20110214-NEWS--0001-NAT-CCI-CD_-- 2/11/2011 5:52 PM Page 1 ® www.crainsdetroit.com Vol. 27, No. 7 FEBRUARY 14 – 20, 2011 $2 a copy; $59 a year ©Entire contents copyright 2011 by Crain Communications Inc. All rights reserved Page 3 ‘There are a lot of needs’: Taxing questions Doctors’ Hospital hunts cash Phone recycler, post offices team up for mutual benefit for Michigan biz CRAIN’S MICHIGAN BUSINESS Nerves on edge over incentives New section, Pages 9-18 BY AMY LANE centives may move out of the tax CAPITOL CORRESPONDENT code entirely and instead be sub- ject to legislative funding and re- LANSING — What Gov. Rick view. Snyder proposes this week could Speaking at an event last week in affect business and economic de- Holland, Lt. Gov. Brian Calley said velopment in every corner of the the budget proposal will be like an state. “atomic bomb” On Thursday, he is slated to pre- going off in Lans- sent his proposed state budget and ing. According plans for tax reform — including to published re- Michigan’s array of tax credits and ports, including incentives. The Associated Holland area charges toward It’s a topic generating no small Press, Calley degree of interest. Major tax credits also said the ad- battery-driven future, Page 9 — including those for brownfield ministration is redevelopment, film production, looking at elimi- historic preservation and the sig- Johnston nating some $2 Inside nature Michigan Economic Growth Au- billion in busi- thority program — are tied to the ness tax exemptions. Size matters in debate Michigan Business Tax, which A spokesman for the governor’s Snyder wants to eliminate and re- office on Friday could not confirm over public worker pay. place with a 6 percent corporate in- the figure. LEISA THOMPSON come tax. Ongoing improvements to Crisler Arena might help the University of Michigan Capitol Briefings, Page 4 What appears certain, though, is athletic department’s chief marketing officer, Hunter Lochmann, meet his goal. One option that some say is be- change. And that’s drawing mixed ing considered is to give recipients views. Crain’s List of multiyear incentives like the Michigan needs incentives as MEGA tax credits a choice be- part of a competitive tax structure, Michigan’s largest cultural tween continuing to receive the said Mike Johnston, vice president credits and remaining under the of government affairs for the Michi- institutions, Page 16 MBT structure or giving up the gan Manufacturers Association. Grow Blue credits and moving to the new tax “We don’t believe a low tax rate system. This Just In It’s also possible that some in- See Taxes, Page 29 Goal of UM athletics’ first chief Downtown Detroit Partnership fills CEO spot marketing officer: ‘Sell out Crisler’ The Downtown Detroit Part- Why the DSO offer fell flat BY BILL SHEA from the New York Knicks in De- nership planned to announce today that Dave Blaszkiewicz CRAIN’S DETROIT BUSINESS cember as the UM athletic de- has been named its president Issues include control of outreach efforts partment’s first-ever chief mar- and CEO. A furious rally by the University keting officer. He’s also a senior Blaszkiewicz, president of BY SHERRI WELCH community and education out- of Michigan men’s basketball associate athletic director, re- team pulled it within two points porting to the man who hired Invest Detroit, will serve in a CRAIN’S DETROIT BUSINESS reach, something that has been a dual role directing the opera- point of contention in the contract of top-ranked Ohio State University him, Athletic Director David tions of both organizations. Detroit Symphony Orchestra musi- talks in recent weeks. with under a minute to play in Brandon. Previous DDP President cians would have the option to vol- Among the issues are the strings front of a home It’s Lochmann’s Ann Lang said last week she unteer for educational and com- attached to around $2 million in crowd on Jan. 12, job to fill seats and would leave her position this munity service funding committed by a local but the young I want to get market the UM month and return to her na- assignments for DETAILS group of foundations, corporations Wolverines “ brand. tive Colorado. She held the extra pay but and two individuals. squad fell short, into the data on “It’s a pretty post for five years. not be required The proposal: The money must be used to pay 68-64. unique position in Blaszkiewicz has been to do them, un- What DSO DSO musicians for extra commu- Nearly 12,000 why people don’t college sports,” he offered, Page 28 president of Invest Detroit der the terms of nity and education work, said Paul fans were at Cris- said. “There are since he led the effort to cre- the latest man- Hogle, DSO executive vice presi- ler Arena to come to the going to be a lot of ate it in 2010. Invest Detroit agement proposal turned down by dent. And it would not interfere watch the near- eyes on what I do is a source of private sector musicians last week. with musicians’ abilities to secure upset, but that’s games. and how I do it.” The Feb. 3 proposal lays out the their own community and educa- more than 1,700 ” Lochmann’s job See This Just In, Page 2 specifics of the additional role mu- tion side jobs, he said. short of a sellout. Hunter Lochmann, UM with 13,751-seat sicians are being asked to play in “What (the musicians) have told Hunter Crisler will be us at the table … is they want a Lochmann wants to know why slightly easier thanks to ongoing portion of that ($2 million) to pay every seat wasn’t filled — and improvements to the facility, for better health care and to im- then fill them. which was built for $7.2 million prove their salary.” “I want to sell out Crisler,” he and opened in 1968. The DSO’s Feb. 3 proposal lays said. “That’s a personal agenda. The university’s board of re- out a schedule of extra pay for mu- I’ve got to get to the bottom of gents last month approved the sicians who volunteer for assign- why that doesn’t happen. I want $52 million second phase of reno- ments such as private lessons, to get into the data on why people vations and expansion of the don’t come to the games.” NEWSPAPER See DSO, Page 28 Lochmann, 38, was hired away See Blue, Page 27 20110214-NEWS--0002-NAT-CCI-CD_-- 2/11/2011 4:32 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS February 14, 2011 product that has been granted move, only 29 percent said it manage the chamber’s insur- tax credit was signed into law in THIS JUST IN fast-track status by the U.S. Food would be because of tax incen- ance and affinity program, December. Under the program, and Drug Administration for upcom- tives elsewhere, compared to 36 which links members with ser- investors can receive tax credits ■ From Page 1 ing phase-three clinical trials in percent of respondents national- vice providers such as Blue Cross of up to $250,000 a year for invest- humans. ly. Blue Shield of Michigan and Office ments in qualified early-stage gap financing targeted toward The therapy now is in phase- Ⅲ Eighty-seven percent said Depot. companies. economic development, primari- two trials in humans for both they would be more active in re- The chamber also announced Investors must go alongside or ly in Detroit. critical limb ischemia and dilated tirement than their parents, com- that Tim Nasso, former senior vice through a venture capital or an- The DDP is a private/public cardiomyopathy. If these trials pared to 82 percent nationally. president of Midland-based Dow gel group registered with the group of corporate and civic lead- show a therapy is beneficial in a Eighty percent of women plan to Chemical Co., has been appointed Michigan Strategic Fund. The fund, ers. small population of subjects, spend substantial amounts of senior adviser to the chamber which also determines business president for economic develop- — Shawn Wright phase-three trials are conducted time traveling, compared to 72 eligibility, can certify up to $9 ment. on a much larger patient popula- percent of men. million in credits annually. — Tom Henderson Beringea sells Saffron Digital tion. Women here are more com- Details and registration re- Critical limb ischemia is a se- munity-oriented than affluent quirements are available by call- Beringea LLC, a venture capital vere restriction of the arteries, men — 64 percent plan to be in- ing (888) 522-0103, by sending an e- and private equity firm based in Early-stage investors can which often leads to amputation volved in their community dur- mail to [email protected], or Farmington Hills, has closed on of the extremities. Dilated car- apply for new state tax credit on the Michigan Economic Develop- the profitable sale of one of the ing retirement, compared to 52 diomyopathy is a condition The process is now open for in- ment Corp.’s website at portfolio companies it bought percent of men; and 55 percent where a weak and enlarged heart vestors and businesses to apply www.michiganadvantage.org/SB through its office in London, Eng- plan to devote time to philan- cannot pump blood efficiently. for a new state tax credit. ITC. land. thropy, compared to 32 percent The Ann Arbor-based compa- The small-business investment — Amy Lane In 2007, Beringea invested $1.85 for men.