Your Sunday night news from Detroit (10/18)
Crossposted to darksumomo
Michigan News
Detroit Free Press: Exodus fueled by job losses bedevils Michigan
BY RON DZWONKOWSKI
FREE PRESS COLUMNIST
I expect the 2010 census will show just how severely Michigan is in the grip of "demonics."
That's my word for when your demographics are affected by your economics, or when money and jobs start figuring in people coming and going.
Look for the first dramatic sign this December, when the Census Bureau releases new state population estimates and Michigan dips back below 10 million people for the first time since 2001. The 2010 census will give us a handle on how this is happening, but we already know why -- and what we're not doing about it.
Detroit Free Press: State's jobless rate is showing stability
BY JOHN GALLAGHER
FREE PRESS BUSINESS WRITER
Michigan's unemployment rate inched slightly higher during September, rising one-tenth of a percentage point to 15.3%.
Data released Wednesday by the Michigan Department of Energy, Labor & Economic Growth showed that the small increase might actually signal some good news, since the state's jobless rate has remained fairly steady since June, when it rose to 15.2%.
That reflects a moderating after the first half of the year, when the monthly unemployment rate had jumped an average of seven-tenths of a percentage point each month for several months.
Detroit Free Press: So far, stimulus contracts aren't big boost for Michigan jobs
BY TODD SPANGLER
FREE PRESS WASHINGTON STAFF
WASHINGTON -- Despite Michigan's worst-in-the-nation unemployment rate, not many jobs -- 400 or so -- have been created or saved in the state so far by federal contracts under the stimulus bill, according to new data released Thursday by the Obama administration.
On a per-capita basis, the value of the contracts in Michigan lags most other states, including Indiana and Ohio.
Contractors and the state's lead official for implementing the $787-billion federal Recovery Act say the details released Thursday are only a snapshot -- representing less than 5% of overall stimulus spending. Jobs will be added as contractors hire to complete projects, they said.
Detroit Free Press: Time to take a peek 10 years down the road
BY SUSAN TOMPOR
FREE PRESS COLUMNIST
When you've got the front seat on an economic roller coaster, you're so busy covering your eyes that you're not exactly mapping out the ride into the next decade.
Who knows what happens when Michigan sees the next dip? Who has any energy left to plan for the next 10 years?
But Charles Ballard, professor of economics at Michigan State University in East Lansing, is hoping to steer conversations to thoughts about 2020 or 2030 and not 2010.
Detroit Free Press: Bishop: I'll send 6 bills to Granholm next week
BY CHRIS CHRISTOFF
FREE PRESS LANSING BUREAU
LANSING -- Senate Majority Leader Mike Bishop, R-Rochester, said today he likely will send six remaining budget bills to Gov. Jennifer Granholm next week, having been assured that she won't veto entire budgets.
"That was a good outcome of our discussion," he said, referring to today's meeting with the governor. "I think next week we'll be able to send them to her."
He added, "We're trying to get specifics from the governor as to what her concerns are and see if we can't resolve those before we send them to her."
Detroit Free Press: New legislators trash budget fight
BY CHRIS CHRISTOFF and DAWSON BELL
FREE PRESS STAFF WRITERS
They are 45 Democrats and Republicans with sharp differences on tough issues. All came to Lansing to make a difference.
Now, they share frustration and embarrassment over the Legislature's inability to resolve conflicting views on the budget: Deep cuts? Higher taxes and fees? Fundamental change?
They are frustrated because they have been asked to show patience, remaining in the background while the leaders work out the details.
Detroit Free Press: Fungus that kills bats likely on way to Michigan
BY TINA LAM
FREE PRESS STAFF WRITER
First, a mystery disease hit the nation's honeybees.
Now, a strange illness is decimating bats.
White-nose syndrome, thought to be caused by a fungus previously unknown in the United States, settles on the noses and wings of hibernating bats.
...
The disease has not been found among any of Michigan's nine species of bats, but it's only a matter of time. "I'm deathly afraid of what's going to happen here," said Allen Kurta, a biology professor at Eastern Michigan University and author of "Bats of Michigan."
Detroit Free Press: H1N1 flu vaccine reaches workers
BY ROBIN ERB
FREE PRESS EDUCATION WRITER
Michigan's protection against H1N1 has begun to arrive in metro Detroit.
Firefighters and other emergency personnel rolled up sleeves and submitted upper arms Friday at the Wayne County Department of Public Health's administration building in Wayne, and officials repeatedly urged the public to get immunized.
"Getting the H1N1 vaccine is the only sure way to prevent the H1N1 infection," said Dr. Talat Danish, the health department's medical director.
Detroit Free Press: Flu fears affect worship services
BY BILL LAITNER
FREE PRESS STAFF WRITER
At Grosse Pointe United Methodist Church in Grosse Pointe Farms, the Rev. Judy May switched to sliced pita bread for communion.
At Southfield's Peace Lutheran Church, just one worshipper still uses the common cup for communion; everyone else has individual, disposable cups of wine or juice.
At Congregation Beth Shalom of Oak Park, Rabbi David Nelson no longer gives the traditional handshake when the service honors a member.
Michigan Business
Detroit Free Press: Time for Obama to visit auto show?
BY CAROL CAIN
FREE PRESS COLUMNIST
Rod Alberts thinks President Barack Obama should pay a visit to Detroit, specifically this January.
Alberts, head of the Detroit Auto Dealers Association, says he wants the president to visit the upcoming North American International Auto Show at Cobo Center and see all that is taking place.
Then-President Bill Clinton, for instance, was here in 1999 when the economy was rolling along.
Time: Flint, Michigan: Electric Cars Bring Revival Hopes
By Joseph R. Szczesny / Flint
No place has felt the pain of General Motors' collapse quite as completely as Flint, Mich., which is about an hour's drive north of Detroit. Back in the early 1970s, GM had as many as 80,000 employees around Flint, making it one of the premier company towns in the U.S. But as GM's fortunes have fallen, so have those of Flint. GM is still the largest employer in town by far, but its Flint payroll has dropped to fewer than 8,000. Meanwhile, the Genesee County Land Bank owns more than 4,000 vacant residential properties in and around Flint, which had 124,000 residents at the last census. Today, streets are mostly abandoned, the average value of a single-family home has dropped to $16,400 and the city's unemployment rate hovers at 27%, which is two points better than it was in August when it hit 29%.
Flint's new mayor, Dayne Walling, says the city is proud of its historical connection to GM. But it is looking for ways to diversify its economic base, revive the downtown areas and bring down the crime rate, which also has blighted the community's reputation. "We have some major challenges," he says.
Thus, GM's $230 million investment in four factories around Flint, to prepare for the start of production for the innovative Chevrolet Volt, represents an important ray of hope for the hard-pressed Flint community. "These four GM manufacturing plants have a key role in GM's production of the next generation of fuel-efficient vehicles, the Chevrolet Volt and Cruze," says Larry Zahner, GM manufacturing manager.
Detroit Free Press: Fiat preps 5-year Chrysler plan
BY MARK PHELAN
FREE PRESS COLUMNIST
On Nov. 4, we'll get our first look at Chrysler's future.
That's the day Fiat plans to reveal its 5-year plan for the Chrysler Group, which includes Chrysler, Dodge and Jeep. Fiat owns 20% of Chrysler and effectively controls the automaker.
We don't know the details yet, but it's already clear Fiat is more sincere about sharing its technology and engineering capability than Mercedes-Benz ever was during DaimlerChrysler's brief and blighted existence.
Detroit Free Press: Gettelfinger: We got a good deal for workers
BY BRENT SNAVELY
FREE PRESS BUSINESS WRITER
UAW President Ron Gettelfinger said Tuesday that a tentative agreement that the union reached with Ford Motor Co. is a good deal because the Dearborn automaker agreed to pay workers onetime $1,000 bonuses -- and it made extensive job and product commitments at U.S. plants.
"There is no better job security," Gettelfinger said during a news conference at the Renaissance Center.
Ford has sought modifications to its UAW labor contract ever since General Motors Co. and Chrysler Group LLC won advantageous provisions in their contracts on the eve of their bankruptcies this spring.
Detroit Free Press: Ex-Ford engineer charged with stealing trade secrets
BY BEN SCHMITT AND BRENT SNAVELY
FREE PRESS STAFF WRITERS
A former product engineer for the Ford Motor Co. has been indicted on allegations that he stole trade secrets from the automaker, federal officials in Detroit announced today.
Xiang Dong Yu, aka Mike Yu, 47, of Beijing, China, was arrested Wednesday at Chicago’s O’Hare International Airport after he exited a flight from China. He is charged with theft of trade secrets, attempted theft of trade secrets and unauthorized access to a protected computer.
According to an indictment, Yu was a product engineer for the Ford Motor Co. from 1997 to 2007 and had access to Ford trade secrets, including Ford design
documents. In December 2006, Yu accepted a job at the China branch of a U.S. company.
Detroit Free Press: Top local firms use creativity to motivate staff
BY KATHERINE YUNG
FREE PRESS BUSINESS WRITER
Cooking employees a surprise Belgian waffle breakfast. Honoring a sales success story every month. Holding a "funky shoe day" for all workers.
These are just a few of the things top-ranked employers in this year's Detroit Free Press Top Workplaces survey are doing to boost employee morale during one of the most severe economic downturns the state has seen.
Though some of these top workplaces in southeast Michigan have had to cut costs and lay off workers because of the recession, they all recognize the importance of keeping employees' spirits up. Most are using creative, low-cost ways to keep workers motivated, even if they can't reward them with big wage increases or bonuses.
Detroit News
Time: Luring Buyers on Detroit's 'Lonely Homes' Tour
By Steven Gray
On a recent Sunday afternoon, Joy Santiago, a real estate agent, stood atop the front steps of a vacant eight-bedroom Colonial-style mansion, bullhorn in hand. "All right, 10 minutes," she declared, ushering in the 50 or so people on the Lonely Homes Tour, an aggressive effort to sell foreclosed properties in Indian Village, one of Detroit's last solidly middle-class neighborhoods.
Even with an abundance of home bargains - the redbrick, 97-year-old Colonial's asking price was $29,000 - that's no easy task. If there's any city that symbolizes the most extreme effects of the nation's economic crisis and, in particular, America's housing crisis, it is Detroit. The median sale price of homes here has plunged from $59,700 in August 2005 to $8,000 just two months ago. Nearly one-quarter of the 4,200 homes for sale in Detroit are foreclosed, and already dismal sales fell nearly 20% from September 2008 to this year. In a city where the population has plummeted from 2 million in the 1950s to barely 900,000 today, vast stretches of once robust blocks have become fields of weeds and rubble.
Those grimmest aspects of Detroit city life are just a few blocks from Indian Village. For decades, the neighborhood managed to defy that fate. It was carved out in the late 1800s, barely three miles from Detroit's downtown, as an enclave for the city's emerging industrial barons. Even as Detroit's wealth moved farther into the city's suburbs in the wake of World War II, Indian Village's Tudor- and Georgian-style homes - many with large backyards and carriage houses - attracted politically connected white collar professionals.
CNN Money: Is this a $6,900 home bargain?
By Lisa Gibbs, Money Magazine senior writer
(Money Magazine) -- For a foreclosure, the house at 15461 Kentfield St. in Detroit needed surprisingly little work. The new owner, an investor from the Chicago area named Kevin Holmes, slapped on a coat of paint, pulled up the dirty carpets, and replaced the stolen water heater. The car stashed out back, he learned soon enough, belonged to a neighbor, not a thief using the three-bedroom as a makeshift chop shop.
The simple brick home really wouldn't look out of place in any middle-income Midwestern neighborhood. But in distressed Detroit, the Kentfield house sold for less than half the sticker price on a new Chevy coupe: $6,900.
Giveaway-priced homes are in danger of becoming as much a part of Detroit's identity as Motown, the Red Wings, and the Arsenal of Democracy. Real estate agents in America's 11th-largest city (it used to be No. 5) say they get calls from all over the world asking to see rock-bottom listings.
Detroit Free Press: At last minute, Kilpatrick attorneys turn in his financial records
By M.L. ELRICK AND CECIL ANGEL
FREE PRESS STAFF WRITERS
Former Detroit Mayor Kwame Kilpatrick made his Friday deadline for the disclosure of detailed financial information as one of his attorneys filed documents at Wayne County Circuit Court Judge David Groner’s chambers about 4 p.m.
The report was not available for public inspection Friday.
Kilpatrick attorney Michael Alan Schwartz declined to discuss what was specifically submitted to the court. He said he sought a protective order to ensure that the 100-plus pages submitted remained confidential as required by state law.
Detroit Free Press: Detroit marathon a joyous, sobering race
By ERIC SHARP
FREE PRESS SPORTS WRITER
It was a glorious day of thousands of triumphs, and a sober day of against-all-the-odds tragedy.
A record field of 19,326 in the 32nd Detroit Free Press/Flagstar Marathon hailed a new and improved course and ideal weather on a golden October day. But the event was marred by the collapse and deaths of three runners.
Most of the runners, walkers, handcyclists and wheelchair athletes were unaware of the tragedy as they finished in triumph in styles that ranged from strutting to staggering and everything in between. Several thousand then walked two blocks from the finish line to a big parking lot where they enjoyed bands and refreshments at the marathon’s first postrace party.
Detroit Free Press: Stanko edges Johnson for men’s marathon win
BY JO-ANN BARNAS
FREE PRESS SPORTS WRITER
They had been running together for much of the race, taking turns with the lead a mile at a time. But as men’s marathoners Nicholas Stanko and Chad Johnson both knew, the strategy of maintaining their pace and helping each other would have to end sometime.
So with about 4 miles to go Sunday in the 32nd Detroit Free Press/Flagstar Marathon, Stanko, 28, of Haslett decided to make his move. When Johnson, 33, didn’t surge with him, that told Stanko what he needed to know.
“We both knew at some point, somebody was going to up the ante - 2 seconds is all it takes,” Stanko said. “Then you have to buckle down and suffer the last couple of miles.”
Stanko did just that: He buckled down, ran alone and suffered a little - all the way to the finish line for what he called his first “major” marathon victory of his running career.
Detroit Free Press: 3 runners die in Detroit marathon
BY KORIE WILKINS
FREE PRESS STAFF WRITER
Three men died this morning during the 32nd Detroit Free Press/Flagstar Marathon, police and race officials have confirmed.
The first man to collapse was Daniel Langdon, 36, of Laingsburg, at about 9:02 a.m., said Rich Harshbarger, vice president of consumer marketing for the Detroit Media Partnership. Langdon was on Michigan Avenue, between the 11- and 12-mile markers.
Rick Brown, 65, of Marietta, Ohio, collapsed at 9:17 a.m., near where Langdon went down.
And Jon Fenlon, 26, of Waterford collapsed at about 9:18 a.m., just after finishing the half-marathon in 1:53:37. Fenlon, whose Facebook page says that he worked at the Warren-based advertising firm Campbell-Ewald and graduated from Eastern Michigan University, had made headlines before, when in 2006 he caught a homerun ball hit by Magglio Ordoñez that sealed the Tigers’ sweep of the Oakland A’s -- sending the team to the World Series, said friend Jenny Wroblewski.
News from Elsewhere
Detroit Free Press: Tapping Twitter's unrealized potential
BY BRIAN DICKERSON
FREE PRESS COLUMNIST
In a country that recoils at the thought of sinking another dime into prenatal care, crumbling highways or tuition assistance, Twitter -- a company that produces nothing, employs approximately 60 people and is still lolling in what the financial press euphemistically describes as its "pre-revenue" phase -- is poised to raise $100 million in the next few weeks simply by offering investors a share of its as-yet-unrealized potential.
The anticipated cash infusion will boost Twitter's total market capitalization to $1 billion, or about twice the value of Michigan-based Domino's Pizza, which employs 10,500 people and posted sales of $1.4 billion last year. This will surprise you only if you cling to one of those old-school business models in which a slice of pepperoni pizza in the hand is considered more valuable than the knowledge, conveyed almost literally "as it happens," that your best friend's dog has just vomited an entire pizza.
I am hostage to no such old-fashioned delusions. I know what all the fuss over social media is about. I "get it," in a way so many baby boomers less sophisticated than myself still do not.
Photo Galleries
Time: Photos: The Lonely Homes Tour
by Steven Gray
Residents of one of Detroit's last middle-class neighborhoods, Indian Village, recruited a real estate agent to aggressively sell foreclosed properties. The result: The Lonely Homes Tour.
Time: A day in the life of Detroit's Mayor Bing
Photographs by Romain Blanquart for TIME
The former basketball player takes the reins of a troubled city
On The Lighter Side
Funny or Die: Poor Grosse Pointe
Megan exposes the state of the economy in Grosse Pointe, MI