20160208-NEWS--0001-NAT-CCI-CD_-- 2/5/2016 5:18 PM Page 1 CRAIN’S MICHIGAN BUSINESS Powering up: Law firms, others add strength in lobbying, PAGE 11 FEBRUARY 8-14, 2016 “We are constantly testing our Lions water as we want to protect our visitors, not just the art.” look to John Henry,Flint Institute ofArts spruce up their lair Options include converting suites into gathering space By Bill Shea [email protected] The Detroit Lions may turn some of Ford Field’s 132 suites into club or other gathering space under a plan to refresh the $500 million stadium that opened in 2002. New President Rod Wood said the team MARTI BENEDETTI has asked the Detroit office of M. Arthur Gensler Jr. & Associates Inc. to re-examine, pri- oritize and update costs for a Ford Field im- provements master plan created last year. Wood, 55, was elevated out of a job as the Ford family’s investment adviser to become Flint: Treading water team president in November after Lions owner Martha Firestone Ford fired Tom Lewand as part of a radical overhaul of the City’s biz community hopes crisis doesn’t wash away downtown rebound long-struggling National Football League team’s front office. By Marti Benedetti Those declines flattened out over the past In a wide-ranging telephone conversation [email protected] couple of years. “But people thought values last week with Crain’s, Wood addressed po- The Flint water crisis is taking a toll on the would go up again,” Schwartz said. “Now, no tential improvements at city that goes beyond lead poisoning. one knows what will happen.” the stadium. He said the The Flint Cultural Center, considered a Flint Tax Assessor William Fowler said “Ford Field 2.0” plan jewel with its expansive neighborhood of property values assessed before last fall — Lewand hinted at in theaters, museums and a large public li- when the water crisis came to the forefront recent years is some- brary, could be hurt by declining property — were likely higher than they are now. He is thing he’ll take a seri- values and tax collections as a result of the prepared for some property owners to ask SEE WOOD, PAGE 25 water crisis. At the same time, Flint business KathyJackson: “I’ve Ron Sims: “Everybody for lower assessments at March’s board of re- owners hope water woes won’t stem the invested in Flint’s future. is worried, but the flip view meeting. Inside downtown renaissance of recent years. ... But with this water fi- side is we will get money “They may say their property is devalued More from Crain’s Rod Kay Schwartz, director of library services asco, you feel like Flint’s for improved infrastruc- SEE FLINT, PAGE 26 Wood interview: Building for the Flint Public Library in the cultural cen- image is falling further.” ture like new pipes.” a new front office, ter, said the water crisis has the potential to Inside hurt library financing, but it has weathered fi- ■ Page 25. nancial crises before. In 2009, in the midst of dropped in recent years. “We are at 4 mills A roundup of news on Flint’s water crisis, the recession and General Motors’ bankruptcy, now because our wonderful citizens voted an Page 2. a library millage of 2.9 mills produced $4.7 increase in 2010, and again in 2015,” ■ Though government immunity makes million. The library relies on a property tax Schwartz said. “But 4 mills now translates to them tricky, lawsuits start to pile up. Page 27. millage for 90 percent of its income. just $2.7 million, meaning the library lost $2 ■ Snyder seeks OK for SBA emergency What has happened since provides a million in funding due to falling property val- lending tied to crisis, Page 27. glimpse of how much Flint property values ues. We have had to make enormous cuts.” © Entire contents copyright 2016 by Crain Communications Inc. All rights reserved. crainsdetroit.com Vol. 32 No 6 $2 a copy. $59 a year. NEWSPAPER 20160208-NEWS--0002-NAT-CCI-CD_-- 2/5/2016 3:51 PM Page 1 2 CRAIN’S DETROIT BUSINESS // FEBRUARY 8, 2016 had an agreement on a $600 million aration of a trio of businesses fo- MICHIGAN federal aid package for Flint that cused on plastics, agricultural prod- INSIDE would be added to a bipartisan ener- ucts and specialty materials. THIS ISSUE gy bill, but found that Republicans BANKRUPTCIES . 5 CALENDAR . 24 were blocking it over a procedural MICH-CELLANOUS CAPITOL BRIEFINGS . 5 issue. Stabenow said she would Ⅲ CLASSIFIED ADS . 25 block further work on the energy bill Kalamazoo-based medical MARY KRAMER . 11 BRIEFS until Republicans agree to move for- technology company Stryker Corp. OPINION . 8 ward on the package for Flint. said it has agreed to buy Sage Prod- PEOPLE . 24 Emails: Snyder’s aides knew cerns about the safety of the com- Ⅲ Businesses and organizations ucts LLC, a maker of products to pre- RUMBLINGS . 30 about Legionnaires’in March munity’s drinking water. continued to donate money, goods vent hospital-acquired conditions, STAGE TWO STRATEGIES . 20 Meanwhile, Michigan lawmakers and labor to help those affected by for nearly $2.8 billion in cash. Stryk- WEEK ON THE WEB . 30 High-ranking officials in Gov. moved late last week to start ap- the crisis. Walker, Mich.-based Mei- er is buying Cary, Ill.-based Sage Rick Snyder’s administration were proving $30 million to help pay the jer Inc. announced it would donate from Madison Dearborn Partners, a aware of a surge in Legionnaires’ water bills of Flint residents facing a $500,000 to help Flint residents, and Chicago-based private-equity firm. COMPANY INDEX: disease potentially linked to Flint’s lead-contaminated water supply, Detroit Pistons players and execu- Sage, with more than 800 employ- SEE PAGE 29 water long before Snyder reported AP reported. The bill, passed unani- tives committed a total of $500,000 ees, will operate under that brand as the increase to the public last mously by the Senate a day after to the FlintNOW relief effort part of Stryker’s medical division. highway in Michigan — and possi- month, internal emails show. Snyder formally announced the launched by team owner Tom Ⅲ The insurance industry annual- bly even higher on portions of two When he disclosed the spike in plan, goes to the House for its con- Gores, who grew up near Flint. ly provides a substantial boost to heavily traveled interstates — under Legionnaires’ cases on Jan. 13, Sny- sideration as early as this week. Michigan’s economy, adding $37.1 a measure a committee sent to the der said he had learned about it a In other Flint water-related news: Dow CEO Liveris says he’ll billion in spending, 114,000 jobs and state House last week. The package couple of days earlier. But emails Ⅲ In Washington, officials fought step down after merger $6.3 billion in earnings throughout of five bills would raise some of the obtained by the liberal group over who was to blame for the water the state, according to a new report 70 mph speed limits across the state Progress Michigan through public- crisis at a combative congressional Dow Chemical Co. CEO Andrew by the East Lansing-based Anderson and hike limits from 55 to 60 mph records requests and shared with hearing, AP reported. Joel Beauvais, Liveris will leave the company after Economic Group LLC. The report, for another 900 miles of highway, The Associated Press showed Sny- acting water chief for the U.S. Envi- the completion of its merger with based on 2014 data, was commis- The AP reported. A chunk of I-75 der’s office was aware of the out- ronmental Protection Agency, said DuPont Co., marking a victory for ac- sioned by the Michigan Chamber of north of Bay City and a portion of I- break since last March. Others in Michigan officials ignored federal tivist investor Dan Loeb, who had Commerce and several other busi- 69 between Flint and Lansing might the administration were scrambling advice to treat Flint water for corro- called for his removal, Bloomberg ness associations and groups. be eligible for an 80 mph speed to respond to suggestions that bac- sion-causing elements last year and reported. Ⅲ Grand Rapids-based injection limit, officials said. teria in the city’s new water source, delayed for months before telling the Liveris, who has spent four molder Agape Plastics Inc. expanded Ⅲ The Grand Rapids Public Museum the Flint River, could be the culprit. public of health risks. Keith Creagh, decades at Midland-based Dow, manufacturing space and added is hosting a new exhibit about civil The outbreak was also well known director of the Michigan Department will depart once the newly created equipment to serve sales growth rights icon Rosa Parks. “Rosa Parks within state agencies, according to of Environmental Quality, acknowl- DowDuPont is ready for a planned driven largely by the auto industry. — An American Legacy” runs emails obtained separately by AP edged the state should have required three-way split, no later than the Agape added 53,600 square feet to its through March 26. Parks, who died and other news organizations. Flint to treat its water, but said the second quarter of 2017, he said last existing facility for a total of about in 2005, became a pioneer in the Together, the emails offered EPA “did not display the sense of ur- week on Dow’s fourth-quarter earn- 125,000 square feet of manufactur- civil rights movement by refusing to more evidence that some state offi- gency that the situation demanded.” ings call.