March 28, 2007
ACROSS THE BLUE WATER AREA
HARSENS ISLAND: Developer to present condominium proposal
A developer will present plans for a condominium project that would require a rerouting of North Channel Road. The meeting will be held at 7 p.m. Thursday at the Lions Club, 230 La Croix Road. Grande Pointe Development will present the plans, which include creating an artificial lagoon on the property that was formerly owned by the Boys & Girls Club of Detroit. Members of the St. Clair County Road Commission and the public are invited to the meeting. The road commission must approve the proposed changes and bypass of the road. A public hearing is planned for the future. The land is owned by Michael Malik, a developer who has invested in casinos throughout the United States. Malik and fellow developer Fred Smith proposed building a marina on the site in the early and mid 90s, but those plans never came to fruition. According to St. Clair County's Web site, the land is owned by Lucky 7 [Luck 7 Development LLC], located at 2211 Woodward Ave., Detroit, the address of Ilitch Holdings, Inc. Michael Ilitch and his family own a number of businesses, including the Little Caesar's franchise, the Detroit Tigers and the Detroit Red Wings.
*** Background ***
Genesis of Lucky 7
Lucky 7 Development LLC was originally formed by Denise Ilitch Lites, her then husband Jim Lites and his brother Scott Lites in mid-October 1996. Jim Lites (former Red Wings executive and the president of the Dallas Stars Hockey Club ) was married at the time to Denise Ilitch (she is the daughter of Mike and Marian Ilitch, owners of the Red Wings). That would make Scott Lites at one time Denise Ilitch’s brother in-law.
Denise Ilitch and the Lites brothers appear to have transferred ownership to Michael Malik in 1999. It was in 1999 that Malik found out he was going to be denied a license by the Michigan Gaming Control Board and transferred his Motorcity interests to Marian Ilitch. Since then, Malik’s been based out of the Ilitch Holdings, Inc. executive offices in Foxtown. He has been day to day point man for other casino ventures with the Ilitch Family
Parallel schemes
Ironically it was at the very same time that Marian Ilitch, Mike Malik and Tom Celani formed Z.R.X. LLC; the entity they hurriedly put together a $5 million syndication needed to bankroll an 11th hour advertising campaign promoting a statewide ballot measure to approve casinos in Detroit. It’s said the advertising effort pushed Proposal-E to a narrow victory and permitted Detroit’s three casino properties. Financing the advertising campaign won Ilitch-Malik-Celani the greatest local share of what would eventually become Detroit Entertainment doing business as MotorCity Casino.
It was never quite clear if Malik got cash from Marian; or some other sort of payment (like property in question); or if Marian arranged to hold the paper shares in MotorCity Casino once owned by Malik with a guarantee to invest them in ventures Malik wanted to pursue (as if she's trustee of his original shares).
It's true Malik and Ilitch Family have chased a half dozen or so gambling ventures the last decade. There are only two which have ever come to pass, MotorCity Casino (originally -- after the ballot campaign -- driven and managed by Mandalay Resort Group) and The Little River Casino in Manistee. BOTH of these ventures also involved Tom Celani. While Celani has been successful in subsequent ventures, absent Celani, we're not aware of any like succeses Malik can brag about.
Malik denied Michigan Gaming License; acquires Lucky 7 Development LLC
Denise Ilitch and the Lites brothers appear to have transferred ownership to Michael Malik in 1999. It was in 1999 that Malik found out he was going to be denied a license by the Michigan Gaming Control Board and transferred his Motorcity interests to Marian Ilitch. Since then, Malik’s been based out of the Ilitch Holdings, Inc. executive offices in Foxtown. He has been day to day point man for other casino ventures with the Ilitch Family.
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