DETROIT BUSINESS MAIN 09-08-08 A 1 CDB 9/5/2008 6:09 PM Page 1 ® www.crainsdetroit.com Vol. 24, No. 36 SEPTEMBER 8 – 14, 2008 $2 a copy; $59 a year ©Entire contents copyright 2008 by Crain Communications Inc. All rights reserved After the plea deal THIS JUST IN Employers Troy development gets OK Developers have re- ceived the go-ahead for a hotel and retail project in may get bill Troy to be built at 5500 New King Court near the corner of Crooks Road and Corporate Drive. Called Troy Plaza, the de- for loans to velopment will include 172 rooms and 17,400 square feet of retail on the site of what is now a vacant build- ing. boost UI fund The developer is South- field-based Tinelle Properties BY AMY LANE L.L.C., which has built re- CAPITOL CORRESPONDENT tail centers and multifami- ly developments in Michi- LANSING – Over the past three years, Michi- gan, Florida and Arizona, gan has borrowed more than $1.6 billion from according to its Web site. the federal government to help pay benefits Tinelle principals Ron As- from its dwindling unemployment insurance mar and Frank Asmar did not REBECCA CO0K fund. return multiple phone Ken Cockrel Jr. gets the support of his wife, Kimberly, and his son, Kyle, during his news conference after Now, outstanding federal loans are likely to Mayor Kwame Kilpatrick accepted a plea deal. calls. trigger higher unemployment taxes on some The developers have not employers, starting in January. indicated how the project A state solvency tax, assessed on employers will be financed. They also whose employee-benefit claims exceed the tax- have not disclosed poten- es they paid, is likely to return in January to tial retail tenants or the help repay interest on the money the state has hospitality company that borrowed from the U.S. Department of Labor. Cockrel to lead, And in January 2010, a federal unemployment will be involved with the hotel project. The Troy City insurance tax paid by all Michigan employers Council gave a preliminary approval for the project on See Unemployment fund, Page 28 Aug. 25. Developers plan a high- end hotel with banquet fa- cilities, according to min- but for how long? utes of city meetings. The project will also include a ESD programs to parking garage and two Staff changes, special election are likely fast-food restaurants. — Daniel Duggan BY ROBERT ANKENY CRAIN’S DETROIT BUSINESS WEB EXTRA train and retain State lottery advertising Detroit City Council President Kenneth Cockrel Jr. has His legacy: Mayor Kwame contract extended some major leadership decisions to make during the two- Kilpatrick’s 80 months in office week transition leading up to his swearing in as mayor of brought notable achievements in Troy advertising agency Detroit on Sept. 19. addition to scandal: young engineers Simons Michelson Zieve Inc. But he doesn’t have an easy task, and his mayoral term ww.crainsdetroit.com/kilpatrick. has received a $17.5 mil- could be only eight months long. BY SHERRI BEGIN lion, one-year extension of That’s because the council most likely will call for spe- CRAIN’S DETROIT BUSINESS its contract with the Michi- cial elections — a primary in February and a general MORE ON MAYOR The Engineering Society of Detroit is talking to gan Bureau of State Lottery. runoff in May — to fill the mayoral vacancy. Key post: a number of local companies about providing The measure, approved Cockrel declined last week to name names as to who Business partial or full college scholarships and work- last week by the State Ad- might be replaced or appointed, because, “I am not the wonders about study programs in exchange for three years of ministrative Board, is the mayor yet. It’s Mayor Kilpatrick until Sept. 18.” George work after graduation. second of three one-year Cockrel, 42, did say he has not yet decided whether he’ll Jackson Jr. Durr Systems Inc., which has had a work- options under the con- run to keep the job. But that seems a foregone conclusion to Page 25. study/scholarship program for a decade, is tract. those closest to the Wayne State University journalism gradu- among them and has agreed to transfer man- The initial term of the ate who served two terms on the Wayne County Commission Reader comments: agement of the program to ESD for a fee and to contract ran from Septem- before becoming the youngest person ever elected to the Reaction to offer it as a template for other companies. ber 2005 through Septem- Detroit City Council in 1997. Kilpatrick the plea, The program is one of several the society ber 2007. The current ex- And if he does, it means he has to do battle in four elec- thoughts on the future. Page 26. plans to announce Wednesday as part of a year- tension brings the contract tions within the next 14 months, since regular elections for Judge Granholm? Hearing sparks long effort to attract and retain technical and total to $70 million through mayor and council are to be held in August and November talk of future judgeship for engineering talent in Michigan. September 2009. next year. governor. Page 27. “Our companies … are telling us there’s a — Amy Lane Some top city executives, those closest to Kilpatrick, On the news: Media mostly huge engineering shortage,” said Darlene See This Just In, Page 2 See Cockrel, Page 25 praised for coverage. Page 27. See ESD, Page 29 New plan would revive There’s a Maize former McLouth mill, and Blue building NEWSPAPER Page 3 boom, Page 11 DETROIT BUSINESS MAIN 09-08-08 A 2 CDB 9/5/2008 6:06 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS September 8, 2008 gan Ave. in Ypsilanti through the member of the year, emerging Plans call for meeting with 22 com- Meadowbrook’s board as a THIS JUST IN fall of 2013. leader of the year, CEO of the panies in key industries that are nonexecutive chairman and as a Elizabeth Parkinson, managing year and legendary CEO. state business-attraction targets. consultant. His previous title was ■ From Page 1 director of marketing and public — Tom Henderson The trip schedule includes au- executive chairman. relations for Spark, said the loca- tomotive companies Toyota Motor — Jay Greene Plante & Moran opens Mexico tion, known as the Mack and Corp., Nissan Motor Co., Honda Mo- Mack Building, can house five to St. John opens Novi hospital tor Co. and Mazda Motor Corp., auto office in Monterrey 10 startup businesses as tenants Providence Park Hospital in Novi, supplier Aisin Seiki Co. Ltd., and al- Woodward restaurant parent Plante & Moran P.L.L.C., the plus “virtual tenants” who make the first new hospital to open in ternative-energy companies Eurus company files for Chapter 11 use of computers, storage space Energy Holdings Corp. and Automo- Southfield-based accounting and Southeast Michigan in 20 years, or conference rooms without tive Energy Supply Corp. The gover- Detroit-based DW Group L.L.C., consulting firm, has opened an of- opened its doors on Friday. The maintaining staff there. nor also plans to meet with Teru- parent company of The Woodward, fice in Monterrey, Mexico. hospital is owned by St. John Currently the Spark East incu- mo Medical Corp. a medical a restaurant located at 1040 Wood- “The high volume of cross-bor- Health in Warren. bator has obtained funding for its products manufacturer. ward Ave. on the first floor of the der activity between the United “I told the staff to enjoy the qui- Compuware headquarters build- first three years in operation. It et time now because we have a The Sept. 15-20 trip is States and Mexico makes the also has plans for a business ac- Granholm’s sixth overseas in- ing, filed for Chapter 11 bankrupt- opening of this office a natural big ER service, lots of surgery cy protection on Aug. 27. celerator and for networking and and more than 2,000 babies ex- vestment mission and her third move for us,” said managing part- educational programs for entre- visit to Japan. Crain’s first re- According to a petition signed pected per year. We will quickly ner Bill Hermann in a press re- preneurs in Ypsilanti. ported the trip last month. by owner William Cartwright, the fill up,” said Rob Casalou, Provi- lease. The company has worked Shamar Herron, formerly a re- — Amy Lane company owes its three largest dence Park’s president. with clients in Mexico for more search associate at the University of unsecured creditors — the Inter- The 100-bed hospital features a than 15 years. Michigan is manager of Spark East. nal Revenue Service, state Depart- Plante & Moran has more than — Chad Halcom design intended to create a heal- Meadowbrook founder to retire ment of Treasury and Downtown ing environment. The $229 mil- Detroit Woodward L.L.C. $315,000 — 1,600 employees in 17 offices in Merton Segal, founder of South- lion contemporary-designed hos- and claims $0 to $50,000 in assets. Shanghai, Michigan, Ohio and field-based Meadowbrook Insur- Automation Alley hosts gala pital emphasizes natural light Thomas Duncan is listed as DW Illinois. ance Group Inc., has retired from Troy-based Automation Alley, a and is contoured to the grade of Group resident agent according — Tom Henderson the company he started as a start- nonprofit technology-business or- the land, Casalou said. It also has to the Department of Labor and Eco- up local retail agency into a spe- ganization, holds its eighth annual a 60,000-square-foot emergency nomic Growth.