Good Policy Or a MEGA Mess?
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20150223-NEWS--0001-NAT-CCI-CD_-- 2/20/2015 6:42 PM Page 1 ® www.crainsdetroit.com Vol. 31, No. 8 FEBRUARY 23 – MARCH 1, 2015 $2 a copy; $59 a year ©Entire contents copyright 2015 by Crain Communications Inc. All rights reserved Page 3 Affordable senior Hub for tech startups Some say Michigan’s corporate tax planned for Ann Arbor incentives helped save the auto complex prompts Energy suppliers have industry, save jobs and keep 5-year plans; they’re secret Midtown concerns Focus: Law taxpayers here. But with more than $9 billion in credits still Mixed income needed outstanding, others say the to bring biz, Mosey says outstanding, others say the BY SHERRI WELCH CRAIN’S DETROIT BUSINESS program planted the seeds of Demand is reportedly outstripping housing stock in Detroit’s Midtown area, but a new af- fordable senior living complex planned along big-time budget trouble its northern edge isn’t getting a welcome from The big business cases the neighborhood. Midtown Detroit Inc., the economic develop- of 2014, Page 11 ment group working to revitalize the area, be- lieves Seward Street, where the complex is planned, needs a different kind of development This Just In to further economic develop- ment there. Fountain Bistro will close for Good policy or “If you want to attract re- tail and commercial, you revamp, reopen in April have to have mixed income,” The Fountain Bistro restau- said Midtown Detroit Inc. rant in Campus Martius Park President Sue Mosey. will close for several weeks Ann Arbor-based LC Con- as interior renovations are a MEGA mess? sultants LLC, whose principals completed. The park is man- Michael and Bob Jacobson also own Leelanau Wine Cel- aged and operated by the De- BY DUSTIN WALSH its worth nearly $4.5 billion if they Mosey troit 300 Conservancy. lars Ltd. in northern Michi- CRAIN’S DETROIT BUSINESS retain more than 86,000 jobs in Owner Jay Lambrecht said gan, have an agreement to purchase a building Michigan through 2032, according to at 59 Seward between Woodward and Second the restaurant will close its tate-sponsored corporate leased space March 2 and is the Michigan Economic Devel- avenues for an undisclosed amount. tax incentives, which aided expected to reopen April 2. opment Corp. The renovations include the auto industry See Midtown, Page 25 But with $9.38 billion in new floors, new lighting, during last decade’s adding a waitress station and S credits overall still outstand- recession, are coming home changing the color scheme. ing, elected officials and tax policy The tablecloths in the bistro to roost. experts are left wondering whether will also be removed “to The state faces a $289 million bud- UM report: Take time to the program, which was discontin- make the restaurant a little get shortfall in 2015, largely attributed more approachable,” Lam- ued in 2011, will result in a net posi- brecht said. to the nearly $11.7 billion in business weigh impact of fracking tive for the state economy. “Downtown has a great de- tax credits promised to as many as 240 Mike Johnston, vice president of BY JAY GREENE mographic right now — a lot businesses over the past 20 years. of younger people in their 20s government affairs for the Michigan CRAIN’S DETROIT BUSINESS and 30s, and the core busi- A large portion of those credits Manufacturers Association, told legis- To frack or not to frack? Michigan is still nesspeople who have been were authorized for the automotive sorting out the answer to that question. down here for the good times lators last week the billions in- industry to leverage new jobs One option to safeguard water quality and and bad,” said Lambrecht, vested by the auto industry public health in the state on the practice of who also owns Bookie’s Bar & and retain jobs during an during the recession would deep-well hydraulic fracturing is to impose a Grill on Cass Avenue in Fox- industry bleed-out last temporary moratorium to give time for an in- town. not have happened if the decade — which claimed depth environmental impact study and further Lambrecht said the reno- Michigan Economic Growth Authority more than 219,000 auto manufactur- regulations on the practice, according to a draft vation will cost at least program didn’t exist. report released last week by the University of $100,000; seasonal menu ing jobs between 2000 and 2009 out “Some policymakers are attributing Michigan’s Graham Sustainability Institute. changes are also planned, as of the more than 800,000 total job For now, environmental concerns — plus usual. the budget challenge to the MEGA losses during that period. market dynamics driving cheaper energy from Fountain Bistro, which program,” he told the House tax poli- natural gas — seem to outweigh pressure from opened in 2010, seats 80 peo- Ford Motor Co., General Motors Co. cy committee. the hydraulic fracturing industry for permis- ple inside and at least 60 on and FCA USA LLC (formerly Chrysler sion to proceed with additional high-volume an outdoor patio. Group LLC) were promised tax cred- See Credits, Page 22 — Kirk Pinho See Fracking, Page 24 ISTOCK PHOTO NEWSPAPER 20150223-NEWS--0002-NAT-CCI-CD_-- 2/20/2015 6:02 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS February 23, 2015 MICHIGAN BRIEFS One way Grand Rapids handles It’s owned and operated by the Han- nahville Indian Community, a band of parking problem: Sell your space Report gives mixed grades to charter school authorizers the Potawatomi Nation. Ⅲ The number of passengers de- When Bill Kirk became mobility A new report from The Education Trust-Midwest Ferris State University, Grand Valley State University and manager for Downtown Grand Rapids parting from and arriving at Gerald found huge disparities in performance among Michi- Bay Mills Community College, all B’s; and Central Michi- R. Ford International Airport in Grand Inc., he decided to pocket an extra gan’s charter school authorizers. The report released gan University received a C. $149 a month by forgoing a compa- Rapids — 181,049, to be precise — by the Royal Oak-based nonpartisan research, policy The grades were based on the authorizers’ deci- ny-supplied parking space. Kirk is rose 15 percent last month com- and advocacy organization shows that of the nearly sions regarding charter school openings and the among the growing number of peo- pared with January 2014, 150 charter schools opened since the state charter quality of their operators, setting performance stan- ple benefiting from what’s known as MLive.com reported. “Apparently, school cap was lifted in fall 2011, about 20 percent dards for current schools and improving chronical- a parking cash-out program, which West Michigan has learned to get were authorized by authorizers that received “D” or ly failing schools. has been gaining traction in Grand out of the snow in January,” said “F” grades in the nonprofit’s report. Of the 16 authorizers evaluated, their total enroll- Rapids, MiBiz reported. airport spokeswoman Tara Hernan- Authorizers receiving a D were Oakland University, ment of about 135,000 students represents about 95 Executives at the city’s economic dez, who gets points for sarcasm Detroit Public Schools and Saginaw Valley State Universi- percent of the statewide charter enrollment of 140,000. development organization think the above and beyond her pay grade. ty. Eastern Michigan University and Northern Michigan “We are looking at the methodology of this new program is just one option to help If the craft brewing industry University received F’s. report and haven’t had a chance to review it in handle demand for parking in one day looks back in lamentation The highest-ranked authorizers: Washtenaw Com- much detail yet,” said C. Robert Maxfield, interim downtown Grand Rapids. Studies at its “jump the shark” moment, it munity College, Washtenaw Intermediate School District, dean of OU’s School of Education. “That letter grade commissioned by the Grand Rapids could be this: Brewery Vivant in Grand Rapids Public Schools, Wayne RESA, Hillsdale In- is not consistent with our experience and track City Commission have found that the Grand Rapids created a “Fat Pacz- termediate School District and Macomb Intermediate record in helping our charter schools excel.” supply of parking in the central ki” brew in honor of Mardi Gras — Kirk Pinho business district does not necessari- School District, all A’s; Lake Superior State University, last week. It is made with prunes ly match demand. and powdered sugar, “with actual Andy Beachnau, Grand Valley’s currently used for freight, also Gov. Rick Snyder said the agree- paczki tossed into the mash for good Growing Grand Valley approves associate vice provost of student af- would make stops in cities includ- ment will reduce electricity rates measure,” MLive.com reports. fairs, said the university has had ing Cadillac, Mt. Pleasant and for U.P. residents and businesses. Find business news from $44.8M in construction projects strong enrollment for first-year stu- Owosso. Ⅲ The Hannahville Tribal Council around the state at crainsdetroit dents and was at capacity in fresh- The Land Use Institute hopes to plans to expand and renovate its Is- .com/crainsmichiganbusiness. The Grand Valley State University man housing. begin conducting feasibility studies land Resort & Casino in Harris Town- Sign up for the Crain’s Michi- board of trustees approved $44.8 next summer. Officials estimate the ship, about 15 miles west of Escana- gan Morning e-newsletter at million for building projects to ac- commuter train service could be ba, The Associated Press reported. crainsdetroit.com/emailsignup. commodate growing demand, the Group to study train service linking ready by 2025.