Another Win For Gilbert - Title Source Coming Downtown

[Richard]

With the list of companies owned by Gilbert Detroit could be in for a good run.

http://www.quickenloans.com/about/partner-company

I had asked "his people" about a referral of a commercial property appraiser for a unique property,I figured it would be okay sense he lists at least two business that specify that is what they do.

They jerked me around on the phone for 30 days and ended up telling me that their only concern was the CBD the rest of the city was not their forte and they could not help with the appraisal or have a recommendation,I guess maybe that's why the little street car run got shot down,when you disregard the greater good and concentrate on self interest things have a way of coming full circle.

You only have to look at the retirees that are now toll booth operators that lost everything in the Quicken thing back when to see what kinda of people are really around.

It is good that people are moving downtown ,but be careful of double edged swords they have a tendency to come back on you.

[Wheels]

I had asked "his people" about a referral of a commercial property appraiser for a unique property,I figured it would be okay sense he lists at least two business that specify that is what they do.

They jerked me around on the phone for 30 days and ended up telling me that their only concern was the CBD the rest of the city was not their forte and they could not help with the appraisal or have a recommendation,I guess maybe that's why the little street car run got shot down,when you disregard the greater good and concentrate on self interest things have a way of coming full circle.

You only have to look at the retirees that are now toll booth operators that lost everything in the Quicken thing back when to see what kinda of people are really around.

It is good that people are moving downtown ,but be careful of double edged swords they have a tendency to come back on you.

I think you might be referring to Rock Financial and David Hall. They both seem to have mysteriously been removed from the Quicken Loans roster.

[Richard]

I think you might be referring to Rock Financial and David Hall. They both seem to have mysteriously been removed from the Quicken Loans roster.

No it more so about this.

December 1999, Intuit Inc. [[makers of QuickBooks, TurboTax, and Quicken) purchased Rock Financial for a sum of $532M. The company was renamed Quicken Loans. In June 2002, Gilbert led a small group of private investors in purchasing the Quicken Loans subsidiary back from Intuit for just $64M.

Somebody ate that $468 million loss and they still remember it well , lots of hedge funds small investors etc,that are still holding grudges.

When you look at all the players here,you see a very powerful group pay close attention in what they are involved in and why they do not seem to be invested in Detroit comparatively,all that is happening is because the taxpayers gave him.

http://corporate-giftsn.com/lean/profe547010sion/

"City and state economic development officials put together a tax incentive package worth as much as $200 million over 20 years."

So you gave a company worth billions and spending millions elsewhere to build and improve, $200 million to love the city they were raised in.

So say they had given 4 other companies 50 million apiece to come to Detroit and provide jobs would they have had the same results?

[ThisIsForTheHeart]

Good news for downtown, but that's 1,500 jobs from Troy being relocated, not from out of state. Either way, I'm happy to see more workers downtown.

This is how the trend started in Detroit losing jobs. The jobs would go to the suburbs. The reverse trend is better as regional jobs are returning back to the CBD.

Regional jobs back to Detroit will get people to move back or closer to Detroit. The trend I see from people is moving is north,north,north as jobs are in the troy/Rochester/aubran hills area. So their commute is not far from the jobs. With these jobs being back to Detroit, these people will migrate back closer south to the Detroit area and could stop the endless disgusting sprawl that's been going on.

[Wheels]

This is how the trend started in Detroit losing jobs. The jobs would go to the suburbs. The reverse trend is better as regional jobs are returning back to the CBD.

Regional jobs back to Detroit will get people to move back or closer to Detroit. The trend I see from people is moving is north,north,north as jobs are in the troy/Rochester/aubran hills area. So their commute is not far from the jobs. With these jobs being back to Detroit, these people will migrate back closer south to the Detroit area and could stop the endless disgusting sprawl that's been going on.

There are over 3 million people living outside Detroit in the Tri-County area. If they filled every empty building downtown [[witch I hope they do) it still won't have any effect on sprawl.

[Gistok]

Richard, much of what you said I have read about elsewhere... but the $200 million in tax incentives... I can't recall media discussions about that money's use for buying existing buildings. I was always under the assumption that that money was for "new build". Did I miss some articles or discussions somewhere?

[stasu1213]

When is the coffee shop due to open in the First National Building? I think that a guy from New York was to set up shop in the spot where the wine bar was. Was the plan to open one in that spot cancelled?

[jpbollma]

When is the coffee shop due to open in the First National Building? I think that a guy from New York was to set up shop in the spot where the wine bar was. Was the plan to open one in that spot cancelled?

I had read it would be there in September.

[noise]

the original post could seem rather snarky and dismissive. maybe it was, maybe not. can't see the person's eyes or hear the tone of voice, so all we have is the words, and when that is all we have, we have to examine context. In context, I think it was more a comment about it being a "victory" for Gilbert than any kind of comment about how good it would be for Detroit

I'd say, in context, it was a direct reply the immediately preceding comment. Given further replies, this was confirmed.

[tkelly1986]

I noticed the article in the Detroit News said "Troy based" Title Source. Does anyone know if this move means their HQ is moving, or just some workers. If the HQ is staying put, how many employees does Title Source have all together?

[Lowell]

December 1999, Intuit Inc. [[makers of QuickBooks, TurboTax, and Quicken) purchased Rock Financial for a sum of $532M. The company was renamed Quicken Loans. In June 2002, Gilbert led a small group of private investors in purchasing the Quicken Loans subsidiary back from Intuit for just $64M.

Somebody ate that $468 million loss and they still remember it well , lots of hedge funds small investors etc,that are still holding grudges.

Without know the details, but knowing the economic history the original purchase would have been made at the height of the dot com bubble when all internet stocks were vastly over-valued. In turn the buy- back came after the crash when everybody took a bath. Blame should lie completely with Intuit who paid the inflated price and sold a lucrative business for a song.

Don't weep for Intuit. With its QuickBooks and TurboTax software products being virtual monopolies in their markets they are doing just fine.

[Shollin]

Don't have much respect for Quicken. Worked there briefly. You're basically a telemarketer selling mortgages. You get paid $10 an hour plus comission. Work about 50 hours a week. Think used car salesman selling mortgages. They don't even care if you have mortgage experience, just as long as you can sell.

[Shollin]

I noticed the article in the Detroit News said "Troy based" Title Source. Does anyone know if this move means their HQ is moving, or just some workers. If the HQ is staying put, how many employees does Title Source have all together?

Title Source is right next door to where I work. I can't imagine they have more than 1500 workers.

[Richard]

Without know the details, but knowing the economic history the original purchase would have been made at the height of the dot com bubble when all internet stocks were vastly over-valued. In turn the buy- back came after the crash when everybody took a bath. Blame should lie completely with Intuit who paid the inflated price and sold a lucrative business for a song.

Don't weep for Intuit. With its QuickBooks and TurboTax software products being virtual monopolies in their markets they are doing just fine.

Mr Gilbert was retained as CEO after the sale to Intuit ,which makes it easier to set a sale price.


I am not anti Mr. Gilbert or anti relocating personal to downtown which is what the city needs.

But lets face it he was paid $200 million to do it which in itself is basically the residents hiring somebody to remake a portion downtown.

But is it right for a private individual to recreate a city in their vision only?

He has clearly stated that the city needs to convert from manufacturing based to tech based which in it self is also okay but for the city to then take the attitude that manufacturing is no longer welcome in the city and if you want to invest then you need to do it this way or no way.

So what happens then to the unskilled or non tech personal ?

Either learn tech or leave? There are some that do not have the mental capacity to do tech stuff ,all the closed schools but nobody has helped or pushed for a crafts,skills and trades education training system but there has been no problem funding tech training or funding tech think tanks.

[[2009-07-21)
The Livonia-based company was awarded $47 million in state tax incentives Tuesday to move its corporate offices and add or retain jobs.

Quicken expects to start moving into the Compuware Corp. building in Detroit next spring, likely with a five-year lease. The company says it's too hard to get financing to build in Detroit during the recession.

Quicken is still planning to build a headquarters downtown. It hopes to break ground in three or four years.

http://www.publicbroadcasting.net/michigan/news.newsmain/article/0/0/1532753/Michigan.News/Quicken.Loans.Get.$47.Million.For.Detroit.Move

The tax incentive package is worth as much as $200 million over 20 years. The company has a year to choose between two sites for development. That would be followed by another two years to develop site plans.

http://www.publicbroadcasting.net/mi...ove.to.Detroit

November 19, 2007
After choosing a site, Gilbert has 18 months to conclude a feasibility study on whether to proceed. If he moves, he will get $200 million in incentives over 20 years, including $40 million in subsidies to pay for employee parking.

Gilbert said while his contract gives him 21/2 years before he has to decide whether to actually build a Detroit headquarters, he hopes to speed up that process.
Gilbert has 12 months to pick between two sites: the former J.L. Hudson's site on Woodward Avenue, up the street from the Compuware Corp. headquarters; or the site of the former Statler Hilton Hotel near Grand Circus Park.

http://www.crainsdetroit.com/article...thers-downtown

So in the meantime take the subsidies and use those credits to buy other under valued buildings increase the occupancy thus increasing the value ,use that value to fund the new build and you still have the original $200 mil , nice deal.

But in the real world that is a lot of power placed in a private company and that kind of power runs cities so I guess if that is good or bad for the city I guess it would all depend on who you are and where your training lies in the future.

Time will tell.