|
Detroit: Moving Forward!
An Optimistic Jim Nicholson
Addresses April ERC Forum
“Correcting problems in Detroit has to start with leadership,” said James B. Nicholson, CEO of PVS Chemicals in Detroit and 1996 Republican candidate for U.S. Senate, in remarks April 17 to the ERC Forum at the Grosse Pointe War Memorial.
Praising Detroit Mayor Kwame Kilpatrick, Nicholson said, "He is showing signs of leadership we haven't seen from our Governor!"
The Republican leader explained, "He is making progress in working out Detroit's budget problems."
Nicholson said of Detroit, “There is a lot of negative noise--too much bad news, instead of good news.”
Joking with his audience, Nicholson said, “In thinking about tonight's remarks, I thought back to the last time I spoke to the ERC. I made such a rousing speech in 1996, that 11 years later I was finally asked back!”
The former candidate for U.S. Senate reflected, “What I learned in running for office in 1996 was that every move, every action, was amplified.” As a result, he said, “I have more respect for all who are willing to run for office.”
In a campaign, Nicholson explained, “Two things happen: first the campaign is not about issues, but sound bites.” He said the proof is that all of his detailed policy papers are in the library, but nobody bothers to check them out.”
Secondly, he said, “Immediately after winning the election, the victor asks, 'What now?' We'd better make sure our elected officials are either experienced or are quick learners!”
Detroit: Moving Forward
Nicholson said, “In the past, Detroit has been successful exporting automobiles and importing money.” But, he lamented, over the years this has left us with a culture of entitlement.
“Economics is cruel, but it is efficient,” he said.
He said he was happy to report that Detroit's Mayor is starting to establish the right environment to bring renaissance to Detroit.
Nicholson said, “He is focused on balancing the budget, and although not perfect, he's making progress in working out the necessary cuts with his board of directors, the Detroit City Council.”
As an example, Nicholson pointed to the Mayor's cost cutting: a 25% reduction in the City labor force, and introduction of health insurance co-pays. He said, “You can't cut your way to success, but can cut your way to survival!”
He said the Mayor knows that his report card grade will be determined by the number of people moving into or out of the City of Detroit.
Nicholson pointed to such success as redevelopment of Detroit's Book-Cadillac, and the influx of young professionals buying new homes and river front condos.
He noted that for the second year in a row, Detroit is a regional leader in residential construction, with more than 700 new building permits issued in 2006.
As an example of development within Detroit, Nicholson pointed to Jefferson Village, a single-family community of 300 new homes located on Detroit's east side.
Nicholson give Kilpatrick credit for bold moves in light of the tough times for the region. He said, “A city can not be everything to everybody.”
He commended the Mayor for changes he has championed in the operation of the Detroit Zoo, the Detroit Historical Museum, Eastern Market, and the Detroit Public Lighting Department.
A further success for Detroit has been the increased amount of philanthropic support received.
But Nicholson was also realistic in his appraisal of tough issues, including crime. He called crime “the cancer of the city that generates worldwide headlines.”
To attack the security issue, he said that over the next 12 months the Mayor is adding 100 new police officers, and will replace an additional 100 who will be retiring. As a result, police response time will be improved.
The second tough issue, he said, was public education. Nicholson said that young professionals are less concerned with this, but families with children are less than excited about Detroit public schools. Nicholson was quick to note, however, that schools are not under Mayor's purview.
Nicholson noted that other deterrents to growth were the Detroit City income tax, high property taxes, and a low level of satisfaction with city services.
He said, “These issues cause people to vote with their feet.”
Nicholson made a strong case for studying “best practices” of other cities of similar size.
He said, for instance, Chicago seems to thrive with its aldermen elected by district rather than on a citywide or at-large basis.
Nicholson said that Seattle came back from a major slump in their manufacturing and lumber sectors because entrepreneurs saw the opportunities in a city with a favorable tax climate.
Although the success of Starbucks played a role in Seattle's recovery, he said, “No Seattle city planner said to Starbucks, 'Launch your business here!'”
“People make rational decisions,” he said.
Citing another good reason to relocate to Detroit, Nicholson said, “This is a great place to live, because prices are fair.”
He said, “We need to say to the world, 'My business is here,' and 'My family is here.'”
Michigan Leadership
Turning to the economic troubles facing the State of Michigan, Nicholson said, “We have a one-state recession.”
He called for Governor Granholm to demonstrate executive leadership saying, “There are opportunities for trimming the State budget, and the number of non-essential State employees.”
Nicholson said the State of Michigan could find budget relief by reducing the number of “businesses” operated by the State. He noted that government officials do not make good entrepreneurs.
He said one key to successful leadership is the hiring of “real talent.”
The civic and business leader said he had this message for the Governor, “Start with your base--the labor lobby.”
As another example of efficiency, he said millions would be saved each year if the State merely used competitive bidding to award teacher health care contracts.
Nicholson's Civic Leadership
James B. Nicholson is chairman of the board of the Detroit Symphony Orchestra, The Futures Foundation, and the Huron Clinton Metroparks Foundation. He chairs the Detroit metropolitan area's Tourism Economic Development Council, and is a member of the executive committee of the board of Detroit Renaissance.
Nicholson is a current member and past chairman of the boards of the Wayne County Airport Authority, and Detroit Public Television. He is past chairman of the boards and a current advisor to The Michigan Chapter of the Nature Conservancy, and the YMCA of Metropolitan Detroit.
He also serves on the boards of the McGregor Fund, the Community Foundation for Southeast Michigan, the Parade Company, Digital Detroit, The Futures Foundation, Michigan Colleges Foundation, and the Detroit Economic Club. In addition, he is a member of the council of the graduate school of business at The University of Chicago.
Nicholson was appointed by Governor John Engler to chair the Michigan Strategic Fund and to serve as a member of the Secchia Commission. He also serves on the board of the Huron Clinton Metropolitan Authority.
In June of 2006, President George W. Bush appointed Nicholson to the National Infrastructure Advisory Council.
Nicholson is president and chief executive officer of PVS Chemicals, Inc., an international manufacturer, distributor and marketer of chemicals and related environmental services.
Headquartered in Detroit since its founding in 1945, PVS employs 850 people worldwide, including the U.S., Canada, Mexico, Europe and Asia.
Before joining PVS in 1972, Nicholson held international positions with The First National Bank of Chicago in London, England, and Dublin, Ireland.
Nicholson is also chairman of the board of LaSalle Bank Midwest, N.A., and the Amerisure Companies, and a member of the boards of the Handleman Company and Cooper Natural Resources.
In 1965 Nicholson earned his BA in Economics from Stanford University and in 1967 his MBA from the University of Chicago. The next year he received a Master of Science in Economics from the London School of Economics.
A Detroit native, Nicholson and his wife, Ann, reside in Grosse Pointe Farms.
The Eastside Republican Club Forum is normally held on the third Tuesday of the month from September through June. Admission is free and the public is always welcome.
|