Threshold Resistance (21 page)

I can think of only one comparable example in history of such rapid urban population decline. Vienna, Austria, at the beginning of the twentieth century had much in common with Detroit. This bustling European city—the capital of the Austro-Hungarian Empire—was a center of arts, education, government, and finance. And like Detroit at its peak, it was home to more than 2 million people.

But the twentieth century was not kind to Vienna. The Hapsburg empire fell with the outbreak of World War I, and the city's diplomatic infrastructure disappeared overnight. By 1950, after World War II and the Allied occupation, the city's population had fallen to just over 1 million, a decline of 50 percent.

What's interesting is how Vienna is dealing today with such
traumatic change. While large sections of the city, where beautiful homes once stood, are vacant and waiting for redevelopment, Vienna's historic strengths—the opera, museums, and restaurants—are among the finest in the world. City leaders are investing in the aspects of the city that remain internationally attractive and competitive. Tourists continue to visit, trade is flourishing, and people are slowly but surely moving back to the city. Population has climbed back up to more than 1.5 million people.

We're hoping there is a second act for Detroit as well. Following the disastrous 1967 riots, I was one of the members of the business community who formed Detroit Renaissance. Along with my friends Max Fisher and Henry Ford II, we committed time, influence, and resources to rebuild the economic strength of our great but wounded city. I headed the organization's development committee and had the honor to work with Mayors Coleman Young and Dennis Archer in planning several of Detroit's most important projects, including the Cobo Hall convention hall expansion and the beautiful new Comerica Park baseball stadium.

If Detroit is going to be able to attract residents downtown, it must look to the riverfront for regionally competitive housing. The Riverfront Apartments, which Max Fisher and I helped develop in the early 1980s, may not have been my best real estate investment. But it laid some of the groundwork for Detroit's exciting Riverwalk initiative, spearheaded by General Motors, the Kresge Foundation, and the city. The suburbs don't have a comparable amenity, and it is absolutely essential that we reclaim the riverfront from its industrial past.

Other market-rate housing is being developed in Detroit, thanks to dedicated hometown developers like Cullen DuBose. My friend Cullen has created a wonderful community of affordable single-family homes directly adjacent to our world-class museum, the Detroit Institute of Arts. The units sold out quickly and are anchoring an attractive, prospering part of our city.

General Motors' decision in 1996 to adopt Detroit's Renaissance Center as its world headquarters has also been one of the most positive events in the history of Detroit. Their presence and commitment to downtown has already paid extraordinary dividends. Unfortunately, even General Motors can't move the Renaissance Center off the river a few blocks, where it should have been built in the first place. My friend Henry Ford II was the driving force behind the development of the RenCen in the 1970s. I was one of the city's lone voices in opposition to the project's location and design. I remember driving by the construction site one day with Henry. He wanted my advice on some last-minute design issues. “Henry,” I said, “fill in the hole.” The massive towers, as impressive as they are, stand in isolation from the city's central business district, blocking access to the river and diminishing the opportunity for residential development along the water. But General Motors has made important physical changes to the complex, revitalized the center's retail offerings, and injected magnificent new life into our city.

Taubman Centers board member Peter Karmanos, founder of Compuware, also deserves accolades for bringing his energy and company headquarters downtown. The Ilitch family (owners of Little Caesars Pizza, the Detroit Tigers, and Red Wings) has reenergized our sports and entertainment offerings. And the Fords have brought the Lions back home in a beautiful new world-class sports facility (Ford Field), host to the 2006 NFL Super Bowl.

And there are many other heroes—developers, investors, and independent business owners—working to revitalize Detroit. We will fail, however, if we continue to measure Detroit's success only in terms of its size. Let's be honest, brutally honest.

We don't have to be one of the ten largest cities in America (a distinction we surrendered in 2005) to be one of the best cities in America. We don't have to preserve the city's archaic street grid and restricted residential lot patterns designed a century ago to
accommodate 2 million people. Wherever there are neighborhoods of abandoned homes, we should be willing to redirect streets and configure residential lots to be competitive with the land offerings in the suburbs. Why not build a golf course surrounded by homes where dense neighborhoods of row houses once stood? Many cities would be well served by such a creative approach.

There also is an increasing understanding that the Detroit metropolitan area, which reaches well beyond the city limits, is a diverse market of over five million people blessed with a variety of occupational and lifestyle choices. Ann Arbor, Novi, Southfield, Dearborn, Troy, and Detroit are in a very real sense “edge cities” comprising a twenty-first-century metropolis as attractive, diverse, and competitive as any in the nation.

Will Detroit and its downtown play a special role in this region?

Of course.

Southfield will never host a Super Bowl. There is no place in Troy to study an historic Diego Rivera mural (we have one at the Detroit Institute of Arts). There will be only one Hard Rock Cafe in the region (we have one with plenty of Motown memorabilia in the Compuware building downtown). And if you want to watch a beautiful sunset along the Detroit River from the comfort of the Riverfront Apartments, you have to live downtown.

In recent years, I've been personally involved with many of the efforts. My friend Max Fisher used to say that there are three ways an individual can contribute to organizations and community initiatives: you can give your money, your time, and your good name. I've made a practice of giving all three. Since 1980, I have made personal charitable contributions of more than $125 million. But my greatest satisfaction comes from giving my time and expertise, and in recent years I've been focused on ways to make institutions in Detroit different and better. With the help of my good friend and extraordinary architect Michael Graves (working with the Detroit-based Smith-
Group), we are creating a much more efficient and welcoming home for the Detroit Institute of Arts' world-class collections. I've helped plan the new internal circulation patterns at the DIA. (You could say we are breaking down threshold resistance!) I am also honored to serve on the board and chair the building committee of Detroit's College for Creative Studies, a unique institution that is effectively training the next generation of artists and automotive designers. And in April 2006, we dedicated the A. Alfred Taubman Student Services Center at Lawrence Technological University in Southfield—where I learned many of the architectural and planning skills I use every day.

Like any great city's, Detroit's past is full of triumphs and tragedies. We will no doubt continue to struggle with change and opportunity. But from my vantage point, I see plenty of greatness still ahead of this special city—my hometown.

And of course, the Detroit area remains a great place to do business. That little company I started with my father, some big dreams, and a $5,000 loan, is still based in Bloomfield Hills. It has grown into a large enterprise, with twenty-three centers, five hundred employees, and an equity capitalization of $4.5 billion as of January 2007. I own almost one-third of it but am mostly an observer. The management team, led by Robert Taubman, runs it better than I ever did. We're still developing, still creating exciting new retail environments, and still breaking down threshold resistance. One of our current projects is a retail, office, and residential complex in downtown Salt Lake City. Who would have thought a Jewish guy from Detroit and the Church of Latter-Day Saints would be business partners.

Only in America!

O
ver my lifetime I've gotten pretty good at assessing and responding to threshold resistance. It's a skill that serves you well in business and life. Over the last eight decades, I've enjoyed great success and experienced gut-wrenching personal failure. But through it all I've stayed positive, always seeing opportunity in even the toughest challenges.

Breaking down barriers is very rewarding. It can be scary and risky. It can also be fun. Bringing exciting new shopping opportunities to communities across America was great fun, as was opening the stimulating world of art and collectibles to broader audiences around the world. Solving building design issues in Baku, winning a football championship, watching a youngster enjoy a root beer float, and looking out over thousands of acres of smart new development along the Pacific Ocean are terrific experiences—especially for an awkward but motivated kid from Pontiac, Michigan.

Every success involved placing opportunities in front of customers, offering value, and providing an enriching, entertaining experience. Figuring out how to make things better, not just different, is the first step in any business plan. For whatever reason, it came naturally to me to look at things differently. But it's something you have
to work on and became accustomed to doing. And success always leads to greater confidence.

You'll always face resistance. In fact, the better your idea, the more some people will want you to fail. Believe in yourself, and you're on your way.

As I look back over my life, my family, without a doubt, has been my proudest accomplishment. They're terrific. They're also why I wrote this book. Everyone, of course, is welcome to read my thoughts. But I had a very specific audience in mind as I tackled this project: my nine grandchildren.

These lessons and reflections are for my daughter Gayle Kalisman's two sons. Jason, continue embracing life and your skyrocketing career at Goldman Sachs. And Philip, with your PhD in chemistry from Berkeley, you'll be the first scientist in the family—and hopefully our first Nobel laureate.

My son Robert will have to buy at least four books for his sons and daughter. Alexander Alfred, as you continue your studies at Harvard University, get over to the Taubman Center as often as possible. And Ghislaine, Theodore, and Sebastian, I hope when you're old enough to read your grandfather's musings, you'll put down
Harry Potter
and give me a chance.

My son William's children, Oliver and Abigail, may want to read my book with their father. It's okay to ask your dad to explain some of the stuff about the art world.

And I hope my stepdaughter Tiffany's beautiful young girl, Tatiana, already multilingual like her grandmother, will enjoy hearing about my international experiences. Who knows; the book may someday be translated into Azerbaijani.

Jason, Philip, Alexander, Ghislaine, Theodore, Sebastian, Oliver, Abigail, and Tatiana, now you know a whole lot more about “Pops.”

A&W Great Food Restaurant units, 59, 60 A&W Restaurants

advertising of

brand image of

hot dogs of

marketing failures of

purchase price of

resale of

in shopping centers and malls

A&W Root Beer

Acquavella, Bill

advertising

of A&W Restaurants

of department stores

television

African Americans

Agnelli, Giovanni

Agree, Charles N.

AIDS

Ainslie, Michael

Albert J. Frankel Co.

Albright, Burl

Allen, Charles, Jr.

Allen, Herb

Allen, Roy

Allied Stores

Allison, Graham

amyotrophic lateral sclerosis (ALS)

Andy Warhol Collection

antitrust laws

Arborland mall, 13arcades

Archer, Dennis

Arnault, Bernard

Aronson, Arnold

art

pop

root beer and

stolen

Taubman's collection of

art auctions,
see
Christie's; Sotheby's

art dealers, professional

art marke

Art of the Steal, The
(Mason)

art press

art registry, international

Ashcroft, John

Asia Pacific markets

AT&T

Athena Group

Azerbaijan

azidothymidine (AZT)

Bacon, Francis

Baker, Samuel

Baku, Azerbaijan

Ballard, Claude

Bank of America

banks

Barbara Ann Karmanos Cancer Institute

Baron, Ronald S.

bazaars, oriental

Beaux-Arts school of architecture

Bellamy, Richard

Best of Everything, The
(Marion)

Beverly Center

Beyer Blinder Belle

Bithell, Tom

Blanchard, Jim

Bloomingdale's

Bloostein, Allan

Boardman, Dixon

Boies, David

Bond, Alan

Borbón, Infanta Pilar de, Duchess of Badajoz,

Borovik, Artyom

brand images

at A&W

of department stores

brand images (
continued
)

in fashion merchandising

off-price outlets and

of Sotheby's

of Trump

of Wal-Mart

Brandt, Ralph

Brazil

Bren, Donald

Brio Tuscan Grille

Broadway Stores

Brooks, Diana “Dede,”

Ainslie's absences tracked by appropriate punishment avoided by

as CEO

in collusion on commission schedules

false testimony of

“flipper” lawyer hired by

Taubman's misplaced trust in

unauthorized sale offer of

Brown University

Brunton, Gordon

Bucksbaum, Martin and Matthew

Burger King

Burke, O. W., construction company

Burlington Arcade

Burlington Coat Factory Warehouse
Bush v. Gore,

business precepts

Business Week,

family businesses articles of

Taubman in

Cadillac Fairview Corporation

California

see also
Irvine Ranch, purchase of

California Pizza Kitchen

Camoys, Lord

Canada

cancer research

Carrington, Lord

Carter, Anthony

Castelli, Leo

celebrity auction sales

Central Intelligence Agency

Charlston Place

charter schools

Chase Manhattan Bank

Chazen, Jerome

Cheesecake Factory

Chicago

Chicago Symphony Orchestra

China

Christie's

disclosure of guarantees at

French acquisition of

management transition of

Sotheby's relationship with

see also
Sotheby's-Christie's price-fixing scandal

“Chunnel” project, joke about

Churchill, Sir Winston

Cigar Aficionado,

Coach

coat buyers

Coats, Williams

Cogan, Marshall

Colasuonno, Lou

Coldwell Banker

Coleman, Mary Sue

collecting, popularity of

Comerica

commodities businesses

comparison shopping

Concise Townscape, The
(Cullen)

Concord, Calif.

conscious parallelism, legal concept of

consistent mediocrity

corsages, wholesale

Costco

Coste, Pascal

Courting Justice
(Boies)

covenants of operation

Crate and Barrel

credit

“cross-shopping,”

Cullen, George

Curiel, François

Cushman & Wakefield

customer service

Daniels, Judge George B.

Adam Smith quote allowed by

delayed judicial decisions of

instructions to the jury of

motions repeatedly denied by

at sentencing hearing

Davenport, Iowa

Davidge, Christopher

amnesty granted to

in collusion on commission schedules

false testimony of

Tennant's “memo” stolen by

Davidson, Daniel P.

Davis Polk & Wardwell

Dayton's

DeBartolo, Edward J.

department stores

advertising of

anchor

as arcades

bargain basements of

brand images of

customer confidence in

customer service of

as dinosaurs

downtown locations of

fashion

full-line

influence of

as large employers

name brand distribution controlled by

“one piece for all” in

as “people pumps,”

retail competitors excluded by

retail industry changes and

suburban branch stores of

department-store-type merchandise

(DSTM)

Detroit, Mich.

African Americans in

College for Creative Studies of

developmental history of

Eastern Market of

future development of

metropolitan area of

Renaissance Center of

riverfront housing in

Rosa Parks incident in

Detroit Bank and Trust

Detroit Free Press,

Detroit Institute of Arts

Detroit Lions football team

Detroit Medical Center

Detroit Renaissance

Dillard's

discount stores

Dornbrook, Thom

Dreamer, The
(Modigliani) drugstores

DuBose, Cullen

Dunleavy, Steve

Dunne, Dominick

Durant, Lydell

Eastdil Realty

Eastridge shopping center

education

charter schools in

corporate importance of

higher

high schools

teachers in

E. J. Korvette

Emerson, Ralph Waldo

Emporium Capwell

Engler, John

entrepreneurs

creativity of

difference in

optimism of

ESPN

ethics, professional

Fairlane Town Center

fair-trade laws

family businesses

fascia treatments

fashion department stores

fashion merchandising

in bathrooms and kitchens

brand image in

in commerce revolution

democratization of

good design in

mass merchandising vs.

off-price outlets and

price in

taste in

utility vs.

Wal-Mart question and

Federal Express

Federal Medical Center

Federal's

Federated Stores

Feldman, Eva

Field, Marshall

Finkelstein, Ed

Fisher, Marjorie

Fisher, Max

Fisher Building

Fiske, Robert

Flint, Mich.

Fluor, Simon

fluorescent lighting, outdoor

Flutie, Doug

food franchises

see also
A&W Restaurants

football, professional

Ford, Henry

Ford, Henry

Ford Motor Company

Forrester, Glenn

Fortune,

France

arcades of

free-trade rulings

frozen food distribution business

Gaede, Keith

Galeries de Bois of Palais Royal

Galleria Vittorio Emanuele

General Felt Industries

General Growth Properties

General Motors

General Motors Pension Trust

Getty, Ann

Getty, Gordon

Getty, J. Paul

Getty Museum

Getty Oil Company

Gilbert, S. Parker

Gioia, Emilio

Gladwell, Malcolm

Goldman Sachs

golf courses, golfing

Gordon, Sheldon

Graham, Katharine

Grand Rapids, Mich.

Granholm, Jennifer

Graves, Michael

Great Britain

Monopolies and Mergers Commission of

see also
Sotheby's

Greater Detroit Chamber of Commerce

Greene, John

Green Galleries

Gregory, Alexis

Gruen, Victor

Gucci

Guinier, Lani

Gumm, Ira

Hahn, Ernest W.

H&M

Harvard Business Review,

Harvard Business School, Taubman's lecture

at

art and root beer linked in

business precepts in

journalistic accounts of

Modigliani painting in

needs satisfaction principle in

USFL in

Harvard University

Kennedy School of Government of

Haviland, John

Hayward, Calif.

Hebert, Bobby

Henri, Bendel

Highland Park, Mich.

highways

restaurants on

Hindlip, Lord

Hines, Gerald

Hiroshima, Japan

HIV infection

Hoffman, Edwin

Holiday Inn motels

Horwitz, Jerome

hot dogs

“hot spots,”

hours of operation

Howard Johnson's

Hudson's

Hungarian sausages

ice skating rinks

Ilitch family, 196I. Magnin

impulse buying

Indiana, Robert

International Council of Shopping Centers

(ICSC) conventions

International Paper

Internet sales

inventory risks

Iran

Irises
(van Gogh)

Irvine, James

Irvine, James

Irvine, James “J. I.,”

Irvine, Myford

Irvine Company

corporate earnings of

Irvine Ranch, purchase of

appraisal and evaluation in

bank consortium in

bidding in

closing of

Mobil Oil and

offering agreement in

partners in

professional relationships and

and ranch history

resale of

residential ground leases in

revenues of

road and utility infrastructure in

Istanbul, bazaars of

James Irvine Foundation

Javits, Jacob

JCPenney

jewelry stores

Johns, Jasper

Johnson, Charlie

Justice Department, U.S.

amnesty program

art market probe of

Brooks as witness for

Davidge as witness for

Tennant indicted by

see also
Taubman, A. Alfred, trial of

Kahn, Albert

Kalisman, Gayle Taubman

Kalisman, Michael

Karmanos, Peter

Kaufman, Steven

Keith, Judge Damon J.

Kilpatrick, Kwame

Kissinger, Nancy

Klutznick, Philip M.

Kmart

Knoll Group

Kohl's

Kohn Pedersen Fox

Kolodney, Reva,
see
Taubman, Reva

Kolodney

Korvette, E. J.

Kresge, S. S.

Kresge Foundation

Kringle Bears promotion

Kroger

Kughn, Richard

Lacey, Robert

La Cumbre Plaza shopping center

Lagerfield, Karl

Lally, James

Lakeside shopping center

Lambert, Ben

land absorption projections

land grants, Spanish

land-use planning

Lanier, Judith

Larson, Robert

Lauder, Estée

Lawrence Technological University

Lazard, Frères

Lazarus

Leona Group, The

Leonardo da Vinci

LeRoy, Mervyn

LeRoy, Warner

Leventhal, Kenneth

Like No Other Store…: The Bloomingdale's Legend and the Revolution in American Marketing

(Traub)

Limited, The

Lindner, Carl

Linemann, Peter

Llewellyn, Graham

locations

of arcades

downtown

impulse buying and

“100 percent,”

of service businesses

upscale

see also
shopping centers and malls, design of

Lombardi, Vince, Jr.

Lopez, Carlos

Lord & Taylor

Los Angeles, Calif.

Louima, Abner

Louis Vuitton

luxury retailers

auction business as

see also
fashion merchandising

McDonald's

McGriff, Tyrone

Macy's

magazine roads

Mall at Short Hills

Manufacturers National Bank of Detroit,

Marcus, Stanley

Marcuse, Melinda

Marguleas, Howard

Marion, John

Marion, Louis

Marshall Field's

Marshalls

Mason, Christopher

mass distribution

mass merchandising

price in

mass production

Maxwell's Plum

May Company

medical research

Meier, Richard

merchandising control

Metcalfe, David

Michigan, University of

Michigan Cancer Foundation

Michigan Panthers football team

Michigan Partnership for New Education,