20130422-NEWS--0001-NAT-CCI-CD_-- 4/19/2013 6:43 PM Page 1 ® www.crainsdetroit.com Vol. 29, No. 16 APRIL 22 – 28, 2013 $2 a copy; $59 a year ©Entire contents copyright 2013 by Crain Communications Inc. All rights reserved Page 3 SECURITY: A MARATHON, NOT A SPRINT Bills seek tighter tax audit rules Couple of gold ones inspire brewers to make cold ones for state Detroit firms run over by water dept. runoff fees Teams for the Target Taking aim at Fireworks, Detroit With Gilbert at table, casinos Electronic Music Festival and the partial reviews may battle over branding Thanksgiving parade review security plans ARA HOWRANI Joe Johnson, director of global security for Compuware, is part of the corporate security BY CHRIS GAUTZ before each event. Inside teams behind the public-private security effort called Project Lighthouse. CAPITOL CORRESPONDENT A package of bills being consid- Biz leaders offer hail and ered in the Legislature would set farewell to UM president, stronger, more specific parame- ters for state tax audits. Page 21 Public, private groups House Bills 4288-92 deal with several issues but take the most di- rect aim at the practice of indirect Crain’s Lists auditing, where the Department of Biotech companies, Page 15; unite to keep crowds safe Treasury determines liability by a partial review of records. Trea- intellectual property firms, sury opposes the bills as they have BY SHERRI WELCH keep everyday life in the city’s core safer. been introduced, because it says Page 17 CRAIN’S DETROIT BUSINESS INSIDE Before, and during, events in Detroit such they would degrade the depart- as the Target Fireworks, Movement Electronic ment’s ability to conduct efficient Even before tragedy struck last week in Security: There’s Music Festival and America’s Thanksgiving Pa- and effective audits. Boston, Detroit’s private sector was team- an app for that. This Just In rade, nonprofit and corporate security staff One bill in the package, HB 4290, ing up with local, county, state and federal Page 26. members are working with the Detroit Police was approved by the House Tax agencies to improve public safety in down- Department, U.S. Department of Homeland Secu- Policy Committee last week with Fuyao Automotive adds town Detroit. rity and other agencies to pre-empt crimes or respond the blessing of the department after A sophisticated neighborhood watch approach space in Orion Township quickly to incidents. the effective date was changed to dubbed “Project Lighthouse” has taken on new im- “If we had something like what’s going on in six months after becoming law. It Fuyao Automotive North portance as Detroit continues to struggle with finan- Boston happen, we’d be working with DPD and the requires Treasury to make avail- America Inc. will lease an ad- cial issues — and as big cities around the nation re- groups in the central business district and sharing able to the public all of its audit ditional 42,000 square feet of evaluate the best ways to keep large public spaces information” in the same way, said Joe Johnson, di- manuals, internal policy state- space at its warehouse and secure. distribution facility at 315 W. rector of global security for Compuware Corp. ments, bulletins, memos and other The private sector in Detroit is working with lo- Last week in Boston, bombs set to go off near the Silverbell Road in Orion cal law enforcement and the feds on efforts to button Township. See Audit, Page 29 up large-scale outdoor events, plus measures to See Security, Page 26 Levi Smith, principal of Southfield-based Principal As- sociates LLC, represented Fuyao Automotive, the Chi- na-based manufacturer of au- tomotive glass. Oakland drops chamber support over CON position The additional space gives Fuyao a total of 160,000 certainly can disagree. But I’m go- square feet at the facility, Still, Prosperity Campaign near $2 million goal ing to have to stand by my own re- which is owned by Ashley sponsibilities.” Capital LLC, according to a BY CHAD HALCOM dence Township hospital. “We’re contributing about Ben Erulkar, senior vice presi- news release. CRAIN’S DETROIT BUSINESS County Executive L. Brooks Pat- $80,000 … this year (to the cham- dent of economic development at Ashley Capital, which has terson said he shared his concerns ber), and I’ve made it clear I’m go- the chamber, said the organiza- a Canton Township office Oakland County is withdrawing several weeks ago in a meeting ing to finish out and honor my tion’s Prosperity Campaign has and is based in New York its support on July 1 for the Detroit with chamber President and CEO commitment for this fiscal year raised $1.91 million toward the $2 City, moved Linn Star Transfer Regional Chamber’s Detroit Region- Sandy Baruah, who in February and then not renew it next year,” million goal this fiscal year, with Inc., the tenant that had been al Prosperity Campaign to court said one of the chamber’s top pri- Patterson said. some of the larger commitments in the space, to the other economic development — largely orities is opposing efforts to by- “For the chamber to take up pol- coming from Blue Cross Blue Shield building in the Orion Busi- because the chamber opposes leg- pass the state certificate of need re- icy positions contrary to my coun- of Michigan, DTE Energy Co., the Gen- ness Park. islation that would allow McLaren view process in building such ty’s interests — I can understand eral Motors Foundation, J.P. Morgan — Kirk Pinho Health Care to open an Indepen- hospitals. that. It’s a free country and we all See Chamber, Page 28 PAY TRIBUTE TO MAY 8 THE 2013 CLASS OF 5–9 p.m. 20 IN THEIR 20s BUFFALO WILD WINGS, Vist crainsdetroit.com for details DETROIT NEWSPAPER 20130422-NEWS--0002-NAT-CCI-CD_-- 4/19/2013 4:09 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS April 22, 2013 MICHIGAN BRIEFS Business enthusiasm for new MICH-CELLANEOUS Canada bridge spans the state Bye and dry: Flint to leave Detroit water system Ⅲ Rick DeVos’ Start Garden ven- ture capital effort in Grand Rapids Last year, Crain’s Michigan Busi- The Detroit water system lost its largest customer into Lake Huron, pumping stations and a county invested more than $2.3 million in ness found that West Michigan last week when Flint officials decided to participate water treatment plant. over 100 projects during its first businesses were just as eager to see in a pipeline project to tap into Lake Huron. The Crain’s Michigan Business reported last year that year, the Associated Press report- a new bridge to Canada built as state of Michigan approved Flint’s plans, subject to Flint represented about 5 percent of sales to the De- ed. Start Garden invests $5,000 in their counterparts in Southeast review of a final offer from the Detroit Water and Sew- troit water system. two ideas, projects and startup Michigan. Now that the Obama ad- erage Department, MLive reported. “Our water rates are really high,” said Flint’s businesses each week. The fund is ministration has signed on the New Detroit will supply Flint for the next three years emergency manager, Ed Kurtz. Detroit can increase backed by $15 million from DeVos’ International Trade Crossing, those during construction of the Karegnondi Water Authority rates over the next three years while the pipeline is family. An idea that becomes businesses expect an economic project. Detroit water officials say they could lose built, he said. “We’re going to do everything we can something more gets additional boost from exports, the Grand $22 million if Flint leaves its system and that other to keep them down.” funding — up to $500,000. Rapids Business Journal reported. customers could see higher rates. Oakland Water Resources Commissioner Jim Ⅲ The third year of LaughFest in Rick Baker, Grand Rapids Area Genesee County Drain Commissioner Jeff Wright Nash and County Executive L. Brooks Patterson is- Grand Rapids drew 53,566 atten- Chamber of Commerce president said the project will take up to three years to con- sued a statement calling the planned pipeline a dees and raised $210,000 for Gilda’s and CEO, said one in seven jobs in struct the 64 miles of pipeline, an intake a mile out “huge waste of taxpayer dollars.” Club. Organizers of the March 7-17 his area is tied to the export indus- event said 2013 was on par with try with Canada. “There’s a great previous years, MLive reported. potential for increase for jobs in case, about the container. Andrew For homes along Lake Michigan, Holland and West Olive area,” Re- Approximately 33,509 tickets were west Michigan as you open access McLean of Kalamazoo and Scott altor Carol Genzink told MLive. sold to events in Grand Rapids, to your largest customer,” he said. Richards of Traverse City have be it ever so … uh … humble Ⅲ Bro G Land Co. has applied for a Holland and Lowell. The bridge would have signifi- Ⅲ Michigan added 611 megawatts started Michigan Mobile Canning, At the place where a large body of Michigan Department of Environmen- cant impact on growing statewide tal Quality permit to build a 1,200- of wind energy capacity in 2012 for the state’s first mobile canning land meets a large body of water, infrastructure for West Michigan, foot private driveway across a a cumulative total of 988 line, the Kalamazoo Gazette re- you usually find large amounts of allowing businesses to move prod- strip of government-owned Lake megawatts, MLive reported.