DETROIT BUSINESS MAIN 12-24-07 A 1 CDB 12/21/2007 6:21 PM Page 1 ® http://www.crainsdetroit.com Vol. 23, No. 52 DECEMBER 24 – 30, 2007 $2 a copy; $59 a year ©Entire contents copyright 2007 by Crain Communications Inc. All rights reserved THIS JUST IN As new commercial projects pop Brownfield projects up across Detroit’s downtown Impact of win tax breaks Several brownfield rede- and Midtown areas, a less obvious velopment projects in De- troit received tax incentives from the state last week, wave of development is . and more projects could be added with the extension new CAFE and expansion of state brownfield legislation. Bills extending the pro- gram to Jan. 1, 2013, and making other changes passed the Legislature re- cently. Filling in rules ‘huge’ Included in House Bills 4711-4712 and Senate Bills 534 and 539 are measures that allow more communi- ties to use brownfield mon- Automotive suppliers ey for cleanups involving lead and asbestos, and in- the gaps crease the amount of mon- pressed for changes ey that can be used to cover BY DANIEL DUGGAN tial development near Woodward Av- AND ROBERT ANKENY enue and Peterboro Street. “The local governments’ brown- BY BRENT SNAVELY CRAIN’S DETROIT BUSINESS blank spaces are filling in.” field program expenses. CRAIN’S DETROIT BUSINESS The Detroit projects re- In the area between Mack Avenue Commercial development bustling ceiving brownfield tax and I-75, Cass Avenue and John R New fuel efficiency standards that became law Wednes- near Wayne State University and in De- credits include: Street, three major residential devel- day will create opportunities but also will put pressure on troit’s central business district has A $10 million credit opments are planned or under con- automotive suppliers to accelerate the development of fuel been easy to see. for Argonaut Campus Devel- struction. The growth in between the two ar- economy technology. oper L.L.C. to transform the Two office developments are under The legislation, signed by President Bush last week, up- eas, however, has been much less vis- way in the area, and a high-end gro- Argonaut Building donat- dates the Corporate Average Fuel Economy rules adopted in ible. cery store is scheduled to open by 1975. It requires manufacturers to meet the average See This Just In, Page 2 But as Midtown moves south and February. fleetwide target of 35 miles per gallon by 2020, a 40 percent downtown moves north, the gap be- Ilitch Holdings also is expected to tween the two is slowly closing as take over operations of the Masonic increase over current levels. plans emerge for new office, retail Temple. A spokesman said negotia- “I actually think this is huge. I think it could be very and residential development. tions are ongoing, but a deal has not transformational,” said Kim Korth, president of Grand ® “Things are changing around http://www.crainsdetroit.com Vol. 23, No. 53 2008 EDITION $29.95 yet been reached. See CAFE, Page 13 ©Entire contents copyright 2007 by Crain Communications Inc. All rights reserved here,” said Joel Landy, a developer 5 4 1 with plans for a $20 million residen- See Gaps, Page 16 2 2008bookof lists6 and Detroit yearbook Hall out at Rock, but Rankings, 3 ratings, people and predictions 16 7 for a new year 15 no one will say why 10 BY TOM HENDERSON AND BILL SHEA CRAIN’S DETROIT BUSINESS As its public face and voice, David Hall was so synony- COMING NEXT WEEK: mous with Rock Financial that typing www.davidhall.net on a Web browser BOOK OF LISTS took you to Rock’s Web site. Next week, subscribers will As of last Friday, a week after his em- receive the annual Book of ployment at Rock came to an end after 12 Lists. years, it still took you to the site, but The next regular issue of Hall’s beaming face was gone. Crain’s Detroit Business will be Crain’s could not reach Hall for com- Jan. 7, but breaking news will ment, nor would Rock Financial discuss be reported all week at the circumstances of his departure. But www.crainsdetroit.com. Hall’s once-ubiquitous radio and TV To sign up for email alerts to spots and print ads were quickly pulled Hall breaking news, visit last week by Rock’s parent company, JOHN F. MARTIN www.crainsdetroit.com/ Livonia-based Quicken Loans Inc. His “Real Estate Insider” getemail. Developer Russ Redmer says Detroit buyers want to see something built before investing. He is with Majestic Development, which is lead developer for Brush Park Village North. See Hall, Page 13 Birmingham building might Feeding more with less set record for price per makes Forgotten Harvest NEWSPAPER square foot, Page 3 winning nonprofit, Page 9 DETROIT BUSINESS MAIN 12-24-07 A 2 CDB 12/21/2007 6:20 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS December 24, 2007 Holdings Corp. last week completed Communications Inc. During the Hospice and Home Care. November, was expected to close THIS JUST IN its $783 million purchase of a trans- past six months, he has also helped Terms were not disclosed. in the first quarter of 2008. Terms mission system serving Iowa, Min- launch the company’s newest pub- The move follows Evangelical weren’t disclosed. Rallye has an- ■ From Page 1 nesota, Missouri and Illinois. lication, Crain’s Manchester Busi- Homes’ August acquisition of Ann nual sales of about $700 million. ITC Midwest L.L.C. closed the ac- ness, in Manchester, England. Arbor-based Helping Hands Inc., — Sheena Harrison ed by General Motors Corp. into a quisition after clearing a final reg- Crain Communications pub- which started the company’s in- mixed-use building for art and ulatory hurdle in Minnesota. The lishes more than 30 business-to- home care business Shared Services design education for the College acquisition involves the transmis- business newspapers and maga- Inc. S&P upgrades Detroit’s for Creative Studies. sion assets of Cedar Rapids, Iowa- zines. The latest acquisition adds fiscal outlook A credit of $3.9 million to based Interstate Power and Light Co., Medicare-certified skilled nursing redevelop the former Herman including about 6,800 miles of services. Evangelical Homes also A report released Thursday Gardens Public Housing Pro- transmission lines, substations, Oakwood may buy Midwest operates nursing homes, retire- from Standard & Poor’s upgraded ject in west Detroit. The project and transmission land rights. Health Center ment communities and affordable the city of Detroit’s fiscal outlook by Norstar Development USA will — Amy Lane housing. from “negative” to “stable” based create 186 rental units. Oakwood Healthcare Inc. last — Daniel Duggan on its assessment of recent mea- A $2.2 million credit to Ad Age names Chris Crain week confirmed it is in negotia- sures to restore financial balance. North Woodward Garden Block De- tions to acquire Midwest Health The city maintains a long-term velopment to renovate a block of associate publisher Center P.C. in Dearborn for an Penske drops plans to acquire credit rating profile of BBB, and undisclosed amount. Woodward Avenue between Crain’s sister publication Ad- Standard and Poor’s affirmed a With 19 specialties, the clinic dealer group Mack and Warren avenues. vertising Age on Wednesday general obligation bond ratings would give Oakwood another op- Penske Automotive Group Inc. has A $1.7 million credit to Pi- named Chris Crain, 32, its new asso- of BBB and BBB- — the lowest in- quette Square and Southwest ciate publisher beginning Jan. 14. portunity to expand its outpa- dropped its plans to acquire Ral- tient services, said Paula Rivera- lye Motors, a Long Island, N.Y., vestment-grade rating. Housing Solutions to redevelop a Since 2005, Crain has been as- The report also rates Detroit’s former Studebaker plant into sociate pub- Kerr, media-relations officer. dealership chain, according to a Oakwood has 40 other outpa- statement issued Friday. financial management practices mixed-use development. lisher at as “standard,” meaning the city A $1.5 million credit for Ur- tient sites throughout Southeast Bloomfield Hills-based Penske Crain’s Detroit has maintained “adequate poli- ban Development Co. L.L.C. to re- Business. Michigan, she said. Automotive (NYSE: PAG) said the decision was mutual, but did cies in most, but not all, key ar- develop the former Globe Trad- Crain’s new Under the proposed agreement not give a reason. eas.” ing Building and Detroit Dry responsibili- Mark Saffer, principal of Midwest The deal, which was signed in — Chad Halcom Docks Engine Works on Atwa- ties will in- Health Center, would continue to ter Street into residential and clude manage- operate the clinic under a man- commercial space. ment of Ad agement contract. Saffer could CORRECTION A $1.3 million credit for Age’s Creativi- not be reached for comment. FRBD L.L.C. to renovate the Fed- Ⅲ An incorrect location was given for the headquarters of Papa Ro- Crain ty Magazine — Sherri Begin eral Reserve Bank Building in mano’s Enterprises Inc. on Page 2 of Crain’s Dec. 17 edition. Papa Ro- and responsibility for the contin- Detroit into mixed-use space. mano’s is based in Commerce Township. uing development of new online — From staff reports Evangelical Homes buys Ⅲ A story about Hayes Lemmerz International Inc. on Page 4 of the Dec. 17 communities for the Ad Age Group. Home Care edition incorrectly cited the annual revenue of a brake business the ITC subsidiary buys In his Crain’s Detroit Business company sold recently. The brake business had 2006 sales of about Iowa company role, Crain has been instrumen- Detroit-based Evangelical Homes $120 million.