Detroit Free Press from Detroit, Michigan • Page 30

"1 Changerenewal The business of rebuilding Detroit enaissance: Taking position of power 'V v. -N' two kinds of people on Renaissance. Those who have to be there because of their jobs and those who genuinely love Detroit. Max Fisher Renaissance Founder 'V" instrumental in revitalizing the Maryland city's economic development and business-civic partnership, Keller, who sometimes talks on a grand scale to emphasize his points, compares Renaissance with the legend of King Arthur and his round table of knights. Just as the Knights of the Roundtable came together and checked their swords at the door, Keller says, Renaissance members are able to reach consensus.

"It's a neat concept, and it doesn't require a lot of rules," he said. Keller arrives at a time of great change in Detroit politics and in the boardroom of Detroit Renaissance. Changes at the top of Metro Detroit companies have brought new faces to the Renaissance board. Veterans such as Fisher and Joseph L. Hudson remain, but are now joined by Lobbia, McCormick and Chrysler Corp.

Chairman Robert Eaton. "There's a wonderful commonality of thought among the old guard and the newer guard," Glancy said. At 85, Fisher is the oldest member of the Renaissance old guard. He founded the group in 1970 and was its chairman for 12 years. Four original members are still on the board: Fisher; Hudson, now chairman of the Hudson-Webber Foundation; Alan E.

Schwartz, partner with Honigman, Miller, Schwartz Cohn; and Alfred Taubman, chairman of The Taubman Co. "There are two kinds of people on Renaissance," Fisher said. "Those who have to be there because of their jobs and those who genuinely love Detroit." Which group is larger? Fisher smiles: "We'll know more about that in the next few years." Party-giver to power broker Precisely what Renaissance will seek to accomplish in the next few years is still developing. One target 'There are Running Renaissance Here are the 36 current members of Detroit Renaissance. Chairman Alfred R.

Glancy III, MCN Corp. President Robert Keller Honorary Co-Chairmen Gov. John M. Engler Mayor Coleman A. Young Vice-Chairmen Robert J.

Eaton, Chrysler Corp. Charles T.Fisher III, NBD Bank William E. Hoglund, General Motors Corp. Robert L. Hurst, Ameritech John E.

Lobbia, Detroit Edison Co. Eugene A. Miller, Comerica Inc. Harold A. Poling, Ford Motor Co.

Directors Terence E. Adderly, Kelly Services Inc. Randolph J. Agley, Talon Inc. Joseph E.

Antonini, Kmart Corp. Don H. Barden, Barden Communications Inc. Siegfried Buschmann, The Budd Co. Donald Davis, First Independence National Bank Max M.

Fisher Dennis J. Gormley, Federal-Mogul Corp. C. Gene Harling, FirstFed Michigan Corp. Joseph L.

Hudson, Hudson-Webber Foundation Michael Hitch, Little Caesar Enterprises, Inc. Richard P. Kughn, Kughn Enterprises Richard A. Manoogian, Masco Corp. William T.

McCormick, CMS Energy Robert J. Mylod, Michigan National Corp. William F. Pickard, Regal Plastics Co. Heinz Prechter, ASC Inc.

Ralph E. Reins, Allied Signal Automotive Alan E. Schwartz, Honigman, Miller, Schwartz Cohn Neal Shine, Detroit Free Press Richard R. Spears, First of America Bank Southeast Michigan Ronald L. Steffens, AAA Michigan Peter W.

Stroh, The Stroh Brewery Co. A. Alfred Taubman, The Taubman Co. Dennis R. Toffolo, Hudson's James A.

Unruh, Unisys Corp. William P. Vititoe, ANR Pipeline Co. (recently left) Richard E. Whitmer, Blue Cross Blue Shield of Michigan Political connections A number of Detroit Renaissance directors, as well as the political action committees of their companies, made contributions to Dennis Archer or Sharon McPhail during Detroit's mayoral campaign.

Mayor-elect Archer collected more than five times as much in campaign funds from Detroit Renaissance members and their companies than McPhail, according to available records. Dennis Archer He received contributions from seven Detroit Renaissance members and six member companies. Coastal Corp.ANR PAC: $1,000 Comerica Bank PAC: $10,000 Charles T. Fisher III, NBD Bank: $1,200 Max Fisher: $1,000 Ford Motor Co. ACT Fund: $5,000 Dennis Gormley, Federal-Mogul $500 William McCormick CMS Energy $500 Mich Con Gas PAC: $1 ,500 Michigan National Corp.

PAC: $600 NBD Good Citizenship Committee: $20,000 William Pickard, Regal Plastics $2,500 Heinz Prechter, ASC $200 William Vititoe, ANR Pipeline $500 Total: $44,500 Sharon McPhail She received contributions from four members and one member company. Donald Davis, First Independence National Bank: $500 William Hoglund, General Motors $1,000 Honigman, Miller, Schwartz Cohn: $5,000 William Pickard, Regal Plastics $1,600 Alan E. Schwartz, Honigman, Miller, Schwartz Cohn: $500 Total: $8,600 Source: Wayne County Election Commission records as ot Oct 17 From page ID leader in shaping economic development policies. The shift has meant abandoning sponsorship of the Detroit Grand Prix and Montreux-Detroit Jazz Festival. At the same time, Renaissance is more aggressive as a high-profile advocate on public policy issues in Detroit and Lansing.

The change is significant, considering Detroit Renaissance comprises 36 chief executives who, for the most part, would prefer to exert their influence behind the scenes. William T. McCormick the CMS Energy Corp. chairman who directed an internal review of Detroit Renaissance, said changes were necessary. To have an impact, McCormick said, Renaissance must "come out from the shadows." Type A people In fact, Detroit Renaissance never really operated "in the shadows." The group is known for providing strategic support, planning and financial aid to the Detroit Grand Prix, the Detroit-Windsor International Freedom Festival and an array of development projects.

Less well-known is how this group operates. Its meetings are closed to the public and its finances and rules are known only to members. Members include the biggest names in Metro Detroit's business community. Among them: Fisher, who made mega-millions in oil and other investments; top officials of the Big Three auto companies; chairmen of Kmart, Stroh Brewery and Blue Cross-Blue Shield; and chief executives of major banks, auto parts suppliers and retailers. Meetings are informal, say members of Detroit Renaissance, with no rigid rules of decorum other than the "no substitute" rule: a chief executive may not send anyone else in his place.

Board meetings are held every other month at the former Manufacturers Bank boardroom in the Renaissance Center. Detroit Renaissance Chairman Alfred Glancy III, a board member since 1984, said he's really not sure why, other than "it's got the biggest damn table I've ever seen." Putting so many top executives in the same room can be productive and intense. "It's not a fun, chatty kind of two hours, I can tell you that," said Detroit Edison Chairman John Lobbia. Added Comerica Inc. Chairman Eugene Miller: "It's not a smoke-filled room." McCormick said putting "a lot of Type A people around the table" generates "a lot of healthy discussion." Glancy, who is chairman of MCN Corp.

(parent of Michigan Consolidated Gas) and chairman of Detroit Renaissance since last December, said board meetings are rarely heated. "It's not the nature of the beast," he said. "A consensus or a decision is reached sometimes autocratically, sometimes democratically, sometimes arbitrarily. But when that decision is reached, that's what that organization does." Corporate knights To help shape and implement its goals, Renaissance this year hired Robert Keller as president. Keller, a one-time metropolitan editor of the Baltimore Sun, impressed Renaissance members with his work as president of the Greater Baltimore Committee.

Under his direction, Baltimore's business community was REFORM Long-range plan shifts group's focus to economics When Detroit Renaissance talks about rebuilding Detroit, the conversation doesn't stop with bricks and mortar. "What it's really all about is getting the economy going in Southeast Michigan, job creation, raising the standard of living, solving the problems of the city, and creating an environment where we can grow again," says William T. McCormick a Renaissance director and chairman of CMS Energy (parent to Consumers Power). Under McCormick, Renaissance's long-range planning committee redefined the group's mission. Historically, Renaissance had concentrated on construction projects, notably the Renaissance Center, and events.

But over the past two years Renaissance has adjusted its priorities. Now the group emphasizes ways to stimulate economic growth indirectly by building consensus and twisting arms in Lansing and Washington. "We want Detroit to be a place where big developers come in," McCormick said. going up the Woodward corridor." Renaissance must promote issues in Lansing and Washington. The McCormick report observed: "Renaissance has largely avoided in the past taking public positions for reasons of not wanting to generate controversy." No longer.

Renaissance has joined with other business groups to support Gov. Engler's school reform measures. Next on the list: To help make a new Tiger stadium a reality and to have Detroit declared an empowerment zone by the federal government, a move intended to attract businesses and create jobs. Renaissance must collaborate with other business groups. Renaissance wants to be the leading voice of business in Southeast Michigan, but it recognizes a need to work more closely with other business groups.

Just as Detroit's automotive Big Three have come to realize that "three minus one equals zero," so, too, has Renaissance, Glancy said. Business groups like Renaissance and the Greater Detroit Chamber of Commerce need to marshal their resources and show a united front, said Lobbia, "as opposed to being everywhere on every cause with no sense of purpose." That's already happening. To present a united front on school reform and combat the Michigan Education Association and its $10 million war chest, the business community combined forces. Lining up behind the Engler reform package are Renaissance, the Greater Detroit Chamber of Commerce (chaired by Lobbia), the Michigan Chamber of Commerce and the Michigan Manufacturers Association. New focus, new energy The level of participation at Renaissance has increased as its focus has sharpened, said AAA's Steffens.

DALE G. YOUNGThe Detroit News "The first few meetings I went to just seemed like it was more reports and very little participation in decision-making. (Now) the conversation and dialogue is much more interesting." Barden, president of Barden Communications said he detects more enthusiasm inside Renaissance. "In the past couple of years, I must admit that Renaissance had grown complacent," Barden said. "Part of it could be attributed to some members not getting along with the mayor (Coleman Young)." Indeed, the mayor of Detroit and the governor of Michigan serve as honorary co-chairmen of Renais-, sance.

Some Renaissance members question giving politicians automatic access to the group's inner circle. While the organization intends to work closely with the mayor and governor, Glancy said Renaissance might eliminate the honorary memberships. Glancy concedes past expectations were sometimes too high and Renaissance has learned from its mistakes. Now Renaissance needs to help Detroit define what it wants to be in the future, Lobbia adds. It needs to identify and focus on the city's greatest strengths "not 10 things, not 50 things," he said.

"But just a couple." Strategists inside Renaissance need to steer Metro Detroit into the 21st Century, Keller said. "We've got to focus on what does it mean to be a community when the world is going through incredible upheaval," Keller said. "What does it mean to be a job center when jobs can be anywhere in the world? What does it mean to be a center of culture when there are 500 cable channels? "We can be better than the cities that Detroit is compared to. I really think that can be done." under way with new president Bob Keller and chairman Al Glancy. The Greater Detroit Chamber of Commerce can assist by continuing to press in Lansing for a pro-business climate and enlisting its leading members to chip in.

New Detroit could be effective at joining the common interests of business leaders and city residents. Archer's role, it seems, is to build a city government that gives people reasons to operate, even if they're not personally acquainted with the mayor. It's also to continue the sort of quiet diplomacy he established several years ago. You can see already how Archer's business connections have paid off with a strongly business-minded transition team. He attracted first-rate people who have an understanding about meeting payrolls and why business chooses one location over another.

Now we'll see how many other people he can draw upon. Archer listened plenty to the business community during his run for mayor and no doubt has a sense of what needs to be done. Come January, it will be his turn to do the talking once more. Jon Pepper's column appears Sunday, Wednesday and Friday in The Detroit News. already is evident: improving the quality and cost-effectiveness of Michigan's education system.

Glancy and other Renaissance members have traveled to Lansing to spell out the group's position. Changing from a party-giver to a more consistent power broker was called for in a 1991 report by Renaissance's Long-Range Planning Committee, chaired by McCormick. "Out of the meetings, there was a great deal of debate about changing the direction of the organization," said Ronald Steffens, chairman of AAA Michigan and a Renaissance director. But when the matter came to a vote, "it was pretty much unanimous," he said. Among the major conclusions: Renaissance must foster better relations with the mayor of Detroit.

Led by communications company owner Donald Barden, a Renaissance committee is preparing an initiative to advise Mayor-elect Dennis Archer and his administration. Assistance could range from specific policy recommendations to loaning executives to City Hall during the transition process, Barden said. Renaissance must focus on economic development and on improving conditions that will stimulate it. Will Renaissance act like a venture capital group by investing in specific projects? Maybe. More importantly, say board members, the group will use "corporate clout" to nurture an economic infrastructure to encourage development.

"Capital goes where it's invited. It stays where it's made welcome," Keller said. "That's the challenge of Detroit, and the job of Renaissance." "It also stays or goes where it can make money," Glancy added. Said Hudson: "I think you'll find a lot of the (Renaissance) energy that was directed at the riverfront will be Lrl: fed; t7T "TRH Zll lic policy issues in Lansing and Washington. 7.

Focus on "big picture" or st rategic activities to stimulate economic development. These include: Education. City, county and state tax policy. Insurance rates. Government regulations of business.

The cost of government inefficiencies. Crime. Health care costs and quality. Tort reform. How federal money is spent in Michigan.

Regional transportation. Lynn Waldsmith v. IF Pepper: Archer's mandate to help business resuscitate city i 1 yl CHARLES V. TINESThe Detroit News William McCormick Jr. led the reshaping of Renaissance's mission.

From page ID to their borders. For those reasons and others an under-educated workforce, high crime rates and a poor image Detroit is at a steep competitive disadvantage. Even so, Archer has a chance to stop the rapid decline and stabilize the city's business environment for three reasons. One is the growing realization that Detroit's negative image needs the business community's urgent attention because it shapes perceptions about the entire state. Another reason is the expanding effort of churches and community groups to take business into their own hands to rebuild business districts in their neighborhoods.

Just as important, though, is the leadership network of business and political resources Archer cultivated during his campaign. As The Detroit News' Lynn Waldsmith details in the accompanying story, Detroit's most powerful business organizations have been readying for change in city administrations by refocusing their efforts and repositioning their leadership. They seem poised now to help Archer set and execute an agenda for the city's economic stability. For Archer to succeed, Detroit Renaissance will have to establish the vision, a process that seems well While Renaissance may still invest in a specific development projects, the "new" Detroit Renaissance plans to: 1. Broaden its definition of Detroit to include all of Southeast Michigan.

2. Act as the chief private sector group for defining the business community's goals. 3. Coordinate efforts with other privately-supported civic organizations. 4.

Support social programs, but not develop or implement them. 5. Use the collective influence of Renaissance members to press goals of the business community. 6. Make a stronger effort to influence legislative, regulatory and pub.