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Bing Vs. Snyder 20120319-NEWS--0001-NAT-CCI-CD_-- 3/16/2012 6:48 PM Page 1 ® www.crainsdetroit.com Vol. 28, No. 12 MARCH 19 – 25, 2012 $2 a copy; $59 a year ©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved Page 3 Personal property tax bill introduction expected soon Two companies Bing vs. Snyder sought fed loans; one survived Second Stage Extra Game on THE ASSOCIATED PRESS Wide receiver Calvin Johnson got an Zero to $1M- eight-year, $132 million contract from plus: Managing the Detroit Lions. quick growth, Page 11 NFL TV deal Crain’s Lists frees Lions Largest general contractors, Page 20 to pay big JOHN SOBCZAK This Just In New contracts take Standoff swings on confidence, trust advantage of change SBAM joins Intern in BY NANCY KAFFER tions overseen by a team of ap- wanted to usher in change and CRAIN’S DETROIT BUSINESS pointees selected by that board, were committed to working to- Michigan matching program BY BILL SHEA according to a gether. In the past year, Snyder CRAIN’S DETROIT BUSINESS State and city officials are ne- draft of the has reinvented state govern- The Small Business Associa- gotiating the terms of a consent state’s consent ment, changing the tax code, and tion of Michigan plans to join The eye-popping eight-year, agreement to keep Detroit from agreement re- balancing the budget. the Intern in Michigan web- $132 million contract given to De- financial ruin. But the success of leased last Bing hasn’t fared so well. based program to help match troit Lions wide receiver Calvin the deal could hinge on one week. The city is expected to run out students with startups and Johnson last week is possible un- point: How Bing, for his of cash in April. At the end of the other small businesses look- der the National Football’s League’s much confi- part, has said last fiscal year, its deficit was ing for interns. salary cap thanks to a looming ex- CLOSER LOOK dence Gov. that he’s not about $200 million. If Bing and Intern in Michigan already pansion in television revenue. Will it fly? Rick Snyder sure he trusts the Detroit City Council don’t sign has 410 small businesses regis- In December, the league’s 32 own- Lawyers look at has in Detroit Snyder and the consent agreement drafted tered as seeking interns, and ers approved new TV deals with Snyder’s draft, Mayor Dave that the gover- Snyder by Snyder, an emergency manag- organizers expect that num- Fox, CBS and NBC that begin next Page 26 Bing’s man- nor is staging a takeover of De- er — or bankruptcy filing — is ber to increase with the new year and run through 2022 and have City finances: agement troit. Bing vowed to defy the gov- inevitable. link to SBAM. a combined worth of $28 billion. Credit swaps complicate the skills. ernor, saying he wouldn’t sign a Snyder and Bing are at logger- Intern in Michigan has That’s a 63 percent average increase picture, Page 26 In Snyder’s consent agreement proposed by heads. The city and the state 8,000 students registered as for the span of the contracts. vision for De- Snyder. have produced draft consent seeking internships, said Mike That translates into nearly troit, Bing is Just a year ago, the men had a agreements, both granting most Rogers, vice president of com- $2 billion in new annual revenue on a short leash, answering to a very different relationship. Sny- of the powers of an emergency munications for SBAM. from the broadcast deals, which is nine-member financial advisory der and Bing were touted as two manager to the mayor, but with “The challenge is to get expected to mean an additional board controlled by the gover- businessmen-turned-politicians them connected with small $20 million to $30 million in salary nor, with many of the city’s func- who spoke the same language, See Standoff, Page 26 businesses (that) need the cap space per team starting in 2013. help and are willing to work Broadcast revenues are the with the students. Our goal is largest source of the NFL’s $9 bil- to help get thousands of small- lion in annual revenue and are business internships filled, split evenly among the league’s 32 Leasing of assets could bring quick cash to city not dozens or hundreds,” teams — a measure of corporate socialism aimed at ensuring com- Rogers said. BY NANCY KAFFER parking garages were leased in a the city could have gotten a big- petitive parity. Intern in Michigan, at CRAIN’S DETROIT BUSINESS separate 2006 deal.) ger payout. The annual salary cap limit, interninmichigan.com, was cre- The deal has been controver- But Chicago parking officials which is $120.6 million for 2012, is ated by the Detroit Regional Short on cash to improve and sial, unpopular among many dri- say the deal saved the city an es- indexed against the NFL’s yearly Chamber and the West Michigan maintain its street parking sys- vers, and the city’s inspector timated $40 million in system up- broadcast revenue. It was first put Strategic Alliance and re- tem, the city of Chicago sought a general has questioned whether grades. in place in 1994. launched in November. private operator for its parking For the city of Detroit, leasing — Sherri Welch See Lions, Page 25 meters in 2008. municipal assets could be a way The private sector was quick to bring in cash while moving to respond, with multiple of- the costs of operations, main- fers from investors. The tenance and investment off city ultimately chose a the books. Morgan Stanley-backed See Assets, Page 27 partnership, netting $1.15 billion for a 75- year lease of the Detroit could lease city’s street park- assets like parking to ing. (The city’s get needed cash. NEWS- JEFF JOHNSTON/CDB 20120319-NEWS--0002-NAT-CCI-CD_-- 3/16/2012 6:05 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS March 19, 2012 MICHIGAN BRIEFS Two Men and a Truck picks Conversion Devices Inc. filed for bankruptcy in February, the com- first leader from outside family Comedy in cancer? Gilda’s Club in GR gets last laugh pany said it would sell its United So- Randy Shacka, COO of Lansing- lar Ovonic subsidiary. Better hurry. based Two Men and a Truck Interna- The idea was not so much to make money as to cies. It featured Bill Cosby, Betty White and Mar- Grand Rapids officials were ex- tional LLC, will become president of make merry. But it turns out that the second annual garet Cho; called on 1,300 volunteers; won a spot in pected to rescind a commitment to the moving company franchise in Gilda’s LaughFest might do both. The 10-day festival, the Guinness World Records for the largest rubber- use panels made in Greenville by August. Current president and CEO which ended Sunday, featured a mix of professional chicken toss; and drew visitors from 25 states, Cana- United Solar Ovonic on the city’s Brig Sorber will continue as CEO. and amateur comedians, improv groups, musicians, da and nearly every county in Michigan. water building, The Grand Rapids Shacka’s appointment marks dancers, speakers, films and exhibits. Traffic in the city’s restaurants and bars, particu- Press reported. Instead, the con- the first time the company will be The first LaughFest, held last March, attracted larly those that hosted events, appeared to increase tract will go to Canadian Solar Inc. led by someone outside the Sorber 472 performers and about 55,000 visitors and raised during the inaugural LaughFest, said Doug Small, “With Uni-Solar going through family. He has worked for Two $300,000 for Gilda’s Club, a nonprofit that provides president of Experience Grand Rapids, the city’s con- Chapter 11 bankruptcy, we do not Men and a Truck since 2002, serv- counseling, classes and other support for cancer pa- vention and visitors’ bureau. know how it’s going to be set up ing in operations management and tients and their families. Gilda’s Clubs are part of an international network and what the courts are going to al- franchise development. LaughFest originated as a way to celebrate the called the Cancer Support Community. low in terms of warranty items for Two Men and a Truck is the 10th anniversary of the Grand Rapids Gilda’s Club The Washington, D.C.-based network encompass- this project,” city engineer Mark largest franchise moving company — affiliated with a network of clubs named after Gil- es 52 clubs, 25 of which are called Gilda’s Club. DeClercq told The Press. “The orig- in the country, with more than 200 da Radner, the late comedian and member of the Michigan has a second Gilda’s Club in Royal Oak, inal base bid was to use Canadian locations and 1,400 trucks. original “Saturday Night Live” cast. plus the Cancer Support Community of Greater Ann Ar- Solar as the supplier, so we want to — Meghana Keshavan The first LaughFest was a collaborative effort of bor. go back to them.” 79 businesses, nonprofits and government agen- — Pat Shellenbarger Find business news from Lansing City Council set to decide around the state at crainsdetroit fate of proposed downtown casino as well as plans for a parking ramp band Internet access in Michigan: United Solar’s Ch. 11 costs it .com/crainsmichiganbusiness. on property near Cooley Law School Why are you not looking out the Sign up for Crain's Michigan All the debate about whether the Stadium.
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