Discuss Detroit Archives - Beginning January 2006 Police, fire fund to back hotel update Previous Next
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Detroitman
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Username: Detroitman

Post Number: 970
Registered: 06-2004
Posted From: 216.78.40.68
Posted on Saturday, April 29, 2006 - 9:20 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

http://www.freep.com/apps/pbcs .dll/article?AID=/20060429/BUS INESS04/604290341/1017/BUSINES S
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Jams
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Username: Jams

Post Number: 3191
Registered: 10-2003
Posted From: 68.252.8.104
Posted on Saturday, April 29, 2006 - 9:45 am: Edit PostDelete PostMove Post (Moderator/Admin Only)


quote:

George Jackson, president of the Detroit Economic Growth Corp., said the fund's approval Thursday night is the final piece needed in the complex $176-million package to finance the work. A financial closing is expected in the next several weeks, with construction work to begin immediately.




FINALLY.........maybe?
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Motorcitymayor2026
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Username: Motorcitymayor2026

Post Number: 760
Registered: 10-2005
Posted From: 24.231.189.137
Posted on Saturday, April 29, 2006 - 10:17 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

wow.....it just might actually happen!!
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Drdetroit
Member
Username: Drdetroit

Post Number: 59
Registered: 04-2006
Posted From: 64.136.27.229
Posted on Saturday, April 29, 2006 - 11:26 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Good news! Now all we need is light rail mass transit to really trigger a downtown revival.
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Ray1936
Member
Username: Ray1936

Post Number: 516
Registered: 01-2005
Posted From: 207.200.116.139
Posted on Saturday, April 29, 2006 - 12:12 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Well, there goes my pension. :-(
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3rdworldcity
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Username: 3rdworldcity

Post Number: 227
Registered: 01-2005
Posted From: 68.41.162.189
Posted on Sunday, April 30, 2006 - 12:32 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Ray1936: You are so right. What a shame for you guys. Your pension fund is basically no more than a personal piggybank for a bunch of politicians and appointed Trustees.

Why don't you guys turn over the operation of the Fund to professional managers, who take their fiduciary obligations seriously? I recognize there are so-called professional advisors on various investment areas (equities, bonds, real estate etc) but those guys basically are in it for the fees and write up the investment analysis to satisfy the wishes of the Trustees on deals like these, and could care less.

It's your money. Look after it.
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Mikem
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Username: Mikem

Post Number: 2446
Registered: 10-2003
Posted From: 68.43.15.105
Posted on Sunday, April 30, 2006 - 12:35 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

"It's your money."??? Yeah, right.
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Busterwmu
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Username: Busterwmu

Post Number: 243
Registered: 09-2004
Posted From: 24.247.221.241
Posted on Sunday, April 30, 2006 - 12:46 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

This Detroit News Article is a bit longer with more info:
http://www.detroitnews.com/app s/pbcs.dll/article?AID=/200604 30/METRO/604300360
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The_rock
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Username: The_rock

Post Number: 1183
Registered: 11-2003
Posted From: 68.42.251.225
Posted on Sunday, April 30, 2006 - 12:46 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

It WAS your money. What a gamble.
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Fnemecek
Member
Username: Fnemecek

Post Number: 1609
Registered: 12-2004
Posted From: 70.227.13.235
Posted on Sunday, April 30, 2006 - 12:53 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Ray1936:
Detroit Police & Fire Retirement System has roughy $4 billion in assets. This investment amounts to 0.375% of their portfolio.

I'm confident that this investment will be profitable for all parties. However, as a former broker for Merrill Lynch and Prudential, I also know enough about investing say that it's extremely unlikely that 0.375% of the portfolio will be enough to significantly impact the overall portfolio. Your pension is safe.

3rdworldcity:
The fund uses a series of professional managers, with a board to oversee all of them. The same board just approved a $100 million move into international small-cap equities, a move that is far riskier than the Book-Cadillac Hotel.

This is a simple investment by the fund. One that is likely to return a respectable profit.

I wouldn't be so quick to label this as politicians raiding a piggy bank.
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Ray1936
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Username: Ray1936

Post Number: 520
Registered: 01-2005
Posted From: 207.200.116.139
Posted on Sunday, April 30, 2006 - 1:44 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)


quote:

Detroit Police and Fire Retirement System has roughly $4 billion in assets. this investment amounts to 0.375% of their portfolio.




I know that, Fnemecek; I was being facetious. The system is 99% funded according to the 2004 annual report. I just think the BC is a pile of junk beyond repair that should be imploded.
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Fnemecek
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Username: Fnemecek

Post Number: 1610
Registered: 12-2004
Posted From: 70.227.13.235
Posted on Sunday, April 30, 2006 - 3:23 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

You and I will have to disagree in that assessment for now, Ray1936.

Of course, after the hotel has been re-opened for a couple of years, we'll have a much better of understanding of whose prognostication was more accurate.
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The_aram
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Username: The_aram

Post Number: 4836
Registered: 10-2003
Posted From: 68.41.124.8
Posted on Sunday, April 30, 2006 - 3:28 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)


quote:

I just think the BC is a pile of junk beyond repair that should be imploded.




Spoken in true jjaba form from the western time zone.
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Ray1936
Member
Username: Ray1936

Post Number: 522
Registered: 01-2005
Posted From: 207.200.116.139
Posted on Sunday, April 30, 2006 - 5:05 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Fnemecek, for the memories of what Detroit was, I hope you are right and I am wrong. However, were I a man of means looking to trade my Bentley in for a Ferrari, I would not invest in the BC project. I just don't see its economic potential considering the cost of re-building.

Let's check back in five years, and one of us will buy the other a beer. :-)
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Smogboy
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Username: Smogboy

Post Number: 2440
Registered: 11-2004
Posted From: 69.47.100.44
Posted on Sunday, April 30, 2006 - 5:40 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Let's hope it's in the lobby bar at the BC that we all hoist a beer.

I'm no investing genius but I do appreciate the architecture of the once grand hotel. I hope it can be restored to its brilliance and be financially profitable for all.
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Lilpup
Member
Username: Lilpup

Post Number: 977
Registered: 06-2004
Posted From: 64.12.116.204
Posted on Sunday, April 30, 2006 - 5:42 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

me, too, Smoggy, but mostly just to shut up the negative attitudes seemingly more prominent on these boards recently
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Fnemecek
Member
Username: Fnemecek

Post Number: 1613
Registered: 12-2004
Posted From: 70.227.13.235
Posted on Sunday, April 30, 2006 - 6:45 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Ray - you got yourself a deal.
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Erikd
Member
Username: Erikd

Post Number: 602
Registered: 10-2003
Posted From: 69.242.214.106
Posted on Sunday, April 30, 2006 - 6:55 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Count me in for beers at the BC lobby bar. We can make it a FSC night.
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Ray1936
Member
Username: Ray1936

Post Number: 524
Registered: 01-2005
Posted From: 207.200.116.139
Posted on Sunday, April 30, 2006 - 7:53 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Ok, all....mark your calendar. April 30, 2011, we all meet in the lobby of the new Book Cadillac Hotel, where I'll buy a beer for all who said it would happen. And I will promise Lilpup never to be negative again!
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7milekid
Member
Username: 7milekid

Post Number: 10
Registered: 01-2006
Posted From: 68.61.163.12
Posted on Sunday, April 30, 2006 - 8:09 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

well i say it will happen, so ill take a free beer as well
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Jimg
Member
Username: Jimg

Post Number: 590
Registered: 10-2003
Posted From: 64.12.116.204
Posted on Sunday, April 30, 2006 - 8:37 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Free beers?
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Smogboy
Member
Username: Smogboy

Post Number: 2445
Registered: 11-2004
Posted From: 69.47.100.44
Posted on Sunday, April 30, 2006 - 10:40 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

If someone's offering free beers to forumers, I doubt if the ENTIRE Police AND Fire funds could cover that tab!
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Ron
Member
Username: Ron

Post Number: 89
Registered: 03-2006
Posted From: 66.174.92.169
Posted on Monday, May 01, 2006 - 12:58 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

66 Luxury Condos, starting in the $300,000 range.
66 x $300,000 = $19,800,000 one time cash infusion. (All condos sold at price of $300,000)

500 Hotel Rooms:
Average 60% capacity = 300 rooms @ $200/night = $21,900,000/year. ($200/night a little high? Any comments from those who travel frequently? I don't know, I stay at Motel 6 when possible)

$175 M to renovate @ 13% rate of return over 30 years = ~$1,750,000 monthly payments = ~$21,000,000 annual payments for 30 years.

It appears at these rates, it would still turn a modest profit each year ($900,000 plus whatever rate of return is realized from investing the initial cash infusion realized from the sale of the condos.)

Can anyone in commerical finance tell me if this is a good deal or not?
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Viziondetroit
Member
Username: Viziondetroit

Post Number: 387
Registered: 11-2003
Posted From: 65.42.23.2
Posted on Monday, May 01, 2006 - 1:56 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

yay a Starbucks on in my area of downtown.. that rocks. Does anyone have any renderings of the proposed rehab?
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Kenp
Member
Username: Kenp

Post Number: 6
Registered: 03-2006
Posted From: 216.93.121.82
Posted on Monday, May 01, 2006 - 3:01 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

There will be other revenue generated by the facility. Meetings, parties, banquets and things of that nature. The space is perfect for this. I believe I heard they were actually adding new space for this purpose. Plus the first floor busineses will pay rent.
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Viziondetroit
Member
Username: Viziondetroit

Post Number: 395
Registered: 11-2003
Posted From: 65.42.23.2
Posted on Monday, May 01, 2006 - 3:06 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

The west side of downtown needs this kind of boom, it sucks on this side of Woodward where I work. All I see out my windows are BC, Book Tower, and bums....

I can't wait to see business and traffic flowing on Washington. Fingers crossed...
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E_hemingway
Member
Username: E_hemingway

Post Number: 594
Registered: 11-2004
Posted From: 68.42.176.123
Posted on Monday, May 01, 2006 - 3:11 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

A renovated Book Caddilac could be a watershed moment for redevelopment downtown. That would bring so much life to not only Washington and Michigan, but also to Capital Park. The only things I could see having a bigger impact downtown is if Rock Financial built on the Statler sight or if effective mass transit, specifically TRU's vision, were established between downtown and Ann Arbor.
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Kenp
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Username: Kenp

Post Number: 7
Registered: 03-2006
Posted From: 216.93.121.82
Posted on Monday, May 01, 2006 - 3:17 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

One big issue is going to be secure parking, what if any options are in the works for this? If there are 66 condos, 400+ hotel rooms and banquet/meeting facilities for 2000, there is going to have to be a place for them to park and feel safe.
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Mackinaw
Member
Username: Mackinaw

Post Number: 1454
Registered: 02-2005
Posted From: 71.144.95.162
Posted on Monday, May 01, 2006 - 3:17 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Indeed. It would really get things cracking on the western necklace of downtown, which has lagged.
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Ndavies
Member
Username: Ndavies

Post Number: 1773
Registered: 10-2003
Posted From: 129.9.163.105
Posted on Monday, May 01, 2006 - 3:39 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Kenp, they'll be building a large parking deck on the lot to the north of the BC. I believe they're also planning to incorporate the expanded banquet/meeting facilities into the deck.
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E_hemingway
Member
Username: E_hemingway

Post Number: 597
Registered: 11-2004
Posted From: 68.42.176.123
Posted on Monday, May 01, 2006 - 4:02 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

The parking plans for the Book Cadillac were discussed ad nauseum a few months back. They can be found in a search of the archives. From what I remember, the parking structure will incorporate the empty lot at Michigan and Griswold and the vacant Detroit Commerce Building at the corner of Michigan and Shelby. The commerce building will be torn down. Shelby street between State and Michigan will be closed. The parking structure will be somehow attached to the BC, about 8(?) stories tall with something like 500 spaces. There will be ground floor retail. The garage's fascade will also blend in with the BC. All this information is at least a few months old and coming off the top of my head, so who knows what has changed or what I'm forgetting/getting wrong. There are/were a couple of forumers who had extensive information on the deal, along with other downtown developments. A look back some of the older threads will tell you who. However, they either rarely or never post anymore. Too many idiots and too many arguments have driven them away from what I understand. That's a shame because they added a lot to this forum. They're missed.
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Kenp
Member
Username: Kenp

Post Number: 8
Registered: 03-2006
Posted From: 216.93.121.82
Posted on Monday, May 01, 2006 - 4:11 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Thank you E_hemingway & Ndavies for your info, I will look into archives for more.

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