Many strings attached to Ilitch School of Business gift to WSU

**downtownguy** · August-08-16, 02:17 PM

‘Confidential’ pact between Ilitch, Wayne State puts taxpayers, students at risk

I often take what the Motor City Muckraker writes with a grain of salt, but in this case he claims to have a copy of the gift agreement, and it's not pretty.

http://motorcitymuckraker.com/2016/0...students-risk/

From the article:

The gift agreement, for example, contains numerous conditions, including some that would put taxpayers on the line for some or all of the $35 million that the Ilitch foundation pledged to donate for construction of the business school.

The Ilitch family must be reimbursed for every dollar of public money that becomes available for building a business school in a clause that states “the amount of cash gift shall be directly reduced by any amount appropriated to donee by the state of Michigan.”
If construction is late and the building is not “materially complete” by Sept. 1, 2018, the Ilitch family may impose significant penalties by reducing the $5 million endowment by $1 million. If construction isn’t complete by January 2019, the endowment will be reduced by $2.5 million, and if it is not complete by September of 2019, the Ilitch family may “eliminate the endowment entirely,” change the lease or “terminate this agreement and the lease” on land that is owned by the Ilitch family, not the university.
Given that construction of such projects are routinely delayed because of unexpected expenditures and impediments, the penalties in the gift agreement that President Wilson touted as a positive step for the university will come at the expense of students, whose tuition increased an average of 4.1% this year.
The Ilitch foundation also will have one or more seats on the school’s advisory board, a voice in the school’s curriculum and access to interns.
The school also must build a “display case” or designate another area of the building to highlight Mike Ilitch’s “business careers and personal accomplishments.”

**1953** · August-08-16, 03:05 PM

These are just donor protections. Don't seem that big.

1953

**SpartanDawg** · August-08-16, 06:31 PM

Originally Posted by 1953

These are just donor protections. Don't seem that big.

1953

agree. another non story from that garbage website and garbage 'blogger' [[still refuse to call him a journalist).

moving on.

**MikeyinBrooklyn** · August-08-16, 07:13 PM

Originally Posted by SpartanDawg

agree. another non story from that garbage website and garbage 'blogger' [[still refuse to call him a journalist).

moving on.

Charitable donations of significant amounts almost always have substantial stipulations, to prevent money either being squandered or misappropriated.

I once had a party [[that I catered) for a Knights of Columbus meeting. An actual fistfight broke out over a $10,000 scholarship donation. I've broken up fights between drunks and a-holes in my career, but I never thought I would need to do so for 70-something KofC members. The reason for the fight was that the man who gave the money had stipulated that it be dedicated to math accomplishment, and the KofC had given away the money for general scholarship.

**Wesley Mouch** · August-08-16, 07:29 PM

Our very important public higher education world would be far better if this particular clause were widely used:

If construction is late and the building is not “materially complete” by Sept. 1, 2018, the Ilitch family may impose significant penalties by reducing the $5 million endowment by $1 million. If construction isn’t complete by January 2019, the endowment will be reduced by $2.5 million, and if it is not complete by September of 2019, the Ilitch family may “eliminate the endowment entirely,” change the lease or “terminate this agreement and the lease” on land that is owned by the Ilitch family, not the university.

The Trump translation would be 'if you want my money, you can be responsible in getting this done -- and not let the budget and schedule go wild'.

Fine clause.

Do you think the U is gonna make sure its done on time? You bet.

**Atticus** · August-08-16, 08:32 PM

Of course Mr. I is not going to want the WSU business school next to his new arena to be in perpetual construction. His money, his rules... And really none of these are that outrageous.

**noise** · August-09-16, 07:08 AM

Originally Posted by Wesley Mouch

Our very important public higher education world would be far better if this particular clause were widely used:

The Trump translation would be 'if you want my money, you can be responsible in getting this done -- and not let the budget and schedule go wild'.

Fine clause.

Do you think the U is gonna make sure its done on time? You bet.

Is this really a problem in the "public higher education world"? More so than other aspects of society?

**mikeg19** · August-09-16, 07:17 AM

Pretty standard, nothing that stands out. A lot of the stories that guy posts are a bit misguided and nonsensical. Definitely stretches on some stuff to connect the dots.

**emu steve** · August-13-16, 05:37 AM

And, of course, every school of business needs students.

It seems that Wayne State has really increased their MBA enrollment by leaps and bounds...

"As of Monday, there are 1,119 graduate students for fall. That's the largest class since fall 2008. If 20 more students enroll in the next month, it will be the largest since fall 2007. The increased numbers are a huge turnaround from just two years ago, when there were only 606 graduate students in fall 2014. That's an 84.6% increase over two years.

I am NOT saying the new building is the cause of this surge [[many of the MBA students will have graduated by the time the new building is ready for occupancy), but the PR couldn't have hurt...

http://www.freep.com/story/news/loca...ears/88469094/

**Wesley Mouch** · August-13-16, 09:39 PM

Originally Posted by noise

Is this really a problem in the "public higher education world"? More so than other aspects of society?

OMG yes. Watch Ilitch and how his team watch their project - - and compare that to Ficano and the new Jail for one example.

**noise** · August-16-16, 01:16 PM

Originally Posted by Wesley Mouch

OMG yes. Watch Ilitch and how his team watch their project - - and compare that to Ficano and the new Jail for one example.

Ficano and the new jail are not part of the "public higher education world".

**Hermod** · August-16-16, 06:05 PM

Originally Posted by noise

Ficano and the new jail are not part of the "public higher education world".

You think educators are better managers than political hacks? We have a real scandal here in Broward County on tons of money spent to upgrade schools and they are still leaking and full of mold.

**Wesley Mouch** · August-16-16, 08:07 PM

Originally Posted by noise

Ficano and the new jail are not part of the "public higher education world".

Never said they were [[and certainly didn't intend if I did).

Ficano & the New Jailers = public construction project

Ilitch & the HQ = private construction

Which one do you think will get this done closer to on-time and on-budget? F&NJ or I&HQ?

**Richard** · August-16-16, 11:51 PM

The Ilitch foundation also will have one or more seats on the school’s advisory board, a voice in the school’s curriculum and access to interns.

What do you do with the access to interns?

**Hermod** · August-17-16, 04:38 AM

Originally Posted by Richard

The Ilitch foundation also will have one or more seats on the school’s advisory board, a voice in the school’s curriculum and access to interns. What do you do with the access to interns?

You get to interview early and pick the cream of the crop for your own business. Other businesses don't like it, they can pony up to help the B-school. Win-win for the students, for the school, and for Illitch.

**noise** · August-17-16, 07:17 AM

Originally Posted by Wesley Mouch

Never said they were [[and certainly didn't intend if I did).

Ficano & the New Jailers = public construction project

Ilitch & the HQ = private construction

Which one do you think will get this done closer to on-time and on-budget? F&NJ or I&HQ?

You claimed this clause would improve the "public higher education world".

I'm honestly curious as to why that's the case, especially in comparison to other sectors. I'm interested in rampant lateness with public higher ed construction projects.

I am truly curious. We may just be misunderstanding one another.

**noise** · August-17-16, 07:19 AM

Originally Posted by Hermod

You think educators are better managers than political hacks? We have a real scandal here in Broward County on tons of money spent to upgrade schools and they are still leaking and full of mold.

Not necessarily, but that's not the question or the topic. Back to the original topic, I'm interested in problems related to the "public higher education world" and lateness with construction projects.

**Eber Brock Ward** · August-17-16, 11:27 AM

Originally Posted by Richard

What do you do with the access to interns?

**Oddz313** · August-17-16, 06:07 PM

WSU engineering alum here. They could have used the student's money better as usual.

Here is some of the latest corruption...

https://www.change.org/p/wayne-state...an-accountable

http://www.deadlinedetroit.com/artic...research_money

**noise** · August-18-16, 09:24 AM

Originally Posted by Oddz313

WSU engineering alum here. They could have used the student's money better as usual.

Here is some of the latest corruption...

https://www.change.org/p/wayne-state...an-accountable

http://www.deadlinedetroit.com/artic...research_money

I would hope there is more proof of "corruption" than a dismissed lawsuit brought by a disgruntled employee who was fired for misconduct and a change.org petition with 6 supporters.

**swingline** · August-18-16, 01:58 PM

Since the completion of the Fox Theatre restoration thirty years ago, the Ilitch organization has never completed a single development project [[other than taxpayer funded stadia) despite multiple announcements over the decades about plans for various new office buildings, apartment buildings and renovations of existing buildings. Anybody else find it ironic that the Ilitch organization is now insisting on a strict deadline for the completion of the new WSU School of Business?

**Gistok** · August-18-16, 02:43 PM

Originally Posted by swingline

Since the completion of the Fox Theatre restoration thirty years ago, the Ilitch organization has never completed a single development project [[other than taxpayer funded stadia) despite multiple announcements over the decades about plans for various new office buildings, apartment buildings and renovations of existing buildings. Anybody else find it ironic that the Ilitch organization is now insisting on a strict deadline for the new WSU School of Business?

Yes it is ironic.... the Ilitch's had a few years after they had the Kwamster defy the Detroit Historic Commission and tore down the Madison-Lenox to build something in its' place, and could then keep the $700K loan for the teardown to go towards a rebuild... but they got to keep the money anyway... and still retain a parking lot. After they announced the new Columbia Street Agora and Hard Rock Cafe... it was a few years before we realized that ain't happening... and also they had about 2 years to do something with the GAR Building before the city made them give it back due to inaction.

So yes... given their track record on missed deadlines... it is very Ironic...

P.S. CrashDummy... if you need help with Irony [[like on the Arena thread)... just ask... we're all here to learn!

**Oddz313** · August-18-16, 04:59 PM

Originally Posted by noise

I would hope there is more proof of "corruption" than a dismissed lawsuit brought by a disgruntled employee who was fired for misconduct and a change.org petition with 6 supporters.

Does the FEDs investigating misappropriated funds suit you?

**CrashDummy** · August-19-16, 10:38 PM

Originally Posted by Gistok

P.S. CrashDummy... if you need help with Irony [[like on the Arena thread)... just ask... we're all here to learn!

No, sorry, I'm still not seeing much irony there. But, it may help if you could post that recent and totally relevant article about the huge $10 million Columbia Street development that was supposed to happen. Just think, without all of those broken promises, we could actually have a Hard Rock Café. Man, Detroit would be so different today.

Now THAT'S some irony.

**Gistok** · August-21-16, 02:05 PM

Originally Posted by CrashDummy

No, sorry, I'm still not seeing much irony there. But, it may help if you could post that recent and totally relevant article about the huge $10 million Columbia Street development that was supposed to happen. Just think, without all of those broken promises, we could actually have a Hard Rock Café. Man, Detroit would be so different today.

Now THAT'S some irony.

Nice try at twisting part of my conversation.... but congratulations on making it to 100 posts here, I just wonder how many were actually not trolling.

Ilitch couldn't even get the Hard Rock franchise.... it wasn't until years later that Peter Karmanos got one. and speaking of having issues... the Second City [[now known as City Theatre) in the Hockeytown Cafe Building.... they opted to move to the burbs... not because they wanted to... but because of issues with the Ilitch's. Even Masonic Temple couldn't deal with the Ilitch's when it comes to running their venue for them. Even Chelios' Chili took 10 years before a business could get into that building because the Ilitch's were uncooperative.