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 ?