Book Cadillac, Fort Shelby get HUD loan guarantee

The Book Cadillac Hotel and Fort Shelby redevelopment projects got a shot in the arm Monday.

The U.S. Department of Housing and Urban Development has approved the
City of Detroit’s application to transform a small portion of Community
Development Block Grant funds into federally guaranteed loans. That
will help clear the way way to redevelop two vacant downtown hotels.

HUD granted Detroit two Section 108 loan guarantees in the amounts of
$18 million and $18.7 million respectively to redevelop the 33-floor
historic Book Cadillac Hotel and the 22-story historic Fort Shelby
Hotel.

The Ferchill Group, developer for the Book-Cadillac, plans to
redevelop the site into a four star Westin Hotel with approximately
455 hotel rooms, 67 market rate condominium housing units, a 31,000-
square foot-conference center, 119,000-square-foot retail and
restaurant space, fitness facility and a 550 space parking garage. The
project is expected to create as many as 450 full-time jobs.

According to MCP, LLC, developer for the Fort Shelby, the existing
structure will be redeveloped into a 204-room Doubletree Guest Suites
Hotel, 38,000 square foot conference center, 1,200-square-foot retail
space and 63 residential units. This project is expected to create 374
full-time jobs.

Source: City of Detroit