$4.7M HQ for the Pension Board?

**Gannon** · August-19-09, 08:11 AM

Wow, what crassness.

In a city FULL of empty buildings...

**ejames01** · August-19-09, 08:37 AM

These people are shameless.

**Detroitnerd** · August-19-09, 09:26 AM

I'm getting angry.

**digitalvision** · August-19-09, 10:12 AM

Thoughts...

1) This is a waste of money. Even more so when you think about the fact that at one point 1001 Woodward was invested in by various pension funds, and it sits virtually empty and has connected parking. 60 people do not need a new building, let alone a 4.7 million dollar one.

2) This also shows an example of the suburban-preferred layout of many so-called "leaders" and others involved in the city.

3) Regardless of the layout, this is a total waste of money that Bing needs to be vocally be against. There's no need, and frankly, if they want a suburban style office building outside of downtown proper, there's plenty that exist.

**mjb3** · August-19-09, 10:32 AM

Pensions are unfunded, unsustainable and bankrupting all forms of govt.

Why are they still around? Why can't they do what the private sector did and convert them all to 401K's, like the rest of us get?

**heedus** · August-19-09, 11:05 AM

Originally Posted by digitalvision

Thoughts...

1) This is a waste of money. Even more so when you think about the fact that at one point 1001 Woodward was invested in by various pension funds, and it sits virtually empty and has connected parking. 60 people do not need a new building, let alone a 4.7 million dollar one.

2) This also shows an example of the suburban-preferred layout of many so-called "leaders" and others involved in the city.

3) Regardless of the layout, this is a total waste of money that Bing needs to be vocally be against. There's no need, and frankly, if they want a suburban style office building outside of downtown proper, there's plenty that exist.

Agreed on all three points, except I don't think either of Detroit's two pension funds were in on those deals. Regardless, didn't Papas buy that entire building for $5.4 million last year? I bet he'd be willing to unload it to the two pension funds for a cool $2 million profit [[the Freep story says the new construction would cost $7.4 million, not $4.7 million). I know that a building of that size requires a lot of maintenance and the pension boards would only occupy a couple of floors, but they would have attached parking and their choice of offices overlooking the city. What is wrong with these people? Someone needs to step up and display some real leadership by calling these organizations out. Bing? Granholm? Anybody?

**Trumpeteer** · August-19-09, 05:00 PM

Is the old Broadhead Naval Armory on Jefferson still empty? If so, wouldn't that possibly make a good home for them and make use of a great building with the Art Deco murals inside?

**davewindsor** · August-19-09, 09:14 PM

Originally Posted by heedus

didn't Papas buy that entire building for $5.4 million last year? I bet he'd be willing to unload it to the two pension funds for a cool $2 million profit [[the Freep story says the new construction would cost $7.4 million, not $4.7 million).

Try $19.5 million for 1001 Woodward in 2008. The attached 12-storey parking garage, which had a secured $14million bank loan was assumed to make the deal work. The $5.5million cash he paid was just for the value of the building itself that was 90% vacant. I don't even think the city bylaw would allow you to buy a huge 330,000 square foot building like 1001 without a parking garage or even sever the parking garage from a transaction. $19.5m - $7.4m is a $12.1 million loss. http://www.crainsdetroit.com/article.../SUB/802250335

**heedus** · August-20-09, 08:03 AM

Originally Posted by davewindsor

Try $19.5 million for 1001 Woodward in 2008. The attached 12-storey parking garage, which had a secured $14million bank loan was assumed to make the deal work. The $5.5million cash he paid was just for the value of the building itself that was 90% vacant. I don't even think the city bylaw would allow you to buy a huge 330,000 square foot building like 1001 without a parking garage or even sever the parking garage from a transaction. $19.5m - $7.4m is a $12.1 million loss. http://www.crainsdetroit.com/article.../SUB/802250335

When I mentioned the $5.4 million, I was referring specifically to the building, not the attached parking garage. In my fairy tale plan, I kinda figured that Papas would want to hold onto the parking garage as a future reveune generator and that the pension funds could offset their parking expenses using rent proceeds from the 10% of the building that is occupied [[or that a 60 parking space easement could be part of the puchase agreement for the building). Not that any of this really matters but what bylaw are you referring to?

**davewindsor** · August-20-09, 09:01 AM

Originally Posted by heedus

When I mentioned the $5.4 million, I was referring specifically to the building, not the attached parking garage. In my fairy tale plan, I kinda figured that Papas would want to hold onto the parking garage as a future reveune generator and that the pension funds could offset their parking expenses using rent proceeds from the 10% of the building that is occupied [[or that a 60 parking space easement could be part of the puchase agreement for the building). Not that any of this really matters but what bylaw are you referring to?

I don't know the specific section, but across the river in downtown Windsor I own an apartment building several years newer than 1001 Woodward with a main floor parking garage that I wanted to turn into a commercial store and apartments. The Planning Department told me absolutely not and gave me a copy of the bylaw which stated I needed one parking spot per apartment unless it was a grandfathered in like you'd with a much older building that never had parking. They had a by-law on office/retail space, but I forget what it was. I asked if I could could buy a vacant lot half a block down the street and use that as parking for it. Again, they told me absolutely not, it has to be a parking lot adjacent or I can't convert the garage. Now, I'm sure a much larger city like Detroit has a similar by-law on the books and I'm guessing that that attached garage to 1001 Woodward was required by the planning department before they issued a building permit for 1001 Woodward. Those parking garages and spots are a package deal with the building and I doubt they would get built if the city didn't require it.