Location Advantages for an Auto Supplier Exchange Firm

Patrick L. Anderson, Ian K. Clemens

AEG conducts market research to determine the best location for Covisint.

The Tax Burdens of The Michigan Single Business Tax

Patrick L. Anderson and Ilhan K. Geckil

This report analyzes the Single Business Tax under current law and proposed changes to the tax.

Prefunding the Sales Tax in Michigan

Patrick L. Anderson

AEG conducts an analysis of the Michigan “Prefunding” tax law.

How the Headlee Amendment Protects Michigan Taxpayers

 

Status of Competition in the Michigan Telecom Market

Patrick L. Anderson

This report explores the Michigan Telecommunications Market in a variety of ways.

Michigan Business Corporation Act Amendments: A Shareholder Rights Perspective

The Taubman Company is a Real Estate Investment Trust (REIT) with more than 30 premier shopping centers located in 13 states. A Michigan corporation, the Taubman Company trades on the New York Stock Exchange under the symbol “TCO.”

In late 2002 the Taubman Company became the target of a hostile takeover bid made by rival Simon Property Group (SPG). In defense, Taubman management and major shareholders announced their intent to vote their shares in opposition to the takeover. SPG claimed that this intention triggered an obscure provision of Michigan’s Control Share Acquisition Act, and a federal judge agreed, thus disenfranchising some 33.6% of TCO voting shares. However, the judge’s opinion did leave the door open for State Legislators to clarify the intent of the Act, which was originally passed to make Michigan businesses less prone to hostile takeovers.

The Taubman Company’s legal team retained Anderson Economic Group to assess the proposed and existing legislation. As part of this, Anderson Economic Group released “Michigan Business Corporation Act Amendments: A Shareholder Rights Perspective,” which was used by the Taubman Company to highlight the benefits of clarifying the law. AEG also analyzed shareholder support for the takeover offer, provided independent research on a 1998 restructuring of the Taubman Company incorrectly portrayed by SPG, and compiled information on the legislation and the related court ruling for distribution on www.AndersonEconomicGroup.com.

Additionally, AEG Principal Patrick Anderson testified at State House and Senate Committee Hearings about the need to clarify the Michigan Control Share Acquisition Act. Ultimately, this clarifying legislation became PA 181 and was passed by Michigan lawmakers, providing better protection of shareholder rights, and restoring the legislative intent of protecting Michigan Companies from hostile takeovers.

Critical Review: Gun Lake Band of Potowattami Indians Environmental, Economic, and Community Impact Assessment

An analysis of the economic impacts of the proposed Gun Lake Casino.

Failing Schools in Michigan: The Surprising Scale

Patrick L. Anderson, Christopher S. Cotton

This report investigates how schools operating under various budgets are performing within the state of Michigan.

Lost Earnings Due to West Coast Port Shutdown: Preliminary Estimate

Patrick L. Anderson & Ilhan K. Geckil

An Analysis of the economic impacts of the four week shut down, organized by the PMA.

Economic Analysis & Revenue Forecasting: City of Cincinnati, Ohio


The City of Cincinnati, founded in 1788, is one of the leading cities in the Midwest, and is home to 320,000 people in the City itself, and over 1.6 million people in the metropolitan area. Cincinnati was a pioneer in incorporating planning in the government, and adopts a biennial operating budget of about $731 million, plus a capital budget of about $251 million. The main sources of funds are income and property taxes.

To ensure the City Council and Finance Department have the best available information on current and likely future tax revenue, the City retained Anderson Economic Group to provide forecasts of income and property revenue, as well as state-funded local government revenue, for the next six years. AEG evaluated the economy of Ohio and its relationship to the US economy, and the local economy, demography, geography, and fiscal structure. AEG then used a sophisticated statistical methodology to determine how economic fluctuations in the past had affected the most important revenue sources for Cincinnati.

AEG developed a dynamic forecasting model for the City, including an independent assessment of likely future economic conditions. Assuming stable fiscal policies, the resulting general fund revenues from major sources. Using this model, and professional judgement on the current state of the economy, AEG forecasted tax base and tax revenue for the City, based on reasonable policy and economic assumptions, for the succeeding six years.

AEG prepared a lengthy report, which was presented to the City Finance Department and to the City Council in a public hearing. The report included a discussion of the methodology, assumptions, and revenue forecasts.