408 replies to this topic

[Allan]

For Release: April 3, 2006

Media Contact: Sylvia Crawford, 313-224-1398
Jamaine Dickens, 313-224-1066

DETROIT CLEARS WAY FOR DEVELOPMENT, JOB CREATION
WITH $40 MILLION HUD LOAN GUARANTEE

DETROIT-Today, Mayor Kwame M. Kilpatrick and U.S. Congresswoman
Carolyn Cheeks-Kilpatrick announced that the U.S. Department of
Housing and Urban Development (HUD) has approved the City of Detroit's
application to transform a small portion of Community Development
Block Grant (CDBG) funds into federally guaranteed loans, clearing the
way to redevelop two vacant downtown hotels into thriving,
multi-faceted businesses that will provide jobs for Detroit residents.

HUD granted Detroit two Section 108 loan guarantees in the amounts of
$18 million and $18.7 million respectively to redevelop the 33-floor
historic Book Cadillac Hotel and the 22-story historic Fort Shelby
Hotel into mixed-use developments that will create a combined total of
nearly 900 jobs for Detroiters.

"I am pleased to learn that HUD has approved our application to
utilize current and future CDBG allocations to these redevelopment
projects," said Mayor Kilpatrick. "Not only are they instrumental to
continuing the revitalization of our downtown, but also to our efforts
to improve the local economy through the creation of jobs for Detroit
residents."

"This is a direct result of the confidence that HUD has in Mayor
Kilpatrick and in the efforts of business and community leaders to
revitalize Detroit," said Congresswoman Kilpatrick. "Despite the
economic struggles that are affecting cities throughout the country,
Detroit is continuing to build relationships and secure support from
developers and agencies such as HUD. This ensures that we can continue
to pursue our goals to improve our city and quality of life for its
residents."

The Ferchill Group, developer for the Book-Cadillac, plans to
redevelop the site into a four star Westin Hotel with approximately
455 hotel rooms, 67 market rate condominium housing units, a 31,000
square foot conference center, 119,000 square foot retail and
restaurant space, fitness facility and a 550 space parking garage. The
project is expected to create as many as 450 full-time jobs.

According to MCP, LLC, developer for the Fort Shelby, the existing
structure will be redeveloped into a 204-room Doubletree Guest Suites
Hotel, 38,000 square foot conference center, 1,200 square foot retail
space and 63 residential units. This project is expected to create 374
full-time jobs.

Editor's Note: Section 108 funds will be used solely to assist with
the hotel component of the projects.

[Kevin77]

great news!!! so do you know when the construction start date is allan?

[toog05]

Good news, where did this come from (source)?

[tapezord]

Atta boy Kwame...

Shelton and Kilpatrick, both with 2 home runs for Detroit today!

[Lmichigan]

Every little bit helps.  If nothing else, this just increases the chances of these projects starting sooner rather than later, or not at all.

[wolverine]

This is really good to hear.

Although, I already thought financing was entirely in place for the Fort Shelby?

[resourcefulidiot]

BC gets another million from Wayne County
http://www.crainsdet....pl?newsId=8325

Wayne County to grant $1 million to Book Cadillac Hotel rehab effort

By Robert Ankeny
April 05, 2006 3:52 PM

The Detroit Downtown Development Authority has worked out a deal with Wayne County for a $1 million grant to help rehabilitate the Book Cadillac Hotel.
Wayne County has agreed to make the grant to reimburse the DDA for improvements made on Washington Boulevard, the street where the hotel is located. The DDA plans to add the money to the funding package for reviving the 80-year-old hotel, which has been closed since 1984.
The DDA board Wednesday authorized its staff to execute a grant agreement with the county corporation counsel to be presented to the Wayne County Commission for final approval.
Under the agreement, Wayne County will fund the grant after Nov. 1, 2006. Terms call for the DDA to show evidence that $1 million has been spent for Washington Boulevard improvements, have a development agreement in place, and have closed with the developer.
Cleveland-based developer Ferchill Group plans a Westin-branded hotel and condominium development to be complete in 2008. It would include 450 hotel rooms and some 50 to 70 condominiums.
Detroit Economic Growth Corp. President George Jackson Jr. told Crain’s last month that final details to move the $176 million project forward are almost in place. The DEGC staffs the DDA.
“We’re pretty much done with the governmental side of things. Banks are basically working out the details. ... There’s 17 layers of financing,” he said.
Brian Holdwick, DEGC vice president for business development, said Wednesday that a closing on the agreement with Ferchill could come by the end of April.

Edited by resourcefulidiot, 09 April 2006 - 08:53 AM.

[Lmichigan]

Hey, does anyone know when the tower portion of this hotel was constructed in 1927 if it melds seamlessly with the 1916 portion of the tower?  Are they connected on all floors of the original hotel?

[Allan]

Yes, the two portions of the building are accessible to one another on all floors.

[Allan]

I spoke with an asbestos abatement contractor late last week.  He and his team will be in the Fort-Shelby begining this coming week to inspect the asbestos prior to removal.

[wolverine]

Man, that's going to be one long abatement project if there's asbestos present in every room.

[Allan]

Yeah, every steam pipe in that entire building is covered with the stuff.  Most of it is still intact, but there are a few areas where it's loose and hanging there.  I'm not sure what the schedule is, but he expects to be in there for quite some time.

[detroitfan]

If they're starting the abatement does this mean the deal to renovate it is all set?

[Lmichigan]

Not necessarily, though, I think the deal has already been done.  As an example, the Book Cadillac was cleaned out before any deal had been worked out.

[Allan]

Actually, work has started.  The last time I drove by, there were people going in and out of the front door, and there were a few people working on swing stages on the building's exterior.

[MJLO]

Good news about both, question I pose is,  given the mixed results about commercial and retail starts in the city. Do you think that the restorations will work, that retail will once again move into the buildings and that the city can sustain them? Will things turn around and the neighborhoods start to gentrify?

[Lmichigan]

I don't see why not.  Which one are you talking about, though?  B-C or Fort Shelby?

[MJLO]

Either or, last time I was in capitol park it was fairly ugly.  I have more faith in the turn around of capitol park after they actually finish the B-C

[hudkina]

I agree.  Capitol Park could use a bit of TLC.

Edited by hudkina, 05 June 2006 - 06:13 PM.

[detroitfan]

To think that 3 of the city's largest vacant buildings the B-C, F-S and the Broderick could be under construction this year is really amazing. Especially the F-S since it's been so under the radar