Judge Rules Tiger Stadium Demolition Can Proceed

[HazenPingree]

You read it here first:

Statement of the Old Tiger Stadium Conservancyregarding the recent demolitionof Tiger Stadium:

We are shockedat the recent demolition of Tiger Stadium. It dishonors the hundreds of thousands of dollars raised bythe Conservancy, the State of Michigan changes to the historic tax credit laws to enhance this project, the federal appropriation granted bythe U.S. Congress and
signed by President Obama, and the thousands of volunteer hours contributed by the Conservancy, its consultantsand its supporters in advancing this effort. We believe –and the DEGC has said theyagree –that we had made substantial progress toward our redevelopment
goal with a strong likelihood of ultimate successin the worst economy in decades. Then out of the blue, we received notice that the DEGC was tearing the stadium down. Inanswer to misleading statements made to the press and the CityCouncil bythe DEGC, we offer the following:

NO EXTENSIONS GIVEN:
The OTSC received no extension of anydeadline from the DEGC from the date the city agreed to spare the Navin Field portion of Tiger Stadium in 2008. Prior to that time, extensions were only received following intervention of the CityCouncil. The DEGC never granted any extension of its own accord.

SUBSTANTIAL CASH RAISED:
The OTSC raised more than $600,000 in cash from more than 700 contributors – individuals and entities –and secured the $3.8 million federal appropriationin the past nine months.

TAX CREDITS AVAILABLE:
Experts in tax credits and historic preservation commissioned bythe OTSC identified tax credits totaling more than $18 million for which the project was likely eligible. The OTSC made substantial progress in the complicated process to secure these tax credits. Potential buyers for the tax credits had been identified and the sale of the tax credits would have provided $18 million of cash for the project. This is exactly the same
financing structure that was used for other projects in the city, including the Book Cadillac Hotel development, so it was not an unfamiliar process to the DEGC.

ESCROW ESTABLISHED:
The OTSC deposited $300,000 in escrow with the DEGC to secure demolition costs and the purchase price of the stadium.

SECURITY / MAINTENANCE –100% PAID BY CONSERVANCY:
The OTSC paid $93,000 for security and maintenance for the period through June 30, 2009 and was able to payadditional sums required in the future for security and maintenance costs at the Stadium..

DEMOLITION COSTS –RED HERRING:
The “increased demolition costs” cited by the DEGC as a reason for immediate demolition were a function of the current low steel prices, which will likelyturn around with the economy and produce lower demolition costs again in the future.

BEST USE OF DEMOLITION FUNDS?
Demolition now will cost our financially stressed city$250,000 more than the funds deposited in escrow by the OTSC. Is this the highest priorityof the cityto spend taxpayer’s dollars on demolition at this time?

NO MEETING NOTICE / DEFECTIVE MEETING:
We had no notice from the DEGC of anymeetings of the CityCouncil or the Economic Development Corporation where the fate of the project was considered. In particular, we had no notice of the EDC meeting of June 2, 2009, which was conducted out of public view, and our first notice of the meeting and the demolition decision was from the press. At that meeting, the EDC members received no explanation of the OTSC’s
substantial progress to assist its board in making an informed decision. Moreover, though required under the Memorandum of Understanding [[MOU), theEDC Board did not make the determinations and findings required to terminate the MOU and authorize the demolition of the stadium, nor did the Board ratifythe action taken unilaterally by the DEGC [[in the name of the EDC) when it notified the OTSC a dayearlier that the
MOU was being terminated.

CURRENT M.O.U <1 YEAR OLD:
We had been working under the current MOU with the DEGC for less than one year, not since 1999, when the Tigers left for Comerica Park, as DEGC representatives have stated publicly. The OTSC was onlyincorporated in May, 2007, and the current board has onlybeen in place for the last year.

T.R.O. VIOLATED:
We were able to obtain a temporaryrestraining order on Friday, June 5, 2009 at 5 p.m. in an attempt to avoid significant damage to the stadium. At about the time the TRO was granted, the demolition resumed and later intensified until a supporter jumped the fence and gave the TRO order to the demolition operator at about 6:30 p.m. The demolition seemed to be intended to cause the most damage to disparate parts of the stadium in the shortest time. The demolition sacrifices in excess of $12 million of historic tax-credits to the city.

NO D.E.G.C. SUPPORT OR COOPERATION:
The DEGC provided us no technical, financial or organizational support whatever in our redevelopment efforts, and no other encouragement of anykind. For example, recently, the OTSC’s request to the DEGC for access to the field for press and fundraising purposes was denied.

NEIGHBORHOOD SUPPORT:
Though the DEGC has made public statements that neighborhood residents were supportive of demolition, in fact the Corktown neighborhood, the neighborhood that surrounds the stadium, was strongly in support of the efforts of the OTSC. The neighborhood’s own community development organization has two members on the OTSC board, and manyresidents of the neighborhood contributed both their money and time.

REMAINING STRUCTURE A VIABLE HISTORIC BUILDING:
Despite repeated characterizations bythe DEGC and media of the remaining portions of Tiger Stadium as a “stub” or “remnant,” the structure the city is currently demolishing was a viable, historic major league ballpark, circa 1930. It was not an incomplete or unusable remainder.

NO PLANS FOR THE SITE:
Before the demolition began, DEGC intimated that theywere in talks with outside developers –developers interested in a cleared and vacant site. Since demolition has begun, the DEGC has acknowledged that there are indeed no serious development proposals for this site.

Not onlythe city, but the state and the entire countryhave lost the opportunity to redevelop an historic treasure that wouldhave anchoreda significant enhancement of the near west side of Detroit and spurred much-needed economic development in the years ahead.
Instead, we will have an empty field at the corner of Michigan and Trumbull to further blight the landscape of our city. This historic “corner”will have a new meaning.

We thank our manysupporters for their steadfast support and encouragement, as well as their time, moneyand passionfor this project. You gave us the strength to carry this effort forward and we regret that the DEGC, the EDC and the city did not provideus the continued opportunity to achieve this objective.

The recent actions of the city, the EDC and the DEGC raise questions about the city’s priority regarding demolition and the use of the city’s funds. Whythe urgencyto spend hundreds of thousands of dollars of citymoneyto demolish at this time? Whyis the DEGC so quick to demolish the Navin Field portion of Tiger Stadium when there are thousands of vacant and abandoned structures throughout the city that are in need of immediate demolition and are clearly a danger to Detroit’s citizens and firefighters? What are the plans for the site that require immediate demolition? The political leaders of our city need to address these issues and take charge of setting the development priorities of the city.
Senator Levin has informed us that the Conservancyremains entitled to utilize the $3.8 million Federal appropriation that the U.S. Congress so generouslyprovided for economic development in or near the stadium site. In conjunction with the southwest Detroit community, we will determine how the money might best be invested and leveraged to have some good come of Senator Levin’s steadfast effort and support. We hope the citywill assist us with these efforts for the good of the cityand its citizens.

The failure of the DEGC to support the Conservancy is a tragic loss of a unique opportunity for economic development in the City of Detroit. The larger question the people of Detroit and the entire region should ask is whythe DEGC is allowed to heavy handedly run roughshod over the efforts of the not-for-profit and preservation communities and the thousands of citizens who are supporters of development efforts. The DEGC should be encouraging and assisting these efforts rather than quashing them at everyturn.

Old Tiger Stadium Conservancy
June 19, 2009