Developer wants to save Lafayette

**E hemingway** · July-07-09, 03:24 PM

Council: Developer should work with DEGC on Lafayette Building proposal

Real estate investor Dennis Kefallinos wants to save Detroit's Lafayette Building, slated for demolition - but the Detroit City Council says the decision is in the hands of the Detroit Economic Growth Corp.

Eric Novack, project manager for Kefallinos' Dionysia Properties L.L.C., and Margaret Andrews, an attorney who represents Dionysia Properties and Boydell Development â€” another of Kefallinosâ€™ entities â€” addressed the council at its Tuesday morning meeting.

"We would like to petition the city council to give us a two-week period for a structural analysis of the Lafayette Building," Novack said. "We feel at Dionysia that we could make it a viable property. We could have workers on the ground working within 30 days, within six months, a large portion of the restoration of the facade taken care of, and we could have the first two levels viable for commercial and retail."

Andrews told the council that in recent days, the group had contacted the DEGC, but had not received a response.

"We did not previously approach the council or the DEGC, because we were under the mistaken impression that there was a structural engineering report that said the building was unsalvageable, " she said.

Detroit's Downtown Development Authority voted last month to demolish the aged structure. Built in the 1920s, the triangular neo-classical building has been unoccupied since 1997. It's located at the intersections of Shelby Street, Michigan Avenue and West Lafayette Boulevard.

Andrews said that Dionysia has $3 million to $4 million in hand to finance the first stage of development of the building.

During an interview Monday with Crainâ€™s, Novack said a preliminary plan would include loft-style apartments and retail on the ground level.

Some City Council members advised Andrews and Novack that the DEGC was the appropriate agency to contact.

"If you have the money, take it to [[DEGC President and CEO George Jackson) and he will take it seriously," Councilwoman Barbara-Rose Collins said.

Councilwoman Martha Reeves argued in favor of allowing Dionysia to investigate the building.

"If we can have any influence to get a two-week stay to investigate, I don't think there's anything we should deny," Reeves said. "I think we should approve."

But after Andrews acknowledged that Dionysia was related to the company that owns the dilapidated Shapero Hall building, Councilman Kwame Kenyatta expressed doubts about Kefallinos' track record.

"I will definitely not vote on anything related to, a godson of, a cousin of, the company that owns that building," he said.

Kefallinos purchased the old Wayne State University pharmacy school in 2007 for $2.4 million.

Detroit City Council President Ken Cockrel Jr. said he thinks it's probably too late for the Lafayette Building.

"I'm inclined to agree with most of my colleagues," he said. "At this point it's really too late. It's the [[DEGC's) place. There are a number of developers who went into that building and wrote it off, and said that building has serious structural problems. ."

Cockrel said he'd like to see a plan in writing.

"A lot of people have got great ideas, but comes down to show us a track record, and show us you have money in the bank to make this happen right now," he said. "If you can show me that in writing, I will ship it to George Jackson myself."

http://www.crainsde troit.com/ article/20090707 /FREE/907079985/ -1#

**ASR89** · July-07-09, 03:46 PM

Good news if they're serious. However, the situation could turn into another Broderick Tower real soon: Buy the property and let it sit for years, saying you'll do something but never do. Or on the flip side, it could be another Book Cadillac. It would be awesome if restored.

**DetroitScooter** · July-07-09, 03:46 PM

Sounds like a plan, which is more than "Demolition" Jackson has come up with. At least let them look at it. Easy decision.

**dtowncitylover** · July-07-09, 03:52 PM

I don't why they rush to tear this building down. It's not the most unsightly building downtown. I hope that they get the chance and will pray that they will do something positive with the building.

dexterferry · July-07-09, 04:20 PM

I wish one of the hundreds of journalists working in detroit would take an interest in exactly why george jackson and these others are so hellbent on seeing this building become another eyesore parking lot.

keffalinos tried very hard to redevelop Shapero Hall. He had all kinds of [[typically cockamamie) plans for the building and he tried to get them approved but the NIMBYs in lafayette park threw a fit and launched an organized attack against his plan [[from what I've heard, they didn't want a nightclub or the traffic of a hotel disrupting their quiet little enclave). someone should tell Kenyatta Shaphero Hall's redevelopment failed because a handful of vocal Lafayette Park residents prefer an abandoned eyesore to a functioning enterprise in their neighborhood, not for lack of trying on the part of Keffalinos).

this guy gets the "slumlord" tag around here a lot, and I'm sure he could run his rental units a lot better, but the fact is Keffalinos does actually try to do things in this town and doesn't just sit on vacant properties like higgins, moroun, and others. I say good for him if he can do something with the lafayette building.

DetroitDad · July-07-09, 04:22 PM

This will certainly look bad for the D.E.G.C. and the D.D.A. if they don't take a good hard look at this. The fact that demolition over any chance of development is even considered is a mockery of these institutions.

For those that don't know, D.E.G.C. and D.D.A. stand for the Detroit Economic Growth Corporation and the Downtown Development Authority, respectively; because somehow economic growth and development have become synonymous with demolition for vacant landscaped lots, unsightly parking garages, and surface parking lots. This has happened so much in the City of Detroit that many Detroiters now cringe whenever the word development is used. On the other hand, economic growth projects are now viewed by most Detroiters as buzz words, leading many Detroiters to scoff at so called economic development projects and say; "we'll believe it when we see it".

crawford · July-07-09, 04:50 PM

LOL, what a joke! Knock it down already, Jackson!

Ignore this creep Kefallino. He's all talk and hasn't done a thing in his life. He just wants the media attention.

No more slumlords, please. We have a huge public investment in the Book Cadillac, and we don't want it screwed up by this sleazy speculator.

dexterferry · July-07-09, 04:55 PM

Originally Posted by crawford

He's all talk and hasn't done a thing in his life.

hmm. he immigrated from greece, started working as a dishwasher, and now owns a good chunk of downtown detroit, including many buildings that contain commercial activity providing hundreds of jobs. you and I may not care for the wares at the Ruseell Bazaar or the tittybars, but don't accuse the guy of doing nothing.

**Gsgeorge** · July-07-09, 05:01 PM

Geez crawford -- the second someone steps in who has a semi-legitimate track record & wants to do something good for downtown, you shoot him down?

I'd say any interest in redeveloping the Lafayette is very, very, very good. Let him poke around. He'll find a solid building that could be readapted into a hub of commerce & living downtown. Kellifanos is smart because he knows his market. He doesnt shoot for the moon and make luxury condos. He brings it down to size, puts in affordable shops [[like the Kresge shops) and reasonably-priced lofts. If he's really smart he'd try to pull in a grocer to anchor the development.

**Detroit500** · July-07-09, 05:13 PM

I'd love to see this come to fruition... If it can't, hopefully some more development by the Book Cadillac in another way. It's so sad that this beautiful newly restored hotel is basically isolated, and surrounded by vacancies and a Holiday Inn.

**Gistok** · July-07-09, 05:55 PM

Even a choice between a half-assed restoration of an occupied building OR a parking lot...

only an idiot would choose a parking lot. [[Let's see just how many there are of those in city government...)

Granted Kefallanos's reputation is not the greatest... but I wonder just how many downtown buildings would not even be standing today if it weren't for him?

He got a nice tidy sum for that Ilitch destroyed beauty he recently sold on Grand River Ave., so he may have a decent bank account at the moment.

**Rocko** · July-07-09, 05:58 PM

I realize this guy's reputation is not sterling.... are any Detroit developers'? If it's just two weeks they want to take a good look, not giving them the opportunity would be a sin. Give them the time, if it's as bad as some have said, then the wrecking ball will only be delayed half a month. If not, and I'm hopeful on this, this could be the start of something grand. DEGC, give them the time!!

**kraig** · July-07-09, 06:57 PM

What the hell, he may be full of stuff. But, on the off chance that he may be able to pull it off, it won't hurt to let the guy take a look at it. Best case scenario, he's able to make something out of it, the building is saved and is active again. Worst case scenario, he can't do anything with it and the DEGC tears it down anyway.

It's not going to disrupt anything between now and the time that the demolition would start.

**Fnemecek** · July-07-09, 07:35 PM

Damn, Kraig and I are in complete agreement on something.

gravitymachine · July-07-09, 07:37 PM

all you folks putting your faith in kellafinos "saving" the place better get used to the most half assed rehab ever undertaken if this isn't a publicity stunt

and as far as lambasting the "NIMBY's" in LP above, would you opt to allow your neighborhood to completely disrupted by a massive entertainment complex?

**davewindsor** · July-07-09, 07:48 PM

Originally Posted by gravitymachine

all you folks putting your faith in kellafinos "saving" the place better get used to the most half assed rehab ever undertaken

I'd rather have a half assed rehab than nothing at all. The BC has a 15 year tax abatement. If this guy even does a half assed rehab and finds some tenants for the main floor, it means property taxes will paid to the city. A small boulevard pays no property taxes, in fact, they are out money for the demo. A city running a deficit would be crazy, if not negligent to the taxpayer, to not consider someone willing to pay property taxes. If he can prove he has $3-$4million and is willing to sign a contract that he can get at least the main floor online, give the guy a chance.

**DetroitScooter** · July-07-09, 07:49 PM

I was over at the Lafayette last week and there is significant damage on the top floor on the inside of the south side of the V. I was not aware that the upper wall on that side is very severely damaged. I hope that Kellafinos gets a chance to inspect the building and I hope that his team likes what they see.

**BShea** · July-07-09, 07:52 PM

Originally Posted by gravitymachine

all you folks putting your faith in kellafinos "saving" the place better get used to the most half assed rehab ever undertaken

and as far as lambasting the "NIMBY's" in LP above, would you like your neighborhood completely disrupted by a massive entertainment complex?

I live in Lafayette Park and can see his building from my window. I would be OK with an upscale hotel, but I wonder if Greektown would fight that ... I don't want a flophouse or bum-nest, like we have now. We walk downtown through that block and it's not the most comfortable place to walk near at night.

I'm in LP, but I'm not part of [[or subject to) the Red Menace, AKA the LP collective/commune board, LOL. I hear stories of them manning their proverbial barricades against anyone who doesn't subscribe to The Nation and actively post on Daily Kos, LMAO. Great area, tho, so I guess they've done OK in keeping out the Right Wing riff-raff [[right being anyone to the right of, say, Michael Moore). Love the area, plan to stay a long time.

**wolverine** · July-07-09, 07:59 PM

It could stay vacant for 50 years for all I care. Spend that 3-4 million on making exterior repairs/cleanup, then seal that place up nice and tight with a guard posted.

**hubbardfarmer** · July-07-09, 08:14 PM

Isn't this the guy that owns the rotting Western YMCA? He had "great plans" for the building but they didn't work out, so now he's letting the building fall into disrepair. The place looks like sh**, with 6-foot weeds and windows shot out. I bet by now the beautiful Pewabic tiles inside have been stripped away, along with anything else of historic or monetary value.

gravitymachine · July-07-09, 08:20 PM

Originally Posted by hubbardfarmer

Isn't this the guy that owns the rotting Western YMCA? He had "great plans" for the building but they didn't work out, so now he's letting the building fall into disrepair. The place looks like sh**, with 6-foot weeds and windows shot out. I bet by now the beautiful Pewabic tiles inside have been stripped away, along with anything else of historic or monetary value.

one and the same

**kraig** · July-07-09, 08:20 PM

Originally Posted by gravitymachine

all you folks putting your faith in kellafinos "saving" the place better get used to the most half assed rehab ever undertaken if this isn't a publicity stunt

and as far as lambasting the "NIMBY's" in LP above, would you opt to allow your neighborhood to completely disrupted by a massive entertainment complex?

It's just a matter of what does the city have to lose? With Tiger Stadium there have always been interested parties and there are already developers submitting proposals to the DEGC for that site. That doesn't appear to be the case with the Lafayette. If the developer can't deliver on his project, the DEGC will still maintain the option of tearing the building down as terms of the development agreement.

Additionally, they would be able to use the money that the developer puts up in the beginning to tear the structure down. Which would save the taxpayers money.

Without the benefit of any other prospects, the City has nothing to lose. It would also gain from the goodwill of making the effort.

**detr0itkid** · July-07-09, 08:29 PM

Kefallinos is an old selfish whore monger like most of his upper level staff. He needed an honest looking/sounding face, which he found in Eric Novac, the biggest scam artist liar I've ever met. I lived in the Russel Industrial Center for a year because Eric fed me a ton of lies and I ate them up and signed a lease. In the mean time I got to know a lot of Keffallinos' lower level employes and tennants all of which he treated like crap. Also he has no respect for the law or human rights and used illegal immigrants paying them all around $5/hr with no over time pay. They would work like 80 hr weeks for $400 and then charged them for food and drinks that he stocked in their employee area. I don't think he pulls permits or does anything to code either. I know the bizzarr is a mess.
That's just a small rant about him. That being said, I don't care what they do with the building, a parking lot or an abandoned building, both look just as good to me

Retroit · July-07-09, 09:17 PM

At the very least, Dionysia should be required to put the total cost of renovation in an escrow account before work begins. $3-4 million is not going to get them very far.

**Novine** · July-07-09, 09:45 PM

"At the very least, Dionysia should be required to put the total cost of renovation in an escrow account before work begins. $3-4 million is not going to get them very far."

Why? I don't see why a developer should be asked to do what the city itself won't do. How much has the city or DEGC/DDA put into the building? The DDA has millions horded for the Quicken move that was previously designated for rehab projects. If the developers can come back with a serious proposal, the DDA should use some of those funds to match dollar for dollar what the developers put into the building. Don't want a half-assed rehab? Cover the other half with DDA dollars.