[animatedmartian]

DEGC: Proposed boutique hotel project at Grand Circus Park 'not realistic'
By Kirk Pinho. January 31, 2014.

A spokesman for the Detroit Economic Growth Corp. said Friday that a proposed development for the former site of the Statler Hilton Hotel on Grand Circus Park had “serious deficiencies” and was rejected by DEGC staff.

Bob Rossbach said he did not know when the proposal to build a 118-room boutique hotel, a 700-space Miller’s Parking Services garage, 150 high-rise residences and three restaurants was rejected, but it was “some time ago.”

Crain’s reported Thursday that a group of Michigan and out-of-state investors had plans for the project and that a $1.5 million purchase offer and $100,000 deposit had been made for the site and presented to the office of Detroit Mayor Mike Duggan, the Downtown Development Authority and the DEGC.

But Rossbach said Friday that the developers did not present a viable business plan. The plan included revenue and expense projections that were “not realistic,” Rossbach said. He would not elaborate.

William McCrary, the president and vice principal of the Downtown Detroit Executive Hotel Complex development group, said Friday that there was never a formal request for approval to the DEGC.

“It was never a rejection because it was never an official request,” he said. “There was never an official request with any entities.”

McCrary, who sent a press release on Wednesday night about the development, declined to reveal the cost of the project.

He said he will continue to try to purchase the Grand Circus Park land from the city. However, Rossbach said that in general, the city would only sell the land to the development group if it had a positive recommendation on the project from the DEGC.

The DEGC continues to consider alternative proposals for the site, which is owned by the city of Detroit, according to Rossbach.

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By the way, this might be a relevant time to mention that George Jackson is resigning from the DEGC this March. Not that he has anything to do with this story, but relevant to the entity.