Crain's Detroit Business - December 19, 2011 - (Page 16)

Page 16 CRAIN’S DETROIT BUSINESS December 19, 2011 Bloggers on the beat NATHAN SKID: Restaurant biz is on a roll I admit I was surprised in Brownies on the Lake an eatery in Detroit. by all of the activity in and Joe Muer Seafood. This year saw the opening of Asmetro Detroit’s restauVicari said year-over- tro Coffee and Sugarhouse Bar, both rant scene this past year. year sales for his restau- of which have quickly become Finally, there was some rant group, which in- neighborhood favorites for artigood news to report. cludes more than 20 sanal beverages. (My favorite During 2011, we saw restaurants, have been drinks are the flat-white and The the rise of food trucks, relatively flat since 2008, Lost Art of Keeping a Secret, rethe revival of long-lost but is bullish on Joe spectively.) names, the rise of CorkMuer’s Seafood. Also slated to open in Corktown town, the announcement “There is a lot of buzz is the Mercury Burger Bar, in the forNathan Skid of exciting new restaudowntown, and it’s one of mer Mercury Coffee Bar space, rant concepts in both the the pockets doing well.” and an Italian restaurant is expectsuburbs and the city and a surprisMeanwhile, Matt Prentice said ed to open on Michigan Avenue ing amount of attention being giv- systemwide sales at his restau- just across the street from Nemo’s. en to our local restaurants on the rants are up almost Foodies also have Food Network. 6 percent over past celebrated the influx Several food trucks are now year; and for the of Food Network introlling metro Detroit, including first time in years, terest in our most Concrete Cuisine, Jacques Tacos and the company is treasured eateries. El Guapo. Each has its own flair and opening an advenOver the year, is creating a loyal following. turous new Ameri“Diners, Drive-Ins Detroit city officials are work- can bistro called and Dives” host Guy ing to change antiquated ordi- Gastronomy in the Fieri visited Eastnances that will allow food trucks former Morton’s ern Market’s Supino to thrive in downtown Detroit Steakhouse at 1 Pizzeria, Midtown’s On the bricks and mortar side of Town Square in Traffic Jam & Snug, the industry, after nearly four Southfield. the Clarkston Union Matt Prentice years of contraction, it seems that “Things are finaland Union Woodshop. cautious expansion is the trend for ly getting better, and I am seeing I believe the health of a city can metro Detroit’s restaurant scene. it, and it’s about time,” Prentice be gauged by the vibrancy of its Joe Vicari, for example, had a said. “The bistro concept is hitting restaurants — and metro Detroit’s big year. Vicari, president of War- it right now because they use inex- culinary scene is getting stronger ren-based Andiamo Restaurant pensive ingredients cooked cor- every day. Group, opened two locations of Rojo rectly, which is very popular right Reporter Nathan Skid’s DetroitMexican Bistro, one of which was now.” converted from an Andiamo, and On the other side of town, Cork- area restaurant blog can be found brought back two familiar names town has become the place to open at www.crainsdetroit.com/skid “ Things are finally getting ” better, and I am seeing it, and it’s about time. SHERRI WELCH: The science of muddy financial data Looking back on a cash flow picture is mudyear of covering the nondied even when a nonprofit community often profit files its tax forms requires looking back quickly. farther than 365 days. The science center was The best illustration of a finalist for Crain’s Best this is the sudden cloManaged Nonprofit consure this fall of the Detest four years ago for its troit Science Center — earned revenue model. and why something that And before the economic was such a surprise downturn, its former maybe shouldn’t have president and CEO, Sherri Welch been. Kevin Prihod, told The only people not caught off- Crain’s the institution was well on guard by the science center’s sud- its way to earning all of its revenue den closure were its CEO and so that it would not have to rely on board members. philanthropy to fund operations. The rest of the public — this reBoth of those things made its porter included — couldn’t have closure more perplexing. seen the closure coming, given the To a certain extent, the economy lack of current, available financial did have a bearing on the science data on the center. center’s finances, just as it did on And it’s not an issue that’s those of other nonprofits. unique to the science center. But the clues were there to how Nonprofits can get 11 months much the science center’s operaworth of extensions for filing tax tions relied on income from its exforms with the Internal Revenue Ser- hibit-building division, had the fivice. Unless a nonprofit makes au- nancials only been available to the dited financials available to re- public in a timely fashion. porters and the public — which it Interim CEO John Miller — who is not compelled to do — it can be is vice chair of the science center, almost a full year before you can director of Michigan State get an accurate sense of a nonprof- University’s executive MBA proit’s financial picture. gram and a 25-year product develDoes it help a year later for opment veteran of Chrysler Group those served by the nonprofit, LLC — has said that he repeatedly donors and other funders to know asked for a clearer picture of fithat the organization had been nances that showed true cash flow struggling a year earlier than they rather than nonprofit accounting. knew? Regardless, there was recogniAdd to that accounting rules tion of issues on the part of at that require nonprofits to book do- least some of the board members nations and large grants in the who made personal loans, along year they are committed, rather with Prihod, to keep the center opthan when they come in, and the erating. The Detroit Science Center’s 2010 990 tax form only recently became available at guidestar.org. It’s dated Aug. 15, 2011 — which would have been 8½ months after the close of its fiscal year, had it been immediately available to the public. The 990 shows a reported loss of $2.5 million for the center last year, following a loss of $587,332 in 2009. Contributions dropped to $3.9 million from $5.6 million in 2009. Program service revenue was $2.2 million, or just half of the amount the center booked the year before. On a more upbeat note, the form also shows net fund balances or assets of $22.5 million at the end of last year, down from $25.3 million in 2009. But exactly what portion of those assets is restricted, if any, isn’t clear. Nonprofits say they don’t always have the money needed for an auditor or the staffing to get the forms filed in a timely manner. But in the interests of transparency and helping donors, funders and reporters check into the financial health of nonprofits, the IRS should reconsider the number of extensions it gives nonprofits for filing tax forms, their pattern of asking for extensions, its auditing of those that don’t file on time and its accounting rules to make cash flow — tied to earned revenue and donations and grants — clear. Reporter Sherri Begin Welch’s blog about Southeast Michigan nonprofits can be found at www.crainsdetroit.com/welch http://www.crainsdetroit.com/article/20110609/STAFFBLOG06/110609868/mobile-food-trucks-downtown-not-with-detroits-archaic-vending-laws http://www.airlinesparking.com http://www.qwikpark.com http://www.us-park.com http://www.crainsdetroit.com/article/20111215/STAFFBLOG06/111219945 http://www.us-park.com http://www.qwikpark.com http://www.airlinesparking.com http://www.crainsdetroit.com/skid http://www.guidestar.org http://www.crainsdetroit.com/investmentchallenge http://www.crainsdetroit.com/welch

Table of Contents for the Digital Edition of Crain's Detroit Business - December 19, 2011

Crain's Detroit Business - December 19, 2011