20100830-NEWS--0001-NAT-CCI-CD_-- 8/27/2010 6:45 PM Page 1 ® www.crainsdetroit.com Vol. 26, No. 36 AUGUST 30 – SEPTEMBER 5, 2010 $2 a copy; $59 a year ©Entire contents copyright 2010 by Crain Communications Inc. All rights reserved Bing team’s Page 3 MGM Grand Detroit’s COO Duo brings ‘new leaves casino riding high framework Community colleges, K-12 has planks groups in budget crossfire energy’ to VC Inside Resonant Venture that help biz MORE program links lands its first deal, budding entrepreneurs City to create with resources, Page 4 has Michigan focus one-stop shop BY TOM HENDERSON Design in Detroit: CRAIN’S DETROIT BUSINESS for biz services Special coverage Michael Godwin and Jason BY NANCY KAFFER Townsend didn’t follow tradition- of area’s artistic CRAIN’S DETROIT BUSINESS al paths toward their MBAs from furniture designers, the University of Michigan. And The Detroit Strategic Frame- they certainly didn’t follow the work is a long-term plan designed Pages 3, 14-16 usual path toward closing the to chart a new course for a city dec- first deal of their fledgling ven- imated by population loss, deterio- ture capital firm, which was rating income base and crumbling founded in June. ALAN WARREN housing stock. New graduates from the MBA Fresh out of the University of Michigan MBA program, Jason Townsend (left) But for Detroit business owners, program, and brash enough to and Michael Godwin started their own venture capital firm, Resonant Venture some byproducts of Detroit Mayor Partners LLC in Ann Arbor. think they should start their own Dave Bing’s 18-month planning ef- firm instead of applying for jobs their firm, Ann Arbor-based Reso- management, to take the lead on fort could bear fruit within the at existing VC firms, they found nant Venture Partners LLC, so they the deal, which was announced next year, as the city prepares to their first deal before they’d could write a check for $250,000. last Wednesday. True Ventures, launch an on- raised a nickel. Simultaneously, they had to get Resonant Venture Partners and line business Then they persuaded an in- a large West Coast VC firm, Palo two angel investors joined to portal and con- We hear vestor in Texas to make a large Alto, Calif.-based True Ventures, a solidate busi- “ enough initial investment in firm with $375 million under See VC, Page 19 ness-related the horror This Just In city operations Kessler steps down into a true one- stories. stop shop. ” as chairman of Butzel Long A data- Karla Henderson, driven process, city of Detroit Philip Kessler, chairman of the strategic Detroit-based Butzel Long PC Bargain sale for once-costly Ritz framework will help city officials since 2006, stepped down from align resources with population that position and from his selling for $3 million in a sale and steer a new course for the city. seat on the law firm’s board of New owner forced by Ritz-Carlton. The administration is taking stock directors last week, the firm When the hotel last changed of city government and looking for said. Richard Rassel, a previ- works to restore hands, in 1998, its sale price was ways to streamline Detroit’s bu- ous chairman, will be acting $64.8 million, still far less than the reaucracy and make the most of chairman reporting to the estimated $100 million it would limited resources — while finding board on an interim basis. profits by 2011 cost to replace the property. ways to strengthen the city’s neigh- Kessler, a commercial liti- A group of investors from borhoods and business community. BY DANIEL DUGGAN gator and intellectual prop- Houston pooled $3 million and By June 2011, said Karla Hen- erty attorney, will continue CRAIN’S DETROIT BUSINESS COSTAR GROUP purchased the hotel in April with derson, Bing’s group executive for as a shareholder at Butzel. The Ritz-Carlton Dearborn, opened in Denver-based Greenwood Hospitali- When the Ritz-Carlton Dearborn planning and facilities, the city He’s departing from the 1989 aiming to prove Detroit’s ty Group to handle a transition of opened in 1989, it defied conven- will launch the new online busi- board to focus more exclu- western suburbs could support a the property to its new name: The tional wisdom ness system. sively on his practice, he said luxury hotel, sold this year for just Henry. on two fronts: “We hear the horror stories of in a statement. $3 million. The new name pays homage to CLOSER LOOK First was the why businesses won’t come into Justin Klimko, a board several well-known Dearborn ti- hotel’s strik- it financially in Detroit’s western the city of Detroit,” Henderson member appointed presi- Recession: Sale tans named Henry, one of whom prices plummet, ing, dusty pink suburbs. said. “So we know we need to dent in May to handle day- helped open the hotel. Henry Ford Page 21 color that It was a gamble, though, and it change that perception.” to-day operations at the firm II cut the ribbon for the hotel in Deals: Hotels for many thought took some persuading to get the With the new system up and run- and share leadership duties 1989. A second grand opening sale or sold, more appro- people from the Ritz-Carlton Hotel ning, business owners will be able with Kessler, will continue drew former President Gerald Page 21 priate to the Co. to agree, said Wayne Doran, to schedule inspections or pay for in that role. Ford, a symbol of the top-end then head of Ford Motor Land Devel- permits online, she said. The American clientele the hotel wanted to go See This Just In, Page 2 opment Corp., which developed the $2 million system is being designed Southwest. Second, it set out to for. Later, the hotel was used for a project. by Detroit-based Compuware Corp. prove a luxury hotel could make range of presidential events and “It was a bold move, but we had “The mayor feels very strongly fundraisers. numbers to back us up,” Doran that as we have this dialogue with Doran said everything about said. “We’d done a lot of economic the community, that residents and the hotel was intended to make a research. We were able to show customers feel the change that is bold statement about the strength them that we weren’t dreaming coming in terms of demolitions, of the western suburbs. Including dreams that wouldn’t work.” neighborhood stabilization, how the pink color of the building, he But Doran never dreamed that we attract new business, how we said, which was meant to be an ar- the so-called “Pink Palace” of streamline the permitting process chitectural statement and de- — these are very important things NEWSPAPER Dearborn would later set an eye- popping low sale price in 2010, See Ritz, Page 21 See Bing team, Page 20 20100830-NEWS--0002-NAT-CCI-CD_-- 8/27/2010 6:12 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS August 30, 2010 Local sites up for $25K keynote speaker, said association Port Authority head Curtis Hertel THIS JUST IN The way it was: 2002 president Khalid Rao, a local physi- historic preservation grant cian. to take job with DELEG ■ Rao said he expects the event, From Page 1 Throughout our 25th-anniversary The Ford Highland Park assem- Detroit/Wayne County Port Authori- which will take place at the Hyatt year, Crain’s will use this space bly plant — the birthplace of in- ty Executive Director Curtis Hertel Regency Dearborn, to attract 600 to Rassel will be a non-director to look at interesting items from dustrial mass production — is one Sr. has been tapped to be a deputy past issues. 700 people. chairman reporting to the board of several Michigan locations in director overseeing energy in the and Kessler’s board seat will be va- The group hopes to raise be- the running for a $25,000 grant in tween $250,000 and $500,000 Michigan Department of Energy, La- cant until a shareholder election There are the National Trust for Historic Preser- bor and Economic Growth. in early 2011, Klimko said. through donations and the “ vation’s “This Place Matters” con- fundraiser, he said. Hertel also is a former Democra- The 156-year-old Detroit firm still several test. tic House speaker and lobbyist. had around 170 attorneys. The money will go to the Human Among other local sites in the Development Foundation, which has Acting DELEG Director Andy Levin — Chad Halcom potential uses running: Alger Theatre in Detroit, Michigan and Detroit chapters, said Hertel starts today and will for that space, and we’re still the Michigan Central Station in De- and the Pakistan-based Edhi Foun- work on state efforts that include Three Burton-Katzman troit, the Fort Wayne Headquarters dation for distribution in Pakistan. expanding wind-turbine manufac- Building in Detroit, St. Joseph’s Sani- The association plans to post de- turing and supply chain, rules for companies file Chapter 7 exploring all of them. We are tarium and Bath House in Mt. tails at Paamich.org before Labor offshore wind-energy production Three Bingham Farms corpo- exploring a hotel. Clemens, Gray’s Opera House in Day. and other energy areas. rate entities controlled by Peter ” Romeo, the Markham-Wilcox House — Sherri Welch — Amy Lane Burton, Bob Katzman and other in- in Plymouth and the Ladies Literary vestors have filed for Chapter 7 Tom Lewand, Detroit Lions Club in Ypsilanti. bankruptcy.