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GM workers choose pre-paid health plans
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Record producer plans 'farm team' PAGE 17
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Quick print firm likes quick growth PAGE 13
WEEK OF APRIL 22 - 28, 1985 VOLUME 1
Domino's sues rival over arson
BY CHARLES CHILD CRAIN'S DETROIT BUSINESS
No one could accuse the management of Bloomfield Savings & Loan Association of thinking small two years ago.
CRAIN'S DETROIT BUSINESS
See PIZZA, PAGE 22
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NO. 12
Bloomfield S&L growth sours
BY MARY SOLOMON SMYKA The Detroit area's two pizza empires are engaged in a struggle in Colorado involving spying, theft and arson. The struggle, dubbed "pizza wars" by the local press, has led Domino's Pizza of Colorado Inc. to file a lawsuit against Little Caesar Enterprises Inc. and Michaelllitch Jr., son of Little Caesar Chairman Michaelllitch Sr. Domino's alleges that an employee of Ilitch Jr. spied on Domino's, stole Domino's records and torched a Boulder, Colo., Domino's at Ilitch Jr.'s behest. Domino's Pizza Inc. is based in <Ann Arbor. Little Caesar Enterprises Inc. is headquartered in Farmington Hills. The suit results from a Jan. 23, 1984, fire at a Domino's outlet in Boulder, which caused more than $10,000 worth of damage. The outlet remained closed for eight days and lost about $30,000 in business, according to an employee of the outlet. Kirk Alan Hough is serving a four-year prison term after pleading guilty to burglary and conspiracy to commit arson in connection with the fire. Hough was originally charged with arson and burglary. Hough, a previously convicted
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Only six months old in May 1983, Bloomfield purchased 10 branches in metropolitan Detroit from Detroit & Northern Savings. After raising $11.5 million from a stock sale later in 1983, it acquired 14 branches from two other S&Ls. Late in 1984, life in the fast lane ended. Burdened by high overhead and low-earning, short-term investments, Bloomfield reported losses of $6.3 million last year.
Fourth quarter losses alone were $3 million. The price of the company's stock reflects the bottom line. After peaking at 13V2 in March 1984, the stock of the Birmingham-based firm stood at a bid price of 3% last week. Last summer, President David Collins resigned, and a five-member management team led by new President F. Allen Graham, 52, is charting a new course. He was CEO of his own Graham Mortgage Co., · a successful firm that he sold to Manufacturers National Bank in 1968 but continued to manage until 1983. See S&L, PAGE 22 ~
Chessie plans Romulus rail terminal BY JOYCE DAVIS ADAMS CRAIN'S DETROIT BUSINESS
A New Jersey subsidiary of Chessie System Railroad Corp. has acquired 300 acres of light industrial property in Romulus and Huron Township to build a $13 million trucking/railroad distribution center. Total Distribution Services Inc., based in Cherry Hill, N.J., plans to construct a terminal in Huron Township near Sibley and Pennsylvania roads by the end of autumn, said John Chihan, development coordinator for Huron Township. Both the Romulus City Council and the Huron Township Board of Trustees must rezone land, which is zoned light industrial although
at least nine single-family homes are on the tions on vacant parcels adjacent to the Chessie parcel. System railroad tracks along Eureka and Sibley The governments also must approve site roads and 1-94 and 1-275. plans and issue building permits before the Viskochill said the vacant property stretches work can commence - approvals that would about a mile on both sides of Pennsylvania take about a month if all goes smoothly, saidRi- Road, the dividing line between Romulus and chard Viskochill, Romulus Planning Commis- Huron Township . . sion director. Total Distribution's President Dale Wachner that his company "has acquired the confirmed Viskochill said some 60 people may be em'property," but declined to elaborate. ployed at the proposed terminal, where new auThe company's reluctance to discuss the tomobiles and semi-tractor trailers will be project has confused Romulus officials. loaded onto specially- designed rail cars for Romulus Mayor Beverly McAnally said that transport around the country. Company officials would not discuss the ter- Chessie System Assistant Vice President Ray minal, other than to say "the project in Romulus Lichty agreed on April 9 to make the announceis not entirely put to bed yet." See CHESSIE, PAGE 23 ~ Last fall, Total Distribution began taking op-
Ramco-Gershenson will expand Summit Place mall BY JEAN HALLIDAY Special to CRAIN'S DETROIT BUSINESS
DWIGHT CENDROWSKI
Industrial Development and Procurement Inc.'s Sylvie Adams, administrator, and Peter Phillips, director of sales engineering and technical services, with auto products the firm imports and exports. Story, Page 3~
Within six months, Ramco-Gershenson Inc. of Farmington Hills will announce major expansion plans for Summit Place in Waterford Township, formerly known as the Pontiac Mall. According to Ramco President Joel Gershenson, the development company plans to expand Summit Place from 900,000 square feet to 1.4 million square feet by connecting a nearby, free-standing Sears Roebuck & Co. store with the mall and constructing new space. The long-range plans for Summit Place are to expand the size of the mall to more than 2 million square feet, he said. Work is in the design and site-planning stage. No formal public announcement will be made until the major tenants are signed, Gershenson said, and no price tag has been
determined. The Ramco president confirmed that negotiations are under way with J.C. Penney & Co. to locate in Summit Place. The two companies are discussing economic issues, and J.C. Penney considers a move to Summit Place a "very logical step in their marketing plan," Gershenson said. Henry Rusman, manager of field public affairs for J.C. Penney in New York City, said his company is "interested in the project." "If our market research was not positive about the prospects in that market, we wouldn't be in the stage of negotiations (with Ramco) we are now," Rusman said. "I really can't comment beyond that." Another possible tenant would be a store for a chain specializing in higher priced See SUMMIT, PAGE 22
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