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ROYAL OAK, MI-A committee has selected a development plan from the Schostak Bros. of Southfield. The developer wants to build a six-story, 229,030-sf office building; a seven-story, 101,188-sf hotel and 14,025-sf of retail, all served by an internal parking structure. The committee is made up of three members of the city commission and three members of the Downtown Development Authority.

Schostak is currently building Campus Martius, a five-block, 2.5-million-sf, mixed-use development located Downtown. The company was selected by Detroit leaders for the project. Barbara Bos, chairwoman of the DDA, said she was encouraged Schostakhas met some of the city’s concerns.

“They’re going to work to bring us a hotel, and they have a wonderful looking office planned,” she says.

However, while David Schostak, an owner of the company, won points from the committee by promising he had a 70,000-sf tenant that wants to move in immediately after opening, Schostak couldn’t guarantee they could bring in a hotel.

John Hanafin, an assistant city manager who has been working on the project, says the company instead will pay $2 million up front and begin construction on the office and parking garage this year. Schostak will then spend 30 months conducting a market survey for the hotel to gauge interest. If no hotel is wooed, the company will instead build another 200,000-sf office building and add more parking to the deck. Whatever happens, the company will also hand over another $2 million check to the city after the 30 months.

Tri-Mount Construction built condominiums just north of the site, but lost its bid to build a hotel and more condos on the site in March, after the company scrapped an office project that was supposed to adjoin the hotel.

City leaders have said an office development must go on the site.

Two other projects missed the cut for the site. They were:

* Kojaian, which wanted to build a five-story, 102,000-sf office building with surface parking. The company offered $1.1 million for the land.

* Blue Hill, which wanted to build a three-story, 50,000-sf office building and a four-story hotel, that would have had 7,500-sf of retail. The company offered more than $1 million for the site.

The committee had already rejected other plans from Tri-Mount, Kirco Development of Troy, the Robertson Brothers and Weiss Brokerage.

Mayor Dennis Cowan says the city commission will vote on the plan at its meeting Monday night, and the DDA will then vote on the plan at its Wednesday night meeting. After that, the company will have 30 days to bring a specific development plan to the city, he says.

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