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DETROIT-The city of Detroit has officially unveiled the plan for the $146.8 millionredevelopment of the legendary Book-Cadillac Hotel, the city’s premier hotelthrough much of the 20th Century.

The hotel was built in 1924, and was closed in 1984. Its structure andinsides are damaged by the elements and neglect.However, Detroit needs hotel space when it hosts the 2006 Super Bowl at FordField, and the city has gone on a hard push to renovate and rebuild in thecity.

The new hotel will be called the Renaissance Book-Cadillac Hotel and will bean upscale brand of Marriott International. It will feature 483 guest-rooms,76 high-end apartments and a 186-car parking garage.

“This magnificent structure has literally been rescued from the wreckingball. Just as it symbolized the greatness of Detroit in its heyday, it nowsymbolizes the rebirth of our downtown and our city,” said Detroit MayorKwame Kilpatrick at a press conference.

The financing package that made the renovation possible was put together bythe Detroit Economic Growth Corp. and the principal private sectorinvestor, Historic Hospitality Investments, LLC, (HHI) a subsidiary of theKimberly-Clark Corp.

Kilpatrick said the final financial package to fund the renovations resultedfrom a united effort that includes Historic Hospitality, the City ofDetroit, the State of Michigan and the U.S. Department of Housing and UrbanDevelopment.

An agreement with local financial institutions — to provide $12.1 millionfinancing for the residential component of the project – is close to beingfinalized, according to the mayor.

He said the administration will request from City Council next weekauthority to submit an application for a $15million Section 108 loan fromthe U.S. Department of Housing & Urban Development (HUD). The State ofMichigan is providing historic and brownfield tax credits totaling $8.9million. The package includes a $5.1million development loan and a $7 million remediation loan.

The Downtown Development Authority, also will issue $52 million intax-exempt Empowerment Zone bonds. The bonds are backed by hotel operatingrevenue, with neither the City nor the DDA having any liability orobligation on the bonds, said city officials.

Detroit Economic Growth Corporation President George Jackson said theEmpowerment Zone bonds were critical to putting the deal together torenovate the hotel.

“Until January, 2002, Detroit did not have the ability to float EmpowermentZone bonds for projects in excess of $3 million,” Jackson said. “Once wewere given more flexibility to float bonds within the zone we had to amendthe Empowerment Zone to include the Book Cadillac. Financing for projects ofthis site requires participation at all levels of government and must haveprivate sector equity in the deal. We were successful in putting together afinancing package that made sense for everyone involved in the deal.”

The company has some experience, having completed a successful $268 millionrenovation of the Renaissance Grand Hotel in St. Louis, a project verysimilar in scope and history to the Book.

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