 3 SEPTEMBER 21-27, 2015 “There are plenty of opportunities; it’s picking the right ones.” Agent for change Arn Tellem powered up to be Gores’ point man for expansion By Bill Shea [email protected] Detroit Pistons owner Tom Gores wants to get into the Detroit real es- tate market as part of his still-evolv- ing plan to carve out a larger role for himself, the basketball team and his businesses locally and statewide. What that involvement down- GLENN TRIEST town looks like is unknown for now, Haifa Fakhouri sees opportunity for NorthTown as Syrian refugees relocate.“We believe in this revitalization project,” she says. but it will take shape in coming months after talks with Dan Gilbert, the Ilitch family and others. “We will look at real estate down- town,” confirmed Arn Tellem, the longtime sports dealmaker Gores One square mile, hired in June to orchestrate his ex- pansion plans, in a wide-ranging in- PALACE SPORTS & ENTERTAINMENT terview with Crain’s on Wednesday. Arn Tellem: “We will look at real estate Tellem, 61, spent 30 years as one downtown.” of the most influential agents in American sports, primarily doing tainment LLC, the umbrella manage- thousands of lives billions of dollars in deals for play- ment company for the Pistons, the ers in the National Basketball Associ- Palace of Auburn Hills and other ation and Major League Baseball. venues. Last week was his first oper- Local activists want to rebuild NorthTown with help of Syrian refugees Now, he’s the powerful vice presi- dent of Gores’ Palace Sports & Enter- SEE AGENT, PAGE 29 By Dustin Walsh district, much like Greektown or Mexicantown, but [email protected] roadblocks remain. aifa Fakhouri, president and CEO of the “We’ve met with several organizations and lead- Arab American and Chaldean Council, has a vi- ers, but it’s moving slowly,” Fakhouri said. “We can Taubman CFO leaves H sion for Detroit — specifically, one square turn the city around and repopulate that area as mile of the city. more and more Syrian refugees need a place to go. A nearly 20-year-old plan to redevelop an area on We believe in this revitalization project; it will add to to pursue COO or CEO job Seven Mile Road, now known as NorthTown and the social mosaic of Detroit.” formerly called Chaldean Town, was stalled several Tom Kelly, director of government affairs for law years ago after the first phases were completed. firm Clark Hill PLC in Washington, D.C., and adviser to By Dustin Walsh for Taubman. … Now, Fakhouri and the ACC see opportunity the ACC, said refugees can stabilize the neighbor- [email protected] I have a lot of Lisa Payne coming from war-torn Syria, where millions have hood while offsetting population losses in the city. Lisa Payne is stepping aside as passion for man- fled seeking asylum across the eurozone to realize “That stretch of Seven Mile could be used as an CFO of Taubman Centers Inc. at the aging people, making a company the NorthTown project, including new multifamily anchor to build up the neighborhood,” Kelly said. end of the year. better, and I’m interested in doing Section 8 housing. “The wave of immigrants coming into the region But she’s not retiring. The long- that as a CEO or COO.” She believes as many 5,000 Syrian families seek- stopped 30 years ago and these neighborhoods des- time confidante to the Taubman Payne has been CFO since 1997 ing refugee status could call NorthTown home and perately need attention. This isn’t reinventing the family wants another challenge — and has seen the total return on in- revitalize the blighted neighborhood. wheel but something other major cities have done specifically, to be the top leader of vestment in shares of Taubman Fakhouri said the placement of refugees will another organization. Centers (NYSE: TCO) rise 1,254 per- jumpstart the local economy and create a vibrant SEE SYRIA, PAGE 28 “My plan is to think about a cent in that time, the company said leadership role,” said Payne, 56. in a release last week. © Entire contents copyright 2015 “I’ve loved every year I’ve worked But she was never going to be by Crain Communications Inc. All rights reserved. CEO there because it’s run by the crainsdetroit.com Vol. 31 No 38 $2 a copy. $59 a year. SPECIAL REPORT: HEALTH CARE Taubman family. Moving on was the best decision at this stage in her ca- Area hospitals reer. And Robert Taubman, chair- man, president and CEO of Taub- work to staunch man Centers, understood it, she the revenue said. bleeding from cuts to Medicare, Eric Hohauser, vice president of PAGE 11 NEWSPAPER SEE PAYNE, PAGE 25 20150921-NEWS--0002-NAT-CCI-CD_-- 9/18/2015 5:00 PM Page 1 2 CRAIN’S DETROIT BUSINESS // SEPTEMBER 21, 2015 America said in a release. to more than $15.4 million. MICHIGAN Groundbreaking is expected in With the donation, Davenport INSIDE late 2016, with production starting has received more than more than THIS ISSUE in the second half of 2018. $18 million toward a $25 million CALENDAR . 21 CAPITOL BRIEFINGS . 25 Arauco already runs nine plants in goal for its Vision Campaign. Daven- CLASSIFIED ADS . 25 the U.S. and Canada. According to port is a private, nonprofit university DEALS & DETAILS . 22 UpNorthLive.com, Kirtland Commu- with nearly 9,000 students at cam- MARY KRAMER . 8 BRIEFS nity College has pledged $1 million in puses across Michigan and online. OPINION . 8 training for potential workers at the OTHER VOICES . 9 Tribe prevails in court fight District Court for the Southern District mill, which could spin off hundreds MICH-CELLANEOUS PEOPLE . 23 of New York, claiming Mylan misled of support jobs in the area. RUMBLINGS . 30 over plans for Lansing casino investors on key parts of its $27 bil- Ⅲ The Michigan Employment Rela- WEEK ON THE WEB . 30 A U.S. District Court judge in lion hostile takeover bid for Perrigo. Kellogg plans Africa growth tions Commission ruled that the Grand Rapids dismissed a lawsuit The lawsuit asks a judge to declare in- Michigan Education Association’s one- against leaders of the Sault Ste. Marie formation that Mylan sent to Perrigo by buying half of Nigeria firm month window to quit the union — COMPANY INDEX: Tribe of Chippewa Indians in a dispute shareholders “materially false and Battle Creek-based Kellogg Co. specifically, August — is too restric- SEE PAGE 29 over plans for a $245 million off- misleading” and in violation of feder- agreed to buy 50 percent of Nigerian tive and violates state law. The case reservation casino in downtown al securities laws. MiBiz reported. food distributor Multipro for $450 involves a 2012 right-to-work law Lansing. The decision is the second Dublin, Ireland-based Perrigo, million and is creating a joint ven- making financial support of unions sumers will have an option to pur- time a federal court has ruled in which maintains its headquarters in ture with Tolaram Africa to help ex- voluntary. The union may appeal to chase the wind farm. Consumers favor of the Upper Peninsula tribe. Allegan, filed the lawsuit days after pand on the continent, Bloomberg the state appeals court. currently purchases power from The Sault tribe is also pursuing a directors of the maker of over-the- News reported. The Tolaram venture Ⅲ Flint Mayor Dayne Walling asked seven Michigan wind farms, owns casino in New Boston near I-275 and counter drugs once again rejected includes an option for Kellogg to buy Gov. Rick Snyder for $30 million to and operates two wind farms and is Detroit Metropolitan Airport. Tribal Mylan’s offer and urged shareholders a stake in the African company in the help improve the city’s water system working on solar power projects. leaders are waiting for a decision from to take no action, arguing it signifi- future, Kellogg said in a statement. and replace lead service pipes, The Ⅲ The state will open a European the U.S. Department of the Interior on cantly undervalues the company. Costs associated with the Multipro Flint Journal reported. Virginia Tech re- office to increase trade and exports whether land it purchased in Lansing deal will reduce earnings per share searchers have said residents should- of Michigan-made goods, Gov. Rick and New Boston can be held in trust, Chile firm plans world’s by 1 cent in the third quarter. n’t drink or cook with city water with- Snyder’s office said. The Michigan Eu- a requirement to opening a casino. biggest particleboard mill out flushing lines or using a filter. The rope Center will consist of offices in A spokeswoman for Attorney Gen- $5.5M gift is largest given U.S. Environmental Protection Agency London and Berlin and be housed eral Bill Schuette, who sued to block Arauco, a Chile-based lumber pro- to Davenport endowment says Flint’s water is within levels al- within the Michigan Economic Devel- the casino, said he is reviewing the cessing company, plans to create up lowed for lead. Separately, a Genesee opment Corp. ruling. If he appeals, the decision to 250 full-time jobs at the world’s Grand Rapids-based Davenport County judge dismissed a lawsuit that Ⅲ Kent County hotels reported would be sent back to the U.S. Court largest particleboard mill it plans to University received a four-year, $5.5 sought to force Flint to stop using the 81.2 percent occupancy in July, a of Appeals for the 6th Circuit.
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