Region's economy gets cash infusion
$100 million to ease transition from autos
September 14, 2007
BY JOHN GALLAGHER
FREE PRESS BUSINESS WRITER
The massive effort to turn around metro Detroit's ailing economy is getting a big boost.
Civic leaders announced Thursday the creation of a $100-million fund that will support metro Detroit's transition to an economy less dependent on auto manufacturing.
Known as the New Economy Initiative, the fund has drawn support from 10 foundations in varying amounts, including the Ford Foundation, W.K. Kellogg Foundation and the Kresge Foundation, each of which donated $25 million, and several others donating $1.5 million to $10 million each.
One of the few such locally targeted initiatives in the nation, the goal will be to support metro Detroit's shift to a knowledge-based economy that relies more on entrepreneurial activity than on manufacturing.
"We've got to help turn this economy around," Mariam Noland, president of the Community Foundation for Southeast Michigan and one of the leaders of the effort, said Thursday.
"Philanthropy all together can't make up the losses and the needs that we have here," she added. "We can't replace the public dollars. What we can try to do is help move this economy forward."
Steve Hamp, brother-in-law and former chief of staff to Ford Motor Co. Chairman Bill Ford, will chair the new effort.
The new fund is the latest of several efforts by civic and corporate leaders to help in metro Detroit's revival. Others include the One D initiative headed by the Detroit Regional Chamber and the Road to Renaissance headed by the corporate leadership group Detroit Renaissance.
All these efforts come in reaction to the serious long-term challenges facing the regional economy. After depending on the major automotive companies for jobs and civic leadership for nearly 100 years, the local economy now faces the reality of a permanently smaller automotive base with less money and clout.
"Part of what philanthropy can do is provide some leadership," Noland said. "There are good things happening, good plans in place. ... Those and other activities need money. Money's tight. We can bring some flexible dollars, which will help those move faster."
Among other things, the initiative would support workforce training, individual entrepreneurial start-up firms and programs to translate promising new technologies into profitable companies. Hamp said more specific goals and programs would be announced in coming months.
An 18-member governing board will oversee the new organization. Ten members will come from the foundations contributing money. Among the other eight will be Hamp, businessman Jim Nicholson and Ahmad Chebbani, former chairman of the American Arab Chamber of Commerce.
$100 million to ease transition from autos
September 14, 2007
BY JOHN GALLAGHER
FREE PRESS BUSINESS WRITER
The massive effort to turn around metro Detroit's ailing economy is getting a big boost.
Civic leaders announced Thursday the creation of a $100-million fund that will support metro Detroit's transition to an economy less dependent on auto manufacturing.
Known as the New Economy Initiative, the fund has drawn support from 10 foundations in varying amounts, including the Ford Foundation, W.K. Kellogg Foundation and the Kresge Foundation, each of which donated $25 million, and several others donating $1.5 million to $10 million each.
One of the few such locally targeted initiatives in the nation, the goal will be to support metro Detroit's shift to a knowledge-based economy that relies more on entrepreneurial activity than on manufacturing.
"We've got to help turn this economy around," Mariam Noland, president of the Community Foundation for Southeast Michigan and one of the leaders of the effort, said Thursday.
"Philanthropy all together can't make up the losses and the needs that we have here," she added. "We can't replace the public dollars. What we can try to do is help move this economy forward."
Steve Hamp, brother-in-law and former chief of staff to Ford Motor Co. Chairman Bill Ford, will chair the new effort.
The new fund is the latest of several efforts by civic and corporate leaders to help in metro Detroit's revival. Others include the One D initiative headed by the Detroit Regional Chamber and the Road to Renaissance headed by the corporate leadership group Detroit Renaissance.
All these efforts come in reaction to the serious long-term challenges facing the regional economy. After depending on the major automotive companies for jobs and civic leadership for nearly 100 years, the local economy now faces the reality of a permanently smaller automotive base with less money and clout.
"Part of what philanthropy can do is provide some leadership," Noland said. "There are good things happening, good plans in place. ... Those and other activities need money. Money's tight. We can bring some flexible dollars, which will help those move faster."
Among other things, the initiative would support workforce training, individual entrepreneurial start-up firms and programs to translate promising new technologies into profitable companies. Hamp said more specific goals and programs would be announced in coming months.
An 18-member governing board will oversee the new organization. Ten members will come from the foundations contributing money. Among the other eight will be Hamp, businessman Jim Nicholson and Ahmad Chebbani, former chairman of the American Arab Chamber of Commerce.
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