Wayne County expected to buy Guardian Building
Robert Snell / The Detroit News
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DETROIT --Wayne County Executive Robert Ficano is expected to announce more than $30 million in building purchases today, a plan that could involve relocating county workers from the Old Wayne County Building to the Guardian Building.
The 11 a.m. announcement will be made at the Guardian Building, which Wayne County Commissioner Edward Boike suspects will be purchased by the county, and possibly serve as the new headquarters of county government.
The spending spree comes amid a lingering dispute between owners of the Old Wayne County Building and Ficano, who claims the county is being overcharged to lease the structure.
The spree could reshuffle occupancy rates for at least two historic downtown properties, or it could merely be a bluff by Ficano to secure a more favorable lease rate at the 105-year-old Old Wayne County Building, which is known for its ornate ceilings, mosaic floors and antique statues of a horse and chariot on its roof.
"I don't think it's a bluff," Boike said. "I think what it says is, 'Hey, we are serious.' The landlord's got to pay attention now. What we're paying for the building right now is way too much."
The county leases the building for about $5 million a year from Southfield-based Old Wayne County Building Limited Partnership, a private company that owns the historic site. Ficano has accused the company of routinely overcharging for office space and threatened to move out of the building on Randolph Street in downtown Detroit.
Both sides were scheduled to meet Monday to discuss proposals that could keep Wayne County offices in the Old Wayne County Building but the meeting's outcome was unclear Tuesday. Partnership spokesman Michael Layne could not be reached for comment.
Boike said a decision has not been made to vacate the Old Wayne County Building or purchase the Guardian Building. And he has not been briefed on how the county will pay for the purchases or what other buildings are involved.
"The commission will have the final vote on that," Boike said.
The Guardian's owner, 500 Associates LLC., is a joint venture between New York Capital in New York and Sterling Group, a real estate firm in Detroit. The venture bought the 40-story, 750,000-square foot landmark from DTE Energy in 2003.
The occupancy rate of the Guardian is 69 percent, which translates into 197,216 square feet of available space available, according to Co-Star Property. The average rent is $16.75 per square foot.
Danny Samson of The Sterling Group did not return a phone call seeking comment Tuesday but is scheduled to attend today's news conference.
Staff writer Louis Aguilar contributed to this report. You can reach Robert Snell at (313) 222-2028 or
rsnell@detnews.com.