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DMC drops plans for sports medicine institute near LCA

The Detroit Medical Center is dropping plans to join a $70 million development near the Little Caesars Arena, officials confirmed Tuesday.

“After careful consideration, we have made the decision to focus on our core mission and the DMC will not move forward with plans to lease space for a sports medicine institute. Our decision allows us to reallocate resources appropriately in this changing environment,” representatives said in a statement.

A rendering of the building at 2715 Woodward Avenue. (Photo: Olympia Development)

“We appreciate the efforts of Olympia Development of Michigan and value our relationship with the organization. We have come to this decision in cooperation with them and we appreciate their support for the DMC’s core mission.”

In 2018, DMC and Olympia Development of Michigan announced plans for a sports medicine institute in a 127,000-square-foot property at Woodward Avenue and Sproat, which would replace a former surface parking lot.

The facility was expected to be a state-of-the-art, comprehensive care center serving professional, collegiate, high school and recreational athletes, including all four Detroit professional sports teams.

The DMC said it would boost collaboration among physicians, therapists, trainers and researchers and feature a golf simulator and 3-point basketball court as well as a 40-yard track, mobile MRI, rehab pool and a bioskills lab with simulated operating rooms.

The institute had been slated to join other tenants at 2715 Woodward, between the Little Caesars Arena and the Mike Ilitch School of Business at Wayne State University. 

Boston Consulting Group in December announced plans to relocate its offices from Troy to nearly 30,000 square feet in the development.

Warner Norcross + Judd, a law firm that launched in Michigan, was also primed to bring more than 50 attorneys to a 30,000-square-foot office there, executives said last year. 

The complex is a part of Olympia Development’s District Detroit project that seeks to encourage business development surrounding the Red Wings arena. 

The DMC’s decision not to follow through on a sports medicine facility came after “unprecedented change for the health care industry” during the coronavirus pandemic, representatives said Tuesday. 

“The DMC will continue to provide outstanding medical care and training for athletes in its existing facilities,” its statement said. “Services are provided at Rehabilitation Institute of Michigan’s outpatient therapy sites across the region and the DMC Sports Performance clinic site in Pontiac in addition to the extensive array of orthopedic care options available through the DMC network.”

In a statement Tuesday night, Olympia Development said company officials “understand the challenges facing the healthcare industry in the current environment leading to the Detroit Medical Center’s decision not to move forward with their sports medicine institute.”

The vacancy “makes available the top two floors of the five-story building, offering outstanding views of Detroit’s skyline, and proximity to 17,000 square feet of dynamic retail options coming to the street level,” Olympia said.

Construction on the building, which started after a ground-breaking in 2019, continues and the space is on track to open next year, the company said. 

“Looking ahead,

DMC nixes sports medicine center next to Little Caesars Arena

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A rendering of the future DMC Sports Medicine Institute (Photo: Olympia Development)

The Detroit Medical Center has nixed plans to open a sports medicine facility next to Little Caesars Arena.

The health system won’t move forward on the DMC Sports Medicine Institute following novel coronavirus restrictions this year and the revaluation they caused, the center said in a statement Tuesday. DMC will focus on its core mission instead.

“Our decision allows us to reallocate resources appropriately in this changing environment,” the  DMC stated.

The facility was announced in 2018 as the main tenant in a $65-million, 127,000-square-foot building at Sproat Street and Woodward Avenue.

More: DMC to open sports medicine center next to Little Caesars Arena

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It was expected to cater to professional and amateur athletes alike and include a rehab pool, a mobile MRI machine, a golf simulator, a basketball court and 40-yard track.

Now, the change of plans leaves the top two floors available in the building already under construction, said Ed Saenz, director of communications for the Ilitch-owned Olympia Development of Michigan, in a statement.

“We want to thank and recognize the efforts of healthcare workers at DMC and those across the country and we understand the challenges facing the healthcare industry in the current environment leading to the Detroit Medical Center’s decision not to move forward with their sports medicine institute,” he said.

The company is confident the space will get high interest between the arena and Wayne State University’s Mike Ilitch School of Business, Saenz said.

He touted the view of Detroit’s skyline and proximity to 17,000 square feet of retail in the newly open space.

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The company broke ground on the project last year.

It’s on track to open next year with Warner, Norcross + Judd and Boston Consulting Group as tenants, Saenz said.

The DMC has been the health care provider for the Ilitch-owned Detroit Red Wings and Detroit Tigers for more than a decade.

The health system will continue to provide medical care and training to athletes in its existing facilities, according to the DMC news release. It also remains committed to the pandemic response and community health care.

Hospitals reported financial ailments from the coronavirus this year, with restrictions set to slow the spread of the virus keeping residents indoors and prohibiting elective procedures for a time.

Contact Darcie Moran: [email protected] Twitter: @darciegmoran.  Become a subscriber here. 

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DMC scraps Sports Medicine Institute plan in uncompleted Ilitch building

The Detroit Medical Center is scrapping its plan to build a Sports Medicine Institute in the Ilitch family’s District Detroit area.

The medical system confirmed in a Tuesday email to Crain’s that it “will not move forward with plans to lease space for a sports medicine institute” in a $70 million building that’s being constructed on Woodward Avenue between Little Caesars Arena and the Wayne State University Mike Ilitch School of Business.

“Our decision allows us to reallocate resources appropriately in this changing environment,” the health system said in a release.

“The last several months have brought about unprecedented change for the health care industry. Stay-at-home orders and restrictions prohibiting elective procedures caused hospitals everywhere to reevaluate their core services,” DMC said.

Ron Staley, senior vice president of Southeast Michigan operations for Lansing-based contractor The Christman Co., one of the joint-venture partners on the project with Detroit-based Brinker Group, said the building’s core and shell still remain on track to be completed by the end of the year.

Grand Rapids-based law firm Warner Norcross + Judd and DMC were the two main tenants set to occupy the 127,000-square-foot building at 2715 Woodward Ave., the site of a former surface parking lot. Boston Consulting Group is also expected to take space in the building.

The sports institute was to serve players from the Ilitch family-owned Detroit Red Wings and Tigers, as well as the public. About 17,000 square feet of ground-floor retail is also expected.

The Ilitch family’s Olympia Development of Michigan real estate company said in a Tuesday afternoon statement that “this change in plans makes available the top two floors of the five-story building.”

“Construction progress continues on the building, which is on track to open next year and be the home of the Detroit offices of Warner, Norcross + Judd and Boston Consulting Group.”

Southfield-based Harley Ellis Devereaux Corp. is the project architect.

The Ilitch family has taken criticism for lack of progress in the 45- to 50-block District Detroit project area, which is anchored by the $862.9 million Little Caesars Arena that received $398.1 million in public financing.

The Detroit Red Wings and Detroit Pistons play there, with the latter recruited from the Palace of Auburn Hills in 2016.

Although the area was unveiled as a sprawling mix of housing, offices, restaurants, bars, parks and other spaces in July 2014, today the District Detroit remains largely a mix of vacant buildings and surface parking lots, although a few new tenants have been recruited, including Google and the Warner Norcross law firm.

A key component of the District Detroit — residential space — has not been delivered, although work is underway on a redevelopment of the Hotel Eddystone north of the arena and recent steps have been taken on the redevelopment of the United Artists Building at 150 Bagley St.

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