Agreement sets timeline for redevelopment of historic Eddystone Hotel
Detroit — A stalled plan to redevelop the historic Eddystone Hotel is expected to get underway this summer.
Olympia Development of Michigan on Friday announced it's reached a deal with Detroit and the Downtown Development Authority to amend an existing agreement for the hotel that establishes a timeline for its redevelopment.
“We are pleased to have reached an agreement with the city which provides a clear pathway and timeline to move this important project forward,” said Keith Bradford, a senior vice president for District Detroit, in a released statement. District Detroit is a 50-block area around Little Caesars Arena.
“We’d like to thank our public partners for the cooperation that made this agreement possible and we are excited to get moving on redeveloping this historic building which will be a great addition to the city’s residential market.”
The 13-story hotel, on the northwest corner of Park and Sproat, next to Little Caesars Arena, is to be transformed into about 100 rental apartments, 20% of which will be earmarked at affordable housing rates.
The proposed amendment will be submitted to the Downtown Development Authority at its board meeting on Wednesday.
Olympia officials declined Friday to release additional details or specifics on the timeline in advance of that meeting.
Kraemer Design Group will serve as the architect and O’Brien Construction Co. as the Construction Manager for the project that's expected to begin in June, officials said.
Originally, the agreement called for work on the hotel was to start roughly a year after the arena was finished. The arena opened in fall 2017.
As part of the amendment, Olympia will provide a letter of credit or performance bond to ensure the project meets specific milestones by certain dates and that the project is completed, Olympia, the real estate arm of the Ilitch organization said in a news release.
David Bell, who heads the city's Buildings, Safety, Engineering, and Environmental Department, said in a released statement that Detroit is pleased to secure the commitment.
"With our partners at the DDA, we will be monitoring the agreement as part of building, zoning, and property maintenance enforcement responsibilities," Bell said. "We look forward to seeing progress at this property."
Plans for the hotel come after an HBO sports show in April was critical of the still-unfulfilled promises by the Ilitch family to build five new neighborhoods around the arena as part of the District Detroit.
The billionaire owners of the Detroit Red Wings, Tigers and Little Caesars Pizza refuted the piece, claiming it was inaccurate and sensationalized.