employees in three waves from the corn-
pany's former home in Livonia to new cor-
porate headquarters in 240,000 square feet
of space on four floors in the Compuware
Building on Woodward downtown.
Quicken also is sharing a state-of-the-
art data center with Compuware, thus
making the building the epicenter of a
burgeoning downtown Detroit technology
hub.
Included in the move are about 500
mortgage loan officers, 300 technology
specialists, a sophisticated capital markets
operation and other executives and sup-
port personnel — all part of the fastest-
growing direct mortgage lender on the
Internet. Making the transition task easier
are state and city economic incentives.
About 600 Quicken employees will
remain temporarily in offices in Livonia,
Troy, Farmington Hills and Southfield.
Other Quicken offices are in Cleveland and
Scottsdale.
Retain The Grads
"We're creating the urban core of the city
— new technology, and the best is yet to
come',' declared Gilbert, alluding to other
high-tech and software companies head-
ing into downtown. "I foresee many jobs at
about 50 new high-tech firms joining us in
the near future.
"But we must retain the young talent
graduating from colleges in the state; keep
them to work here in Michigan.
"It's interesting to read obituaries in the
local newspapers and see how many of
the surviving children and grandchildren
are listed as living out of state,' he said.
"All the companies must join the push for
jobs here. We're certainly doing our part at
Quicken."
Blue Cross Blue Shield of Michigan
recently announced it will move about
3,000 people downtown from Southfield
next year.
Gilbert says he has received positive
feedback from his employees on the new
location — some are even taking up
residence downtown, although no Jewish
employees have yet. Quicken will help
them pay their Detroit city income tax by
adjusting their compensation to cover the
extra cost; the tax is 1.25 percent for non-
residents of Detroit. "They're excited to
be working in the urban core near many
entertainment and sports facilities:' he
said.
Free parking has been arranged for
the 1,700 people in two structures near
Compuware. And to get them even more
enthusiastic about the move, the company
held several social events downtown and
arranged orientation tours. Quicken also
has been publishing a weekly newsletter
called the Motown Lowdown that tells
them about everything that's happening
in Detroit.
Bullish On Detroit
The big move-in culminates a few years of
planning, and Gilbert, in his usual fashion,
has taken the place by storm. A large sign
sprang up on a Campus Martius building,
proclaiming: "Quicken Loans ... Proud to
Call Motown Our New Hometown." The
point man on the move has been David
Carrroll of West Bloomfield, a Quicken
Loans vice president, who has been
Gilbert's friend since childhood. Gilbert,
Carroll and Matt Cullen of Grosse Pointe,
a longtime GM executive who joined
Quicken two years ago, belong to 11 dif-
ferent Detroit boards, committees or other
organizations.
Quicken has made donations to
the Karmanos Cancer Institute, the
Thanksgiving Day Parade, River Days,
Winterblast, the NCAA basketball Final
Four, NCAA hockey Frozen Four, Motown
Museum and many others. The Rock
Financial Junior Achievement Finance
Park downtown was created with a
$750,000 gift.
Gilbert says another important feature
for Detroit's future is the M-1 light rail
system "with a curbside entry — not
way up in the air like the 'el' in Chicago or
underground like New York subways —
that will take people on a 6.8-mile round
trip from downtown to the New Center
area and maybe later to Eight Mile Road."
He has committed $3 million as a
founding sponsor, with the likes of Peter
Karmanos (one of Gilbert's business
heroes), Roger Penske and Mike Ilitch,
to get the project finished in the next 18
months.
Gilbert points out that his first choice
for Quicken offices, to build an entirely
new headquarters downtown, wasn't pos-
sible now because of the poor economy,
but "I will definitely stand by the com-
mitment I made to do that in the future,"
he said. "We've got to start thinking big in
Detroit."
The promise was made during a
more-robust economy, and when Kwame
Kilpatrick, the now disgraced former
Detroit mayor, was in office; Gilbert hasn't
talked to him in a few years.
Thinking Big
In a speech to the Detroit Economic Club
in March, Gilbert portrayed Detroit in the
year 2020 as a city reinvented, just as the
ruined cities of Hiroshima, Nagasaki and
Berlin were rebuilt after World War II.
"Where will we find money? We'll fig-
ure it out," he said, using another favorite
phrase of his Quicken Loans manage-
ment team when facing uncertainty.
"Entrepreneurial spirit and
visionary thinking are the keys.
We need to create a culture of inno-
vation, ideas and risk; we have to start
thinking big."
Gilbert stunned the normally staid
Dan Gilbert is an owner, partner or
Economic Club audience when he called
major investor in many companies.
for "blowing up" Cobo Center and Joe
Here are some of them:
Louis Arena to create a Detroit riverfront
"to be proud of. These places are old. We
Quicken Loans Inc.: The "Mother
need something new, and ifs all within
Ship."
our reach."
The Cleveland Cavaliers: Gilbert
Relying heavily on new technology
bought the team in 2005 for about
helped Quicken survive the mortgage
$350 million and spent millions in
downturn in 2008.
renovations, building a new player
"Many of our competitors didn't fare
development center. The team has
as well because they didn't invest in new
won 127 games in the past two years,
technology," he said. "Our technology
more than any other NBA team, but a
allows to us offer mortgages in all 50
title still eludes Gilbert. In his letter to
states. We do about 90 percent of our
fans after the LeBron James depar-
loan business on the Internet in other
ture, he "guaranteed the Cays will win
states and only about 10 percent in
an NBA championship before (James)
Michigan.
wins one."
"And that presents one of our biggest
Quicken Loans Arena: Known as "The
challenges in the mortgage business.
Q,"
the downtown arena is home to
Since we're originating, processing and
the
Cays
and the Gilbert-owned Lake
closing loans online and offline all over
Erie
Monsters
of the American Hockey
the United States, we have to abide by
League, and a Colorado Avalanche farm
different regulations in almost every
team. He spent $35 million renovating
state. Our people must keep up with
the
arena, which hosts nearly 1.5 million
the changing rules. That's one of the
people
at 200 annual events. Gilbert
reasons we need a variety of person-
attends most of the Cays' homes games
nel, such as legal, technical, market-
and even some road games.
ing and others, to support our loan
Rock
Gaming: Ohio voters rejected
originators.
casino
gambling in the state by wide
"But consumers can't beat the
margins
several times in the past, but
benefits of the online mortgage busi-
that
didn't
stop Gilbert. He and partners
ness. They can apply for a loan from
spent
about
$15 million promoting anoth-
the convenience of their own home,
er
vote
last
November
and it passed, 53
24 hours a day, seven days a week,
to
47
percent.
Gilbert
now
is building
eliminating a lot of paper work and
casinos
in
Cincinnati
and
Cleveland,
with
`middleman' steps."
a
temporary
building
to
open
in
Cleveland
Gilbert forecasts a $5 billion
next year and a permanent casino there
mortgage volume increase for
in
2013.
Quicken in 2010 — up to $30 bil-
lion for the year. The company
Bizdom University: In one of Gilbert's
has been ranked in the top 30
least heralded, but probably most gener-
of Fortune magazine's "100 Best
ous ventures, he provides start-up fund-
Companies to Work For" for the
ing ranging from $25,000-$100,000 to
past seven years, getting as high
future entrepreneurs who get trained free,
as No. 2.
including room and board, at a four-month
Gilbert dazzles new employees
"boot camp" near Wayne State University
at periodic, all-day orientation
in Detroit on how to launch and grow a suc-
meetings where he and Quicken
cessful Detroit-based business; thus, again,
CEO Bill Emerson preach the
abiding by Gilbert's principles of job creation
virtues of loyalty, teamwork,
and growth for the city.
urgency, thoroughness and always
Fathead: The leading brand in wall graph-
heeding the customer. At a recent
ics and logos of sports and entertainment
session at the Livonia building,
heroes. After LeBron James' fled to South
he described to 200 his popular
Beach, Gilbert ordered his poster sold for
"isms',' 18 guiding philosophies
only $17.41, depicting the birth year of famous
that are almost mandatory
Revolutionary War traitor Benedict Arnold.
at Quicken, such as return-
Fathead won't sell James' new Miami heat
ing phone calls promptly and
graphic because, Gilbert says, "that would be
always doing the right thing-
Entrepreneur on page 38
Companies on page 39
August 19 2010
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