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Locals Buying Locally Convention Center 20081013-NEWS--0001-NAT-CCI-CD_-- 10/10/2008 6:22 PM Page 1 ® www.crainsdetroit.com Vol. 24, No. 41 OCTOBER 13 – 19, 2008 $2 a copy; $59 a year ©Entire contents copyright 2008 by Crain Communications Inc. All rights reserved Economy in turmoil THIS JUST IN Long-vacant Royal Oak site may get L.A. Fitness Credit unions ready to lend The long-vacant site just north of I-696 between Main Street and Wood- ward Avenue in Royal Oak As banks tighten may be the site of an L.A. Fitness operation next year. Site-plan approval for credit, credit unions the project has been grant- ed by the Royal Oak Planning Dexter-based Commission, said Doug do booming business Bearclaw Coffee Hedges, a city planner for Co. won a spot in BY TOM HENDERSON Royal Oak. Construction the soon-to-open would start in the spring. CRAIN’S DETROIT BUSINESS Doubletree Guest Suites Fort Shelby The plan calls for a two- “Welcome to Community Financial, where we have story, 45,000-square-foot fa- partly because of millions to lend.” Doubletree’s cility on the site. That message on Plymouth-based Community Finan- commitment to Other development plans cial credit union’s phone system is repeated in one local companies. have come and gone for that fashion or another by the presidents and CEOs of cred- Debi Scroggins is site, which was home to an it unions around Southeast co-owner of auto dealership until the Michigan. More on the Bearclaw. 1980s, when the state Financial meltdown? Au con- NATHAN SKID/CRAIN’S DETROIT BUSINESS cleared the property during traire. economy construction of I-696. The Area credit unions say they ■ National stock state gave the land to the are flush with cash, have capi- slide spreads to city, and its fate involved tal-to-asset ratios most bankers region. Page 4. ideas from an aquarium to a only dream about, and are do- ■ SBA-backed Locals buying locally convention center. ing a booming business in auto loans plummet. The most recent was for a and home loans. Page 32. office, retail and hotel build- The only trouble they have, ■ ASE survey: Movement grows as economy shrinks ing called Gateway Office they say, is getting the word out Most employers Center, to be developed by expect cutbacks. to more people that they are sit- BY DANIEL DUGGAN to us, but also something that’s going to Livonia-based Schostak Page 32. ting on money and eager to loan AND NANCY KAFFER set us apart from the other hotels.” Bros. & Co. Inc. ■ GM wants it. CRAIN’S DETROIT BUSINESS Enter Bearclaw Coffee Co., an up-and- RenCen off the Schostak will act as de- “We have a ton of liquidity, coming Dexter-based coffee franchise co- books. Page 34. veloper for the L.A. Fitness and we’re really trying hard to Shannon Dunavent was close to a deal owned by Debi Scroggins. Dunavent liked ■ Corporate project and be landlord un- lend more,” said Mary McDon- to place a new Starbucks store in the soon- Bearclaw’s pitch; the local company won pension plans der the terms of a long- ald of Auburn Hills-based USA to-open Doubletree Guest Suites Fort Shelby blasted. Page 35. the business and will open in December term lease, said co-presi- Credit Union, which she said in Detroit. with the hotel. dent Robert Schostak. should do about $2 million in She liked the idea, but wanted to find a Bearclaw’s just one of several Michigan — Daniel Duggan first mortgages this month, double September’s total. local company to fill the slot. companies the hotel’s management opted Credit unions, through cooperative efforts to share “I’m looking at the other hotels in my to use. The Doubletree’s office furniture is Tax conference planned cost and risk, are even branching out to commercial competition set,” said Dunavent, general made by Zeeland-based Herman Miller Inc., manager of the Doubletree. “I wanted An array of tax experts See Credit unions, Page 34 something local, because that’s important See Local, Page 33 from Michigan and throughout the country, state officials and others are on tap for a Nov. 5-6 confer- ence in Novi that will exam- ine Michigan’s business tax and additional tax issues. Flint has believers — with cash The 2008 Michigan Tax Conference at Rock Finan- cial Showplace is sponsored Six investors wanting to make a difference spur redevelopment by the Michigan Association of Certified Public BY DANIEL DUGGAN downtown area. Each put in $166,000 “Is it challenging? Yes. In this Accountants, in partnership CRAIN’S DETROIT BUSINESS — though they’ve all invested more economy? Especially. But we’re with the State Bar of Michi- since — and agreed to put their ener- making a difference,” said Philip The gist of most publicity coming gan taxation section and the gy behind developing new projects Shaltz, president of Flint-based Au- out of Flint is that it’s run-down, Michigan Department of Trea- for downtown Flint. tomation Inc. and a member of the jobless and broke. sury. The group now looks back on 12 Uptown Six. Registration information Someone should have told that to completed projects in the down- is available at www.mich the Uptown Six. town area. cpa.org, or by calling (248) Tired of the city’s bad reputation Those add to a slow, but steady, Streamline the organizations 267-3700. and its need for reinvestment, a trend of growth in the city and sub- The story of a small resurgence — Amy Lane group of Flint entrepreneurs teamed urbs: 23 major projects since 2003 in Flint is the story of a group of First Street Lofts, completed in See This Just In, Page 2 up in 2002 with the goal of buying up with a total investment value of 2006, are 100 percent leased. and rehabilitating properties in the $186.7 million. See Flint, Page 36 CRAIN’S LIST Crain’s Most Admired Largest OEM parts suppliers, NEWSPAPER Companies, Page 11 Page 24 20081013-NEWS--0002-NAT-CCI-CD_-- 10/10/2008 5:08 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS October 13, 2008 according to court records and Plans for the 23,000-square-foot CEO of Salsarita’s Inc., said each tional welcome center near the THIS JUST IN Keith Lerminiaux, deputy corpora- building call for three adjoining store generates revenue of about Ambassador Bridge. tion counsel for the county. greenhouses for what Planterra $750,000 to $800,000 annually. Fern Espino, development corpo- ■ From Page 1 At issue in the case were fees claims will be the largest selection — Nathan Skid ration chairman, said that the de- the Blues allegedly charged un- of tropical ornamental foliage, or- velopment corporation will hold Alta Lift Truck buys company der an administrative services chids and decorative pottery in the TechTown to support Mercado classes for would-be entrepre- contract with Oakland County, region and incorporate a number neurs, who upon completion Wixom-based Alta Lift Truck Ser- which is self-insured. of “green” features, including TechTown, the Wayne State Univer- would be eligible to become ten- vices Inc. recently bought The county had an administra- rainwater collection systems and sity-affiliated incubator and re- ants in the Mercado incubator. Wyoming-based Vans Industrial tive services contract with the use of recycled materials. search park for emerging high- Randal Charlton, TechTown’s exec- Equipment. Blues for 20 years to oversee hos- Planterra plans to use those tech companies, has signed an utive director, said his volunteer Terms of the deal, announced pital and health benefit claims for plants in its national interior land- agreement to provide support ser- advisors from the business com- Oct. 1, were not disclosed. its nearly 4,000 employees. It al- scaping business, but it also plans vices for the Mexicantown Communi- munity will be available to the Alta, founded in 1984 and now leges the fee was rolled into em- to open the conservatory to visi- ty Development Corp. Mexicantown tenants. operating with nine Michigan lo- ployee claims processed by the tors, free of charge, in the hopes The development corporation Charlton also said he will help cations, specializes in rental lift Blues, without the county’s that it will “grow to become … a wants to establish a business incu- Mexicantown get funding from trucks and other industrial vehi- knowledge or consent. significant botanical destination .” bator in its new Mercado and to at- nonprofits and state and federal cles and services. Blue Cross sought in 2006 to Planterra expects to open the tract more Hispanic-based retail agencies. Vans supplies and services in- add a rider into the language of a conservatory, which will cost businesses to the adjacent interna- — Tom Henderson dustrial equipment. proposed extension of the con- more than $3 million to build, in All Vans employees will be re- tract, explaining the fees. When fall 2009. tained as part of the deal, and the the county questioned the compa- — Sherri Begin CORRECTIONS combined company will operate ny about it, Blue Cross allegedly under the Alta name. Ⅲ In a Sept. 29 “This Just In” about Jim Croce stepping down as CEO told Oakland the practice had — Bill Shea Salsarita’s adds area locations of NextEnergy for a job in the private sector, NextEnergy Chairman been going on for years. Chris Rizik was quoted indirectly as saying discussions to choose a The case later spawned another Charlotte, N.C.-based Salsari- successor had hit a snag. Rizik says the word “snag” overstates the Blue Cross, Oakland County lawsuit in January filed by the ta’s Inc., parent company of the case; instead, the search is simply taking more time than anticipated.
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