Detroit – Massachusetts-based largest bank relocates its home base to downtown Detroit and adds hundreds of jobs.
Midland-based Chemical Financial Corp. on Wednesday announced plans to move to the city immediately and will eventually convert into a 20-story building to be built on the corner of Woodward and Elizabeth.
Chem Bank Chairman Gary Torgow explained the company's plan and its commitment to neighborhood investment.
"This is a great moment for our company and a wonderful opportunity for the Chemical Bank to create jobs, increase engagement and provide banking services to the citizens and businesses of Detroit and to all in the region," said Torgow. "We love Detroit and we're thrilled to be here."
Mayor Mike Duggan and Gary Torgow, Chairman of the Chemical Bank, announce the Bank's new headquarters in downtown Detroit on Wednesday, July 25, 2018.
Max Ortiz, The Detroit News
Mayor Mike Duggan agreed with officials for the announcement at the future location of the bank building and said, "I never thought I would see the day," when the city was a significant one setting up a regional bank would be expected to bring 500 jobs.
Torgov said that the construction project is currently in the planning phase and officials are hoping the construction will begin later this year. The mixed-use development, which could cost around $ 60 million, is expected to cover 400,000 square meters and include retail, office, park and luxury condos,
The property and a separate building behind it belongs to a New York conglomerate the Chemical Bank has the rights, said Torgov. It was unclear at this time whether the new building would also contain affordable units for Detroiters.
In the meantime, Chemical has office space totaling 333 W. Fort St. and Torgov said that they will slowly bring their employees there to merge there. There are already around 100 employees working in Detroit.
"We always knew that Detroit had the potential to be as it once was, one of the great American cities, and we finally see it blossom in a way we can hardly imagine."
The bank plans to retain its Midland workforce of more than 500 and its presence in this community as it expands into Detroit. Midland will continue to be home to the Bank's Corporate Operations Center.
Brad Kaye, manager of Midland City, said the city was disappointed to lose the bank's headquarters and hopes to learn more about its potential impact on the city's tax base soon.
The city has been said to date that the bank will convert its Midland site into an operations center. He was not sure how jobs could shift for the workers in Midland.
"At the end of the day, we are disappointed that we are losing corporate headquarters," Kaye said, adding that the city recognized the bank's desire to expand in the Midwest and "saw Detroit as a better location." to do that. "
Kaye said it was" too soon to say "how the move would affect the city financially. "This conversation has yet to take place," he said.
The company currently has just over 500 employees in Midland and these employees will stay there to continue banking, said a spokesman for the Chemical Bank, Bill Nowling.  Most of the bank's executives are based in Troy and other employees are scattered across various offices in southeast Michigan. Some of these will be consolidated in downtown Detroit.
The job estimate does not estimate the number of contract workers being hired for construction, officials said.
The company announced this summer that its Midland offices will be relocated from a location near Dow Chemical to a location in Midlands downtown, Nowling said.
Wednesday's announcement comes as Detroit said Wednesday morning that Chemical Bank has appointed its new primary banking partner According to Torgow, the company has already allocated $ 5 million to a new Detroit neighborhood initiative and offers special loan programs in the city for small ones Business and residents.
City Council Chair Brenda Jones became emotional on Wednesday when she addressed the company's commitment, saying it was "exciting and inspiring" and its long-term investment "really marks a critical point."
"Gary grew up in the city of Detroit," she said. "I know that the community will be in good hands."
Wendell Anthony, longtime president of Detroit's NAACP Detroit branch, said he was known to Torgow for decades and believes that the bank meets the needs of people in the neighborhoods at least
"Gary and the bank understand the community," he said. "We do not have two Detroits, we have a Detroit." Talay Bancorp Inc., based in Troy, merged with Chemical Financial in a $ 1.7 billion transaction in 2016, and Torgow became its chairman. The move made the bank company the largest headquarters and operating branches in Michigan. As of June 30, the Company had $ 20 billion in assets, approximately 3,300 employees, and 212 banking centers in Michigan, Ohio, and Indiana.
Kaye said the previous merger with Talmer had set these wheels in motion At that time, he said, he hinted that the headquarters would remain in Midland.
"We suspected that this could be the result of the merger two years ago," he said.
The bank is the fourth largest employer for Midland, a city of approximately 43,000 residents, which also owns Dow Chemical.
The company's commitment to the city comes among other major investments in recent years.
In October, Flex-N-Gate Detroit, expected to open on Georgia Street, was not far from Coleman A. Young International Airport. The auto parts factory on the east side is expected to employ more than 400 workers
Regardless, India-based automotive supplier Sakthi Automotive Group has invested in a multi-million dollar manufacturing facility on Fort Street in southwest Detroit  Auto parts supplier Adient recently announced that it was relocating its global headquarters and hundreds of jobs to Detroit, but rejected it last month.
The company purchased a downtown facility in 2016 for its 500 executives and executives, including 100 new
The company, which had difficulties in recent years to maintain its profitability, canceled the plan weeks after receiving a new one CEO and said the decision was not a reflection on Detroit or its revitalization efforts.
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