Volume 2, No. 7
September 2006

M impact

University of Michigan Wolverine football players
We're Number One!
Makeover for the Big House

The Economics of an
Extra Home Game

Bill Milliken of SPARK welcoming Google
Bill Milliken Shares His Thoughts on Merging with SPARK and Welcoming Google

Be Sure To Read The Latest From Our Regular Writers:

Working for the U
By Mike Gould

Newcombe Clark

Major Changes Coming to Overtime Requirements?

Stewart Tubbs

Ask the Coach -
John Agno

Ann Arbor Area BUSINESS MONTHLY magazine brings the reader the latest business news and information important to the businesspeople in Washtenaw County. Each month articles cover real estate, legal, Internet, employee concerns and the climate of business in the greater Ann Arbor area. There is news about company employees and feature articles on local businesses. We cover business news from Ann Arbor, Chelsea, Dexter, Manchester, Milan, Saline, Whitmore Lake, and Ypsilanti.

U-M development projects
exceed $1 billion in 2006

The new C.S. Mott Children's and Women's Hospital
The new C.S. Mott Children's and Women's Hospital is scheduled for completion in the spring of 2011. It will be a $523 million project.

By Kate Kellog

The University of Michigan is investing more than $1.75 billion in major building and capital improvement projects that are either underway or approved in 2006 on the Ann Arbor campus alone. By including the $440 million cost of major projects completed since October 2005, the total investment exceeds $2 billion.

"We are fortunate to have the caliber of faculty, researchers and medical professionals who attract the respect and support of public and private funding providers or delivering clinical care that merits the expansion of quality service and facilities," said Jim Kosteva, director of Community Relations at U-M.

"This in turn translates into employment opportunities on both a temporary basis for the Michigan construction industry and a permanent basis as exemplified by the 4,000 new jobs created at the University in the last five years."

Medical facilities for the U-M Health System lead the development list totaling $1.1 billion. Medical projects include the recently approved plans for the new $523 million C. S. Mott Children's and Women's Hospital, $220 million Biomedical Science Research facility, $200 million Cardiovascular Center, $121 million Kellogg Eye Center, $38 million Rachel Upjohn Depression Center, other projects under construction, and the recently completed $30 million Ambulatory Surgical and Medical Center.

In July, the U-M Hospitals and Health Centers announced that it had finished its tenth consecutive fiscal year in the black and fifth straight year of increasing its operating margin, both signs of the medical center's strong financial health.

A positive operating margin is essential to fund continued advances in patient care, education, research, and the facilities needed to support those functions, according to UMHS officials. As a non-profit institution, the health system uses its operating margin to reinvest in facilities and resources to ensure the highest quality of care for its growing patient population.

"The University of Michigan Health System is proud of its reputation of providing high quality care to the residents of Michigan. Our inpatient and outpatient activity continue to increase, which only reinforces the breadth of experience and talent we have here," said Doug Strong, director and chief executive officer of the U-M Hospitals and Health Centers.

"Especially noteworthy is the care we provide to children and women. Increases in patient demand and advances in medical technology have led us make a $523 million investment in the new C.S. Mott Children's Hospital and Women's Hospital. This facility will position us to provide innovative and high quality patient care for decades to come, as well as further our research and education missions," said Strong.

Ground-breaking for new children's, women's hospital planned for Oct. 6

Ground-breaking ceremonies for the new C.S. Mott Children's and Women's Hospital are scheduled for Oct. 6 on the medical campus. It will not be a traditional ground-breaking with shovels turning dirt or ribbon-cutting but a unique event, according to a UMHS spokesperson. U-M Regent David Brandon, who is also CEO of Domino's Pizza, and Head Football Coach Lloyd Carr will be the featured speakers at the ceremony that will be designed for children, women and their families. Brandon, his wife Jan, with Carr and his wife Laurie, have chaired the fund-raising campaign for the hospital project.

UMHS has already raised $46 million for the new hospital, including a $25 million grant from the C.S. Mott Foundation in Flint. The hospital project will be funded completely through philanthropic efforts and hospital reserves.

The new C.S. Mott Children's and Women's Hospital will replace the existing children's and women's hospital. At an estimated cost of half a billion dollars, construction will begin this fall and is scheduled for completion in spring 2011.

The enormous medical facility was designed with an optimal operational layout that qualifies for Leadership in Energy and Environmental Design certification. Teams of more than 450 current Mott and Women's faculty and staff, as well as patient feedback, were instrumental in the design and layout of the new facility.

Within the 1.28 million square-foot facility, 855,000 square feet will be designated for inpatient space, 245,000 square feet will be devoted to clinic and office space, and 180,000 square feet of shell space will be used for future growth. Plans include 16 pediatric operating rooms, four pediatric surgical procedure rooms, four cesarean section suites, 20 ante partum or postpartum care rooms, and 264 private patient rooms with a capacity for 84 additional rooms.

As plans for new children's and women's hospital proceed, construction continues on several other medical facilities while other completed projects opened in 2005-06. Construction of the exterior for the new Cardiovascular Center is nearly completed as the building's creative design begins to take shape. This new clinical heart and vascular care facility is set to open for patient use by the middle of next year.

The 350,000 square foot clinical facility will include an adjoining 465-space parking deck and connectors to existing UMHS buildings on the medial campus. The $220 million facility is being built totally with private funds raised for it and no public funding. The Biomedical Science Research Building was completed in January at an estimated cost of $220 million and is open for medical academic and research activities. The six-story, 470,000 square-foot building is located on Huron Street and Glen Avenue across from U-M's Palmer Drive Development.

Construction of the Rachel Upjohn Building is expected to be completed this month at an estimated cost of $38 million. The 112,000 square-foot facility, located on the UMHS east campus at Plymouth and Earhart Roads, will house the U-M Depression Center, ambulatory psychiatric and substance abuse clinics. It is expected to open for patients later this year. The East Ann Arbor Ambulatory Surgery and Medical Procedures Center was completed in April at an estimated cost of $30 million. The 50,000 square-foot outpatient surgical facility is currently in use and designed to accommodate an estimated 7,000 surgical cases and 2,000 other medical procedures each year.

In May, U-M Regents approved plans and $121 million budget for the expansion of the Kellogg Eye Center that will make it the largest and most comprehensive eye facility in the Midwest. Construction is scheduled to begin later this fall on the expansion project that includes an eight-story, 220,000 square-foot addition that will nearly double the center's current space.

Other projects begin or near completion

The University continues to upgrade other academic facilities across the Ann Arbor campuses with several projects beginning recently while others are nearing completion in 2006. A grand opening is scheduled on Oct. 26 for the 125,000 square-foot addition to the Henry F. Vaughn Public Health Building of the School of Public Health. Some work remains to be completed this fall on the $68.5 million project.

Work began this spring as scheduled on the Stephen M. Ross School of Business facilities enhancement project. Building demolition began in May, was completed this summer, and excavation has begun on the $145 million project scheduled for completion in fall 2008.

The project includes a 270,000 square-feet, seven-story building that will house 12 classrooms, an auditorium and colloquium, faculty offices, and student services. The heart of the new facility is designed as a town square that will facilitate the spontaneous gathering of the business school community.

A budget of $137 million was approved by U-M Regents for the North Quad Residential and Academic Complex. The regents are expected to approve the revised schematic design yet this fall for the project that is tentatively scheduled for completion in 2010.

Construction is scheduled to begin this month on the Mosher-Jordan Residence Hall and new Dining Center as one integrated project. The new dining center will have marketplace seating for 700 people in 35,000 square feet of space attached to the renovated residence hall. The budget for the project is $65 million with an estimated completion in August 2008.

U-M officials are expected to break ground later this fall on the Alumni Memorial Hall and Museum of Art renovation project. It includes renovation of 42,000 square feet to the hall and construction of a 56,000 square-foot addition to the museum at a projected cost of $35 million.

Construction of the Joan and Sanford Weill Hall at the Gerald R. Ford School of Public Policy is expected to be completed later this fall at a cost of $32 million. The 80,000 square-foot, five-story building will house all academic and service functions of the school of public policy.

Part of the Charles R. Walgreen, Jr. Drama Center is expected to open yet this year, but the $42.5 million project won't be completed until next summer. The 97,500 square-foot, two-story facility located on the North Campus will house the Arthur Miller Theatre with the Theater and Drama Departments of the School of Music.

The laboratory addition and renovation at the Ann and Robert H. Lurie Biomedical Engineering Building are scheduled for completion this fall at cost of about $20 million. Construction began last year on the addition and renovation of the Solid State Electronics Lab. However, work on the $28 million project was paused to incorporate some new needs for the facility. It is expected to resume shortly and is scheduled for completion next winter. Several other construction projects on U-M's Ann Arbor campuses have been completed within the past year.

The Undergraduate Science Building, the last phase of the Palmer Drive Development, was completed in December at cost of approximately $60 million. The Palmer Drive project began as a big hole in the ground in 2001 and is finished five years later. The Computer Science and Engineering Building was completed in December 2005 at an estimated cost of $40 million and classes began there in January.

Construction of the Perry Building addition was completed in March at a cost of nearly $16 million.

The Literature Science and Arts Building renovation project was completed in April at an estimated cost of $26 million.

The 202 South Thayer Building was completed in May at a cost of $18mllion. The six-story, 60,000 square-foot building houses the Colleges of Literature, Science, and the Arts Departments of Asian Languages and Culture, Near-Eastern Studies, and the Jean & Samuel Frankel Center for Judaic Studies.

The Ann Street Parking Structure was completed in July at a cost of about $13 million.

Renovation of Michigan Stadium, baseball, softball fields planned

With the planned renovation of Michigan Stadium, softball and baseball facilities, the U-M athletic projects total nearly $250 million. The football stadium renovation, estimated to cost $225 million, will be completed in phases over four years and not interrupt home football games.

Renovations to Michigan Stadium, which would include additional concessions and restrooms, wider seats and aisles, a new press box and enclosed seating, were approved by the Board of Regents in May.

The overall plan includes building two multi-story structures on the east and west sides of the stadium, but leaving the end zones open. Approximately 83 suites and 3,200 club seats will be added with those structures. Widening seats and aisles with added seats for mobility-impaired fans will result in the loss if some seats and a revised capacity of 108,000.

The stadium construction this summer was the conclusion of a multi-year project to replace the cement and bleachers in the seating bowl. U-M used to replace about six to nine sections a year until this summer when it needed to replace almost half in order for the planned stadium renovations to begin.

The Junge Family Champions Center, an 11,000 square-foot multi-purpose events center, was built between Crisler Arena and Michigan Stadium last year at an estimated cost of $4.5 million.

Alumni Field, home of U-M's 2005 National Champion women's softball team, will be expanded and renovated at an estimated cost of $5.5 million. The project will include new concessions, restrooms, media space, indoor hitting facility, 1,800 additional grandstand seats and 1,000 bleacher seats.

The Donald R. Shepherd Softball Building will be expanded to allow for additional athletic training and meeting areas as part of that project.

Ray Fisher Baseball Stadium, built in the early 1920s, will be upgraded at a cost of about $9 million that will include a new two-story addition to house barrier-free seating, a press area, improved restrooms and concession areas. A new team clubhouse and indoor hitting facility is also planned.

Construction for both softball and baseball fields will begin this month with completion by the winter of 2008. Work on those projects will be phased so both stadiums are available for in-season play.

The Stephen M. Ross Academic Center, built adjacent to Yost Field House on South State Street, was completed last December at a cost of about $12 million.