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Zug Island: More Than Next Wind Power Mayor at Stake Mecca? Donors Move from Filling $56M Backs Bid for Gaps to Guiding Development

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20091026-NEWS--0001-NAT-CCI-CD_-- 10/23/2009 6:55 PM Page 1 ® www.crainsdetroit.com Vol. 25, No. 42 OCTOBER 26 – NOVEMBER 1, 2009 $2 a copy; $59 a year ©Entire contents copyright 2009 by Crain Communications Inc. All rights reserved Philanthropy Detroit Election Zug Island: More than next Wind power mayor at stake mecca? Donors move from filling $56M backs bid for gaps to guiding development. Focus, Pages 13-20 Vote seen as referendum on city’s future drivetrain facility BY NANCY KAFFER drop of a rapidly approaching Nov. 3 elec- Y OM ENDERSON CRAIN’S DETROIT BUSINESS tion that will seat a four-year, full-term may- B T H Foundation portfolio values or. AND RYAN BEENE back on the rise, Page 3 etroit Mayor Dave Bing took office in Challenger Tom Barrow, who took about CRAIN’S DETROIT BUSINESS May, campaigning on his acumen as a 10,000 ballots in the August primary to D political outsider and business leader, Keith Cooley, the CEO of NextEnergy, has put Bing’s roughly 68,000, has opposed the may- together a consortium of industry heavy- Inside a guy who could make the tough choices or on almost every point: criticizing Bing’s needed to right the listing ship of Detroit fi- weights and lined up about $56 million in cuts, his treatment of the unions and his matching-fund commitments Dan Gilbert spends $15.4M nances. interactions with regional Five months later, Bing has as it awaits word on a $45 mil- on chance at Ohio casino, leaders. lion U.S. Department of Energy laid off about 500 city work- Barrow’s campaign ers, presided over the grant to build an engineering Page 3 has worked to paint facility on Zug Island that creation of a regional Bing as an outsider, authority to manage would develop and test drive- a disinterested trains for what could easily Real estate firms defend Detroit’s Cobo Center, suburbanite who cut bus service, ter- be the world’s largest wind won’t protect De- turbine. profits in DPS deals, Page 3 minated union con- troit’s best inter- tracts, instituted a The facility would be ests. Barrow, in called NextWind and test pow- 10 percent wage contrast, has Cooley This Just In and benefit cut for ertrains that can generate 15- made much of 20 megawatts of energy. The nonunion work- his status as a Legislators approve more ers and is pushing world’s current most power- INSIDE lifelong Detroi- ful wind turbine, which is in MEGA program tax credits for the city’s ter, whose family L3C advice: Alt- largest labor Germany, generates seven energy business tree includes leg- megawatts, enough to power Legislation giving state of- unions to sign off on endary boxer Joe right for Detroit, ficials more Michigan Econom- similar reductions — about 1,800 U.S. households Page 6 ic Growth Authority tax credits all against the back- See Mayor, Page 32 for a year. The diameter of its that they can offer compa- rotors is 413 feet. Most commercial wind tur- nies this year is on its way to bines generate one to 2.5 megawatts. Gov. Jennifer Granholm for her “Clearly, we’ll have a chance to share knowl- signature, after getting final edge, share information, share expertise and approval last week. share history,” said Cooley of the consortium House Bill 4922, sponsored partners. by Rep. Ed Clemente, D-Lin- NATHAN SKID/CRAIN’S DETROIT BUSINESS Cooley said industry partners already on coln Park, provides an addi- board with $35 million in commitments include tional 85 yearly credits in MORE ELECTION COVERAGE WEB EXTRAS such major turbine manufacturers as Atlanta- 2009 that the MEGA board Where they stand: Bing Business perspective: Council and charter commission: Meet based GE Energy, Clipper Windpower Inc. of Califor- and Barrow tell Crain’s Business owners talk the candidates, www.crainsdetroit.com can award to general busi- See Wind, Page 32 nesses and to those solely re- about the issues, about what they need from Video: Bing, Barrow outline administrations, taining jobs. That’s on top of Pages 22-23 the city, Pages 24-26 www.crainsdetroit.com/multimedia the 400-credit cap that the state has reached. Most of the 85 credits would need to come from DAC, Forest Lake Country Club to vote on merger those previously approved by the board over the course The downtown athletic club and the subur- of the MEGA program but BY BILL SHEA CRAIN’S DETROIT BUSINESS ban country club on Oct. 21 signed a nonbind- never used by companies. ing letter of intent that would have the DAC In 2010 and beyond, the Members of the Detroit Athletic Club and Forest buy out the equity memberships of Forest MEGA program would have Lake County Club in Bloomfield Hills will vote Lake’s golf members. a 300 yearly credit cap, plus a later this year on what’s being billed as a pro- The deal — its legal mechanics are still being posed merger that would make the golf course a See This Just In, Page 2 worked out along with due diligence — would club-within-a-club for the DAC. give the DAC’s 2,410 resident members access to the country club’s dining and social options, but there would be premiums, still to be deter- mined, for pool and tennis access and for golf. Forest Lake members would get access to the DAC, ranked within the industry as one of the elite private social and business clubs in the na- tion. COURTESY OF FOREST LAKE COUNTRY CLUB The deal’s organizers didn’t say how much Forest Lake Country Club, which opened in 1926 in Bloomfield Hills, has about 230 equity golf members the equity buy-out might cost. NEWSPAPER and capacity for roughly 100 such memberships for See Country club, Page 30 Detroit Athletic Club members. 20091026-NEWS--0002-NAT-CCI-CD_-- 10/23/2009 6:34 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS October 26, 2009 bid from the U.S. Army Tacom Life Lochmoor Automotive closes The Kmart portion is now a “Big Newspaper executives told the THIS JUST IN Cycle Management Command in K” store, because it does not have St. Petersburg, Fla.-based Poynter Warren to take over production on August Russo has closed his De- grocery. Institute for Media Studies that they ■ From Page 1 the family of medium tactical ve- troit auto dealership, the Lochmoor Other co-branded stores are in expect the Free Press and News, hicles in 2011, from current con- Automotive Group. Greensboro and Raleigh, N.C. which share business operations, possible 85 additional credits. The tractor BAE Systems. Formerly Lochmoor Chrysler Jeep, The three stores are being used to achieve positive cash flow by yearly credits refer to the total BAE and Warrenville, Ill.-based the company lost its franchise as prototypes. the end of 2010. number of years for which MEGA Navistar International Corp. filed when Chrysler Group L.L.C. emerged — Daniel Duggan — Bill Shea credits are granted. protests against the award to from bankruptcy. The dealership The bill requires the state, in Oshkosh, and BAE filed supple- closed permanently on Oct. 9. Free Press circulation drops Medical waste cost tops $500B determining the length and mental protest documents earlier In June, Russo announced that amount of a credit, to consider the this month. he was to be a local franchise to 7.5% on Sundays The U.S. health care industry BAE Global Tactical Systems sell Mahindra & Mahindra Ltd. wastes each year between $505 bil- project’s effects on other Michigan The Sunday Detroit Free Press President Dennis Morris said last trucks. He also has been selling lion to $850 billion from a combi- businesses in the same industry. lost 7.5 percent of its Sunday cir- week the Army placed too much used cars and Vespa scooters but nation of fraud, administrative in- The legislation also increases the culation over the six months end- weight on pricing versus produc- had to close, said David Lewis the efficiency, unnecessary or number of agreements that can be ing Sept. 30 compared to the same tion capacity and other factors general manager. redundant care, medical errors made for high-tech businesses. period a year ago, according to when it selected Oshkosh, whom The dealership was formed 30 and complications, and lack of HB 4922 is tied to other bills, Audit Bureau of Circulation num- Morris believes underbid BAE by years ago. care coordination, according to a also passed, that alter the MEGA bers to be released today. up to 10 percent on the $3 billion- The dealership was down to 24 new study by Ann Arbor-based program. Those bills, sponsored employees from the 80 it employed Sunday circulation is now plus contract. Thomson Reuters. by Sen. Nancy Cassis, R-Novi, in- before the Chrysler termination, 560,188. A year ago it was 605,369. Ann Stawski, vice president of The study, which is being re- clude measures that require annu- according to Crain’s sister publi- Some combined weekday cir- marketing at Oshkosh, said the leased today, is based on detailed al state reports to list the jobs cre- cation Automotive News. culation is down an average of 8.2 company would not comment on analysis of hospital financials, in- ated or retained in any year that a — Daniel Duggan, Dustin Walsh percent, with the five-day aver- Morris’ remarks or the FMTV bid surance claims and government credit is applied, the value of tax age 437,578 — which accounts for data, and a review existing litera- credits claimed and the total capi- protests while they are pending.
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