Experts: Bank on Even More Mergers Consolidations to Bring Branch Closings, Job Cuts
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20160201-NEWS--0001-NAT-CCI-CD_-- 1/29/2016 6:38 PM Page 1 Quicken Loans makes big-money debut with Super Bowl commercial, PAGE 16 FEBRUARY 1-7, 2016 Experts: Bank on even more mergers Consolidations to bring branch closings, job cuts By Tom Henderson [email protected] Whatever the eventual success of last week’s pair of bank deals, indus- try watchers say to expect ongoing bank consolidation — and contin- ued branch closings and job reduc- tions. It was a coincidence of timing, COURTESY OLYMPIA DEVELOPMENT but not of strategy, that two big deals were announced Tuesday: Midland-based Chemical Bank’s purchase of Troy-based BUILDING CITY BLOCKS Talmer Bank and Trust, and the acquisition by Area around new Detroit Red Wings arena teeming with Columbus, Ohio-based proposed retail, office, multifamily housing, hotel projects Huntington Banc- David Provost: shares Inc. (Nas- There will be some By Kirk Pinho and Bill Shea billed as Woodward Square, Olympia is build- daq: HBAN) of job cuts,Talmer [email protected]; [email protected] ing about 160,000 square feet of office space. Akron, Ohio- chief says. The clearest picture to date of what is ex- Offices for the Red Wings and Olympia Entertain- based FirstMerit pected to be built around the new Detroit Red ment, the venue management arm of team Corp. (Nasdaq: FMER). Wings arena includes a dizzying mix of retail, owners Mike and Marian Ilitch’s business The Huntington-FirstMerit deal, office, multifamily and hotel space expected holdings, are expected to take about 100,000 which joins two banks with a major to be largely completed by the time the first square feet of that. presence in Michigan, is at valued puck of the 2017-18 season drops. An additional 55,000 square feet of retail $3.4 billion in cash and stock. It will And within six months — two months after space, plus a 350- to 400-room upscale hotel create a bank with nearly $100 bil- Woodward Square this National Hockey League season ends in June and more than 120 multifamily units, will be lion in assets that will operate with — a series of substantial milestones, in- in the area bounded by Woodward and Cass across eight states in the Midwest. The next wave of planning for the arena- cluding major tenants such as a large grocery avenues to the east and west and Sproat Street The impact on branches and jobs anchored central hub of The District Detroit store and hotel, are expected to be an- and the Fisher Freeway service drive to the will vary greatly in these two deals, includes a range of features: nounced. north and south. although few details are available Retail, including a major grocery store Among those seriously being courted is Total investment in the Woodward Square yet. While it is clear there will be Hundreds of units of multifamily housing Walker, Mich.-based Meijer Inc., which has area — one of five neighborhoods in the area substantial closings of FirstMerit been exploring conceptual plans for smaller Olympia intends to rehabilitate as part of its branches in Michigan, all of their A high-end hotel stores to fit in dense urban areas, according to broader The District Detroit plan — is now $1.2 employees will be offered jobs at 160,000 square feet of office space Olympia Development of Michigan executives billion, of which 75 percent is (or will be) private Huntington. More project details, Page 18 and other real estate sources. spending, according to Olympia executives. Chemical Bank has 185 branches In the area immediately around the arena SEE ARENA, PAGE 18 in Michigan, and Talmer has 51, with very little overlap. David Provost, Talmer Bancorp’s president © Entire contents copyright 2016 and CEO, said five or six branches by Crain Communications Inc. All rights reserved. might close. crainsdetroit.com Vol. 32 No 5 $2 a copy. $59 a year. Back to school He said there will be some back- office job cuts at both banks, the to make a change number of which has yet to be de- Taking on a degree program midcareer termined, but he said Talmer’s cur- offers a chance to broaden horizons. rent headquarters in Troy will con- Page 9 tinue to be a major presence in the combined entity. Provost said some of the cuts in NEWSPAPER SEE BANKS, PAGE 20 20160201-NEWS--0002-NAT-CCI-CD_-- 1/29/2016 1:58 PM Page 1 2 CRAIN’S DETROIT BUSINESS // FEBRUARY 1, 2016 has boosted demand for Oronoko at a few Detroit-area locations. MICHIGAN Iron Works’ material handling prod- Ⅲ Bloomfield Township real es- INSIDE ucts used in brewhouses. The com- tate investor Matt Lester completed THIS ISSUE pany seeks to add another 10,000 to a deal to purchase the Drummond Is- BUSINESS DIARY . 15 CALENDAR . 15 15,000 square feet at its existing fa- land Resort and Conference Center CAPITOL BRIEFINGS . 5 The Hunt Club cility, which has capacity to build and . Lester, founder CLASSIFIED ADS . 17 about 200 machines annually, ac- and CEO of Princeton Enterprises MARY KRAMER . 7 BRIEFS cording to founder and CEO Rusty LLC, sidestepped a planned auction OPINION . 6 Riley. of the resort and conference center OTHER VOICES . 6 Front porch fix-up part of conduct renovations, officials an- The number of manufacturers — built three decades ago by Domi- PEOPLE . 16 Grand Hotel winter face-lift nounced. The project in the former supplying purpose-built equip- no’s Pizza founder and former De- RUMBLINGS . 22 president’s hometown includes ment for craft brewing remains troit Tigers owner Tom Monaghan WEEK ON THE WEB . 22 This has been an especially busy construction of the 8,000-square- small. Industry sources attribute — by making an offer on it before winter offseason at the Grand Hotel, foot DeVos Learning Center, which manufacturers’ hesitation to factors the auction began. Lester declined as Mackinac Island’s famed hotel is seeks to foster civic engagement ranging from the steep learning to disclose the purchase price, but COMPANY INDEX: undergoing a significant face-lift. among students, The Associated curve needed to produce quality said it exceeded the $3.5 million re- SEE PAGE 21 Construction crews are redoing the Press reported. equipment to the challenges of serve price. The property had been hotel’s iconic front porch, building Videos, interactive digital ele- courting brewers from out-of-state most recently owned by Clifton its sixth restaurant, updating guest ments and historical artifacts are suppliers. Haley, the former Budget Rent-a-Car year’s traffic eclipsed the 2014 bathrooms and restoring furniture, being incorporated into the new “We knew about the vibrant Corp. CEO and board chairman who record of 2.3 million and is the third MLive.com reports. museum exhibits. The Ford Presiden- brewing community in Michigan, bought the property from Mon- consecutive year the facility broke The biggest project is the front tial Foundation said more than $15 but the state also has a robust work- aghan for $12 million along with travel records, The Grand Rapids porch, which will take two winters million was raised for the learning force,” Riley told MiBiz. Denny Bailey. Press reported. The airport recently to complete. Crews are now redoing center, exhibit updates and other Ⅲ In a deal involving two Grand began a $45 million project that in- half of the 660-foot porch that is work. Related projects include the MICH-CELLANEOUS Rapids-based companies, IT con- cludes updates to security screen- original to the hotel, built in 1887. digitalization of papers at Ford’s sulting firm Open Systems Technolo- ings and the facility’s Grand Hall. “It’s really a big deal,” Julie presidential library in Ann Arbor. Ⅲ Speaking of the craft brewing gies announced the acquisition of Ⅲ Columnist Susan Demas, edi- Rogers, the hotel’s marketing man- industry, new news is good news for human-centered design consulting tor and publisher of the Lansing ager, told MLive. Growing company equips two Michigan companies. Elk firm Visualhero Design. Financial de- newsletter Inside Michigan Politics, Construction has also begun on craft brewing industry Rapids-based Short’s Brewing Co. tails were not disclosed. OST, which started a new website — susanjde- the hotel’s Grand Sushi restaurant, to said it will begin out-of-state distri- employs 185, is looking to grow its mas.com — to share her work, just open in May. Although it hasn’t reached its sec- bution of its beer and cider prod- $165 million revenue stream. Visu- as she published her final column ond birthday, Oronoko Iron Works Inc. ucts in February, and the Holland- alhero has 12 employees. The com- with statewide news organization Ford Museum to reopen in plans this year to double the size of area Big Lake Brewing has begun panies remain in their headquar- MLive Media Group. MLive, part of June after renovations its plant in the Berrien County village distributing its beer statewide at ters, which are about a block away Staten Island, N.Y.-based Advance of Baroda. The reason: The company more than 70 locations. Short’s did from each other. Publications Inc., recently announced The Gerald R. Ford Presidential Mu- is one of the state’s few manufactur- not immediately say which states it Ⅲ Gerald R. Ford International Air- plans to restructure operations and seum in Grand Rapids is expected to ers to specifically target the nation’s will distribute in. According to the port in Grand Rapids beat passen- no longer will publish the work of reopen in June after being closed $19.6 million craft brewing industry, Holland Sentinel, most of Big Lake’s ger traffic records every month of several freelance columnists.