United Artists Theatre

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United Artists Building developer seeks tax abatements, plans to tear down theater

"The development group planning a $56 million conversion of the United Artists Building into apartments is closer to receiving tax abatements for the long-delayed project that also includes demolition of a decaying theater attached to the tower.

"It's the first forward momentum in the effort to turn the 18-story building at 150 Bagley St. into 148 apartments since it was announced about 2 1/2 years ago as part of the Ilitch family's District Detroit area's residential plans. Construction is now expected to begin in the first quarter and be complete by the middle of 2021.

"Moten also said the United Artists Theater, which opened in 1928 and is attached to the Ilitch family-owned building, is expected to be demolished as a condition of the U.S. Department of Housing and Urban Development providing senior debt on the project through its 221[[d)[[4) program, which provides a 40-year multifamily construction loan that requires HUD evaluation of the market, demand and other issues. He also said banks had similar requirements to tear the theater down.

"We looked at ways we could use it, and you can't use it for anything," Moten told the standing committee. "They are not going to close on this project unless the building comes down."