Managing the Storm
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Lost dollars No NAFTA, Declines in sports cable TV, few jobs satellite A U.S. exit from the subscribers trade pact would yield could shrink small gains at best, Detroit player the numbers show, contracts, Page 3 Page 3 NOVEMBER 21 - 27, 2016 Media Infrastructure One-newspaper News, Free Press again cut sta ; town? analysts speculate on JOA’s future Managing By Tom Henderson job cuts. [email protected] Carole Leigh Hutton, a former and Dustin Walsh publisher of the Free Press who is the [email protected] storm now vice president of business de- e Detroit News and the Detroit velopment and marketing at De- Free Press are once again cutting troit-based Inforum, said it’s possible newsroom sta in the face of ongo- Detroit could have two newspapers ing declines in advertising revenue, for years to come. Even if they are which raises the question: How long both losing money, the losses will this remain a two-newspaper could be less than if one paper is town? killed. For more than a year, at least. Un- “You have to do the numbers. It til 2018, both papers must continue looks easy from the outside (to kill publishing under terms of their joint one). But what are your revenue operating agreement, but persistent losses if you give one up?” she said. losses would allow the papers to end “How much less do you have to the agreement and possibly pull the charge for advertising? How many A 52,000-square-foot green roof atop the plug on one paper, presumably the advertisers want both papers? How parking garage for Blue Cross Blue Shield News, after that. much of the News’ audience can the of Michigan in Detroit includes a walking Such joint operating agreements Free Press attract?” track for employees. Roof rainwater is have gone from 28 across the U.S. in According to an early-termina- collected into a retention tank buried below. the 1990s to just ve now. tion clause in the 25-year JOA that “I see a high likelihood Detroit created the current partnership on will be a one-paper town within the Aug. 3, 2005, starting 10 years from BLUE CROSS BLUE SHIELD OF MICHIGAN next couple of years,” Rick Edmonds, that date, either party can opt out af- a media business analyst with the St. ter the partnership has sustained E orts encourage property owners to go green, not drain Petersburg, Fla.-based Poynter Insti- three consecutive years of nancial tute, told Crain’s ursday after the losses. e Free Press and News have By Jay Greene Storms to increase Free Press joined the News in seeking SEE NEWS , PAGE 18 [email protected] How green What does modern stormwater Average annual rainfall in Michi- infrastructure management look like? If you ask gan has increased by 12 percent since works engineering experts, more ponds, 1964. Two-inch rainstorms — that wetlands and vegetative ditches impact and shape rivers the most — Examples of green could replace past practices, such as also have increased 89 percent during 50 names infrastructure and what it simply burying bigger pipes. that period, according to the Natural does: Stronger and more frequent rain- Resources Defense Council. Retention ponds — Basins storms — like the Aug. 11, 2014, As predictions call for a 6- to 7-de- to know in IT used to prevent stormwater cloudburst that dumped 5 inches of gree rise in summer temperatures in runo that reduce ooding rain on Southeast Michigan in just a the Midwest over the next 80 years, Our playbook of the executives to know and downstream erosion and few hours — are likely to hit Michi- extreme storms in Michigan are also covers the full range of Michigan-based improve water quality on gan over the next several decades. expected to increase, taxing the nearby rivers, lakes or bays. And that's expected to lead to more state's aging and inadequate drain- innovation, from scrappy startups such as widespread basement and road age and sewer systems, said the U.S. SPLT — and CEO Anya Babbitt — which Roo op rain gardens ooding, water pollution and possi- . — Shallow-rooted plants that Global Change Research Program won the grand prize at the Accelerate ble public health emergencies, ac- Over the past decade, Oakland tolerate sometimes hot and cording to experts. County Water Resources Commis- Michigan Innovation contest, to leaders at windy conditions on roo ops With residents and business own- sioner Jim Nash has been encourag- huge organizations, such as Judy Asher, of buildings to capture ers still battle-scarred from those ing businesses to invest in green in- rainwater, prevent runo s manager of IT research and innovation at 2014 storms, the topic of how to cre- frastructure projects on their and provide temperature Ford, ate — and pay for — the infrastruc- properties to reduce stormwater run- Page 10 control inside. ture to drain stormwater has moved o that can overwhelm public drains Bioswales — Gently sloping nearer to the top of the priority list and cause pollution to over ow into ditches lled with vegetation for local governments. waterways. He has also warned that or compost designed to And that's why new e orts are un- inaction in the face of the expected remove and drain silt and derway to create a common method heavy rainstorms is not an option and other pollution. of paying for drainage projects and would have dire economic e ects. © Entire contents copyright 2016 giving businesses an incentive to in- “We can't a ord to spend $1.5 bil- by Crain Communications Inc. All rights reserved vest in green infrastructure. e new lion to improve our old infrastruc- crainsdetroit.com Vol. 32 No 48 $2 a copy. $59 a year. ideas could help ease the burden on ture. We need to gure out a way to drainage systems around the state do it with green infrastructure,” said and region that are bursting at the Nash. “ e August 2014 storm over- seams. whelmed the system. No drainage To be sure, major capital projects system could have sustained that.” involving traditional infrastructure Nash said because it is too expen- will still be needed, but the green sive to build new and larger drains, NEWSPAPER ideas are gaining momentum as part the most cost-e ective way is for of comprehensive planning. SEE GREEN , PAGE 22 2 CRAIN’S DETROIT BUSINESS // NOVEMBER 21, 2016 INSIDE MICHIGAN BRIEFS BANKRUPTCIES 22 CALENDAR 16 Aer 16 years, Sugar Loaf development, MiBiz reported. who is married to former state Attor- CLASSIFIED ADS 17 slopes get new owner Ocials at the bank and at Grand ney General Mike Cox. Rapids-based developer Orion Con- J Sparrow Health System last week KEITH CRAIN 8 A once-popular northern Michi- struction Co. Inc. said the two parties unveiled its new $20 million health OPINION 8 gan ski resort that’s been closed for are in discussions for Chemical to center in Lansing. e three-story fa- OTHER VOICES 9 16 years is on course toward reopen- relocate its regional operations to cility houses radiology, endoscopy ing after a California developer nal- the development, but said a deal has and primary care services, and over PEOPLE 16 ized plans to buy it. yet to be nalized, pending the proj- the winter will add a drive-thru RUMBLINGS 23 Sugar Loaf, in Cedar, northwest of ect securing state incentive nanc- pharmacy, geriatric center and WEEK ON THE WEB 23 Traverse City, ocially changed ing in early 2017. Brian Calley: Laura Cox: First outpatient rehabilitation, the Lan- hands last week, said Steven Hau- With Chemical Bank “maxed out” Legislation to aid woman to lead sing State Journal reported. e COMPANY INDEX: gen, a building ocial with the Lee- at its present oce on the south side mentally ill. budget panel. 70,000-square-foot building will be SEE PAGE 21 lanau County Construction Code Au- of downtown Grand Rapids, it need- fully occupied by spring. thority. e developer, Je Katofsky, ed more space, according to Region- J Lt. Gov. Brian Calley has signed J Michigan won federal approval to obtained the resort for $3 million al President Joel Rahn. Chemical has state legislation he said provides spend about $119 million over ve quiring infants and toddlers state- under the business name Sweet signed a letter of intent to occupy people facing mental health issues years to remove lead hazards from wide to be tested for lead poisoning Bread LLC in a purchase that includ- 20,000 square feet in the building, with access to intervention and treat- the homes of low-income residents as part of an initiative to eradicate ed six dierent parcels, Haugen told including a ground-oor branch and ment earlier. e bill, “Kevin’s Law,” in Flint and elsewhere in the wake of children’s exposure to the neurotoxin. the Traverse City Record-Eagle. administrative oces, he said. is a series of underutilized laws Flint’s tainted water crisis, AP report- J A cooperative of farmers is build- Katofsky has pledged to turn the passed in 2004 that authorized courts ed. e Centers for Medicare and Med- ing a $10.1 million plant in the Ne- site into a year-round high-end re- MICH-CELLANEOUS and community mental health agen- icaid Services authorized an amend- waygo County town of White Cloud. sort, maybe in three to four years. J e Michigan State University Foun- cies to use assistant outpatient treat- ment to Michigan’s Children’s Health e North Central Co-op is construct- Sugar Loaf, formerly the largest em- dation in East Lansing has formed a ment programs instead of hospital- Insurance Program, and the state will ing the feed mill in the White Cloud ployer in Leelanau County, includes $5 million investment subsidiary, ization for people who don’t comply spend $333,000 this scal year to ob- Industrial Park, the Grand Rapids a golf course, lodging and an airstrip.