Hanna Still Waiting on Fifth, Hoping on Theater

Chrysos Development at first revealed plans in 1999 to build a hotel at the site on Washington and Fifth streets in the popular downtown area. The Royal Grand was to be a $30 million combined boutique hotel and condominium project."Originally the plan was to have half hotel and half residential," said Chrysos owner Jack Hanna.

However, that plan was scrapped, Hanna said, because after Sept. 11, 2001, it was very difficult to get financing from the hotel community.Now his company is making the third modification to plans of The Fifth, which would consist of 12 stories of condominium units.

"We're still working on the residential construction project," Hanna told GlobeSt.com. "We're hoping to deliver units in the near future." He said his company is still not ready to submit the new plans to the city. The city has been supportive of the project, however, Hanna noted.

The three revised plans were because the luxury condominium market has been falling off lately, Hanna said."The upper-end luxury condominium market has been slow for construction," Hanna said. "We had to redesign the units to accommodate a lesser price point."

The plan is also seeing competition from the largest condominium project in the city's downtown area, the SkyLofts along Main Street. HSA Commercial Real Estate is handling that eight-story project, now under construction, which features 70 luxury condominiums.

SkyLofts will be sold from between the mid-$200s to mid $600s, according to Lapides Publicity Group Inc., which represents the project.

However, Hanna also has his hands full with a new owner trying to move into the Royal Oak Music Theater. Hanna owns the historic building.

Murray Hodgson, the owner of the infamous Detroit nightclub Space, wants to move a similar but slightly more tame club into the Theater.Some of Space's events included drag queen and acrobat acts, and a large half-naked dominatrix.

The city's local Liquor Control Commission Committee is holding a public hearing next week for the Theater proposal. Residents have vehemently opposed the new club. Of course, residents have for years opposed the many new owners of the Theater, who have consistently said liquor events will be the only events that will bring money to the 80-year-old building.

Hanna said he's not worried about the Theater."Hodgson will do well, he can do a good job with management and security," Hanna said. "Some of the past operators have not operated it properly and have caused themselves financial difficulty."