48 vacant buildings blight downtown Detroit

[sg9018]

48 vacant buildings blight downtown Detroit
The Detroit News has a interactive map,photos and artilce about, Downtown's Detroit's vacant buildings.
Artilce/Map
http://www.detnews.com/article/20090...wntown-Detroit
Photos,
http://multimedia.detnews.com/pix/ph...DeadBuildings/

[jt1]

Interesting that the only mention of Ilitch is about the GAR bukilding and it states:

"The castle-like structure is named after an organization dedicated to Union soldiers of the Civil War. Olympia Development, the development arm of Ilitch Holdings Inc., attempted to buy it in 2007 but rescinded the offer."

They certainly do like to keep his name out of these articles don't they.

[davewindsor]

Another doom and gloom article of downtown by Detroit News, but it at least it answers my questions in another thread about 139 Bagley, the former AAA building. It's owned by Anthony Pieroni who has a demo order issued against it, but he's filed an appeal.

[kraig]

This provides a good opportunity for the preservationists to link up with the owners and clean a lot of these buildings up before they fall into a state of disrepair.

Or, they can sit back and wait for the demolition orders to come and then proceed to whine and complain.

[R8RBOB]

Wow, with the threads about the old Cass Tech and the Book it is interesting that the News would release a story about Detroit's ruins. I found this bit of news about the Lafayette most interesting: The city offered the building to Quicken Loans last year for $1.

But the online mortgage company couldn't line up financing for new construction, so it will move its workers into the Compuware Corp. headquarters building at Campus Martius.

So the talk about historic tax credits is bunk. A poster here [[You know who you are) on this site kept ranting about tax credits and yet the city was willing to part with this property for a buck. Prime Detroit real estate and Quicken had to turn it down. I would like to look at this situation like this: Gilbert could have put 200 million dollars to restore the Lafayette but he might prefer to spend the money on something new, not something old.

[izzyindetroit]

I know people who pay rent to live in the Farwell Building.

What is the deal with the Broderick Tower? How could have the DetNews missed that one?

[French777]

I think because the "ground floor" of the Broderick is occupied. It said something along the lines of ... There are many other buildings with just 1 or 2 offices/restaurants left.

[PQZ]

A quote from John Ferchill, savior of the Book Cadillac, man who wants to rehab the Book Building, the man who knows development inside and out....

"When I read all these yo-yos saying it can be saved, I'm saying that's just nuts," Ferchill said. "We did the studies and analysis, we tried hard to make the deal work. But there's a $10 million gap. It's impossible."

I also note that the Lafayette demo dollars are indeed coming from the $8 million demo fund, so the argument that the demolition takes money away from other projects is moot. The demo has zero impact on the DDAs redevelopment budget. Any mothballing of the Lafayette would come from development funds.

Waad Nahir's comments about his building is indicative of the market realities too often ignored on this forum:

"The taxes are too high and the prospects too low," said Waad Nahir, chief executive officer of Bosc Equities, which manages the former Peoples Bank building at 751 Griswold. Nahir's building has been empty for seven years, and he hopes to sell it.

Waad is a great and smart guy who took on the Dime Building renovation and has been a great partner with the City and the DDA. The DDA backed him to the hilt to get the Dime project done when others walked away from it. Waad stepped in with the 751 Building when the tenant was going to move to the 'burbs and bought the building and moved them in to the Dime. Now he is stuck with a white elephant he has been trying move for ages. I must have worked through at least a dozen prospects and half a dozen proposals with him for that building,

Waad and John speak the truth. How many are willing to listen to it?

[Lorax]

Wow, with the threads about the old Cass Tech and the Book it is interesting that the News would release a story about Detroit's ruins. I found this bit of news about the Lafayette most interesting: The city offered the building to Quicken Loans last year for $1.

But the online mortgage company couldn't line up financing for new construction, so it will move its workers into the Compuware Corp. headquarters building at Campus Martius.

So the talk about historic tax credits is bunk. A poster here [[You know who you are) on this site kept ranting about tax credits and yet the city was willing to part with this property for a buck. Prime Detroit real estate and Quicken had to turn it down. I would like to look at this situation like this: Gilbert could have put 200 million dollars to restore the Lafayette but he might prefer to spend the money on something new, not something old.

Where is it stated that historic tax credits had anything to do with it? Have you looked at the condition of the Lafayette Building lately? Show me one building in the condition of the Lafayette that wouldn't be available for $1 in the city of Detroit, as long as a promise is made to restore it.

The decision not to go ahead with the Lafayette had less to do with the purchase price than the restoration costs, and the inability to get financing, based on the amount it will cost to restore it, with or without historic tax credits.

Has anyone thought why Quicken can't pay for a restoration out of pocket, in light of the fact they can get the building for one dollar? Probably because they are hanging on just like everyone else.

People on this thread had high hopes for Quicken, even going so far as to think they'd be building their own skyscraper. Well, they may as well be dealing in buggy whips and saddle soap at this point, for as relevant as their product line is in today's economy.

The Compuware building, [[another failing corporation) is a finished, ready-to-go building. An easy decision for Quicken.

[bailey]

At the same time, the city's $8 million federal fund to demolish buildings will be all but spent after the intended $1.2 million razing of the city-owned Lafayette Building. There is no additional funding expected after that is exhausted.

Well, there is a bright spot at least. Nothing else can be torn down as there is no more money to do it.

[kraig]

Well, there is a bright spot at least. Nothing else can be torn down as there is no more money to do it.

But what happens when more funding is made available for demolition? Don't sleep. To all of you that have more than a passing interest in preservation, now is the time to move.

[R8RBOB]

Where is it stated that historic tax credits had anything to do with it? Have you looked at the condition of the Lafayette Building lately? Show me one building in the condition of the Lafayette that wouldn't be available for $1 in the city of Detroit, as long as a promise is made to restore it.

The decision not to go ahead with the Lafayette had less to do with the purchase price than the restoration costs, and the inability to get financing, based on the amount it will cost to restore it, with or without historic tax credits.

Has anyone thought why Quicken can't pay for a restoration out of pocket, in light of the fact they can get the building for one dollar? Probably because they are hanging on just like everyone else.

People on this thread had high hopes for Quicken, even going so far as to think they'd be building their own skyscraper. Well, they may as well be dealing in buggy whips and saddle soap at this point, for as relevant as their product line is in today's economy.

The Compuware building, [[another failing corporation) is a finished, ready-to-go building. An easy decision for Quicken.

C'mon now, you are adding more to something that does not need an argument. I was pointing out that you were insisting that if the city was to dangle a carrot [[historic tax credits) to a developer he or she might bite at that carrot. I was pointing out that the city was willing to give the building away and Quicken passed.

[Lorax]

C'mon now, you are adding more to something that does not need an argument. I was pointing out that you were insisting that if the city was to dangle a carrot [[historic tax credits) to a developer he or she might bite at that carrot. I was pointing out that the city was willing to give the building away and Quicken passed.

No, you c'mon, Mon!

There is no argument. Historic tax credits obviously didn't play a part in it, since even at 1 buck, the building was too expensive to rehab for Quicken. They are broke, just like everyone else.

You can "dangle" all you want, doesn't mean anyone's interested in biting.

Unless, of course you're willing to pay first!

[R8RBOB]

No, you c'mon, Mon!

There is no argument. Historic tax credits obviously didn't play a part in it, since even at 1 buck, the building was too expensive to rehab for Quicken. They are broke, just like everyone else.

You can "dangle" all you want, doesn't mean anyone's interested in biting.

Unless, of course you're willing to pay first!

Oh, I know tax credits had nothing to do with it. The building was a rotting slab of concrete. Quicken Loans did the right thing by not taking that money pit even for a dollar. There was a reason why that building sat empty all these years. It was not worth renovating yet there are those who believe that all the ruins of Detroit can't be saved. Not possible and the Lafayette is proof of that.

[Spaulding]

Now the City Planning commission is considering recomending that 55 more employess and 34,000 sf of office space move out of the Central Business District. The CPC is considering recomending rezoning to allow the Retirement Systems and their Board of Director build offices on the riverfront out past Belle Isle

[PQZ]

Historic tax credits obviously didn't play a part in it, since even at 1 buck, the building was too expensive to rehab for Quicken.

And too expensive to make sense for the king of credits, John Ferchill.

So, fancy developers from Miami can't make it work, a historic rehab guru with a great track record can't make it work and a giant financial firm can't make it work.

What to do...what to do... what to do....

Oh I know!

Lets call George Jackson a jerk!

That'll make someone step forward and take a $10,000,000 loss!

[French777]

Speaking of abandon structures. I looked more carefully at the Metropolitan Building and even though its abandon all those hearts and words "Love" on the windows make it really not that bad of an abandon building. Its kinda neat to look at the window decorations.

[Blarf]

Whoever put that map together is a moron. Some of those red buildings you click on the map bring up buildings that are on the other side of downtown.

[royce]

I find articles like this to be irritating because they state the obvious for those of us that have been following development in Detroit for years. I know they are supposed to inform the uninformed, but sometimes articles like this just seem to be that extra kick that just reminds us of how bad things are in Detroit. I'm sure if we go back a year or two, a similar article was written.

What I also find irritating about articles like this one is that they always quote some less than reputable person to speak on the topic. In this case that person is Anthony Pieroni. "If I can't make a deal to renovate it [[his crappy buiding across from the United Artists), I don't know how they expect me to come up with the funds to tear it down." Give me a break. I guess the reporter doesn't know the history of this guy and that building. How many times in the past has Pieroni been interviewed about this building and his response has always been, "I plan on renovating it...." Yeah, and he is appealing the city's mandate to tear it down. WTF did he expect the city to do. The building has been in its current condition since the January 2006 Superbowl. Pieroni has had plenty of time to do something with that building if he was serious. [[BTW, George Jackson is the other less than reputable guy quoted in this article but I don't even want to begin talking about him.)

Another thing about this kind of article that irritates me are the errors found. I thought the Lafayette Building demo would cost $1.4. In the article it's $11.2. The building at 30 Clifford is not the building picture for that address in the interactive map. That's the Film Exchange Building that is on Cass. Also, the interactive map shows the building that's next to the Farwell Buiding as taking up the entire block of Griswold where the parking structure and Jewish Synagogue are located. So much for thorough journalism.

Just some final thoughts. Now, regarding the Lafayette Building, I can't believe the statement by Ferchill, "When I read these yo-yos saying it can be saved, I'm saying that's just nuts. We did the studies and analysis, we tried hard to make the deal work." What deal? This is the first time I've heard of Ferchill directly connected to the Lafayette. I mean in the entire thread on the "Lafayettes Top Two Floors Collapsing" I never heard anyone discuss Ferchill's thoughts about the Lafayette. Also, he states, "But there's a $10 million gap. It's impossible." - referring to the attempt to get financing for a Lafayette Building renovation. Well, if he could have gotten that extra $10 million, then a renovation of the Lafayette would have been "possible." Ferchill's statements here seem to support some forumers' beliefs that Ferchill secretly wanted the Lafayette torn down all along.

One other final thought about the Lafayette Building. It has only been vacant, according to the article, for 12 years. The Book Cadillac was vacant for 24 years. The BC could be saved after all that time vacant but the Lafayette can't?

[royce]

The article said $1.2 million to demo Lafayette Building, not $11.2. My mistake.

[R8RBOB]

One other final thought about the Lafayette Building. It has only been vacant, according to the article, for 12 years. The Book Cadillac was vacant for 24 years. The BC could be saved after all that time vacant but the Lafayette can't?

Any building can be saved. The question is: would any developer be willing to invest hundreds of millions to save it?

[bailey]

Royce...

Now, regarding the Lafayette Building, I can't believe the statement by Ferchill, "When I read these yo-yos saying it can be saved, I'm saying that's just nuts. We did the studies and analysis, we tried hard to make the deal work." What deal? This is the first time I've heard of Ferchill directly connected to the Lafayette.

sorry you didn't hear about it, but it's been out there repeatedly...most recently in the article last week about the Book Tower which was posted on that thread. The relevant portion follows:

Ferchill says the Book Tower is one of the most viable historic structures in Detroit's downtown — and that's what makes this project different from other beloved historic buildings.
“I'll be the first to admit to you that the city of Detroit probably demolishes more than they have to, but the city of Detroit is a huge place,� Ferchill told Crain's. “You can't fill all these buildings, so you have to pick and choose the ones that make more sense.�
....... But Ferchill said that all too often the financial case for restoration just isn't there. “With every trick we know, there was probably a $7 million to $8 million gap on [[the Lafayette), and who's going to make that up?� he said.
And those projections, he said, were made before the credit market crash.
An easement sale, projected in the Lafayette estimate at $5.3 million, couldn't happen today, Ferchill said. An easement is a portion of land that can be sold to another user. That would leave the gap closer to $11 million.
Ferchill said his team spent six to nine months researching a Lafayette renovation in 2007 and couldn't make the numbers work due to the deterioration of the structure.

The BC could be saved after all that time vacant but the Lafayette can't?

No one is saying the Lafayette can't be saved. They are all saying it's too expensive to save and there is no market for it if rehabbed so it won't be saved. The BC had the public backing and the public dollars to make it work, neither is there for the Lafayette.

[crawford]

One other final thought about the Lafayette Building. It has only been vacant, according to the article, for 12 years. The Book Cadillac was vacant for 24 years. The BC could be saved after all that time vacant but the Lafayette can't?

Any building can be saved. We all know that.

The question is whether it's worth the taxpayer subsides to save the Lafeyette. Those who have seriously exaimined the situation universally say no.

Now if your standard is simply "does it make financial sense for the private sector to renovate this building absent significant public subsidies", then the answer is no for all downtown buildings, including the BC.

[davewindsor]

I'm surprised it says the Vinton is vacant. What happened with it? Two years ago, they announced $6million in renovations was going into it. In June 2008, the DFP writes they owe $224K in back taxes. Who owns it now? The city? Is it going up on tax sale?

[Patrick]

The Vinton project was by several forumers years ago. Not sure if it fell through or not. there were a number of excellent threads on it....before many of the current posters were here.