The Ilitch family and billionaire developer Stephen Ross have submitted a development plan for a new $190.5 million hotel immediately south of Little Caesars Arena.
Long on the drawing board, the hotel would have 14 floors and 290 rooms and 30,000 square feet of hotel amenities and commercial space on the ground floor, according to a proposal signed by the board of directors on Wednesday. the Downtown Development Authority. It would be 180 feet tall.
Construction would begin no later than the third quarter of 2024 and take about three years to complete, according to a briefing note from the DDA board.
A joint venture to be established between the Detroit-based Ilitch family’s Olympia Development of Michigan and Related Cos. de Ross, based in New York, would lease the land to an entity owned by Olympia.
“A hotel on the doorstep of the nation’s second-busiest arena will allow Detroit to attract more of the world’s most-watched entertainment events and invite visitors to extend their stay and experience more of this great city and this growing neighborhood,” said Andrew Cantor, President. of Related’s Michigan arm, said in a press release. “Related remains extremely optimistic about the future of The District Detroit and is working closely with our partners at Olympia Development and with the city to provide the kind of inclusive economic opportunities this community deserves.”
“The hotel, food and beverage and other amenities on offer will create a wide variety of good jobs and draw people from around the area, state and beyond to The District Detroit,” said Keith Bradford, President of Olympia and The District Detroit, in the press release. .
Earlier this year at the Mackinac Policy Conference, Ross said it would be an Equinox hotel designed to accommodate visiting professional sports teams.
The development agreement indicates that the developer expects to seek public incentives for the project, which it says are necessary for it to be economically viable. Olympia and Related will manage members of the developing entity and contribute equity to the project, the development agreement says.
A copy of the project’s budget indicates that construction would cost $137.3 million, with architectural and engineering costs totaling $13.4 million; project management, development, legal and other costs of $11.6 million; permit and utility fees costing $2.47 million; leasing and marketing expenses of $5.18 million; funding of $6.7 million; and contingency costs of $13.8 million.
The two companies have joined forces over the past year to work on projects in the Ilitch family’s Detroit area, primarily the University of Michigan’s Detroit Center for Innovation graduate school campus, which has received a $100 million budget from the legislature during the state budget process.
Earlier this year, Related and Olympia unveiled a series of revived visions for the new and redeveloped buildings; for years, the District Detroit project as originally proposed in July 2014 has lagged behind expectations, particularly with regard to housing, although some apartments have come online in the former hotel Eddystone over the past year and construction began earlier this year on the approximately 150 apartment United Artists Building.
In December 2019, Olympia received a three-year extension to submit a development proposal for the hotel property, located on Woodward Avenue south of the arena in exchange for approximately $500,000 of land to be used as a park space. The original deadline was June 28, 2019, but Olympia had not submitted a development plan by that deadline and was in violation.
On Wednesday, the DDA Board of Directors also approved granting Olympia an additional year, until September 12, 2023, to receive approval for development proposals for 84 Sproat St., 2720 Park Ave. . and several properties on Third and Fourth Streets.