Foundations, City at Brink of Plan to Shrink Detroit
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20100125-NEWS--0001-NAT-CCI-CD_-- 1/22/2010 6:21 PM Page 1 ® www.crainsdetroit.com Vol. 26, No. 4 JANUARY 25 – 31, 2010 $2 a copy; $59 a year ©Entire contents copyright 2010 by Crain Communications Inc. All rights reserved Page 3 Saudis seek Sales of small businesses down – are only the strong Davidson for sale? contract with Study calls on biz to help prevent diseases, cut costs Brighton Supreme Court ruling clears has her way for corporate, nonprofit Hospital stands on candidates BY JAY GREENE CRAIN’S DETROIT BUSINESS Inside St. John Health System’s Brighton Hospital has signed a letter of in- Firm’s pitch to governments: tent to begin discussions on a long- reasons term management contract with a Privatize building Saudi Arabian company that is building a 250-bed addiction treat- departments, Page 6 ment hospital in Riyadh. But estate tax isn’t After a nine-month internation- al search, Brighton Hospital was Finance Extra DUANE BURLESON/THE ASSOCIATED PRESS Owner Karen Davidson watches the Detroit Pistons chosen over other more famous one of them, rep says on Wednesday at the Palace of Auburn Hills. and larger addiction treatment ‘Our focus was on survival’: providers in Europe and the U.S. Bailouts, credit crunch because of its expertise, high suc- BY BILL SHEA Michael Layne of Farmington to shield her and the two adult cess rate, clinical care model and torpedo 2009 M&A, Page 11. CRAIN’S DETROIT BUSINESS Hills PR and marketing agency children named in the estate, 12-step treatment approach, said Marx Layne & Co., said on Friday there’s eventually a tax bill to Mohammed Al-Turaiki, CEO of Karen Davidson’s decision to that she doesn’t pay — potentially to the tune of Saudi Care for Rehabilitation and Crain’s List possibly sell the Detroit Pistons, owe any. $300 million to $400 million. Health Care in Riyadh. among other assets from her late Federal estate A third possibility is that “We are so impressed with husband’s tax laws allow Davidson inherited properties Brighton and want to involve them Mergers and acquisitions, $1 billion es- INSIDE for an unlimit- but not cash, so she’s selling in every step in this project,” said Pages 14-15 tate, has raised ed marital de- the team and real estate hold- Al-Turaiki, who is a world- Guardian: Who’s the inevitable duction, ings for liquidity. renowned bioengineer and reha- in charge? question of Page 28 which defers For now, it’s impossible bilitation specialist. He also is why. the tax until to know because president of the Islamic World Coun- This Just In Joint arena: She’s said the spouse specifics of the trusts cil on Disability and Rehabilitation. Some see early publicly that signs, Page 28 dies but has oth- filed in Oakland it’s because the See Saudis, Page 26 Walsh program to seek Sellable: er potential pit- County Probate Franchise team was her falls. There are Court are not ‘tipping points’ for growth considered husband’s in- also other forms of public. Layne Walsh College is developing strong, Page 29 terest and not trusts and methods declined to com- a program to help accelerate hers, and her to reduce the tax bur- ment on ques- business growth in Michigan. preference is that the Pistons are den for heirs. tions about the Called the Panthera Pro- owned by someone enthusiastic Even with a complex estate. ject, the group will consist of about them as he was. series of trusts designed Bill Davidson, who Walsh faculty members and “It’s Bill’s baby. What can I died at age 86 on local business leaders work- say?” she told reporters last COURTESY OF THE DETROIT PISTONS March 13, was es- ing to find the “tipping week. Pistons guard Ben Gordon in action. timated by points” where new resources But there’s also the question of Forbes magazine has valued the and opportunities will have estate taxes. Her spokesman, Pistons at $480 million. See Pistons, Page 28 Al-Turaiki Bertin-Epp the greatest impact in grow- ing Michigan businesses, said Michelle Lange, the re- cently appointed director of the project. Details are still being de- Foundations, city at brink of plan to shrink Detroit veloped, Lange said, but the group will build on Walsh’s an offer from a metro Detroit foun- That the city must shrink is be- they need to put that on a very fast student and business com- BY NANCY KAFFER dation to fund the creation of such yond debate, said Rip Rapson, and highly professionalized munity resources to target CRAIN’S DETROIT BUSINESS a plan. president of the Troy-based Kresge track.” new curricular offerings and In four to six months, Detroit Bing told Foundation, which has offered to Rapson said that if the city ac- ways to engage businesses. could have the broad-brush out- Crain’s last Au- fund the plan. And a land use plan cepts the offer, the foundation “The real question is how lines of a land use plan that encom- gust that resiz- is crucial to developing viable would assemble a combined team do we accelerate and broaden passes the principles of shrinking ing the city is long-term strategies. of local and outside urban plan- our impact? And, how do we the city by consolidating invest- one of his top “I think the mayor has been ning experts — just the first step in See This Just In, Page 2 ment in key neighborhoods — if priorities. Ad- very clear that he wants to pursue developing an incredibly complex Detroit Mayor Dave Bing accepts ministration of- a set of strategies to reconfigure plan. ficials are en- the city,” Rapson said. “So all of a “There are strategies, and there gaged in sudden how you do light rail be- are strategies,” Rapson said. “If all preliminary dis- comes important, because it’s a we need is a drawing of where we Rapson cussions with land use strategy. Where you concentrate resources or where we the foundation community, said think about siting schools be- cluster activities, we could do that Edward Cardenas, Bing’s press comes huge, because you can’t site in about 24 hours. This is much secretary, adding that the mayor schools without a land use plan. … more complicated than that.” had planned to begin studying One of the things we are talking The first four to six months NEWSPAPER land use issues in the first quarter with the administration about is of this year. what kinds of resources might See Land use, Page 29 20100125-NEWS--0002-NAT-CCI-CD_-- 1/22/2010 6:09 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS January 25, 2010 ture Capital Association. That was a portunity Forum on Feb. 23. P.C. to relinquish $500,000 and the has invested $3 million in a Mass- THIS JUST IN decline of 37 percent in dollars The 8 a.m.-12:30 p.m forum is use of his surname, according to a achusetts developer of nanotech- and a decline of 30 percent in the geared toward businesses in con- lawsuit filed Friday at Oakland nology products for solid state ■ From Page 1 number of deals. struction, landscaping and main- County Circuit Court against the lighting and displays. California was No. 1, with $8.9 tenance. firm and Managing Partner J. Dou- QD Vision Inc., in Watertown, grow Michigan business and jobs billion invested in 1,137 deals. It will offer opportunities to glas Peters and Partner David Chris- Mass., said the funding from Ann in second-stage companies?” — Tom Henderson learn about doing business with tensen. Arbor-based DTE Energy Ventures Lange said. the authority. For details, visit Charfoos, 73, left the firm in will support the company’s mar- The Panthera Project will seek www.MetroAirport.com. September to co-found a new ket expansion of nanomaterials to best practices that support such Okla. firm buys Titan Benefits — Nancy Kaffer firm, an association of counsel enable energy efficiency gains. growth areas as entrepreneur- Tulsa, Okla.-based Benefits based in the Penobscot Building. — Amy Lane ship and second-stage companies Technologies L.L.C., a benefits en- State’s construction backlog Charfoos & Christensen part- from universities and other rollment and dependent-verifica- ners have told Crain’s in the past Friendship Circle among leaders groups throughout the country to tion company, has acquired Titan more than 5 months, group says they would keep the firm name in see if they can be implemented Benefits Communications Inc. in reference to Charfoos’ late father, in Facebook nonprofit contest here. Royal Oak for an undisclosed Michigan has enough commer- Samuel Charfoos. The elder Char- As of late last week, a West Prior to joining Walsh, Lange amount. cial construction projects in the foos left the practice of law in 1978 Bloomfield Township-based non- was president of Silvertree Market- Titan had been facing capital pipeline to support 5.47 months of and died in 1995, according to the profit, Friendship Circle, was ing L.L.C., specializing in services challenges and needed new tech- work, according to the November lawsuit. Peters and Christensen among the top five finalists in a for growth companies, nonprof- nology and other resources, said figures released by the Washing- could not be reached for comment Facebook contest sponsored by J.P. its, and education. Lange also has David Brenner, owner and presi- ton, D.C.-based Associated Building Friday. Morgan Chase. held positions at General Motors dent of Titan. and Contractors.