Friday, September 21, 2007

MGCB moves to Detroit, former GM headquarters building

9.21.07

Cadillac Place, which is the old GM building, now houses state of
Michigan offices, but the facility has a 10 percent vacancy rate.

Gaming board moves to Detroit

Many of the 50 state employees expected to give up jobs because of economy and commute.

Joel J. Smith / The Detroit News

The state is transferring some 50 employees now housed at the Michigan Gaming Control Board headquarters in East Lansing some 90 miles away to the state's office building in Detroit -- a move some say will force most of those veteran workers to quit their jobs.

The switch will help fill empty office space at Cadillac Place, the former General Motors Corp. headquarters building leased by the state since 2001, after the automaker's move to its new quarters in the Renaissance Center.

Many of the affected gaming board employees are unhappy about the move, saying it will be impossible to sell their Lansing-area homes in the current poor economic climate and that it is cost-prohibitive to even consider the long commute between Lansing and Detroit.

The shift will be made by April 30 or sooner, state officials said this week.

"It is a major move for the employees," said Liz Boyd, press secretary to Gov. Jennifer Granholm. "But it's important to know that these are very tough times in state government."

Some employees upset over the pending move already are looking for work closer to home.

Matthew Clark, a financial analyst with the board, will start at a new job on Monday with the Michigan Treasury Department in Lansing.

"I love my job," Clark said. But, "there is no way I can afford to commute to Detroit. I can't sell my house in this market. The housing market is really poor around here. There are 'For Sale' signs posted all over the place. Houses just aren't moving."

General fund to get a boost
The move will give the state a cash infusion.

The gaming board currently leases two floors in the Abbott Center in East Lansing for $582,000 a year from a private landlord. That money comes out of the funds collected from the three Detroit casinos and 18 Indian casinos in the state. No money for operating the gaming board comes from the state's general fund.

With the board's move to Cadillac Place, the $582,000 in rent now can be paid to the state, according to officials with the state's Department of Management and Budget office, which is coordinating the move. They admit it's a way for the state to get its hands on money that is restricted for use only by the gaming board.

The state, which is trying to resolve a $1.8 billion budget deficit, will put the money into its general fund.


Move hits key employees
The gaming board already occupies a satellite office in Cadillac Place for those who work closely with the three Detroit casinos. But the administration and others, who deal with casino suppliers and Indian casinos mostly in northern Michigan, are housed in the East Lansing offices.

Richard S. Kalm, executive director of the board, said he is concerned about the impact of the move on employees. For his part, the move will make Kalm's commute shorter because he lives in Romeo in Macomb County.

"I don't want to lose anybody," Kalm said. "But I do know that some of our people already have taken other jobs. It's not pleasant. I'm not excited about it. But this decision was made and since I head the agency it is my job to get it done.

"I'm going to try to minimize the impact on personnel and keep this place running efficiently."

Kalm was not involved in the decision to relocate the headquarters.

He said his biggest concern is the human factor and the impact on long-term employees, some of whom have been with the agency since it opened in 1997.

The move involves key and experienced employees in such areas as administration, investigation, financial analysts and recordkeeping.

The relocation also involves support staff such as clerical and secretarial workers.


Space available in Detroit
Some gaming board employees argue the personal economics of relocating to Metro Detroit just don't make sense.

Many employees have spouses already working in the Lansing area and can't move their household.

Those who chose to commute would pay city of Detroit income taxes, parking and extra fuel costs. The commute also would mean time away from families.

A straw vote by employees indicated that most felt they would leave rather than take the transfer, workers said.

Some of the workers believe that Gov. Granholm ordered the move to help the financially ailing city of Detroit.

But Edward Woods III, a spokesman for the Michigan's Department of Management and Budget, said it is a win-win solution for the state, getting it out of a private lease and utilizing empty space in Cadillac Place.

He said that the 1.3-million-square-foot office building in Detroit's New Center area is more than 10 percent vacant; the gaming board move will lower the vacancy rate to 9.5 percent.

"It's a major impact on the employees," Woods said.

"It is a challenge to sell a house with these market conditions. I'm sympathetic to their concerns.

"But it's their choice if they want to make the move."

You can reach Joel J. Smith at (313) 222-2556 or
jsmith@detnews.com.

1 comment:

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