This time the deal that seems to be in jeopardy is the redevelopment of the Book Cadillac Hotel, a 33-story downtown landmark. The developer who was leading the effort to redevelop the hotel is pulling out of the project.
Historic Hospitality Investments LLC, a subsidiary of the Kimberly-Clark Corp., notified the city this week that the redevelopment would have cost about $30 million more than the original estimate of $145 million. That's more than the developer is willing to swallow.
Kimberly-Clark spokesman Dave Dickson said Historic Hospitality's withdrawal "follows extensive re-evaluation of project costs and expected revenues. The project is no longer economically viable," he said.
The redevelopment of the hotel was a key component of the city's effort to revive downtown in time for the 2006 Super Bowl. The city was also counting on the added rooms the hotel would provide for that event.
Despite the setback, Mayor Kwame Kilpatrick said he was confident the city would have a deal with another developer by next week. "We're already talking to a credible developer, a national developer," he said. "I believe that we'll have an announcement as early as next week." He went on to say that interior demolition was continuing at the site and that the project would still be done in time for the Super Bowl.
The Book Cadillac opened in 1924 and was in operation until 1984 and has been vacant since then.
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