Downtown Royal Oak, a popular nightlife spot in Southeast Michigan, has a moratorium on allowing transfers of licenses in to the city.
The pull-out means that HSA Commercial and the Morningside Corp., both of Chicago, have to scramble to find another tenant to bring the development up to 85% pre-leased, a financing requirement by National City Bank. A Barnes and Noble, The Gap and other retail, condominiums and restaurants are planned for the multi-phase development.
Tim Blum, senior vice president of HSA, said the clock is ticking on the survivability of the project. Barnes and Noble, phase one's main anchor, may pull out if construction is not begun soon, he said.
Blum said he would try to find another tenant, but believes it has to be a liquor-serving restaurant. However, any establishment would have to either move from within the city, or buy an available license in the city for about $300,000.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
