Construction advances in 2005
New construction starts in March advanced 4 percent to a seasonally adjusted annual rate of $594.1 billion, according to McGraw-Hill Construction, a division of The McGraw-Hill Companies.

Nonresidential building showed signs of strengthening after a weak February, and modest growth was reported for housing and public works. During the first three months of 2005, total construction on an unadjusted basis came to $131.6 billion, up 2 percent relative to the same period a year ago.

"The construction industry continues to be supported by a robust volume of
homebuilding, and the early months of 2005 have seen an improved amount of public works construction," stated Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction. "In contrast, new starts for nonresidential building have been weaker than expected, but the March upturn may be the initial step for this sector to resume the upward trend that was established last year."

Murray said one factor that may be contributing to the slower pace for nonresidential building in recent months is last year's jump in the price of building materials.

Detroit casino expansion OK'd
The U.S. 6th Circuit Court of Appeals gave Detroit's three casino operators the green light on April 29 to construct hotel-gambling complexes that could result in nearly $1 billion in new construction.

The court lifted an injunction resulting from a lawsuit by the Lac Vieux Desert Band of Lake Superior Chippewa Indians, who claimed that the initial selection process for awarding casino licenses was unfair.

Published reports say construction costs could be as much as $300 million for each casino - if plans for new casino-hotel complexes materialize as expected. Work could begin as early as this fall at the Greektown Casino, MGM-Grand and Motor City Casino to build new, "permanent" casino-hotel complexes.

The casinos originally opened in 1999-2000 as "temporary" establishments - the MGM casino was built in an old government building and the Motor City was placed in a converted bakery.

"This is a big day for Detroiters," a jubilant Mayor Kwame Kilpatrick said at a news conference. "This means a lot for Detroiters, but people that work in the building trades, people that are plumbers and electricians and carpenters, those folks have been waiting for this announcement for a long time."

According to the Detroit Free Press, MotorCity Casino, at the Lodge Freeway and Grand River, is awaiting city approval to build a permanent facility at its current location, including a 400-room hotel, expanded gaming area, an entertainment theater, spa, ballroom and meeting room space for conventions, a new restaurant and a coffee shop.

MGM Grand Detroit Casino plans to build several blocks from its current site at the Lodge freeway and Abbott, near the DTE Energy headquarters.

The Greektown Casino has bought land for its new site at Gratiot and St. Antoine, across from the Frank Murphy courthouse.