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 — another of Kefallinos’ entities — 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 Crain’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."

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