No buyers emerged, primarily because there was no on-site parking, company officials said. The claims operation moved back in six years later. As part of the consolidation, Lake State's western Michigan branch in Grand Rapids will close March 31. Business served by that office will shift to Traverse City and the company's Livonia branch. Five new jobs will be created at the Traverse City and Livonia offices, but 25 jobs in Grand Rapids will be eliminated.
Employees affected by that cut can apply for jobs in Livonia or Traverse City.
Those who opt not to move or who are not selected will receive outplacement assistance. The DDA plans a public parking structure in the West Front-Pine streets area, but that won't come until well after the agency completes its project between East Front and State, east of Park Street. The Lake State move comes as parent company, Harleysville Group Inc. of Philadelphia, Pa., announced a net income of 44 cents a share in the last quarter of 1999, down from 64 cents a year earlier. A change in the company's method of accounting cost another 10 cents a share. Walter Batemen, chairman and chief executive officer of the Harleysville Group said the company has taken several actions in response to the earnings decline.