Flint development news

[robk1982]

The fire was at Odessey House (across MLK Ave. from the Durant)

[robk1982]

http://www.mlive.com/news/flint/inde...wth_autho.html

Diplomat Specialty Pharmacy plans to add 1,000 jobs in 5 years; Michigan Economic Growth Authority (MEGA) board expected to approve $61.5 million tax break today for Flint expansion
By Melissa Burden | Flint Journal
April 20, 2010, 12:00AM


FLINT, Michigan — Some big changes could be coming for a Flint Township pharmacy that got its start as a “mom-and-pop shop.”

The Michigan Economic Growth Authority (MEGA) board is expected today to approve a $61.5 million tax credit for Diplomat Specialty Pharmacy that that will allow the company to hire more than 1,000 people over the next five years and move its headquarters into part of the Great Lakes Technology Centre on Saginaw Street in Flint.

Diplomat plans to invest $12 million over the next five years into what will become its national distribution center, said Phil Hagerman, president and chief executive officer of the company that he and his father Dale Hagerman founded more than 35 years ago.

“We’re in the business of job creation, so this is a significant job creator over the next five years,” said Tim Herman, president and CEO of the Genesee Regional Chamber of Commerce.

The chamber, city of Flint, Career Alliance and the state worked with Diplomat to secure an incentive package that beat out locations the company was considering in Ohio and Texas, Herman said.

If approved at a Lansing meeting today, tax breaks from MEGA over 18 years will help the specialty pharmacy company create more than 4,000 total new jobs.

“This economic development project is bigger than a new auto plant,” Flint Mayor Dayne Walling said. “There will be significant benefit to the surrounding neighborhood.”

Diplomat, which last year was named one of fastest growing companies in America by Inc. magazine and expects to generate $600 million in revenue this year, is close to buying Building B — a 340,000 square-foot space — at the former General Motors facility, Hagerman said.

He said 275 workers will move into the building this year.

The company, which Hagerman described as “one of Michigan’s best kept secrets,” has more than 400 employees with about 300 based in Genesee County and plans to add 140 employees this year.

“It’s really an exciting time for Diplomat,” Hagerman said.

Hagerman said Diplomat had been considering opening a West Coast hub for the growth it is experiencing there, but decided to “go against the tide” and focus job growth in Genesee County, where it all began.

The privately held specialty pharmacy serves patients across the country, filling prescriptions for people with cancer, multiple sclerosis or Rheumatoid Arthritis that average $1,000 to $5,000 each.

The company, which is heavily patient focused because of the expensive and special prescriptions, plans to add jobs in areas such as information technology specialists, patient care coordinators, pharmacists, nurses, call center specialists and pharmacy technicians.

Career Alliance also plans to provide $14 million in training over the next 10 years to current and new Diplomat employees, paid for with federal and state dollars, said Alicia Booker, president and CEO of Career Alliance.

Herman and Walling said the new jobs coming to the city and county are in the life sciences sector, which is a area targeted for job growth in the city and county’s recently adopted Comprehensive Economic Development Strategy.

“It further diversifies our economy,” Herman said.

Flint City Council also will be taking up a brownfield tax credit and Renaissance Zone designation to keep Diplomat here, Walling said.

"This is great news for the City Of Flint," said Delrico Loyd, president of the Flint City Council in a statement. "All aspects of the healthcare industry are growing. I am hoping with the expansion of Diplomat Specialty Pharmacy into our city it serves as a springboard to attract similar business to our area with the same kind of job creation and economic development potential."

Herman, who sits on the MEGA board, said the MEGA board sees an importance of keeping these jobs in Michigan as it considers granting Diplomat’s tax breaks over 18 years. He said Diplomat’s job creation also is expected to create about 3,100 spin-off jobs.

“They needed to anchor a new industry in Michigan,” Hagerman said.

Diplomat is the only national specialty pharmacy headquartered in Michigan. Other states with specialty pharmacy companies have seen thousands of jobs created in the growing industry in the past five to seven years, Hagerman said.

“We believe the state has given us the opportunity now to recreate that model in Michigan,” he said.

Spin-off jobs could come from other bio-technology companies locating in Diplomat’s space or in other areas of the massive technology centre or the surrounding areas, Hagerman said.

“Our goal would be to create a bio-technology corridor,” he said.

Diplomat’s flagship retail pharmacy — which fills 750 to 1,000 prescriptions a day — will remain on Beecher Road in Flint Township, Hagerman said.

But 95 percent of the company’s dollar volume of business comes from outside the traditional pharmacy storefront.

The company has distribution centers in Swartz Creek and Cleveland and has offices in Grand Rapids, Chicago, California and Florida.

[uaarkson]

Spencer Advertising just moved into the Capitol Theater building, I got to explore the entire place during the grand opening.

Went down into the basement, up in the projection booth, and on the 4 floor fire escape. Very cool opportunity.

[Rizzo]

That's really good news, I take it they occupy one of the ground floor suites?

[uaarkson]

They occupy most of the right side of the building.

[robk1982]

Got another email regarding The Durant. I'm definitely going.

Hello. I just wanted to inform you that we will be doing a walkthrough of the Durant next Friday, the 4th, at 12:30 P.M. We will meet out in front of the building in the grass, right in front of the construction barricades. If you have any friends or colleagues that are interested in the building you can also bring them to the showing. This is an exciting time for the building and Flint as a whole and we hope to have a strong turnout. Please make sure you wear an appropriate pair of shoes since it is a live construction site.



Justin Hentemann

MTH Management

The Durant

[uaarkson]

I might go.

[Rizzo]

Please take photos!

[robk1982]

Originally Posted by Hayward

Please take photos!

I'll think about it.

[robk1982]

As of a few weeks ago, the site had been cleared for the new IRS building on the north side of downtown. Not sure where construction stands right now.

And, I hear that Witherbee's Market will be opening SOON. I'll hopefully get some pics on Friday, but the building looks great. However, the other grocery store trying to open downtown (Triple S's), looked to be stalled when I drove past a few weeks ago.

[robk1982]

The outside....












The Ballroom






The lobby






Some of the rooms (mostly 7th floor)













8th Floor Hallway


Views from the roof and windows


(notice Witherbee's Market in the center of the picture...just opened this week)





Dirty Window


Looking southwest at the failed Manhatten Place project and Carriage Town




Another view over Carriage Town with the newly renovated Berridge Hotel

[subterranean]

Wow, thanks for the photos.

[Rizzo]

Wow, I like it!

[deja vu]

Yes, great photos! It's been a long time since I've been to Flint, and it's looking surprisingly good, at least from above.

[uaarkson]

That was awesome.

[Rizzo]

BTW, I see an OSHA violation in this photo lol

[robk1982]

Allowing d*****bag college kids in a construction zone is an OSHA violation? Who knew?

[robk1982]

http://www.mlive.com/news/flint/inde...e_than_7m.html

Flint 'can't afford' more than $7M owed for Genesee Towers after Michigan Supreme Court decides to not hear case

By Laura Misjak | The Flint Journal
June 04, 2010, 4:36PM
Staff writer Laura Angus contributed to this report.

FLINT, Michigan — A state supreme court decision this week likely doubled the city’s deficit overnight.

The city and its taxpayers are now on the hook for at least $7 million for the Genesee Towers — after the court refused to hear an appeal on the December ruling on Thursday — and taxes could be raised to settle the debt.

Flint attorney Peter Bade is determining whether to ask the court to reconsider it’s decision — a move he must make within 21 days of the June 3 decision.

“The supreme court’s decision not to take the case does not mean the plaintiff was correct,” Bade said.

The decision simply means the court didn’t think the Genesee Towers case would not affect state law, or that it was “not worth their time,” Bade said.

Bade said he believes the Genesee Towers case could impact declaring condemnation of properties and arbitrators’ approach on cases.

The city and the building’s owners — V. Kumar and Sasikala Vemulapalli — agreed to enter into arbitration over the property and its worth in 2006, after the city condemned the 19-story building in downtown Flint.

The decision in 2007 awarded the Vemulapallis more than $6 million — including legal fees but reduced by the cost of repairs, according to court documents.

City officials appealed, arguing the arbitrator exceeded his scope of authority in reaching the decision.

The case was appealed multiple times, until the Court of Appeals ruled in December that the arbitrator reached a decision based on the arbitration agreement and evidence presented, and found there was no error in the arbitration award.

City officials said they intended to appeal the decision, but the Michigan Supreme Court refused to hear the case Thursday.

The attorney for the building’s owner, Kenneth Harrison of Plymouth, said the bottom line was the city agreed to enter into binding arbitration and had to accept the outcome.

“If you don’t like it, tough — if you entered into that process,” he said.

If the city doesn’t pay up, Harrison said there is a law that requires the city’s treasurer to increase taxes immediately to pay the debt, though that is “nothing, of course, we want to do.” He intends to talk with the city about payments.

V. Kumar Vemulapalli, owner of Genesee Towers, declined to comment on the ruling and directed questions to his attorney.

“It’s up to the attorneys to decide where it’s going to go,” he said.

If the arbitrator’s ruling holds, the city may have to tack on a special assessment to property taxes, Bade said.

The assessment’s cost has not been determined, but Bade said the cost would most likely not be added to the 2010 tax rolls.

“The city can’t afford this judgment,” he said.

City administrator Gregory Eason said arbitrator’s ruling “will have a significant impact on the city,” and it’s $8 million budget deficit.

“This just only compounds our existing circumstances,” he said.

The administration and city council will discuss every financial path to help cover the costs, Bade said, but confirmed that state law allows the plaintiff to have the costs put on the tax rolls.

[Rizzo]

Originally Posted by robk1982

Allowing d*****bag college kids in a construction zone is an OSHA violation? Who knew?

LOL, that when they throw back some attitude. Wearing open toed shoes is a major violation on any construction site whether work is being performed or not. I'm surprised they let him in.

[uaarkson]

I don't want them to tear down GT unless they put something in its place. The taxes thing is pretty shitty though.