How did you feel about the Madison-Lenox demo?

[LeannaM]

That may sound like a stupid question. But I've been reading about the Madison-Lenox demolition. Apparently, Kilpatrick demolished it illegally. I realize it's been over 4 years.

Were you for or against preservation of the Madison-Lenox?
Were you angry when it was torn down?
How do you feel now?
Did it change your opinions of Kwame Kilpatrick? Did it make you feel differently about Mike Ilitch?
What does it mean for the future? Can the mayor tear down a building just because he feels like it?
What can/should preservation groups do to prevent this type of ambush demolition from happening again?
Will politicians in the city help preservationists?
Are preservation groups in this area strong enough to fight the local government?

I know it's been 4 years, and I'm sure I'm beating a dead horse. But I'm curious about your opinions on this. If there's already a thread on this, I apologize.

Thanks.

[buildingsofdetroit]

Calling FNemecek...
The Mad-Len is on my list of buildings to do for the site. Sadly, I was living in Seattle when it came down, so I don't have any photos of it and wasn't around for the fight. I, too, would be curious to see how the battle to stop it compares with, say, the Lafayette [[grassroots activism) or Tiger Stadium [[restraining order, court, etc.).

[detourdetroit]

some people decided to go to law school because of it.

[Ray1936]

When a structure needs more money to clean it up and refurbish it that it does to tear it down, it's gonna come down. Simple as that.

[ghettopalmetto]

When a structure needs more money to clean it up and refurbish it that it does to tear it down, it's gonna come down. Simple as that.

Pretty difficult to make that decision without a cost estimate, isn't it?

You ignore that the demolition of the Madison-Lenox was not only illegal, but subsidized to the tune of $7 million. And what did Detroit get out of it? Another stinking parking lot.

Must be nice to live in a world where everything is boiled down to simple one-sentence proclamations.

[j to the jeremy]

In principle, it should work like that, Ray1936. But subsidizing a demolition for shady and overtly illegal reasons is different than an honest approach. Capitalist principles are different than greed in action.

[buildingsofdetroit]

You ignore that the demolition of the Madison-Lenox was not only illegal, but subsidized to the tune of $7 million. And what did Detroit get out of it? Another stinking parking lot.

Well, not just any parking lot. It's a billionaire's parking lot that you have to pay $20-$40 [[depending on the event) per car to park on. At that price, that's like the Mercedes-Benz of parking lots.
What steams me even more about this is that Forbes values Ilitch at $1.6 billion. It's HIS building, so if it can't be saved HE should tear it down. No questions asked, no subsidies.

[d.mcc]

Well, not just any parking lot. It's a billionaire's parking lot that you have to pay $20-$40 [[depending on the event) per car to park on. At that price, that's like the Mercedes-Benz of parking lots.
What steams me even more about this is that Forbes values Ilitch at $1.6 billion. It's HIS building, so if it can't be saved HE should tear it down. No questions asked, no subsidies.

You don't get rich by spending money...

[walkerpub]

It was a sad day

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[gnome]

I was in that place in the early 80's and between the spongy floors and the 3 ft wide hallways, I just have never been able to see all the love that is shown that dump. Granted the process stunk, and people's feelings were hurt, but the building itself was a leaky, stinky, rat trap.

I do remember Gistok saying that according to whatever contract Ilitch has/had on that property ... that Ilitch was required to build something on that land by 2007. Not sure about that requirement, but maybe Gerhard can chime in and let us know..

[Ray1936]

Must be nice to live in a world where everything is boiled down to simple one-sentence proclamations.

Ghetto, while appreciating your views on the matter, I'll make it even a simpler one-sentence proclamation:

Follow the money.

[Dan]

In August of 1996, Zachary and Associates were contracted by the City of Detroit Downtown Development Authority [[DDA) to prepare a report [[attached and updated with two case studies) to outline the market potential and economic feasibility for the rehabilitation of the Madison-Lenox Hotel, located at 246 Madison, in downtown Detroit. The report was prepared as per Section 106 requirements of the National Historic Preservation Act [[NHPA), which mandates public entities considering actions that affect historic properties utilizing Federal funds to:

• take into account the effects of their undertaking on historic properties, and
• afford the Advisory Council on Historic Preservation [[Council) a reasonable opportunity to comment regarding such an undertaking.

At the time of this report, the Madison-Lenox Hotel had been vacant for several years [[i.e., since 1991/1992) and the DDA considered the reallocation of HUD funds for the redevelopment of the site, including budgeting an amount of $1,040,000 for building demolition.


Section 106 necessitates a public hearing and commentary period, which elicited response from several surrounding interests, including representatives from the State Theatre/Gem Theatre/Forbes Management, the Grand Circus Park Development Association, the Detroit Athletic Club, Detroit Renaissance, and the Downtown Citizens District Council. Overall, parties agreed that the Madison-Lenox, an historic resource, was a valuable asset to the north end of the Central Business District, serving as a gateway for the emerging theater and entertainment district, and, as an excellent example of quality early 20th century architecture, should be re-utilized to contribute to the revitalization of downtown Detroit.


In concert with public participation, Zachary and Associates provided an architectural overview, including historic site and Harmonie Park historic district considerations as well as a redevelopment overview, outlining a rehabilitation feasibility study of the Madison-Lenox using methodology consistent with local market trends.

The architect’s report highlighted the historic significance of the two sister buildings—the wood and masonry Madison, and the steel supported Lenox— in early 20th century Detroit, first as a fine residential hotel, and subsequently as a rooming hotel through the later part of the century.


The deteriorating condition of the buildings was duly noted, including partial roofing and severe mechanical and electrical deficiencies, but all structures were believed to be sound and within the parameters of successful rehabilitation.

[Dan]

Four case studies and market-based proforma analyses were considered for the adaptive reuse of the Madison-Lenox. The studies proposed rehabilitation of the building for primarily hotel and/or residential use as well as ancillary uses such as a restaurant, meeting rooms, offices and local arts related uses. The proforma analyses included the following combinations:

• Suite Hotel with a Restaurant [[1)
• Suite Hotel/Apartments with Restaurant [[2)
• Apartments/Restaurant/Arts Office [[3)
• Apartment/Arts Office [[4)

Total budgets for redevelopment range from $11-$14 million, depending on scenario and predicted positive revenue streams at the end of the first year of operation, assuming the current [[1996) conditions. The report considered all of these case studies to be compatible with a market-based redevelopment scenario utilizing standard funding sources as well as the benefit of historic tax credits and other incentives available to cover the gap financing of historic structures.


The report concluded that rehabilitation of the Madison-Lenox, with the expected infusion of jobs downtown and subsequent need for market rate housing, anticipated increase in tourism, and need for short term residential options for performers from nearby entertainment venues, was well justified and would be of great benefit to the city of Detroit. Barring the secure of a capable developer, the report recommended that the Madison-Lenox should be adequately mothballed for future reuse. Only as last resort, the City would allow for the demolition of the buildings following proper recordation.


MADISON-LENOX: CURRENT STATUS


As of spring 2003, the current owner of the Madison-Lenox Hotel, Ilitch Holdings, Inc. has sought a $700,000 loan from the Downtown Development Authority to demolish the Madison-Lenox Hotel and clear the site for use as a surface parking lot, with space for a maximum of 85 vehicles.


While it is true that the buildings have been vacant since the Zachary report, neither Ilitch Holdings nor the DDA has offered any substantive proof of loss of structural integrity or inability to secure a capable developer. In fact, upon completion of an inspection in 2001, a developer and architect who gained access to the site determined that the Madison-Lenox remains structurally sound and can be completely stabilized for the cost of demolition.


CONCLUSION AND UPDATED CASE STUDIES


The Friends of the Book-Cadillac Hotel [[FOBC) offer this document as an alternative to demolition and question the validity of the claim that the Madison-Lenox Hotel cannot be successfully rehabilitated. FOBC maintains that a developer can build upon the analyses outlined in the Zachary Report and create a cost effective, revenue generating product for Ilitch Holdings and the City of Detroit.


The Zachary Rep conclusions are still valid:

• A site visit by architect Elisabeth Knibbe determined that the Madison-Lenox was structurally sound and salvageable.
• The removal of the Madison-Lenox will have an adverse impact on the integrity of the Harmonie Park Historic District.
• The downtown community has stated that it wants the Madison-Lenox rehabilitated.
• The DDA approved Section-106 findings recommend mothballing over demolition.

Today, the underlying conditions that supported the Zachary Report’s conclusions have changed. They have improved:

• Federal Historic Tax Credits [[20%), have been augmented by State Historic Tax Credits [[5%), and Brownfield Tax Credits [[10%), as well as the Obsolete Property Rehabilitation Act of 2000.
• Interest rates are significantly lower than they were in 1996.
• Downtown Detroit is stronger economically than it was in 1996. Property values are up. Market rents are up. The developments that were alluded to in the Zachary Report, e.g. stadiums, GM’s move to the Renaissance Center, and now Compuware have become a reality.

FOBC have focused attention on one of the most difficult projects in the City of Detroit, the rehabilitation of the long dormant Book-Cadillac Hotel. This multi-million dollar project marks a turning point for development in downtown Detroit. The Madison-Lenox is at the other end of the re-development spectrum. However, its importance is not diminished. The Madison-Lenox is the perfect model for rehabilitation at a scale where smaller local developers can successfully participate. If the Madison-Lenox is redeveloped, it will provide Detroiters with a blueprint for saving Detroit’s vast inventory of vacant and underutilized early 20th century architecture.


FOBC has updated two of the original case studies, Scenario One, a suite hotel with restaurant/retail space, and Scenario Four, market rate housing with office/retail space. FOBC has also included the construction of a new 250-space garage on the adjoining Ilitch-owned surface lot at the corner of John R and Madison as an alternative to parking shortages in the area.


FOBC has determined that with the utilization of historic tax credits and other programs contained in the Michigan Brownfield Acts of 2000, funds amounting to over 60% of total project costs can be recouped by a developer. FOBC estimates a total project cost at $14.5 million for Scenario One, the hotel, and $11.8 million for Scenario Four, the apartments.


Both scenarios are based on existing incentives and market financing. For the hotel renovation, a debt service ratio of 1.42 indicates a substantial return on investment and a project that will be of great interest to developers and lenders. The debt service ratio for the apartment renovation is 1.55. These ratios point to projects that are economically viable, competitive, and profitable!


In contrast, if the Madison-Lenox Hotel is demolished as proposed, the resulting 85 space surface lot will generate lower revenues and resulting in a loss of income and property taxes. A demolition will squander the economic incentives offered by the State and Federal government for re-development projects in the City of Detroit. Demolition of the Madison-Lenox will destroy the unusual “neighborhood feel” and architectural integrity of the Harmonie Park. A demolition will further deteriorate Detroit’s historic architectural endowment and set back the re-vitalization of the city.


FOBC urges Ilitch Holdings to re-examine the opportunities associated with the redevelopment of the Madison-Lenox Hotel. It urges the DDA to re-allocate its funds from demolition to rehabilitation, which is the clear recommendation that the DDA funded Zachary Report made in 1996, and that current conditions still support.

[Dan]

Please see the attach jpg. I took this from the Madison-Lenox office.

[1KielsonDrive]

The Madison Lennox demo was a SHAME! Collusion between a crook - KK, and a scammer - Illitch. Between these two guy, it's difficult to tell who's taken us - the Taxpayers, for more money. I motion we nominate KK, Illitch and Manny Maroun, permanent placement in the Detroit Hall of Shame. Oh - they were nominated long ago? I didn't see their bronze plaques in Cobo Hall.

[Gistok]

I was in that place in the early 80's and between the spongy floors and the 3 ft wide hallways, I just have never been able to see all the love that is shown that dump. Granted the process stunk, and people's feelings were hurt, but the building itself was a leaky, stinky, rat trap.

I do remember Gistok saying that according to whatever contract Ilitch has/had on that property ... that Ilitch was required to build something on that land by 2007. Not sure about that requirement, but maybe Gerhard can chime in and let us know..

Gnome, I believe that the $700,000 loan that the Ilitch's got to tear it down stipulated that if nothing is built on the site within a set period of years, that the Ilitch's will have to repay the loan in full. IIRC... I believe that it was within 7 years [[not 2007)... which would mean that the Ilitch's would have to build a new structure there by circa 2012, or else be required to repay the [[interest free) demolition loan.

Someone on this forum at the time of the demo mentioned this [[and I cannot confirm its' accuracy).... "the asbestos/hazardous material abatement that they used on the property was to keep hoses pumping water to minimize the dust cloud while the backhoe was tearing it down."

The Madison-Lenox has the dubious distinction of being the only building in the country that was on the National Trusts List of 11 Endangered Historic Places [[a list they've had since the 1980s)... during the year it was torn down.

The National Trust got their revenge on the Ilitch's in the Fall of 2004. That seasons National Trust Magazine [[circulation 700,000) had the Ilitch owned United Artists Building on the front cover, in its' dilapidated condition before the Super Bowl cleanup... with all the windows painted, the theatre marquee in its' decrepit state, and the building open to scavengers and homeless. Not at all a flattering sight/site.

[1KielsonDrive]

[quote=gnome;86373]I was in that place in the early 80's and between the spongy floors and the 3 ft wide hallways, I just have never been able to see all the love that is shown that dump. Granted the process stunk, and people's feelings were hurt, but the building itself was a leaky, stinky, rat trap.

I'll bet if you were in the Book Cadillac, the Kales, the Globe, the Fox, the Addison, Old Wayne County Building and any number of other derelict buildings, pre-rehabilitation, they felt pretty bad also.

[Evelyn]

I wish it hadn't been demolished. In my opinion, in was torn down because the All-Star Game was happening downtown.

Here's a video a friend took of it...

http://www.youtube.com/watch?v=CIPmX7xdGDw

[1KielsonDrive]

The DAC is another example of a building that was nowhere near modern standards, pre-rehabilitation. In fact, it was in pretty sad shape. Someone, or some group had a vision. Though I have my disagreements with some of the work done in the DAC, it's a beautiful building and a striking example of what imagination and determination can bring about. But, if there's one thing the Illitch's don't possess, its imagination. I know someone will say, but Mike Illitch refurbished the Fox. Yeah, he did refurbish the Fox. With a lot of taxpayer's money for the building and surrounding neighborhood - streets, sidewalks and demo's. Also a DPD Mini-Station in the Fox itself. He's been trying to lay claim to a 'Preservationist' title ever since. He hasn't done a damn preservationist thing since, except take more taxpayer's money for his empire's demos and parking lots.

[1KielsonDrive]

[quote=Evelyn;86494]I wish it hadn't been demolished. In my opinion, in was torn down because the All-Star Game was happening downtown.

Evelyn, you're exactly right. Most everyone was opposed to the demolition. Even the DAC, who never oppose their members and other businesses, vocally opposed the demo of the ML. The DAC, like other's who knew the building, development and the market, said it would and could, make a great boutique hotel. What do we have in it's place? An historic and architecturally significant parking lot? Will Mike Illitch's stubborness and truculence outlast his life? He's gotta be 80 or 85. Do you think he might actually become a 'wise old patriarch' and 'philanthropist' to Detroit? I doubt it.

[gnome]

Thanks Dan for a very clear-eyed post. I had not seen that report before. It doesn't jibe with my personal experience, but I'm not an engineer. I must say it is refreshing to finally read a dispassionate recitation of the facts as the Ilitch has Horns screedsget tiresome in their repetition.

Do have any insight as to why the deep pocketed folks across the street at the DAC never banded together and secured the M-L? When they bought the Elms and tore it down for their parking garage, the Elms was fully occupied with market-rate tennants.

[Lorax]

Ilitch is about 77 or so, regardless, his obligation to build something on the parking lot will most likely be a heated/air conditioned hut for the attendant. That will most likely satisfy the city, and a repay the 7 million "loan."

[detourdetroit]

ray, with all due respect that comment is pretty trite and an overly "simple as that" view of the world...sorry i'm being redundant.

[Lowell]

I wonder how much the controversy and bad PR resulting from the ML demol influenced the Ilitch organization's decision to at least preserve the Fine Arts theater's facade. I would like to think it did and that it had caused them the rethink the treatment of the other vacant architectural gems in their portfolio.

I would also argue against the lumping of Ilitch with Kilpatrick and particularly Moroun. The latter has done nothing for Detroit, that I know of. Ilitch, on the other hand, is arguably the initiator of the downtown revival with his restoration of the Fox Theater and building and moving his business operations into Detroit when everybody else was running and dumping their properties. Add his acquiring two lame sport franchises and turning them into championship teams, with all the revenue that has brought to Detroit, and well he ain't no Matty Moroun.

As for the KK, Ilitch was notably absent among the big-money big players who bribed, er loaned, KK money.

[RickBeall]

The ML sure gave that neighborhood a cool, historic vibe. It's a shame it was torn down.