Snyder endorses Ouimet in 52nd District state House race as Dems attack Ouimet's business record
Republican gubernatorial candidate Rick Snyder is throwing his support behind Republican state House hopeful Mark Ouimet, calling him a needed ally in the fight to reinvent Michigan.
"Mark Ouimet has the proven ability to look past partisan politics and do what is best for the people he represents," Snyder said in a statement included in a new Ouimet ad. "I need Mark's help to change Lansing's broken culture and to reinvent Michigan."
Mark Ouimet picked up a key endorsement from Rick Snyder, but now the Democrats are going on the attack on his business record.
Ouimet, a Washtenaw County commissioner from Scio Township, appeared side-by-side with Snyder at a campaign event earlier this week in Jackson.
The Michigan Republican Party has mailed an ad to voters in the 52nd District, saying Ouimet and Snyder, together, will work to restore balance and "help move Michigan 10 steps forward," a reference to Ouimet's commitment to further Snyder's 10-point plan.
Ouimet is running on a platform of creating jobs and improving the economy, agreeing with Snyder that the state needs to reform the "job-killing" Michigan Business Tax and eliminate bureaucratic red tape that stands in the way of business growth.
"I think I have the skill sets that, at this time, are needed at the state level," Ouimet said. "And that is being able to work toward positions that can be positive regarding economic development, that can be positive toward job growth."
Washtenaw County Democratic Party officials, however, are calling into question Ouimet's business record, specifically his time as president of University Bank. Party officials said this week they believe Ouimet ran the bank poorly before resigning in 1997.
"Mark Ouimet's business record is a legitimate campaign issue because he has based a lot of his campaign on his business experience," Stuart Dowty, Democratic Party chairman, said in a statement. "The problem is he has a poor record. He was fired for poor performance from his last actual job in business at University Bank. He hasn't had a job in business since, so his record, to say the least, isn't very good."
Ouimet, who began his banking career as a teller, became president and CEO of Ann Arbor-based University Bank in December 1995. He previously work for Great Lakes Bancorp of Ann Arbor for more than a decade, achieving the rank of senior vice president for corporate and community affairs and first vice president for retail banking.
Ouimet said his severance agreement with University Bank prohibits him from saying much about his employment there or the circumstances under which he left.
"What I can say about my time at the University Bank was that it was a unique opportunity for community banking to broaden the spectrum of board members," he said, "because we had half the board was female, we had nonprofits, and the intent was to make it a true community bank. And I think they've gone on and done well after I left."
SEC filings show the bank entered into a severance agreement with Ouimet in November 1997, under which he was paid $115,000 in 1997 and $80,000 in 1998.
That terminated Ouimet's contract with the bank, which had provided for an annual base salary of $127,000, increasing each year by at least 5 percent, plus other bonuses. The total amount of bonuses available under Ouimet's contract was $750,000, of which $300,000 was paid in 1997 and $165,000 was paid in 1996, SEC filings show.
SEC filings of the bank's performance show losses of $896,000 in 1996 and $1.4 million in 1997, the two years Ouimet was in charge, followed by a loss of $396,000 in 1998 after he left.
"The increased loss in 1997 versus 1996 was principally due to increased losses at the bank's new Ann Arbor main office," SEC filings state. "During the year, fixed costs were higher than revenues, and although certain aspects of underlying operating results including key indicators such as net interest income improved, the break-even point was only reached from ongoing operations in the fourth quarter. A change in management at the bank also led to high severance and other expenses in the fourth quarter."
A Federal Deposit Insurance Corp. report dated Aug. 6, 1996, pointed out University Bank's inadequacies in loaning to low- and moderate-income borrowers.
"This evaluation concludes that University Bank has not effectively extended loans to individuals of all income levels or to low-income geographies throughout its assessment areas," the report states. "The bank’s lack of lending in low and moderate income census tracts and to low and moderate income individuals in the Ann Arbor assessment area, and the minimal level of overall lending in the Sault Ste. Marie assessment area weighed heavily in the assigned rating."
The report also found what it called "substantive violations of Equal Credit Opportunity and Fair Housing laws and regulations" in loans denied and originated by the bank’s wholly owned subsidiary, Varsity Funding Services.
Ouimet criticized the Democratic Party for its attacks on his record, calling it a distraction from the real issues of the campaign, which he said are jobs and the economy.
"I feel badly for my family who has had to go through this," he said. "And I feel sorry for the people who are attacking me. I mean, that's a very odd place to be, but some people live in a world like that. Instead of focusing on jobs and how we're going to make this better, they like to personally attack people and try to destroy them and their reputation."
Ouimet said he worked in the banking world from 1971 to 1997 before taking a job at Northwood University, where he served as vice president, chancellor and chief operating officer before leaving in 2002. Ouimet now manages several rental properties in Ann Arbor and is heavily involved with various nonprofit groups in the community.
Ouimet served on the Ann Arbor City Council from 1988 to 1992 and has been on the county board for the last six years, serving as vice chairman the last two years.
He faces off against Democrat Christine Green on Tuesday for a chance to replace state Rep. Pam Byrnes, D-Lyndon Township, in the 52nd District covering western Washtenaw County.
Green's campaign website states she is running because she believes "a strong democracy is dependent on the integrity of its laws." Green, who has been a lawyer for 25 years, has vowed to "work to bring accountability to Lansing by fighting for honesty and transparency," and to work to cut legislators' pay by 10 percent and end their lifetime benefits.
Ryan J. Stanton covers government and politics for AnnArbor.com. Reach him at ryanstanton@annarbor.com or 734-623-2529.
Comments
Do not taunt Happy Fun Ball
Sat, Oct 30, 2010 : 7:25 a.m.
Tired of the Eight Years of Michigan's 'Single State Recession'? Tired of ever increasing unemployment? Tired of a State who population has remained flat or falling for a decade? Tired of income levels that have dropped 20% since Granholm took office? Tired of Property Values that that have fallen by 60% or more? Tired of being unemployed? Tired of tax increases in a busted economy?. Time to put the adults back in office! Ouimet and the Republicans will bring 'job-makers' back to Michigan.
David Briegel
Fri, Oct 29, 2010 : 2:24 p.m.
I am certain that Slick Rick did his due dilligence and is in total agreement with resume padding and expense account padding. What with him being a successful businessman just like Mark NOT! He is just another cynical politician looking for one more Yes Man to ram his radical agenda through that Republican legislature! What a noble public service! I would hope Virg would make an issue out of both candidates and this subject matter in the waning hours of the election. If this is an example of the fiscal conservatism we can expect, we are certainly not going to make any progress in Michigan. And Shep, did you even know you got a tax cut? Didn't think so. Do you even know that the deficit this year is less than in the last year of the Bush admin that Obama inherited? Didn't think so. And none of that has anything to do with Michigan!
clownfish
Fri, Oct 29, 2010 : 7:53 a.m.
Nope, nope, after viewing the telly this AM I have finally figured out why Mr Ouimets bank lost so much money... Nancy Pelosi! Liberal Billionaire George Soros! Bill Ayers! I guess we can all be happy that Rev Wright didn't use the bank. Or the President We Don't Know Anything About. If one wants to see a real "Hatchet Job", take some time out of your busy day to watch the 3 day Glenn Beck Investigative journalism opus on FEMA Concentration Camps. I was really worried that Obama was going to round me up and store me at Camp Grayling. Turns out the only thing I had to fear was being afraid of democrats and their desire to control my reproductive organs.
clownfish
Fri, Oct 29, 2010 : 7:42 a.m.
Darn! I was hoping to read some comments about how lazy state govt union members don't deserve severance packages. So, we have two candidates that 1: created jobs that disappeared then got huge severance package...2: ran a bank into the red and then got a nice severance package. Yep, those guys deserve theirs because they "earned it", but nobody else deserves to be paid for doing their jobs! The New Free Market, where the top guys get more than their share for doing poor work, and the rest of us lose our homes. Good stuff. Must be Barney Franks fault!
CobraII
Fri, Oct 29, 2010 : 12:09 a.m.
Green is in trouble, that's why the Dems need to throw everything they can at Ouimet
jussayin
Thu, Oct 28, 2010 : 11:39 p.m.
You don't have to have a masters from a diploma-mill to figure this one out...I am a lousy businessman, I lost money, overpaid myself via bonuses and was fired...and they paid me to go away.
nickcarraweigh
Thu, Oct 28, 2010 : 10:51 p.m.
I've been wondering how a guy, running as a canny and successful businessman, could possibly have squeezed into his busy day enough time to attend literally hundreds of public meetings. Especially so since meeting participants have sometimes reportedly been bewildered by his attendance. I worried about his home life. Now I know better. The man hasn't had an honest job in the private sector in this century. That long out of work and the measly $25 stipends he received probably looked pretty good, not to mention the free meals and the mileage. Vote for this man, people. He needs the job. He loses this election, he's not on the county board anymore, and he may well have no choice but to join the homeless horde of marijuana addicts clogging the downtown streets with their aggressive panhandling. Although, come to think of it, despite the competition out there, a guy with a natty blazer and a rep tie like Ouimet wears in every picture I've seen of him on annarbor.com might do pretty well for himself. Plus, at the soup kitchen he can get free meals without all the pesky record-keeping required by those nosy bureaucrats feeding at the county's public trough. Have a heart, folks. Remember, you pull that Ouimet lever in the voting booth and you don't have to tell anybody. By the way, I don't think Snyder has had a private sector job in a long time, either, and while it looks like he's probably going to win, worse comes to worst and Rick and Mark could camp out together, if they can find a vacant bridge anywhere in the county that isn't leaking yet.
MyOpinion
Thu, Oct 28, 2010 : 9:53 p.m.
@shepard145 Mark is a great guy and an exceptional representative for our region. I have been active in the community for a decade at many levels and cannot count the number of meetings and events that Mark attends just to keep in touch with everyone. Going to all those meetings is a small price to pay for free dinner that night (via his $25 per diem) he collected over and over.
Tom Wieder
Thu, Oct 28, 2010 : 9:22 p.m.
@kurtkoeh- Once again, why do call this a low blow by the Dems? Do you think we tell AnnArbor.com what to write about, a unit of a large publishing corporation that endorsed Mark Ouimet? Dems didn't fire Ouimet, the bank did. All Stu Dowty said is that he got fired from his last business job 13 years ago for poor performance and hasn't had another business job since. Here's what is said about Ouimet's leadership of the bank, by the bank, on its website: www.university-bank.com (click on "University Bancorp." and then "Bancorp FAQ's"): "The community banking division of University Bank in Ann Arbor lost money for six years before turning a profit. Why? The original management team [Ouimet and the people under him] that was hired to run the community banking division was unable to meet the established budgets for three years running which called for the bank to break-even in the second year and instead lost $3,500,000 over two years. When the management was replaced in late November 1997 and Stephen Lange Ranzini took over day-to-day management of the bank for the first time, the community banking division was losing over $100,000 a month." "Ouimet's severance agreement prohibits him from commenting on the situation and thus defending himself. This is what makes this attack a cheap shot. They know he can't respond so they just lob it out there." Almost surely, the confidentiality provision was put into the severance agreement to protect Ouimet's reputation, so the bank couldn't fully discuss what he did wrong. There's not much he could say, as a terminated employee, that the bank would care about, If current bank management were allowed to talk, they'd give us an earful about how badly Ouimet screwed up. If you have any doubt about this, ask Ouimet if he would agree to lift the confidentiality provision, if the bank was willing, so both sides could talk. I guarantee you the bank would be happy to; I'm equally sure Ouimet would not.
MyOpinion
Thu, Oct 28, 2010 : 9:09 p.m.
@shepard145 Mark is a great guy and an exceptional representative for our region. I have been active in the community for a decade at many levels and cannot count the number of meetings and events that Mark attends just to keep in touch with everyone. Going to all those meetings is a small price to pay for free dinner that night (via his $25 per diem) he collected over and over.
TheEnlightenedMaster
Thu, Oct 28, 2010 : 8:21 p.m.
Bob, let me point out the parallel the democrats now have total control of the federal gov in terms of legislative branch and executive branch and if the current bunch continues to control, it wont be long until they also control the judicial branch. You suggest one party control is a bad thing. Unless of course it is the party you happen to favor.
Roadman
Thu, Oct 28, 2010 : 8:14 p.m.
Tom Wieder: Instead of bashing Mr. Ouimet, why don't you tell us what positive things Chris Green has done? What type of legal cases has she won? What prior offices as she held? The impression I get is that she is a local attorney insider who is being baced by trial lawyers such as yourself and Joan Lowenstein, among others.
kurtkoeh
Thu, Oct 28, 2010 : 6:56 p.m.
The business attack is a low blow by the democrats for a couple of reasons: 1) They did not give us the full picture. If you are going to make an attack like this you also need to include financials from before he became CEO and a full disclosure of all of the factors that were present in the banking industry at that time. It is conclusory to say that just because there were losses that he was a bad CEO. I don't know what the facts would ultimately show, but give us some real analysis for once. 2) Ouimet's severance agreement prohibits him from commenting on the situation and thus defending himself. This is what makes this attack a cheap shot. They know he can't respond so they just lob it out there.
Bob Martel
Thu, Oct 28, 2010 : 6:18 p.m.
@ treetowncartel - you are correct and I did think about that when I was writing my comment but I decided to simplify the issue and stick with the government units (or branches, if you will) that are partisan vs. the supposedly non-partisan, but oh so important, Supreme Court. @ TheEnlightendedMaster - I'm not sure if there is a direct parallel between the Federal government and our state government as you seem to suggest, but if there is, it would appear that your thought process supports my position 100%. Shall we count on you to vote for Christine Green on November 2nd then?
Do not taunt Happy Fun Ball
Thu, Oct 28, 2010 : 5:08 p.m.
Tom - the County Commissioner Office has been run by Dems for Decades. Dems will take credit for anything and everything - they had the votes/control and still do. Mark led the charge to keep police officers on Road Patrol when county funding was at risk. Mark has also been the lead - and you can ask the Dems on the board - in balancing the county budget as county funds fall at ever increasing speed.
treetowncartel
Thu, Oct 28, 2010 : 5:08 p.m.
Hey Bob, I agree with the majority of your post, but the three branches of government are the executive, legislature and the judiciary. Yes, we have a bi-cameral legislature, so technicaly one could argue there is four. And then taking into account whether the AG shares the same agenda as the executive branch you might even actually have 5 branches. Everybody seems to forget the judiciary. It is just as important of a race, if not more important than these other races.
trespass
Thu, Oct 28, 2010 : 5:07 p.m.
Did Snyder know that Ouimet had an MBA from a diploma mill when he endorsed him? Does it matter to Snyder? If not, why not? This is more likely to embarrass Snyder than to help Ouimet.
TheEnlightenedMaster
Thu, Oct 28, 2010 : 5:04 p.m.
Does Ryan Stanton work for the Democrat Party? Do you think that perhaps Mr. Snyder should enorse people of the other party. Drawing from Bob's comment having one party have control of the house the senate and the executive branch of government leads to bad government. Maybe thats the excuse for Washington being such a fine place right now. Draw your own conclusion. Perhaps if the university bank had given loans to everyone that Barney Frank and Chris Dodd would like to see have loans maybe the bank would have even poorer results.
Tom Wieder
Thu, Oct 28, 2010 : 4:26 p.m.
@shepard145 - "cannot count the number of meetings and events that Mark attends just to keep in touch with everyone." There's a consistent theme to the comments of Ouimet supports - he shows up at lots of meetings and events, but nobody ever identifies any concrete accomplishments he has. Some might say that coming to lots of events and keeping in touch with people is called "campaigning," which Ouimet seems to do perpetually, rather than actually accomplishing anything that even his supporters can point to.
shepard145
Thu, Oct 28, 2010 : 4:13 p.m.
Mark is a great guy and an exceptional representative for our region. I have been active in the community for a decade at many levels and cannot count the number of meetings and events that Mark attends just to keep in touch with everyone. He is one of the most well respected and liked men in our region. All the democrat party can do is attack and start phony "investigations" 2 weeks before the election because they have nothing to run on - no issues and nationally they are bankrupting the United States $5 trillion in debt. I look forward to voting for Mark on November 2nd!!
Marshall Applewhite
Thu, Oct 28, 2010 : 4:05 p.m.
This is good news to see Snyder endorsing quality local candidates. I'm guessing Green won't even accept an endorsement from Bernero.
Bob Martel
Thu, Oct 28, 2010 : 4:02 p.m.
I don't see Snyder's endorsement as toxic to Ouimet as if Sarah Palin were to have endorsed him. Then we'd truly have something to celebrate and joke about! The fact remains that keeping this district and the House in Democratic hands is key to providing some checks and balances in Michigan state government. If the Republicans control all three bodies (Executive, Senate and House) we will have a bad government, period. Since it is highly unlikely that the Democrats will end up controlling the Governorship, the Senate and the House, there is no sense in speculating about whether that would be any better. The fact remains that we need to keep the House in Democratic hands to provide the necessary checks and balances that will make our state government more effective. At this juncture, it's more important than anytime in the past 30 plus years that we have a good government in Michigan. For these reasons it is very important that everyone vote on November 2nd, especially if you are going to vote for Christine Green!
julieswhimsies
Thu, Oct 28, 2010 : 3:30 p.m.
This is good news for Green!
michigan face
Thu, Oct 28, 2010 : 3:09 p.m.
Birds of a feather...what a surprise, it would be a joke to think otherwise. What a splendid endorsement rick - you and your outlaw buddies.
Ignatz
Thu, Oct 28, 2010 : 3:07 p.m.
Nobody like trial lawyers until they're charged with a crime or feel the need to deal with people legally.
Roadman
Thu, Oct 28, 2010 : 3:03 p.m.
Thank you Rick Snyder for the endorsement!! Let's hope your coattails are long enough on Election Day to help all Republican nominees.
David Briegel
Thu, Oct 28, 2010 : 2:30 p.m.
Great post Bob. Just another reason why we need Christine Green!
Jaime
Thu, Oct 28, 2010 : 2:28 p.m.
No brainer. Who else would he support. The question I would like to ask Snyder is "With the revelation of Ouimet's masters degree source and his questionable reimbursements, would you hire him to work at your company?"
InsideTheHall
Thu, Oct 28, 2010 : 2:26 p.m.
Logical choice? Work record? Christine Green is a trial lawyer who bottom feeds taking on trivial law suits like the now infamous UM disgruntled employee suit that cost the taxpayers of Michigan $100K to fend off. If you believe in trial lawyers and ACLU friendly legislators then Green is your girl. If not, Ouimet is the logical choice.
HaeJee
Thu, Oct 28, 2010 : 2:24 p.m.
Not a surprise..... I hope Snyder feels a negative impact for this endorsement.
ruminator
Thu, Oct 28, 2010 : 2:19 p.m.
Remember the old saying: "birds of a feather........ flock together"
Bob Martel
Thu, Oct 28, 2010 : 2:17 p.m.
No surprise that Snyder would endorse Ouimet. Snyder wants to have both the House and Senate in Republican hands so he can implement the Republican agenda unchecked. The seat in the 52nd District (the one that Green and Ouimet are contesting) is a key race in the control of the House. If Ouimet were to prevail, the Republicans would be one step closer to gaining complete control of State government in Michigan. That has a lot of implications for the future, including giving Republicans complete control of the redistricting process that will redraw the boundaries of all the federal and state offices in Michigan. Think about that before you cast your vote next Tuesday. I you are unwilling to hand it all to the Republicans, the only logical choice is to vote for Christine Green.