Conflict Rages Around Former Hospital Property

In answer to Rock's protest, Mitch Irwin, director of the department, says Grand/Sakwa submitted the most comprehensive bid documentation."Grand/Sakwa's bid addressed the criteria set forth in the Invitation to Bid with greater specificity and documentation than any other bidder," Irwin says. "In contrast, [Rock] provided few details."

Irwin says documentation from Rock's backer, Camelot Ventures, was not specified enough in the bid, and did not indicate an ability to handle the venture.Eric Flessland, attorney for Rock, tells GlobeSt.com that Irwin's claims are without merit.

Flessland says Grand/Sakwa was given a meeting with the state department before the bids were granted, giving the company time to answer questions and clarify their bid."Of course, it was no surprise that Grand/Sakwa hit on each of the points the state was looking for," Flessland says. "We think this meeting created a fuzzy, feel-good attitude toward the Grand/Sakwa bid that affected the state's decision."

The state had canceled a first bid process in early June when Grand/Sakwa, along with two other companies, had bid on the property, claiming that a business relationship between a Grand/Sakwa employee and a state official might have created a conflict of interest.A volunteer "executive on loan" to DMB, Freman Hendrix, disclosed that he had discovered that he maintainsto Grand Sakwa. Hendrix and David Katz are co-owners of Mulligan's driving range in Auburn Hills.

Officials from the company declared that Katz is not participating in the purchase.Flessland has formally protested the award to Irwin's office. The attorney says he will now file an appeal with the State Administrative Board.

"We want the property. It's another $700,000 to the state, when the state needs every penny to help with its budget crisis," Flessland says.

Rock wants to build a mixed-development with residential and commercial. "Ideally, when the lease on Rock Financial's current building a mile down the road expires, they'd like to construct a new campus for Rock. That's 1,700 employees, and growing at 100 employees a month," Flessland says.

Grand/Sakwa, which also plans a mixed-use development on the site, has submitted a lawsuit in Ingham County Circuit Court to insist it be awarded the property.The state put a deadline of Sept. 30 to have the property sale closed.