DOCSLIB.ORG

As Supplier Empire Falls, a Money Puzzle Unravels

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
As Supplier Empire Falls, a Money Puzzle Unravels 20130204-NEWS--0001-NAT-CCI-CD_-- 2/1/2013 6:42 PM Page 1 ® www.crainsdetroit.com Vol. 29, No. 5 FEBRUARY 4 – 10, 2013 $2 a copy; $59 a year ©Entire contents copyright 2013 by Crain Communications Inc. All rights reserved Page 3 State wants in on games for charities Company has new approach JEFF JOHNSTON/CDB Parties face to medical pot transactions closer scrutiny Business Education BY SHERRI WELCH Colleges add lures to fish CRAIN’S DETROIT BUSINESS smaller student pool, Page 11 Charities hosting fundraising “mil- lionaire parties” will soon face new As supplier empire falls, state regulations — and could see new Crain’s Lists fees on casino-style games — as the Largest Washtenaw state seeks to capture a portion of the money coursing through crowded and Livingston County charity poker rooms. employers, Pages 18, 19 Millionaire parties generated more a money puzzle unravels than $184 million in cash activity in fiscal 2012. That’s up from $3.4 million This Just In in 2003 but down from the reported Revstone chief faces scrutiny from feds, creditors $194 million generated by charity WSU mulls $12 million games in 2011, according to the Michi- gan Bureau of State Lottery’s Charitable tech ed center in Warren BY DUSTIN WALSH tor, Clearwater, Fla.-based Boston ernment over allegedly raiding Gaming Division. CRAIN’S DETROIT BUSINESS Finance Group LLC. employee pension funds of $34.6 Last year, charities that hosted mil- Wayne State University could Revstone million to keep Revstone afloat lionaire parties collectively raised build a new $12 million, Revstone Industries LLC founder and Boston Fi- and fund his expensive lifestyle, more than $15.6 million. 40,000-square-foot Advanced and Chairman George Hofmeis- nance had including a 2,000-acre, $40-million Charity suppliers or game opera- Technology Education Cen- ter is watching his automotive been em- mansion and horse farm near tors made the same amount as the ter in Warren near Macomb supplier em- broiled in a Paris, Ky., northeast of Lexing- charities, since the two split the 10 Community College during the pire crumble CLOSER LOOK lending dis- ton. percent-or-so rake-off of the money next academic year, using as Revstone pute in the The government and Boston funds from a bond sale under Follow the battles bank- court for near- Finance allege Hofmeister has See Gaming, Page 22 review this week. acquisition ruptcy. ly a year, and played a shell game with assets trail, Page 24 A committee of the univer- The South- Hofmeister for years in attempts not to pay sity board of governors will field-based op- and his compa- creditors. Hundreds of pages of Hofmeister consider on Wednesday a 32- eration that once had $600 million nies have been current and past court docu- year, $92 million bond sale to in revenue filed Chapter 11 bank- shrouded in controversy over al- ments reviewed by Crain’s un- fund various projects, in- ruptcy protection Dec. 3 after a legations of fraud and finan- veil a complex web of companies cluding $31 million toward Grand Traverse County 13th cial mismanagement from controlled by irrevocable trusts its $93 million Multidiscipli- Circuit Court judge or- the U.S. Department of Labor. and internal Revstone finance nary Biomedical Research dered the company to Hofmeister is under a staff unaware of the flow and dis- Building in Detroit and $9 pay nearly $27 million civil and criminal investi- million toward the $12 mil- owed to its largest credi- gation by the federal gov- See Revstone, Page 24 lion cost of a Macomb exten- ISTOCKPHOTO.COM sion center project. The Macomb center, on the grounds of a former Farmer Jack store the university pur- chased in 2011, would be the Ilitch consultant: Wings arena could break ground by fall third phase of a Macomb County expansion the univer- BY BILL SHEA Mark Rosentraub, a professor of sports cember, so he doesn’t know if plans have sity began in 2007, according CRAIN’S DETROIT BUSINESS management at the University of Michigan. changed. to a report by Richard Nork, “A lot of that depends on the infrastruc- Sandra van Meek, a spokeswoman for WSU vice president of finance Construction is expected begin no lat- ture.” Ilitch-owned Olympia Development Co. and business operations. er than autumn on a new downtown are- He’s worked for the Ilitch family, that’s overseeing the project, declined to The Warren building, along na for the Detroit Red Wings, according to which owns the Red Wings, as a consul- comment. 12 Mile Road across from the a sports economist who has done work tant to create economic impact, jobs and Driving the project’s timeline and cost MCC south campus, could be for the team’s owners and is familiar tax estimates and models for the $650 mil- will be infrastructure needs, Rosentraub renovated or replaced. with their plans. lion arena district project, he said. said. — Chad Halcom “I would hope that they would be able Rosentraub cautioned that he’s had no Rosentraub to get it in the ground by the fall,” said contact with the Ilitches since early De- See Wings, Page 25 Honorees will be recognized for excellence in financial or other corporate operational management and their contributions to the community. Deadline: March 1 | www.crainsdetroit.com/nominate NEWSPAPER 20130204-NEWS--0002-NAT-CCI-CD_-- 2/1/2013 4:17 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS February 4, 2013 MICHIGAN BRIEFS How does W. Mich. beer rate? Read on, and prepare for thirst CORRECTIONS PSC goes with flow, OKs replacement of oil pipeline No. 17 on the list of largest 2012 Well, of course there would be a mergers and acquisitions on Page website that rates beer. And the The Michigan Public Service Commission last week Oakland, Macomb and St. Clair. gave the final OK for Calgary, Alberta-based En- Enbridge said the line replacement is part of a 15 of the Jan. 28 edition should aptly named RateBeer.com has have said Southfield-based Sey- doled out some of its “best of” desig- bridge Inc. to finish replacing the underground plan to boost the flow of oil to refineries in the east- pipeline that ruptured and spilled more than 800,000 ern U.S. and Canada. When completed, the burn, Kahn, Ginn, Bess and Serlin PC nations to the West Michigan beer was sole adviser to Plastipak Hold- industry, the Grand Rapids Busi- gallons of oil into the Kalamazoo River in 2010, The pipeline’s capacity will be 500,000 barrels a day, Associated Press reported. The $1.6 billion project more than double the current maximum. ings Inc. in a minority stake acqui- ness Journal reported last week. sition by Goldman Sachs Capital Ⅲ Top brewpub in U.S.: HopCat in will replace a 286-mile pipeline from Griffith, Ind., to In April 2012, Crain’s reported that Enbridge esti- Sarnia, Ontario. mated that the so-called Line 6B project would gen- Partners. Cohn & Kelakos was not Grand Rapids, which also was a Plastipak adviser. named the No. 3 beer bar in the In a news release, the PSC said the line “will serve erate 528 construction jobs and $108 million in eco- A story on Page 11 in the Jan. world by BeerAdvocate and the No. a public need, is designed and routed in a reason- nomic impact in 2013 and indirectly create up to 28 issue misstated the number of 2 beer bar in the U.S. by able manner and meets or exceeds current safety 1,537 jobs through 2021. Line 6B transports predomi- local mergers and acquisitions CraftBeer.com. and engineering standards.” The project will extend nantly heavy crude oil from tar sands deposits in in 2012 on which Honigman Miller Ⅲ Best beer market: Siciliano’s through 10 Michigan counties: Berrien, Cass, St. western Canada to eight refineries, including the Schwartz and Cohn LLP was an ad- Market in Grand Rapids. Joseph, Kalamazoo, Calhoun, Jackson, Ingham, Marathon site in Detroit. viser. The correct number is 14. Ⅲ Best Michigan Brewery: Ⅲ A Business Diary item on Founders Brewing Co. in Grand U.S. Department of Agriculture, downtown Grand Rapids — Tenants include the Grand Rapids Page 22 in the Jan. 28 issue Rapids. (Detect a pattern here?) Michigan Radio reported last week Bridgewater Place — is being sold Area Chamber of Commerce and The should have said Medical Network Ⅲ Best beer in Michigan: Founders’ that last year was officially the to California-based Hertz Invest- Right Place Inc. economic develop- One in Oakland Township is Kentucky Breakfast Stout. worst growing year on record ment Group, MLive.com reported. ment organization. changing its name to MedNetOne Among RateBeer’s top 10 beers since tracking began in 1925. GMAC bought the 17-story building Health Solutions. in the world, Kentucky Breakfast For example, only 11.6 million for $34 million two years ago after Ⅲ A People item on Page 24 in Stout is No. 4. Hopslam, a product pounds of tart cherries were pro- the previous owners defaulted on a MICH-CELLANEOUS the Jan. 28 issue should have of Kalamazoo-based Bells Brewery duced, down 92 percent from 157.5 $36 million mortgage. Ⅲ Officials at Gerald R. Ford Inter- listed Eric Davies’ new position as Inc., is No. 6, while Bells’ Black million pounds in 2011. The largest tenant is the Varnum national Airport in Grand Rapids senior director of sales for Out- Note rounds out the top 10. “For some of the fruits like LLP law firm, whose sign appears said last week that 2.13 million cast Media’s Detroit office.
Load more

Recommended publications
  • Financial Woes Simmered Before DSC's
    20111003-NEWS--0001-NAT-CCI-CD_-- 9/30/2011 6:14 PM Page 1 ® www.crainsdetroit.com Vol. 27, No. 41 OCTOBER 3 – 9, 2011 $2 a copy; $59 a year ©Entire contents copyright 2011 by Crain Communications Inc. All rights reserved Page 3 Supply base on edge over Furukawa probe A window opens Wayne County development organizations too chummy? NATHAN SKID/CRAIN’S DETROIT BUSINESS for homebuilding “You have a nonprofit trying to run like a business but forced to account like a nonprofit,” said former President and CEO Kevin Prihod of the Detroit Lots bought Science Center’s challenges. in recession Financial woes are fertile fields BY DANIEL DUGGAN simmered CRAIN’S DETROIT BUSINESS Homebuilders are building again. before DSC’s Fewer existing homes listed for Whelan, other warehousers sale, combined with prices that put stock in parts storage are starting to increase, have giv- en builders the green light. quick closure The 2,000 homes permitted in the first half of 2011 Inside BY SHERRI WELCH LOSER outpaced 2010 by CRAIN’S DETROIT BUSINESS C 18.5 percent, and LOOK developers expect a Council, DEGC agree The Detroit Science Center’s two- strong third quar- on outline of rail-building week closure and the resignation of The ter: July had the its president and CEO were sudden numbers: second-most per- Housing authority, Page 6 — but its problems were not. mits of any month As its operations and campus permits by county, city, since 2007. August grew to include a 4-D theater, the builder, was fourth.
    [Show full text]
  • United States Bankruptcy Court Eastern District of Michigan Southern Division
    UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION ----------------------------------------------------x : : In re: Chapter 9 : CITY OF DETROIT, MICHIGAN, : Case No. 13-53846 : Debtor. Hon. Steven W. Rhodes : : ----------------------------------------------------x CORRECTED AMENDED STIPULATION TO ENTRY OF CORRECTED AMENDED JOINT FINAL PRETRIAL ORDER BY DEBTOR AND CERTAIN PLAN OBJECTORS Pursuant to Local Bankruptcy Rule 7016-1 and paragraph 6(c) of the Eighth Amended Order Establishing Procedures, Deadlines and Hearing Dates Relating to the Debtor’s Plan of Adjustment (Aug. 13, 2014) [Dkt. 6699], (a) the City of Detroit, Michigan (the “City”), the proponent of the Sixth Amended Plan for the Adjustment of Debts of the City of Detroit (Aug. 20, 2014) [Dkt. 6908] (as it may be further amended, modified or supplemented, and including all exhibits and attachments thereto, the “Plan”), (b) certain supporters of the Plan (collectively with the City, the “Plan Supporters”), including The Detroit Institute of Arts, a Michigan nonprofit corporation (the “DIA Corp.”), the Official Committee of 13-53846-swr Doc 7211 Filed 08/30/14 Entered 08/30/14 13:37:51 Page 1 of 384 Retirees of the City of Detroit (the “Committee”), the Police and Fire Retirement System of the City of Detroit and the General Retirement System of the City of Detroit (together, the “Retirement Systems”), the Detroit Police Officers Association (the “DPOA”), the Retiree Association Parties, and the State of Michigan, and (c) certain objectors to the Plan (collectively, the “Objectors”), including (i) Syncora Guarantee Inc. and Syncora Capital Assurance Inc. (together, “Syncora”), (ii) Financial Guaranty Insurance Company (“FGIC”), (iii) Assured Guaranty Municipal Corporation (“Assured”), (iv) National Public Finance Guarantee Corporation (“National”), (v) Berkshire Hathaway Assurance Corporation (“BHAC”), (vi) U.S.
    [Show full text]
  • Tenants at Will of the Legislature: an Exploratory Case Study of Michigan’S Emergency Manager Statutes
    Tenants at Will of the Legislature: An Exploratory Case Study of Michigan’s Emergency Manager Statutes Matthew R. Jones Submitted to Yale Gordon College of Liberal Arts, University of Baltimore In partial fulfillment of the requirements for the degree of: Doctor of Public Administration February, 2016 1 ACKNOWLEDGEMENTS The completion of a doctoral degree is a culmination of lifelong educational pursuit. As such, it is not accomplished by the individual alone, but is a product of their life experience inclusive of the love and support of family and friends, as well as the direction from the academic scholars and professors. A large share of gratitude and acknowledgement goes to my dissertation committee: Dr. Lenneal Henderson, Dr. Ed Gibson and Dr. Lorenda Naylor, for dedicating their valuable time, and providing guidance during my scholarly journey. The expertise was instrumental and their teaching and scholarship was inspirational. To my parents, Robert and Annet, thank you for inspiring me, since childhood, with a love for reading and continuous learning. To my grandfather, Bert, and my brother Jeff, thank you for the support over the years. A special thank you to Samantha, for her love, support and understanding throughout my academic pursuits. 2 ABSTRACT Tenants at Will of the Legislature: An Exploratory Case Study of Michigan’s Emergency Manager Statutes Matthew R. Jones In July 2013, the city of Detroit filed for bankruptcy, representing the largest filing for municipal bankruptcy in the history of the United States. The public administrator behind the filing, Emergency Manager Kevyn Orr, was not a resident of Detroit, or the state of Michigan, and was never elected by residents of Detroit or Michigan to any public office.
    [Show full text]
  • Program No Clunker Here
    20090810-NEWS--0001-NAT-CCI-CD_-- 8/7/2009 7:00 PM Page 1 ® www.crainsdetroit.com Vol. 25, No. 31 AUGUST 10 – 16, 2009 $2 a copy; $59 a year ©Entire contents copyright 2009 by Crain Communications Inc. All rights reserved Page 3 On to November: What’s next for Detroit candidates? Electric cars: Will they sell? Book Tower in the sights Buyer interest, battery supply key concerns of developer John Ferchill The bigger “ BY CHAD HALCOM But a key question remains: If Detroit builds challenge for us CRAIN’S DETROIT BUSINESS it, will customers come? Inside Michigan businesses received $1.35 billion, will be generating There’s no shortage of ambition in the plan. more than half of the total $2.4 billion in grants Jobs Fund competition The federal Electric Drive Vehicle Battery announced last week by President Barack Oba- consumer and Component Manufacturing initiative aims ma and Vice President Joe Biden. (See box, lacks minimum funding. to help an energy industry to build from the Page 30.) But rolling out a fleet of greener vehi- Capitol Briefings, Page 4 interest. ground up, forge supply chains with Detroit’s cles is the not the last hurdle to clear, business ” automakers and put a support system in place leaders and industry analysts said. Keith Cooley, NextEnergy around vehicle fleets, all in time to have 1 mil- Jobs/Economy Quarterly lion electric vehicles on the road by 2015. See Electric, Page 30 A line of “clunkers” Move to close rolls into Taylor Auto Salvage Inc. The business in Taylor has taken in about 900 cash for Audette Cadillac clunkers vehicles so far.
    [Show full text]
  • Unmaking the Motor City by Heather Thompson
    +(,121/,1( Citation: 15 J.L. Soc'y 41 2013-2014 Content downloaded/printed from HeinOnline (http://heinonline.org) Tue Apr 28 17:35:31 2015 -- Your use of this HeinOnline PDF indicates your acceptance of HeinOnline's Terms and Conditions of the license agreement available at http://heinonline.org/HOL/License -- The search text of this PDF is generated from uncorrected OCR text. -- To obtain permission to use this article beyond the scope of your HeinOnline license, please use: https://www.copyright.com/ccc/basicSearch.do? &operation=go&searchType=0 &lastSearch=simple&all=on&titleOrStdNo=1538-5876 UNMAKING THE MOTOR CITY IN THE AGE OF MASS INCARCERATION HEATHER ANN THOMPSON' Table of Contents I. WHAT HAPPENED TO DETROIT? ......................... .. .. .. .. .. .. .. 41 II. WHAT HAPPENED TO DETROIT... THE MORE COMPLICATED STO RY ........................................................................................... 43 A. The Criminalizationof Urban Space ...................................... 43 B. Why the War on Crime?........................................................... 44 1. A Revolution in DrugLegislation ...................................... 46 2. Sentencing and Parole...................................................... 47 3. The Criminalizationof Detroit Schools ............................. 48 C. Detroit's Urban Crisis............................................................. 49 1. M illion Dollar Blocks ........................................................ 50 2. OrphanedChildren ..........................................................
    [Show full text]
  • WJBK, DETROIT, MI This Report Covers the Time Period September 1, 2003 – August 31, 2004 (Except Where Otherwise Specifically Noted)
    WJBK, DETROIT, MI This report covers the time period September 1, 2003 – August 31, 2004 (except where otherwise specifically noted). Local Newscasts and Key Stories WJBK airs 42.5 hours of local news each week, at the following times: Monday – Friday, 5 a.m. – 9 a.m. Monday – Friday, 12 p.m. – 12:30 p.m. Monday – Friday, 5 p.m. – 6:30 p.m. Monday – Friday, 10 p.m. – 11 p.m. Saturday, 6 p.m. – 7 p.m. Saturday – Sunday, 8 a.m. – 10 a.m. Saturday – Sunday, 10 p.m. – 11 p.m. Sunday, 6 p.m. – 6:30 p.m. Community service is something that WJBK takes extremely seriously – it's at the core of the station's mission. The station's news team is known throughout the Detroit area as the "FOX2 Problem Solvers." WJBK focuses its efforts each day on using the power of television to solve viewer problems and make the Detroit community a better place. In addition, in every newscast, WJBK airs health and money stories that support its "news that works for you" philosophy. The station also has news franchises called "Parent 2 Parent" (offering parenting tips) and "Honor Roll" (highlighting young people who give back to the community). Provided below is a brief summary of important local stories that WJBK has covered recently within its local news broadcasts: * Problem Solvers. Kaytya – 3 years old – was born with a defect in which part of her brain is growing outside her head. A world-renown surgeon and Detroit native was willing to operate at Johns Hopkins in Baltimore – but Medicaid wouldn’t cover the surgery that would drastically improve Kaytya’s quality of life.
    [Show full text]
  • WJBK – DETROIT, MI This Report Covers the Time Period November 1, 2005 to October 31, 2007 (Except Where Otherwise Specifically Noted)
    1 WJBK – DETROIT, MI This report covers the time period November 1, 2005 to October 31, 2007 (except where otherwise specifically noted). I. PROGRAMMING a. Local Newscasts: WJBK airs 50 hours of local news each week (including 7 hours of repeats), at the following times: Monday – Friday: 5 a.m. – 9 a.m. Monday – Friday: 11 a.m. – Noon Monday – Friday: 5 p.m. – 6:30 p.m. Monday –Sunday: 10 p.m. – 11:00 p.m. Monday – Friday: 11 p.m. – 11:30 p.m. (launched 9/24/07) Monday – Friday: 2:00 a.m. – 3:00 a.m. (rebroadcast) Saturday: 7 a.m. – 10 a.m. Saturday: 6 p.m. – 7 p.m. Sunday: 6 p.m. – 6:30 p.m. Sunday: 11 p.m. – 11:30 p.m. (Sports news) b. Breaking News Stories: WJBK broke into and/or preempted regularly scheduled programming on numerous occasions during the period covered by this report in order to bring its viewers breaking news or disaster information. This coverage included extended reporting on severe weather warnings, amber alerts, school closings, and other emergencies. c. Local News Stories: WJBK’s mission is to provide Detroit viewers with important local news and information, in keeping with its own logo, “news that works for you.” From health and consumer news to unique franchises such as Parent 2 Parent, Honor Roll, Job Shop, and Michigan’s Most Wanted, FOX 2 News strives to bring useful and relevant content that will help viewers live happier, healthier and more productive lives. The FOX 2 Problem Solvers are now partnered with Crime Stoppers, and nightly segments in 10 p.m.
    [Show full text]
  • Hot-Button Ordinances May Go up for Review
    20100118-NEWS--0001-NAT-CCI-CD_-- 1/15/2010 5:30 PM Page 1 ® www.crainsdetroit.com Vol. 26, No. 3 JANUARY 18 – 24, 2010 $2 a copy; $59 a year ©Entire contents copyright 2010 by Crain Communications Inc. All rights reserved Page 3 Chinese fund CEO group says it’s time for Michigan tax restructuring loans $33.5M Hot-button ordinances Suspense hangs over fate of film industry, tax credits to Prestolite Inside Money needed for may go up for review Haiti earthquake relief: product launches How to get involved, Page 4 Privatization, Detroit preference questioned BY RYAN BEENE CRAIN’S DETROIT BUSINESS Second Stage Extra BY NANCY KAFFER nance. bid and compete for work.” Prestolite Electric Inc. ended CRAIN’S DETROIT BUSINESS Newly elected council President “We have to give the mayor the 2009 on a high note by closing a Charles Pugh said the city must ability to better negotiate better When number crunchers talk balance its books. prices for city services period,” deal to secure $33.5 million in about cutting Detroit’s costs, two fresh capital, defying the virtu- “It’s time to put Councilwoman issues come up: the city’s anti-pri- everything on the Saunteel Jenk- ally frozen credit markets that vatization ordinance and its policy defined much of last year. table, and that I’m a union guy ins said. “We of giving contract preference to means look- have to pro- The loan was issued to Detroit-based businesses. “ Prestolite’s subsidiary in China ing closely vide Detroiters Both provisions have been a po- ..
    [Show full text]