WSJ: "Revival Bid Pits Detroit vs. Donor" [Kresge Foundation].7.2.11‏

[Woodward's Cousin]

Not a helpful article in the WSJ today. Bing aid quoted as saying " Now it's time to defer to the Mayor". Any constructive ideas on how this snafu can be remedied ?

[mam2009]

Link please?

[BrushStart]

In terms of what? Light rail? Detroit Works? Gotta give us somethin...

[Woodward's Cousin]

WSJ has proprietary access. Don't think a link would work. Those interested need to read hard copy or find a side-door to the article.

[BrushStart]

You could always just discuss what you read.

[Woodward's Cousin]

Re: Light Rail and Detroit Works.
Kresge and Bing Administration pointing fingers.
Try to access through link to WSJ on Drudge.

[Woodward's Cousin]

To access article , google title of article:" Revival Bid Pits Detroit vs. Donor"

[Woodward's Cousin]

Let's see if this works for a link to the article:
http://online.wsj.com/article/SB10001424052702304887904576397760319014524.html

[Packman41]

OK, let's try this: The article exceeds 10000 characters so I will post it [[as a public service) in 2 parts. Watch for the interactive map link at the end of the second part.

Just a little cut-n-paste from the WSJ


http://online.wsj.com/article/SB10001424052702304887904576397760319014524.html?K EYWORDS=bing+donor

The Wall Street Journal
July 2, 2011

Revival Bid Pits Detroit vs. Donor .

By: Mathew Dolan

DETROIT—There's a new driver grabbing the wheel in the Motor City.

He's not an elected official, or a local business titan. He's not even a Detroiter.

He's Rip Rapson, president of the $3.1 billion Kresge Foundation, and his combination of ambition, political connections and financial resources has made him a powerful force in the effort to remake a city much of the country wrote off a generation ago.

Under Mr. Rapson's watch, Kresge has invested more than $100 million in Detroit's transformation, funding a riverfront promenade, building greenways and backing incentives for entrepreneurs. And he's just getting started.

"Philanthropy has emerged as the sector best able to provide the long-term vision and shorter-term investment of capital the city needs to right itself," Mr. Rapson said at a private gathering of urban experts in Detroit this spring.

That foundation-knows-best attitude exasperates Mayor Dave Bing and City Hall officials, who have sought to reassure Detroiters that their voices, not outsiders, will guide efforts to rebuild the city.

"Everyone talks about Kresge, Kresge, Kresge," the mayor said in an interview. "We're pleased with the support we're getting from them, but... Kresge is not doing this in a vacuum by themselves."

Mr. Rapson dived head-first into city politics last year when Kresge agreed to fund Detroit Works, Mr. Bing's signature campaign to consolidate the city's shrinking population into healthy neighborhoods and re-purpose vast tracts of vacant land. Kresge also put up $35 million to spark development of "M1," a light-rail transit line down Woodward Avenue, the spine of the city.

Both initiatives are now in limbo. Kresge stopped funding Detroit Works at the start of the year after disagreements with City Hall over the role of outside consultants. The foundation also is rethinking its support for the rail line amid a separate spat with city officials.

The tug of war between Kresge and the Bing administration raises serious questions for Detroit about whether City Hall and foundations can work as partners in saving the shrinking city from collapse. Caught in the struggle are tens of thousands of Detroiters waiting to find out whether their neighborhoods will come alive with new investments, or be left to fade away.

People like Ayana Rhodes-Ako. The 37-year-old graduate student lives on Detroit's east side, in a house that has been in the family for three generations, and a neighborhood with a high concentration of empty lots. She returned to the city after college to find that most of her friends had fled, and she worries about the fate of the neighborhood. She's hoping for a reason to stay.

Friends "say to me, 'What's it going to take for you to see that you're a flower among the weeds in Detroit?'" she says. "All I have to do is pull out the weeds. I don't see myself going anywhere."

Detroit has lost more than 1 million people since the 1950s, and has shrunk by 25% in the last decade alone, according to the latest Census. That flight has left the city with large pockets of vacant land and a meager tax base to support services across Detroit's 139 square miles.

A dearth of public and corporate funds, along with a legacy of corruption at City Hall, has put charitable foundations at the front lines of channeling relief and investment into the city.

But city leaders say mapping out the city's future—including deciding which neighborhoods will survive Mr. Bing's consolidation effort and which ones won't—is a task for local leaders and voters.

"People want to know that their interests are being represented," says Marja Winters, the city's deputy planning chief and co-leader of Detroit Works. "Someone who doesn't live here can't accurately represent their interests."

.Mr. Rapson counters that more outside voices are needed in Detroit to help local leaders who, he suggests, aren't up to the challenge of remapping the city. "The idea that the folks who have been trained a certain way for the last 20 years and who have never had the opportunity to apply that training in another community could figure all that out de novo seems crazy," he said in an interview.

Mr. Rapson is an ardent believer in the salvation of Rust Belt cities. As deputy mayor of Minneapolis in 1991, he designed and oversaw a $400 million, 20-year neighborhood revitalization plan.

A 2005 study by Harvard University researchers credited Mr. Rapson's project for revitalizing many parts of Minneapolis, including its housing stock, business corridors and schools. But critics said it fell short on expanding affordable housing.

Mr. Rapson failed in his own bid for Minneapolis mayor in 1993.

After six years at the McKnight Foundation in Minneapolis, he arrived five years ago at the Kresge Foundation, established by the founder of the Kmart retail chain. A married father of two, he commutes to Kresge in the Detroit suburb of Troy from the well-heeled town next door.

When Mr. Rapson took over, Detroit was facing deep economic and political crises. Foundations rushed in to help stabilize the city.

Since Mr. Bing's election in 2009, foundations have increasingly partnered with the city on relief and development work. They are now on track to spend more than $1 billion over seven years on a range of urban-renewal projects.

Leading the charge are Kresge and Mr. Rapson. Ask for his blueprint for Detroit, and Mr. Rapson points to a dizzying, hand-drawn diagram on legal-size paper that he keeps behind his desk. It depicts nine pillars of his Reimagining Detroit 2020 vision, bound together in a cobweb of arrows.

One pillar calls for a "green economy," supported by a "suite of coordinated investments" including "neighborhood sweeps" to assess the environmental strengths and weakness of an area. Another promotes the idea of "neighborhoods of choice," which to some activists echoes the convulsive urban-renewal efforts of Detroit's past. He sees vacant land, a scourge to many in the city, "as a canvas of economic imagination."

[Packman41]

OK, Now for Part 2

Mr. Rapson says Mr. Bing looked at the original diagram and bristled at its emphasis on Kresge. So the foundation president, who considers the mayor an ally, tacked on some language and icons to represent administration priorities.

Mr. Rapson speaks of Detroit's landscape as "syncopated," like a piece of jazz, dotted with strong and weak "beats." The strong ones—neighborhoods clustered near the main roads radiating from downtown, as well as healthier enclaves such as Boston Edison and Mexicantown—demand more emphasis, more investment, he says. The weaker beats—blighted, depopulated areas—are ripe for a "restoration of the natural ecology," like planting new forest and unearthing buried creeks, he says.

One Kresge-backed initiative aims to draw 15,000 new residents to Detroit's job-rich Midtown section by 2015.

By contrast, the mayor, who pledged to be the public voice of Detroit Works, has done little to articulate a vision for the city's future. Instead, he is often consumed with crises of the present, such as failing schools and budget battles with City Council.

"Our administration is focused on the priorities of our community; making Detroit safer, fiscally stable and attracting jobs and investment," the mayor said in a statement responding to questions for this article.

He's also wrestling with ghosts of Detroit's past. The talk of shuffling neighborhoods and people has stirred up memories of such painful episodes as the 1981 razing of Poletown, a working-class neighborhood cleared by eminent domain to make way for an auto plant.

A former NBA point guard known for his studiousness off the court, Mr. Bing still spends much of his public talks trying to reassure Detroiters trying to come to terms with a much smaller city.

"Building trust is very, very important," Mr. Bing said in an interview.

This spring, the mayor started to go his own way. He became impatient after the latest Census showed the city's population in rapid decline—and faced increased pressure from charter-school operators and others planning to invest in the city. In the next few weeks, he plans to demonstrate some momentum—given that the city still has access to roughly $60 million in federal funding. The mayor's office, for example, is expected to release plans about how it to will go about rehabilitating certain neighborhoods.

But without support from Kresge, the future of Detroit Works still remains uncertain.

Kresge had been an early backer of Detroit Works. It was anxious to fund community meetings and commission independent analyses on such issues as economic development and the potential for urban agriculture.

The program, though, got off to a rocky start last fall as city officials solicited residents' views in a series of town-hall meetings that often degenerated into gripe sessions and shouting matches.

Mr. Rapson blamed top Bing aides for bungling the town halls. He had wanted organizers to use more social media and other technology to mine Detroiters' opinions. Without a more constructive process for soliciting input, he worried, City Hall and residents would never unite behind a master plan.

City leaders said it was the Kresge camp that botched the process and sowed distrust with flubs such as calling 7 Mile Road, a major city artery, "7th Mile Road."

Mr. Rapson's biggest complaint was the city's cold-shoulder treatment of Toni Griffin, a well-regarded urban planner from Harvard whom Kresge had recruited to help guide Detroit Works. Kresge funded her city salary.

Ms. Griffin spearheaded planning with the city and foundations before the first public meetings in September. But city leaders felt she relied too heavily on consultants hired by the foundation and her own data-driven approach, often brushing aside work already done by local groups, according to one person familiar with the administration's thinking.

Carla Henderson, the city planning chief and co-leader of Detroit Works, says it was a mistake for foundations and consultants not to use more local talent in a city that's notoriously suspicious of outsiders. "In the past, there have been a lot of outsiders who have come into the city, made money, made a name for themselves and then left," she says.

Ms. Griffin says she continues to work with the city and that concerns about her presence have died down.

The latest flare-up between Mr. Rapson and Mr. Bing came this month over the $500 million Woodward Avenue rail line, for which Kresge has pledged $35 million. Kresge worked with Detroit booster Roger Penske, traveling to Portland, Ore., and Minneapolis to learn about their networks, and pushing a system led by the private sector. Mr. Rapson personally lobbied the U.S. transportation secretary to win a key endorsement. The federal government made an initial pledge of $25 million for the project, which supporters expected would break ground next year.

This spring, the Bing administration moved to put its own stamp on the rail line, offering $80 million and signing an agreement with the U.S. Federal Transit Administration about its scope and design—without notifying the foundations first, according to Mr. Rapson.

Norman White, head of the city's light-rail project, says private funders were kept abreast all along the way, but added that Detroit intends to lead the process.

Miffed by being frozen out of part of the planning process, Mr. Rapson began to rethink Kresge's funding. "Are we going to pull our money out? We won't just because we're annoyed," he said, adding that the parties were discussing the issue. He feels good about his bargaining position. "Everyone knows that Kresge is the do or die for the line."

Kresge and the Bing administration have yet to settle on how to take on the far more complex tasks awaiting them: moving residents into more stable neighborhoods and finding ways to reuse the forsaken land. Until then, the foundation's millions remain untapped.

Ms. Henderson, the city planning chief, says Mr. Bing can take it from here. "For two years, the city government was at a standstill [and] the philanthropic community stepped up." Now, she says, it's time to defer to the mayor.

Write to Matthew Dolan at matthew.dolan@wsj.com


Private money for Motown WSJ interactive graphic: vacant lots, population change, etc.

http://online.wsj.com/article/SB10001424052702304450604576420263000679204.html

[brizee]

Miffed by being frozen out of part of the planning process, Mr. Rapson began to rethink Kresge's funding. "Are we going to pull our money out? We won't just because we're annoyed," he said, adding that the parties were discussing the issue. He feels good about his bargaining position. "Everyone knows that Kresge is the do or die for the line."

Nice.
Real nice.

[BrushStart]

Please, Mr. Rapson, do not pull funding for M1. Detroit needs it so badly. Please don't take the sins of the father out on the children of the city.

[lilpup]

Please, Mr. Rapson, do not pull funding for M1. Detroit needs it so badly. Please don't take the sins of the father out on the children of the city.

You've got to be kidding. Philanthropy has as much politics as everything else does [[possibly even more). T'aint no saints there.

[royce]

It's always a slippery slope when anyone takes money from somebody else. The person giving away the money wants it to go towards a specific purpose and the person receiving the money wants it to go towards that purpose too, but many times finds that something else takes priority and they need to spend the money somewhere else; or they realize that the person giving the money wants all the say on how to spend it and leaves the person receiving the money with little say.

For example, Robert Thompson wanted to give Detroit $15 million to open new high schools in Detroit, but he wanted to dictate to Detroit how exactly the money was to be used. Detroit declined. The Nolan Finley-types were flabbergasted that Detroit declined the money. But think about it for a second. If somebody gives you a gift card for your birthday, do you expect them to tell you how to spend it? No, you don't, and they shouldn't impose on you some requirement saying to only spend the money a certain way. They gave it as a gift.

Well, philanthropists need to think of gifts to organizations, cities, or people as gifts as well, and not make demands on how these gifts should be used. They should say to the person that they're giving the money too, "I want to help you. Use this gift/money as you see fit." That's it. No strings attached. The same thing applies to Kresge. If they're going to give the city money give it and be happy in the giving or don't give it. I know that this isn't how it usually works, but sometimes the gift giver just has to trust that the receiver of the gift will use it wisely.

[corktownyuppie]

The same thing applies to Kresge. If they're going to give the city money give it and be happy in the giving or don't give it. I know that this isn't how it usually works, but sometimes the gift giver just has to trust that the receiver of the gift will use it wisely.

I respectfully disagree. There are many times that I want to give and help but am hesitant to do so SPECIFICALLY because I don't trust that the recepient of the gift will use it wisely. If there's a kid from a broken home who deserves a better chance at life, I'd rather write a check for $5,000 directly to a university or community college to pay for a semester of tuition rather than just give him the $5,000 and trust that he'll use it wisely.

If I have a friend that wants $10,000 for him to get a business up and running, I'm not going to just give him a bag of cash and say, "Pay me back when you can." I'm going to want to see that the money is being used well to further the best possible chance of success.

I'm working on a capital campaign for a non-profit to endow a foundation to give academic scholarships to deserving undergraduate college students. Before we ask anyone for money, we put together a very clear cut and highly detailed "case for support". People want to know that the money they're spending is going the way they want it to.

Beggars can't be choosy. When someone is willing to offer a helping hand to Detroit, we should be grateful that they're taking an interest when so many have given up on us. And if we don't like the strings they attach, then we should be willing to part ways and go somewhere else to find help.

[royce]

Well, corktownyuppie, like I acknowledged, it usually doesn't happen that way, but every once in awhile someone giving money simply has to let the person receiving the money do what they deem is necessary for them at the time. However, the real concern with a recipient accepting money deals with the "strings-attached" issue. Say you ask a friend or family member for some money to buy a car. You tell them that you need $10,000 to help with the down payment. Should they dictate what kind of car you should buy or what color it should be? Would you be comfortable with them putting these demands on you? Here's another example. My former high school asks yearly for me to donor money to the school. Now, I know if I donate money that it is going to go towards running the school. But do I need to know if the money will go towards replacing old windows or updating the electrical system? Sometimes I'm just happy to help out. Again, donors shouldn't always demand that the recipient use the donated money for x, y, and z.

[Wesley Mouch]

...
Well, philanthropists need to think of gifts to organizations, cities, or people as gifts as well, and not make demands on how these gifts should be used. They should say to the person that they're giving the money too, "I want to help you. Use this gift/money as you see fit." That's it. No strings attached. The same thing applies to Kresge. If they're going to give the city money give it and be happy in the giving or don't give it. I know that this isn't how it usually works, but sometimes the gift giver just has to trust that the receiver of the gift will use it wisely.

I also respectfully disagree.

This has nothing to do with a birthday present. A philanthropic organization, such as the Kresge Foundation, has a responsibilities as well. Its their job to ensure that their money is used wisely, and for certain purposes often set forth in their charters. To fail to act responsibly is, well irresponsible. They are not simply money fountains.

If your parents give you a bicycle, you don't complain about the color.

The Kresge Foundation has a great reputation, and while I bristle a bit at some of Rapson's words, we'd be wise to be respectful.

[JBMcB]

Has anyone noticed the string of city employees going to jail for dereliction of duty, misuse of public funds, fraud, etc... ?

You can be damn sure if someone is going to fork over $35 million to this particular city, there are going to be quite a few strings attached.

[Dbest]

This guy is being a baby. Politics is right. He acts like he is forking millions out of his pocket. You cant compare him earmarking his foundations money to someones own personal donation. This guy wants to elevate himself in the process. I hope this tool doesn't derail light rail. He's the expert though because he rode a couple lines in other cities...

[Woodward's Cousin]

Setting the merits of the policy disputes to one side, the following is true:
1. The Kresge Foundation under Rapson has shown a greater interest in the City of Detroit than the Foundatiuon had previously demonstrated.
2. Any foundation donating money to a City of Detroit related project is perfectly reasonable in requiring some level of guantee that the donated funds will be used as intended and not frittered away or worse.
3. Archer had a very effective liason to the philanthropic community whose job it was, in part, to facilitate and structure foundation grants in a manner that assured the donors that the money would be appropriately and effectively employed.
4. Kilpatrick and Bing have not had such an effective liason to the philanthropic community.
Once again, "What we have here is a failure to communicate". The solution is not to baldly state : "Now is the time to defer to the Mayor".
Unfortunately, Mayor Bing seems to be unaware that this is one of the glaring holes in his cohort of staffers on the 11th floor of CAYMC.. And it is not simply giving someone the title--it is about getting someone very talented in the position After 25 months Mayor Bing hasn't figured that out.

[jtf1972]

Nice that Bing is suddenly all suspicious of outsiders...

Perhaps Mr. Rapson should rent a condo & consider a run for office.

[JGrant]

: "Now is the time to defer to the Mayor".
Unfortunately, Mayor Bing seems to be unaware that this is one of the glaring holes in his cohort of staffers on the 11th floor of CAYMC.. And it is not simply giving someone the title--it is about getting someone very talented in the position After 25 months Mayor Bing hasn't figured that out.

Am I the only one starting to think that this administration may not be up to the task?

[mwilbert]

The slow pace of everything and the apparent chaos in his senior administrative staff does give one pause. I would say he still has time to get his act together, but I have no idea if he actually will.

[daft]

back to the start of this thread...

Not a helpful article in the WSJ today. Bing aid quoted as saying " Now it's time to defer to the Mayor". Any constructive ideas on how this snafu can be remedied ?

why do you see the article as not helpful? the threatened lack of funding certainly isn't helpful. but the article is quite helpful in bringing the problem to light. maybe i missed it somewhere, but i wonder why the local news media haven't told of this...

[Woodward's Cousin]

You're right to question my wording--but no matter what I don't like reading articles in the national media that underscore the difficulty of our community's leadership in working effectively together, and working through differences of opinion without having it lead to another highlighting of dysfuntion and an inability to efectively communicate.
There has been some treatment of the subject of the article, just not much. See, for example, Nancy Kaffer's blog in CDB of March 15 , 2011:"Detroit, Kresge renegotiating land-use planner's contract,refining scope" of Detroit Works Project"
http://www.crainsdetroit.com/article...tract-refining
The shaky start of DWP has been no secret, it's just that the local media is too often mired in wishful-thinking boosterism, the papers have a shrinking news-hole, somewhat complex "bad" news doesn't sell, and there is a reluctance to go on the record with comments ackowleding even more problems than we are already hit in the face with every day.