The Michigan Daily - michigandaily.com

Wednesday, January 25, 2012 - 5A

MAR E
Sole Sisters on East Liberty Street will close at the end of the month, according to owner Tamar Fowler.

From Page 1A
Sisters, said the company expe-
rienced a decrease in sales over
the course of the past six to eight
months that has made continu-
ing business operations difficult.
Though she moved to East Lib-
erty from Fourth Avenue in 2010
in hopes of increased foot traffic,
ultimately she said the rent on
East Liberty was too high.
"It's heartbreaking, of
course," Fowler said. "You put
* so much time and effort into it ...
' it does hurt a little, but it's still
good because I've tried ... we
made it three and a half years. I
met some really great people; I
love my customers, I really got
to know each and every one of
them."
Sole Sisters, which opened
in March 2010, will hopefully
be revived in the future as she
explores methods of revivingher
business and new ways to sell
her shoes, handbags and jewelry,
Fowler said.
- Faley wrote in an e-mail
interview that in order for busi-
nesses to remain open, they must
accrue greater revenue than the
costs paid to operate the store,
noting that many of the
businesses that have been suc-
cessful in the area are higher-
COST
From Page 1A
op."
In an interview with the Daily,
University President Mary Sue
Coleman said a major reason for
implementing cost containment
plans was to combat against the
increasing likelihood of funding
cuts from the state than when
she first came to the .University
in 2002. Last year, the University
received $47.5 million less from
the state, and over the past 10
years, funding has decreased by
about 30 percent.
"It's just a good practice, being
as efficient as you possibly can
and making sure you're using
best practices," Coleman said.
"Certainly, the pressures from
the state and our desire to keep
tuition as low as we possibly can,
the increases in tuition as low
as we possibly can, have really
prompte d us to do some really far
reaching initiatives."
Coleman added that savings
have been implemented in areas
that will not negatively impact
academic standards.
"Through every single thing
that we've done, we've tried to
protect what happens in the
classroom," Coleman said. "We
want to make sure that we don't
cut (extracurricular) programs
back because we think they're
so important to the education of
students."
Coleman said the containment
plans have ultimately resulted in

end restaurants that serve liquor
to supplement food profits.
"While restaurants and retail
shops all operate on thin mar-
gins, the bottom line is that a
higher-end restaurant with a
liquor license - if it they can
attract a consistent stream of
customers - are advantaged and
can support a higher rent than
small retail shop or fast-food
restaurant," Faley said.
Faley added that downtown
Ann Arbor development asso-
ciates prefer a wide variety of
storefronts, mixing retail, res-
taurants and other specialty
shops. However, he said main-
taining this. diversity has been
challenging as niche stores close
due to low profits and high rent.
"It will be interesting to see
how far the mix along the Liber-
ty Street corridor will ultimately
swing," Faley said.
In order to decrease the
expense of maintaining a store-
front, Fowlerplans to displayher
merchandise at private parties
and events, as well as develop a
website for online shopping.
"I feel good about it .. closing
these doors is just going to open
up more," Fowler said.
However, other storeown-
ers on East Liberty said they
don't feel as optimistic about
the future.of their businesses.
more efficient work at the Uni-
versity.
"We sort of transformed the
system," Coleman said. "By
transforming the way we look at
that and having groups of facili-
ties people be responsible for a
certain part of the campus, we've
really made the work more effi-
cient and better. So there's some
ways in which our cost cutting
has created better systems than
we used to have."
Some of the planned savings in
each phase will also be incurred
from changes to health benefits
for University employees and
retirees, totaling yearly savings
of about $30 million. The Univer-
sity recently changed its health
benefits coverage for current
employees, who now have to pay
about 30 percent of their benefit
costs. Additionally, the Univer-
sity has begun to self-insure,
rather than paying outside com-
panies to provide benefits.
In 2013, retirees will also
begin paying more for benefits,
which would result in an esti-
mated savings of $9 million a
year by 2020 and ultimately, $165
million a year by 2040, for the
University.
The Committee on Retiree
Health Benefits, which was
appointed by the office of the
Provost in 2009, recommended
the change in retiree benefits last
February. Laurita Thomas, asso-
ciate vice president for human
resources and a member of the
committee, said the change was
made after comparing benefits

Angela Eddins, owner of Rocky
Mountain Chocolate Factory,
said she is concerned about the
high rent and low foot traffic,
attributing decreased sales to
a number of factors, includ-
ing the closing of Borders - a
major draw for customers to
the area.
"Borders's closing has killed
all of us," Eddins said. "We've
been open for years and we can
see our sales from when Borders
was open to when it closes, and
it's downhill."
Eddins said many customers
may also view the East Liberty
strip as unappealing due to the
high number of panhandlers,
adding that very few customers
visit her store.
"It's dead now ... It's like a
ghost town out there," Eddins
said.
Cecelia Kuzon, a sales associ-
ate at Allure Boutique, also said
she has noticed decreased busi-
ness in the area, particularly on
weekdays, since the recent clo-
sure of nearby stores.
"I think it definitely has a
lot to do with the economy and
also ... Poshh closed ... so that's
affected our business a little bit,
because not as many people even
come down this road to shop,"
Kuzon said. "I'd say business is
struggling."
offered by the University to peer
institutions and found that the
benefits the University offered
were very competitive.
"Our retiree health benefit
was one of the best in the nation
and it was also the most expen-
sive for the employer," Thomas
said. "There was an opportuni-
ty to save resources so that we
could control the cost increase
for tuition and other revenue
resources, so we decided to make
that change with lots of input
and consideration from our com-
munity, current retirees and cur-
rent faculty and staff."
Thomas added that employ-
ees who will be mostly affected
by the change are those that are
not yet hired, since the change
will be more gradual for current
employees and retirees.
"We wanted to protect current
retirees and those close to retire-
ment," Thomas said.
In addition to the cost con-
tainment initiative, the Univer-
sity's space saving initiative,
which started in 2007, has saved
the University about $462 mil-
lion in construction costs and
$18 million in annual costs by
increasing current space utiliza-
tion efficiency and decreasing
requirements for construction
expansion..,
Before the space saving ini-
tiative started, the University's
average growth rate in square
feet was 2.02 percent. Since the
initiative started, however, the
rate decreased to .43 percent,
which has helped save costs.

ADDRESS
From Page 1A
every student graduate from high
school.
"When students are not
allowed to drop out, they do bet-
ter," Obama said. "So tonight, Itam
proposingthateverystate - every
state - requires that all students
stay in high school until they
graduate or turn 18."
University President Mary Sue
Coleman said in a press release
after the speech that she sup-
ported Obama's call for increased
accessibility of higher education,
which came after she sent an
open letter to the president last
month in which she provided sug-
gestions for decreasing the rising
costs of universities around the
nation.
"The only way to achieve the
support necessary for public edu-
cation today is through a shared
commitment that includes the
federal government, state govern-
ment, the business sector, donors,
parents and the universities.
themselves," Coleman said in the
release.
Michael Traugott, a research
professor at the University's Insti-
tute for Social Research, said in
an interview after the speech that
it will be a challenge t actually.
achieve Obama's proposed educa-
tion reforms since it'll be up to the
state governments to pursue the
policies.
"(The reforms are) going to be
difficult to implement because
RENTALS
From Page 1A
that we know there is a need (for)
and what people want to see more
(of). So we think this is a great
way to start."
Panelist John Swerdlow, senior
assistant director of Outdoor
Adventures, said he is looking
forward to the bike rental system
and the increased convenience for
students.
"I think that we can create
some opportunities with the rent-
al bikes, whether it's for freshman
or working out day trips open
for the weekend when students
might otherwise not be renting
bikes," Swerdlow said in an inter-
view after the event.
Swerdlow added implementing
a sharing system, which would
allow students to use bicycles on
campus for free as needed and
then pass them off to their peers,
is more difficult, as he has wit-
nessed the program fail in differ-
ent towns.
"The idea of the bike sharing is
very exciting, but as I've been to
many of these communities (with
bike sharing programs) and seen
it's difficult to plan successfully,"
he said. "I think people will need
to be patient in order for itnto work
ASSEMBLY
From Page 1A
the University's chapter of Col-
lege Democrats, Social Workers
for Immigrant Rights and Human
Rights Through Education.

LSA junior Luz Meza, co-chair
of MIRA, said undocumented
Michigan residents who have
attended school in the state are
discouraged from pursuing high-
er education because they can't
afford it. Meza said out-of-state
tuition and the inability to obtain
student loans makes paying for a
college education unrealistic for
undocumented students.
While growing up in southwest
Detroit, Meza said she had several
friends who were undocumented,
and this discouraged them from
doing well in school, adding that
even friends who were strongstu-
dents were still unable to afford
the high cost of college tuition.
Maria Ibarra, a senior at the
University of Detroit Mercy and
an undocumented Michigan resi-
dent, spoke on behalf of tuition
equality. Ibarra, who came to
Michigan when she was 9 years
old, said the University of Michi-
gan was her "dream school," but

the federal government, outside
of the (student) loan programs,
doesn't provide much direct assis-
tance to colleges and universities
that support things like tuition,"
Traugott said.
Domestic economic reform was
also at the forefront of Obama's
address. As multinational com-
panies continue to outsource
jobs, Obama stressed the impor-
tance of keeping and creating jobs
in America, especially in cities
dependent on manufacturing, like
Detroit.
"What's happening in Detroit
can happen in other industries,"
Obama said. "... It now makes
business sense ... to bring jobs
back home."
Obama noted the successful
growth and restructuring of the
automotive industry after the
federal government bailed out
Chrysler and General Motors in
2009.
"Today, General Motors is back
on top as the world's number-one
automaker," Obama said. "Chrys-
ler has grown faster in the U.S.
than any major car company. Ford
is investing billions in U.S. plants
and factories. And together, the
entire industry added nearly
160,000 jobs."
Obama also specifically refer-
enced Michigan resident Bryan
Ritterby who attended the speech,
and found work at age 55 at a local
wind turbine manufacturer.
"He found work at Energetx,
a wind turbine manufacturer in
Michigan," Obama said. "Before
the recession, the factory only
out."
Dolen added that some bik-
ers said covered bike parking is
unnecessary since bikes would
be exposed to wet conditions as
they are riding anyway. Despite
the discrepancies, most parties
agreed that there is a need for
additional bike parking, includ-
ingbetter enclosed parking areas.
These structures could be open
areas in vehicle parking struc-
tures, according to Dolen.
"Enclosed is better, because
it is better protected, and has a
higher level of security," Dolen
said.
Rackham student Parrish
Bergquist has collaborated with
the city of Ann Arbor on several
projects 'involving the Univer-
sity. She said she is pleased with
the new bike renting system, but
hopes bike sharing will eventually
be implemented.
"Bike sharing is still in the
planning and resources gathering
phase because we haven't found a
funding source for that and that's
what we are working on right
now," Bergquist said.
Emma Kelly, an LSA sopho-
more who spoke at the forum
about her biking habits, said she
leaves her bike at home during
the winter because there isn't a
place to store her bike to keep it
her inability to afford out of state
tuition and receive financial aid
kept her from attending school in
Ann Arbor.
LSA freshman Daniel Morales
was an undocumented resident
until last July, and said the Uni-
versity's heritage as a promoter of

diversity conflictswith its current
policy towards undocumented
students.
Morales said adopting a policy
of tuition equality would correct
the University's conflicting ideals.
"(It would be) fixing a flaw in
(the University's) residency policy
that was discouraging diversity
on campus while simultanieously
the University was promoting,
and asking for, diversity on cam-
pus," Morales said.
The meeting also featured a
presentation on possible renova-
tions to University Unions and
recreation buildings by Bill Can-
ning, director of the Department
of Recreational Sports, and Loren
Rullman, associate vice president
for student affairs.
Rullman and Canning have
been working with LSA sopho-
more Louis Mirante, a CSG
representative, as well as other
students on a task force to identify
problems at University Unions

made luxury yachts. Today, it's
hiring workers like Bryan, who
said, 'I'm proud to be working in
the industry of the future."'
Sen. Carl Levin (D-Mich.) said
in a press release that he wel-
comed the emphasis on the manu-
facturingindustry and it's place in
the nation's economic revival.
"(Obama's) focus on American
manufacturing is already paying
off in Michigan, where manufac-
turing is on the rebound and can
help lead the way to a new era of
prosperity for the middle class,"
Levin wrote in the release.
Public Policy senior Joe Sand-
man, communications direc-
tor for the University's chapter
of College Democrats, said he
is particularly looking forward
to Obama's upcoming visit to Al
Glick Field House on Friday after
the president spoke about educa-
tion and the Michigan economy
in the State of the Union address.
"(The visit is) really exciting,"
Sandman said. "I think he'll talk
about the role of education in
advancing the economy here in
Michigan."
LSA senior Anton Dirnberger,
chair of the University's chapter
of College Republicans, wrote
in an e-mail interview that the
speech was more of a campaign
tool than an address of national
issues.
"The President is going to be
visiting five battleground states
in the coming days," Dirnberger
wrote. "... This State of the Union
was simply a campaign speech to
jumpstart that trip."
from rusting, and would benefit
from increased storage space on
campus.
"If we have enclosed bike racks
by the residence halls and storage
right now, students willlkeep their
bikes there," Kelly said. "I know
there is a lot of wear and tear with
the snow and if we had covered
or enclosed bike structure there
it might promote year round bik-
ing."
LSA senior Catherine Kent
said she came to voice her per-
spective, adding she developed
a particular interest in bicycle
use on campus after developing
a project for her SustAinability
on Campus class to make campus
more bike-friendly.
"There were (four) aspects
to my project - distribution of
education materials to students,
infrastructure bike lanes and bike
pathways, bike sharing/rental
program and collaboration of city
and University," Kent said. "Some
of these are happening already
and some aren't, so that's why I'm
here."
The attendees also discussed
setting up a website with infor-
mation for Ann Arbor cyclists.
Gott said the forum's planners
would follow up with attendees
by distributing surveys and ana-
lyzing the feedback.
and recreation buildings.
Mirante said a survey was
e-mailed to students earlier this
month asking what improve-
ments they hoped to see in these
facilities. He added that another
survey will be sent out on Mon-
day.

Business senior Matt Eral, the
Assembly's speaker of the house,
said the next step for the resolu-
tions is implementation, which
begins by talking to University
administrators.
The meeting was lightly
attended, with only '22 represen-
tatives at opening role call and
24 at closing. After two represen-
tatives resigned from CSG, the
number of representatives needed
for quorum decreased to 21. Cur-
rentlythere are 42 standingmem-
bers in the Student Assembly,
which is less than the set capacity
of 54 if every school sent the max-
imum number of representatives
possible.
Eral said he was happy with
the results of the meeting, but
not with the meeting's atten-
dance.
"It can be a little disconcert-
ing," Eral said. "The more reps
that come, the bigger sphere of
influence (CSG has)."

INTERESTED IN POLITICS, BUSINESS, SCIENCE
... OR PRETTY MUCH ANYTHING?
WRITE FOR DAILY NEWS. LEARN MORE ABOUT THE WORLD.
E-MAIL RAYZAG@MICHIGANDAILY.COM TO JOIN

I'A

'A