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October 2019

Real Estate Insider: Don’t Expect Joe Louis Arena Site Development Anytime Soon

By Site development

The US Department of Housing and Urban Development contradicts developer Emmett Moten Jr.’s claim last week that the department is demanding the demolition of the United Artists Theater, attached to the United Artists Building, for the $ 56 million redevelopment of the 18 floors. tower overlooking the Grand Circus park.

“We’ve been looking for ways to use it, and you can’t use it for anything,” Moten told the Detroit City Council’s Standing Committee on Planning and Economic Development Thursday. “They won’t shut down this project unless the building collapses.”

the Detroit News first reported Response from HUD.

Marta Jauniza, Chicago Public Affairs Specialist for the HUD, sent me the same statement she sent to The News: “The HUD did not impose a condition requiring the theater to be demolished. The borrower’s proposal was to demolish the theater.

A loan for the project would be provided through HUD’s 221 (d) (4) program, which provides a 40-year multi-family construction loan that requires departmental assessment of market, demand and other issues.

However, it may be a question of speaking of generalities.

John Graves, one of Moten’s Bagley Development Group LLC investors, said Gershman Mortgage, which is expected to provide around $ 34.5 million in senior debt for the project tentatively scheduled for 2021, believes it will not demolish the theater would put it in jeopardy financially.

He provided a letter from Adam Hendin, vice president of Gershman’s office in Clayton, Missouri, outlining the mortgage company’s position. Hendin confirmed on Tuesday morning that he wrote the October 2 letter to Moten.

The letter states that the theater is removing possible parking spaces for residents, making “the project less attractive and less marketable to potential tenants”, and that “the theater building is dilapidated and not an attractive building to live in. to the side”.

Further, the letter states: “If the theater building is renovated and becomes operational again, Gershman is concerned that this adjoining commercial and public use will disrupt residential tenants and therefore make the project less attractive and less marketable as a running business. .

The letter says that “the development has been presented to Gershman and the HUD in such a way that the adjoining theater is demolished.”

“As part of the demolition approval by Gershman and HUD, we will need the appropriate approvals from the State Historic Preservation Office (SHPO),” the letter said. “It was recently brought to Gershman’s attention that there are plans not to demolish the theater. Not demolishing the theater is a significant change from the funding request that has been submitted and approved to date, and this change will put 221 (d) (4) funding at risk. ”

Detroit City Council’s Standing Committee on Planning and Economic Development last week recommended approval to establish an obsolete property rehabilitation district and property tax allowances totaling $ 2.43 million. in dollars – about $ 175,000 for the OPRA and $ 2.25 million for the NEZ, according to Tracey Lynn Pearson, deputy director of media relations to Mayor Mike Duggan.

Developer briefs Virginia Beach City Council on Dome site development conditions

By Site development

Virginia Beach city officials and developer Venture Realty presented details of their deal on Oct. 29 to city council members.

VIRGINIA BEACH, Va .– The Virginia Beach Development Authority and developer Venture Realty Group briefed city council members on Tuesday afternoon on the conditions for revitalizing the former Dome site into an epicenter of entertainment.

The city and Venture Realty met with City Council on October 29 to brief members on what lies ahead for the site, including a construction schedule and improvements to the original plan.

“We wanted to give our friends and neighbors in the city of Virginia Beach regionally a reason to come back to their Cceanfront,” Mike Culpepper, a representative for Venture Realty told board members. “We want to take the positive energy and goodwill of Something in the Water and inject it into a vibrant and dynamic development 24/7.”

The city council approved a Term sheet without development commitment in January. Venture Realty and city staff negotiated a ten month period to create the terms of the full development agreement.

Now the deal must be approved by city council and the Virginia Beach Development Authority.

RELATED: City Council to Discuss Potential Dome Site Deal

RELATED: Dome Site Project Goes Forward, Adds to Changing Seaside Scene

RELATED: Virginia Beach Provides Update on Potential Dome Site Deal

RELATED: Virginia Beach and Developer Reach Deal on Old Dome Site

Plans are in place to fully construct a multi-use residential and entertainment complex on the property between 18th and 20th Streets. This epicenter will include a Wavegarden Surf Park, a state-of-the-art live entertainment venue that 3,500 people can fill, shops, restaurants and hundreds of residential units.

The entire project is estimated at around $ 325 million. The city will invest around $ 230 million to develop the surf park, commercial offices, as well as residential and commercial spaces, while around $ 95 million will go to the public parking lot and place of entertainment. City officials estimate that the park will generate $ 8 million per year, which will be reinvested in public schools, the general fund and the tourism fund.

“This [is] an entertainment opportunity for the public and this will generate significant tax revenues for schools and for public safety, ”said Councilor Louis Jones.

Originally, this idea came from Pharrell Williams who wanted to develop a surf park near the Oceanfront. He partnered with Venture Realty to make this a reality.

You can find out more about the project here.