A $14 million construction loan from
ShoreBank closed Thursday, April 26, ensuring the go-ahead for the $82 million redevelopment of the Fort-Shelby Hotel.
The Fort Shelby, built in 1917 and expanded in 1926, has been closed for over 30 years. It renovation will consist of a 204-room Double Tree Suites Hotel on the first ten floors of the building, 67 luxury apartments on floors 11-22 and 38,000 square feet of IACC-certified conference space.
The
International Association of Conference Centers (IACC) is a non-profit agency that certifies meeting facilities around the world. As no IACC conference centers currently exist in Detroit, ShoreBank vice-president Beverley Loyd says, "It is very significant for this project. It opens them up to conferences that might not have thought about coming to Detroit. It's a designation that lets potential conferences know what they can expect—a certain consistency around the world. The technology will be up-to-date and there is a level of service you can expect."
The apartments will be 1-, 2- and 3-bedrooms that will range in size from 1,000-2,200 square feet. Loyd estimates rental rates at approximately $1.42/square foot. The units will be rentals for five years due to historic tax credit restrictions, at which time ownership will become an option.
The facility will also include a restaurant and cocktail lounge, a fitness and spa club and 1,200-square foot of retail.
Additional financing mechanisms for the project include HUD and the General Retirement System of Greater Detroit, Federal and State historic tax credits, Michigan single business tax credits and a Federal historic conservation easement.
ShoreBank anticipates the project will create 300 temporary construction jobs and 374 permanent full-time jobs. Project completion is estimated for fall of 2008.
ShoreBank is one of the multiple funding sources in play at the Book-Cadillac and was also involved with the redevelopment of the Iodent Building, home to the Centaur Bar. Loyd says, "We are a community development bank, so we focus on urban lending—rebuilding, revitalizing the community. That is really our focus as a bank."
Source: Beverley Loyd, ShoreBank
Writer: Kelli B. Kavanaugh