Do you know of a business in the region that is making a real difference in reinventing our economy? Working in conjunction with The Detroit News, we’re looking for nominations for our inaugural Renaissance Awards. The criteria for nominees are several, but the key factor in our search is innovation. Additionally, the person or organization should possess the following qualifications:

• Developed innovative solutions to help move the region forward.
• Helped build positive momentum for change through strong leadership.
• Produced results that show the potential for lasting impact on the way the region is viewed or how it operates.

We are giving additional consideration to those nominees who have shown exceptional work in one of the six priorities in our Road to Renaissance plan. The award will be presented during a meeting of the Detroit Economic Club in December. Get your nominations in now, though, because the deadline is Nov. 15. If you know of an individual or organization that you feel would make a great candidate for this award, send the following info:

A nomination must include:

• The name, title and contact information of the nominator;
• The name of the organization or initiative being nominated with a 100-word background summary.
• A 200 to 350-word description of why the nominee should be given the award.

Submit the nomination package to:

Kirsten Ussery
Director of Communications
Detroit Renaissance
600 Renaissance Center
Suite 1760
Detroit, MI 48243
Or send an e-mail to kirstenu@detroitrenaissance.com.

Current revenue forecasts put the current year state budget at a $500-800 million deficit.

• This comes AFTER the State increased taxes last year by nearly $1.5 billion.
• This comes BEFORE we know what will happen to the fate of Chrysler and the rest of our auto industry.
• This comes WITHOUT knowing how many of the thousands of auto employees who recently received buy-out packages will no longer earn income to pay the state income tax.

We could be looking at deficits in the billions. 

We recently produced a report outlining ways of saving over $800 million/year in structural costs.  But it will take time to fully achieve these savings and even they might not be enough.  We need to enact all of those ideas plus many more.  

While blue ribbon committee's are out of vogue, why not use them to identify prisons, community colleges, state universities and school districts that could be consolidated?   What about reformulating revenue sharing and public education spending formulas to require a very high level of administrative efficiency (which only can be reached through large economies of scale) to receive the full state allocation?  Everything has to be on the table.  Is there a better time to get started on this work?

As I sit in North Carolina writing this Blog, I am struck by how different the emotional mood is here than back home. The whole country is feeling economic anxiety today and North Carolina is no exception. But North Carolina, a state I cited previously as a “benchmark” for Michigan to emulate, remains optimistic about its future. They believe their public institutions are largely doing the right things and their private leaders remain engaged to see things through. 

The focus down here remains on economic development the “old fashioned way” – creating good jobs. There’s
a strong interest in rebuilding downtowns, transit, etc. But they focus on the fundamentals: maintaining a competitive business climate and cost structure, remain welcoming and appreciative of business investments, and build on the state’s assets that most impact the economy – higher education
and infrastructure.   

It’s hard to have North Carolina’s optimism given what we seem to be experiencing every day. But if we can’t lift the negative emotional cloud that hangs over us, we will only make matters worse. So much in business is based on confidence in the future. Who will want to stay or move to a place where people are pessimistic about the future?  

We can lift our spirits by getting engaged, not withdrawing from the public arena. The way to get Michigan back on track isn’t that complicated. Yes, it will take some time to get the economy growing again, but we know how to do it. Do we have the will
to fight back? If we don’t, who will? 

The International Economic Development Council recognized Detroit Renaissance with two Honorable Mention awards recently during the IEDC Annual Conference in Atlanta, Georgia. Robin Roberts Krieger, IEDC Chair said, "As the nation continues to tackle longstanding challenges in the midst of an inhospitable financial climate, these efforts have taken on an even greater significance. With the award, we laud trendsetting organizations like Detroit Renaissance for leading the charge."

We are honored and excited to receive these awards, and we are glad to know that our efforts are being internationally recognized.  The initiatives recognized by the IEDC were those competing in the categories of Neighborhood Development Initiatives as well as Regionalism and Cross-border Collaboration in areas with populations over 200,000. The Woodward Corridor Development Fund (WCDF), established to act as a catalyst for the redevelopment of the lower Woodward corridor neighborhood, and our Economic Development Coalition of Southeast Michigan (EDCSEM) were clear standouts in these categories. Without the assistance and collaboration of our community and business partners, none of the work would be possible.

The IEDC is centered in Washington, D.C. and has the primary mission of providing leadership and excellence in economic development for communities, members and partners. Their awards recognize excellence in the economic development profession.

For more about the IEDC, please visit their website at: http://www.iedconline.org/

You can also learn more about the awards for the WCDF and EDCSEM by downloading the attached document below.

A few weeks ago I wrote in the Detroit Free Press that we need to chart a uniquely Michigan Path to Prosperity instead of copying the strategies of other states. One pillar of the Michigan strategy is to reduce the cost of doing business.

Let's face it, we need to do something bold to jump start our economy.  Here are some ideas we should be thinking about:

• What if we adopted all the suggestions proposed in a Public Sector Consultants report we recently released and eliminate the MBT surcharge?

• For the cost of revenue we appear to be giving up to lure temporary film production work, we estimate the state could practically make Detroit a tax free zone for new business investment.  Wouldn't this have a greater economic impact? 

• What if we recognize the MBT isn't much better than the SBT it replaced and get serious about designing a new business tax system that really makes Michigan competitive?

• What if we required a fiscal note for every new regulation proposed by a state agency or the legislature that increases the regulatory burden on business?  Better yet, what if we placed a moratorium on all new regulation and conducted a statewide audit to peel back some already in place?

• What if we adopted serious incentives for school district and local government consolidation and disincentives for failure to consolidate to reduce costs so that we can enable a more competitive tax structure?

Any of the above actions would immediately get national attention and increase business confidence in our state.  Why not get started right now? 

Yes, it has been another rough couple of weeks around our region. More auto cutbacks, unheard of market caps of our corporate icons, belt tightening everywhere.

But look closer and you'll see the signs of economic transformation.

• Hundreds of people show up at a national conference in Detroit to hear how the creative economy can help re-brand our image and grow jobs.
• The federal government seems to finally recognize our auto industry is critical to the nation's economic security. 
• The new North Terminal opens at Metro Airport giving our region the finest air gateway in America.
• Automation Alley, Tech Town and the MEDC announce more new companies opening their doors or expanding - many you've never heard of before.
• Oakland County forms a life sciences initiative to grow medical jobs.
• Legislation gets introduced to attract business to the new Detroit Aerotropolis.
• State legislators are actually talking about making meaningful cuts in Corrections spending and reducing business taxes.
• A Cobo Hall deal doesn't seem too far out of reach.

Compare these developments with what's been going on in the past year.  We've experienced a bitter fight over raising state business taxes, the Kwame Kilpatrick melodrama and the public "diss-ing" of the auto industry by national leaders.

Yes, it's been a rough couple of weeks.  More are coming at us.  But many of us are not letting events often outside our control stop forward progress.   

In this week’s special edition of “50 CEO’s on the D: Detroit Renaissance Reports,” guest host Sabrina Keeley, Vice President of Detroit Renaissance, speaks with Chris Ilitch of Ilitch Holdings, Inc. and special guest Kelly Lee of Innovation Philadelphia.

Detroit’s creative economy itself is discussed, as well as the implementation of various endeavors dedicated to bolster the creative community. Chris Ilitch explains how the creative business accelerator will help to provide support for creative companies and individuals:

“The accelerator is a key driver in the region’s economy as well as a proponent of innovation and entrepreneurship,” he notes, “It will ensure that the creative community in Detroit is supported so that it continues to grow and expand.”

Kelly Lee also provides examples of creative economy initiatives that are happening in Philadelphia. The two give some great insight as to the potential of creative communities everywhere.

Listen to the podcast here, or subscribe via your RSS reader or via iTunes.

Be sure to check out the Detroit Free Press today, which features Doug Rothwell's opinion-editorial, Build Michigan's own road to recovery.   

There is considerable debate about the best way to grow Michigan's
economy. Some advocate we "invest" our way to prosperity by spending
more on education, urban redevelopment, health care and other
government-run programs.

This is the approach followed by high cost states such as Minnesota
and Massachusetts. Others advocate we "cut" our way to growth by
cutting taxes, government spending and regulatory burdens. This is the
approach taken by Deep South states such as Alabama and Mississippi.

Neither approach alone works for a state like Michigan.

To read the full article, visit Freep.com.

Tune in to this week’s “50 CEOs on the D: Detroit Renaissance Reports” podcast with guests John Rakolta, Chairman and CEO of Walbridge, and Bob Fincano, Wayne County Executive. The two discuss with host Doug Rothwell the formation of the planned Aerotropolis and what it can mean for Detroit and Southeast Michigan.

The opportunities the Aerotropolis will bring mean substantial economic growth for the area, and added tax incentives make the venture attractive to outside investors and businesses.

“These incentives are important for the successful business attraction that we need in today’s economy,” says Rothwell, “This discussion serves as a great way to help understand just what level of job and industry growth that the Aerotropolis can help us accomplish.”

The Aerotropolis, which will serve as a transportation hub and bolster travel related industry could bring in over 64,000 jobs to the area and more than $10 Billion of economic activity and production.

Listen to the podcast here, or subscribe via your RSS reader or via iTunes.

Our Renaissance Venture fund has a new CEO and Fund manager, Christopher Rizik. The venture fund, our “Fund of Funds” is helping to grow our region’s entrepreneurial capacity, and Chris’s experience and skill set make him the perfect candidate to run the operation. Chris is a passionate and talented individual who formerly was a co-founder, partner, and board member of Ardesta LLC, the nation’s first accelerator for the nanotechnology and microtechnology field.

Chris successfully led negotiations and closings of over twenty venture capital transactions for Ardesta, following his time as a managing director for Avalon Technology, LLC—where he secured over 30 venture capital transactions in a three-year period.

The Renaissance Venture fund was formed from one of our six Road to Renaissance objectives to accelerate the growth of new and expanding companies in various sectors. The ultimate goal is $100 million capitalization of the fund, with $57 million in investments secured to date. We’re excited to welcome Chris on board, and look forward to his official start date of Oct. 13, 2008.