It also started at one point with 70 apartments on the upper floors, but then expanded to include 130-150 market-priced loft-style apartments, commercial and retail space, and in-house parking. A local high-tech key tenant was observed, but was later abandoned, as was the Emerson School of Hospitality, before opting instead for the former CW Miller Livery Building on West Huron Street.
The project was due to be completed in 2018, but didn’t even get started until 2019. By that time, the price had already reached $ 88 million.
Then the ambitious redevelopment project was put on hold in October 2020 – with demolition already underway and pieces left hanging inside the fenced building – after its lenders withdrew their funding for the project due to the hotel’s failure. 80 rooms.
That’s because the hospitality industry has been hammered by the pandemic, which has frozen almost all business travel and dramatically reduced leisure travel. The lending group, led by Northwest Bank, feared funding an unstable business.
The hospitality industry still hasn’t fully recovered, so Krog has abandoned the hotel. He has now planned a whole new financial package, led by a large Connecticut lender that he has refused to identify.
Additional funding will still come from $ 16 million in brownfield tax credits and both state and federal historic tax credits, totaling $ 5 million and $ 20 million, respectively. The project is also located in a Federal Opportunity Zone, which has additional benefits for investors.