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Allan

Detroit Clears way for Redevelopment of Book-Cadillac & Fort-Shelby Hotels

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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.

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

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

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Atta boy Kwame...

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

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

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This is really good to hear.

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

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BC gets another million from Wayne County

http://www.crainsdetroit.com/cgi-bin/news.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

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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?

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

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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.

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

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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.

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

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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.

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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.

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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?

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

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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

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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

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There was a fellow on the DetroitYes board who was trying to get a group of people together to do just that -- give some TLC to Capitol Park. Probably be able to reach him on Connections (I don't want to name him by name). Another change will come when the Times Square bus station is built and services relocated there.

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Yeah, I know what you mean. The Fort Shelby has been a long time coming. They've been quietly working on the renovation plans for about 4 years now.

This summer will see work on the Broderick, Book-Cadillac, & Lafer. This fall will see work on the Detroit Life Building, 1401 Woodward, and a few smaller projects.

Up near Cass Park, the Eddystone will be renovated as soon as they finish up with the Carlton, which should happen in late summer or early fall. I haven't heard anything recently, but another large development up that way has supposedly fallen through.

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Can someone get shots of the renovation work at the Fort Shelby?

I've always hated the term "fallen through" as I always imagined as a bad thing as if the project was being "held" but then "dropped" and had "fallen through" the cracks. :)

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Can someone get shots of the renovation work at the Fort Shelby?

Give me about 5 hours....

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