Blue Cross Blue Shield of Michigan Will Significantly Grow Its Presence in Downtown Detroit

DETROIT, July 29 /PRNewswire/ -- In a move designed to reduce its long-term real estate costs, improve its corporate culture and promote efficiencies, Blue Cross Blue Shield of Michigan (BCBSM) will move approximately 3,000 employees from Southfield, Mich., to Detroit's GM Renaissance Center starting in 2011.

The agreement finalized by BCBSM, General Motors, the City of Detroit, Wayne County, and other parties will relocate BCBSM workers into 435,245 square feet of space in Towers 500 and 600 of GM Renaissance Center.

The phased move will save BCBSM more than $30 million in long-term real estate costs.  It will reduce BCBSM's real estate footprint by more than 400,000 square feet.  It will increase BCBSM's downtown Detroit workforce to about 6,000.  BCBSM will retain its current Detroit offices located at 500 and 600 East Lafayette Boulevard and 441 East Jefferson Avenue – creating a campus extending from the Detroit Riverfront to Lafayette Boulevard.  BCBSM will become one of Detroit's largest downtown employers.

"Creating a single campus for our southeast Michigan workforce will dramatically improve our corporate culture by bringing our people closer together to accomplish our shared goals," said Daniel J. Loepp, BCBSM president and CEO.  "It will also significantly improve our operational flexibility, which is necessary as we continue to respond to national health care reform."

The 3,000 additional workers will provide a significant boost to the downtown Detroit economy and to GM Renaissance Center, filling formerly vacant space and helping the landmark facility long-term.  The move will produce savings for BCBSM, given that its two equally sized campuses – a four-building property on 11 Mile Road in Southfield and a three-building campus downtown Detroit – currently contain vacant space after the company offered voluntary separation packages last year.

"Blue Cross believes that this move will provide a healthier future for our company, our stakeholders, our state and Detroit," Loepp said.  "In the interests of our company's future, we see this as a giant opportunity to improve our business, lower our costs and deliver on our mission."

"We are grateful for the leadership shown by Detroit Mayor Dave Bing, Wayne County Executive Robert Ficano, GM and their teams, to facilitate this historic decision for our company and our region," said Loepp.  "I realize this move will have an impact on our employees.  Our employees have my commitment that they will not just be fully informed, but also asked to contribute to decisions involving the project."

BCBSM will remain among the top employers in Oakland County.  The corporate headquarters of Blue Care Network, BCBSM's HMO subsidiary, will remain in Southfield.  BCBSM also will invest in improving its facility in New Hudson.  That facility is used for meetings and employee education, and serves as the enterprise's disaster recovery center.  More than 1,200 full-time and contractual employees work at both locations.

BCBSM also will sell its four-building campus on 11 Mile Road in Southfield to a private firm.  This will make the property taxable by local governments.  The tax value is estimated at $1.8 million to $2.2 million.

Blue Cross Blue Shield of Michigan is a nonprofit corporation and independent licensee of the Blue Cross and Blue Shield Association.

SOURCE Blue Cross Blue Shield of Michigan