Cranes and scaffolds are going up in places all over Detroit and DEGC’s D2D program is connecting developers with Detroit-based construction companies on multi-million dollar projects. About 40 construction-related companies recently attended one of DEGC’s PRO sessions where two companies described their expansion or renovation projects at manufacturing and research facilities around Holbrook and I-75.
The meetings are good for both buyers and suppliers. Developers or general contractors find more options for getting the work done that they need. “They have to be qualified and experienced, because we have quality standards we have to meet,” said Chris Son, director of marketing communications for American Axle Manufacturing. “And I’m sure we have plenty of contractors in Detroit who can meet them.”
For suppliers – the sessions provide direct access to potential customers. “We can work with D2D to find out what we can supply the general contractors they bring to us,” said Steve Anderson, director of interior solutions at Rickman Enterprise Group. “We are a Detroit-based business and we can perform a lot of the work that general contractors need.”
PRO sessions have been very effective in highlighting opportunities for Detroit-based businesses. In just over a dozen sessions more than 150 contracting companies heard presentations from at least 30 development projects that represent close to $240 million in investments.
D2D Program Manager
Detroit-based businesses are expected to earn about $13.5 million from subcontracts approved in August by the Downtown Development Authority (DDA) of the City of Detroit for work on the new Events Center project.
The subcontracts were awarded to:
• Midwest Steel, Inc., for structural precast concrete ($7,772,500)
• Crown Corr, Inc., for arena bowl cladding system ($11,832,633)
• Vector Foiltec, LLC, for via structure roof system ($5,877,887)
Midwest Steel is a Detroit-based business. Crown Corr will subcontract $3.9 million (33%) of the work to four Detroit-based businesses. Vector Foiltec will subcontract $1.8 million (31%) of the work to four Detroit-based businesses.
The three companies have agreed to comply with the Business & Workforce Participation Plan for the project, which facilitates training and hiring Detroit residents.
Under the terms of the Concession Management Agreement (CMA) between the DDA and Olympia Development of Michigan (ODM), the DDA has the right to approve the subcontracts between the ODM general contractor Barton Mallow-Hunt Joint Venture in association with White Construction Co. and subcontractors in amounts over $500,000.
Director of Project Management
The Downtown Development Authority amended and approved a revised development agreement with Metropolitan Development Partners, LLC, to reposition the historic Metropolitan Building into an extended stay hotel instead of a sole residential project.
Under a hospitality co-partnership with the Roxbury Group for franchising, the hotel will include 100 to 135 rooms; studios with kitchens; 2nd floor meeting room; fitness center; guest lounge and dining space; convenience and grocery store; and an outdoor terrace on the 11th floor rooftop. The building will also offer 7,150 sq. ft. of complimentary third-party retail, principally located on the ground floor.
The estimated total cost of the project is $23.2 million and the project is being sold by the DDA for $500,000, with a $250,000 cost incurred by the developer to stabilize the building.
The Metropolitan Building will undergo extensive renovations on not only its exterior façade, but also its interior, serving as a blend of hospitality, residential and commercial/retail space.
Recently, the DDA approved amendments to the initial agreement with a closing date of June 30, 2016 and completion date of June 30, 2018. Façade work on the exterior of the building must be completed by September 1.
Executive Vice President – Business Development
D2D connects Detroit companies as buyers and suppliers. Read the success stories of six companies who participated in its inaugural Capacity Building Series, and check out the services and events it’s planning for 2015 in the new “D2D Business Impact Report.” Copies are also available at the Detroit Economic Growth Corporation, 500 Griswold, Detroit.
D2D Program Manager
Redevelopment & Renewal Magazine awarded Cardinal Health Medical Distribution Center its prestigious Environmental Impact Award for 2015 for innovative environmental solutions in the project. The award was presented at the 2015 National Brownfields Conference September 3 in Chicago.
The $30 million center opened in June. It is located on 18 acres on Rosa Parks Boulevard just north of I-94 and is designed to service Henry Ford Health System, Detroit Medical Center and other local medical centers in Michigan, northern Ohio and northern Indiana. The new center is the inaugural step in the Henry Ford Health System comprehensive community redevelopment plan to improve hundreds of blighted, contaminated and obsolete properties south of its Detroit hospital campus into a thriving, mixed-use neighborhood with residential, commercial and med-tech businesses.
Michigan-based AKT Peerless provided environmental consulting services spanning the entire redevelopment, and secured nearly $15 million to offset site cleanup and redevelopment costs.
“We are pleased to represent Detroit, and support KIRCO and Henry Ford Health System by providing environmental and development incentive expertise on this transformational redevelopment initiative,” said Anthony Kashat, Principal of AKT Peerless. “The Cardinal Health redevelopment will most certainly serve as a major catalyst and model for further improvements to come in this neighborhood, and the City of Detroit.”
The Detroit Economic Growth Corporation’s Business Development and Brownfield Teams helped the project to secure incentives. In addition, DEGC provided a substantial amount of technical assistance working with the developer and the city on street vacations.
Kenyetta Hairston Bridges
Business Development Manager