Lee Plaza Update

[Airforceguy]

Article from Today's Crain. According to the article, rising construction costs have delayed the project. The developer, Roxbury Group, hopes to close on financing by the end of the year and start construction soon after which is expected to take 18-24 months.

Detroit's Lee Plaza is likely a year behind schedule. Here's why.

David Di Rita stood on a stage inside the decrepit Lee Plaza hotel 13 months ago to share his excitement about the $7 million Detroit City Council earmarked for his planned rehabilitation project of the long-vacant high-rise."It's a preview to coming attractions," Di Rita, a founder and principal of the Roxbury Group, said at the time. He expected construction at the 16-story building at 2240 W. Grand Blvd. in New Center to begin a year later — or, about now.
But Di Rita said this month that rising construction costs have delayed the project, which would turn the 15-story building into 117 units of senior affordable housing, plus some market-rate units. He said he now expects financial closing to come at the end of this year, and for construction to begin after that. Rehabilitation of the 1927 building is expected to take between 18 and 24 months. "We have not begun any physical work on the building yet," he said. "We're still in the pre-development stage." Di Rita said there was still a $10 million financing gap for the project, and he has exhausted "all the usual sources" of financing. But he said he's "increasingly" sure the numbers will work.

"I have a high degree of confidence we'll figure this out," he said. "Lee Plaza, it's all or nothing."

https://www.crainsdetroit.com/real-e...d-rising-costs

[DetroiterOnTheWestCoast]

So it’s not officially dead yet.

[Hypestyles]

another eyesore still sitting in the meanwhile. ah well..

[DetroiterOnTheWestCoast]

There is an article in todays Free Press about the new state budget. One of the items listed:

“In Detroit, $6 million for Lee Plaza”

https://www.freep.com/story/news/pol...k/70367852007/

Will it be enough to get this project off the ground?

[gratiotfaced]

If that's not enough to get it moving, then it seems like kind of a waste, right?

[JonWylie]

If that's not enough to get it moving, then it seems like kind of a waste, right?

I'm sure it's just a part of the capital stack

[ABetterDetroit]

I'm sure it's just a part of the capital stack

and Roxbury doesn’t start rehab projects that are not fully funded and end completed. We’re not talking about some fly by night developer or some church that keeps passing a basket on this.

Fingers crossed this one still can come together somehow.

[carlscomputers]

Looks like it's back on the market again?
https://summitcommercialllc.catylist...troit-MI-48208

[DetroiterOnTheWestCoast]

Looks like it's back on the market again?
https://summitcommercialllc.catylist...troit-MI-48208

That link shows the property as “pending.” Is it possible that the sale to Roxbury has been pending this whole time, contingent on locking down the financing?

[Richard]

They did say they were $10 million short.

Here is the requirements to even bid on the property in the first place,with the purchase requirements you have to prove you can fund the deal before taking possession,it is also protected historically with a requirement to maintain that aspect.

https://summitcommercialllc.catylist...ressed__1_.pdf

It’s not like you can just buy it and go from there like a house,and it will show pending until it is proven that the intended purchaser does have the available funds to complete it.

So anybody with funds can still come in and purchase it. Roxbury was probably given X amount of time to prove they could fund it or it goes back on the market.

My guess is they are doing that way in order to stop speculators from purchasing it,but that way is more indicative of when a school is sold or city property is sold.

So the city actually owns it ?

[DetroiterOnTheWestCoast]

Historic Detroit posted on FB that there’s activity at the Lee Plaza, and uploaded a photo of a crane. Has anyone noticed work happening there?

[Lowell]

Historic Detroit posted on FB that there’s activity at the Lee Plaza, and uploaded a photo of a crane. Has anyone noticed work happening there?

Noticed that post too. My guess would be that they may be finally sealing the roof, which always struck me as the first thing they needed to do. Let's hope this is finally for real and this architectural heritage beauty is saved.

[Zacha341]

I was driving by and circled this building today to get a good look. The tall crane remains but lowered. There's 'some' activity going on there.

[Lowell]

The Lee Plaza restoration looks truly sincere from yesterday's driveby. With "Skipper's Rule" acknowledged, I have to rank this project right up there with the Michigan Central restoration and the end of the Berlin Wall on my list of "Things I Never Thought I Would See".

[Gistok]

^Thanks for the good news Lowell!

If those Lee Plaza lions heads are lost to the building, they should take one of the existing ones and make resin casts of it to return the building to its' former glory.

[Zacha341]

Nice photos Lowell! I think we may see this building actually rehabbed. It's not in Midtown or WSU area or even other areas where we always see development.

Finally development and investment close to Grand River Ave!

[DetroiterOnTheWestCoast]

Lee Plaza is a bit away from the areas in which we expect to see redevelopment. Assuming it does get rehabbed, it will be interesting to see to what extent this might jumpstart other activity in that area.

[mwilbert]

Lee Plaza is a bit away from the areas in which we expect to see redevelopment. Assuming it does get rehabbed, it will be interesting to see to what extent this might jumpstart other activity in that area.

In my view, there's more than one way to look at it. From the point of view of large scale rehab, you are certainly correct that Lee Plaza is not in the thick of things. But from the point of view of residential redevelopment, the neighboring areas, like LaSalle Gardens, have seen quite substantial rehabs and it certainly seems like an area where people are interested in living.

So I'm reasonably hopeful it will work out, and perhaps encourage more improvements in the area.

[renf]

Thank you, Lowell, for the information about Lee Plaza and for
your comments. There are now many signs of revitalization in
Detroit.

[K-slice]

Lee Plaza is definitley on the bleeding edge of investment spreading from downtown, but it is also the last building of its size [[or at least height) that's not being rehabbed in the entire city.

Lots of potential along this strip of the Blvd. though, from Henry Ford to Motown, to Lee Plaza. I hope to see housing in Core City and NW Goldberg repidy [[re)developed and lots of transplants moving into the city!

[401don]

Lee Plaza is definitley on the bleeding edge of investment spreading from downtown, but it is also the last building of its size [[or at least height) that's not being rehabbed in the entire city.
!

The Leland could use a rehab also.

[Gistok]

^ Apparently now the nearby Michigan Building [same architect as the Leland, Chicago movie palace architects Rapp & Rapp] could also use a rehab... except that is a much more complex issue. Unlike the United Artists Building next door, they can't just remove the attached former theatre from the Michigan Building.

Had the city allowed the former building owner to partake of the 2005 Superbowl Facade Improvements funds, the facade of the Michigan Building might not have parts of the facade falling off of it right now.