8.28.07Hope for Cass Corridor
Ilitch takeover of Masonic Temple may spur development of decaying area
Robert Snell and Louis Aguilar / The Detroit News
DETROIT -- Ilitch Holdings Inc.-- the billion-dollar family empire of sports, entertainment, pizza and real estate in downtown Detroit -- hopes to venture into a long-abandoned stretch of the city: the Cass Corridor.
Ilitch's Olympia Entertainment is negotiating to take control of the iconic Masonic Temple, a city landmark mired in so much debt its owners, the Masons, face losing the building. The deal could be announced within a week to 10 days, said Bill Betz, president of the Masonic Temple Association, which would continue to own the 16-story landmark.
An Ilitch-run Masonic could be an energizing development for an area trapped in poverty and decay, according to city, business and neighborhood officials. It is the one spot left in the city core that could most benefit from a business titan who revived the Fox Theatre area 20 years ago, they say.
A Masonic deal could be transformational, Betz said.
"In five years -- the whole neighborhood -- you won't recognize it," he said.
Security and money from entrepreneurs willing to back projects near an Ilitch endeavor will likely follow the Little Caesars Pizza owner into "the Corridor," developers and city officials said.
Ilitch Holdings spokeswoman Karen Cullen would only say "discussions are continuing."
For now, though, much of the Cass Corridor looks forgotten and mean. Across from the Masonic is Cass Avenue Park, where on a recent afternoon a group of bare-shirted men with grocery carts full of personal belongings sat in a circle, sharing a bottle wrapped in a paper bag.
'Lots of things happen'
The Ilitches would not be the first major players to enter the Corridor, specifically the southern part, defined by Cass Avenue between the 1-75 service drive and Martin Luther King Boulevard. Other influential developers have purchased blighted properties with intentions to restore them to housing and small businesses, adding to the few already there. There's a dog day care center and renovated housing that advertises DSL access.
"Obviously a lot needs to be turned around down there," said George Jackson, president of the Detroit Economic Growth Corporation, the quasi-public city agency promoting Detroit development. "But it's the logical place for growth if you want what's happening in Midtown to merge with all the growth that's going on downtown.
"With the Ilitches jumping in there, it becomes very interesting. Because when they set up shop in an area, lots of things happen."
One thing that could happen is the Masonic becomes a solid, steady venue for entertainment again.
But only after the Ilitches pay off the Masonic's outstanding bills, Betz said.
The Masonic association's debt grew in recent years as other Masonic organizations relocated from the Gothic-style building to the suburbs and entertainment bookings plummeted.
The association, which would still own the building under the deal that's being negotiated, owes about $242,000 in delinquent property taxes and unpaid water and sewer bills, and faces possible foreclosure in March.
There are parallels between the Masonic venture and Ilitch's work over the past 20 years that created a sprawling sports and entertainment district along Woodward just south of Cass Corridor across I-75. And while the company has similar deals with Cobo Center, Joe Louis Arena and Comerica Park, all of which they do not own, the company essentially controls all commercial business at those locations and reaps the revenue.
Slide worsened in 1980s
In the 1970s, the Cass Corridor was filled with Appalachian families and still had an area called Chinatown, said Patrick Dorn, executive director of the Cass Corridor Neighborhood Development Corporation, which rehabilitates and builds affordable housing nearby.
Those with enough money left and the neighborhood started to decay once property owners started selling to negligent owners, Dorn said. The slide worsened in the 1980s when the city made the area home to social service providers such as homeless shelters.
"That was the finishing touch," Dorn said.
"Whenever you have isolationism where there's nobody there, except people you wouldn't want to meet in the dark, you're not going to be the first one to put money in."
The neighborhood is exceedingly poor, especially compared to the rest of the city. Median household income is $8,317, far below the city's median household income of $29,526, according to the U.S. Census.
It is the second poorest census tract in the city, and arguably the poorest populated area.
Joel Landy, a 30-year resident of the Cass Corridor, says he's been a part of more than $20 million in investments there and he intends to invest at least that much in the near future. He owns more than 45 properties ranging from small storefronts to multiple housing units to empty lots.
On a recent drive through Cass Corridor, Landy pointed out brothels and drug havens as well as restored buildings and new retailers.
"It looks pretty tough but there's so much opportunity and many beautiful buildings. I welcome the Ilitches because they've been a great force. I just hope they look around the area and notice what else needs to be done in the area," Landy said.
Other prominent developers such as Dwight Belyue have also recently purchased properties in Cass Corridor the past few years. "You know, when the Ilitches set up shop in the Fox, that area didn't look all that different from Cass Corridor," Belyue said, who owns the Belmar Development Group. He and Seattle developer Mike Dunne bought three apartment complexes on the corner of Cass and the I-75 service drive that were known crack and prostitute dens.
Betz, the Masonic president, said a deal to transfer management of the Masonic is imminent, though he refuses to identify Ilitch by name despite a Ilitch Holdings representative confirming the company is in negotiations.
"All the pieces of the puzzle, I believe, are in place," Betz said.
The temple has two theaters, which seat 4,400 people and about 1,550, respectively. A third theater sits unfinished on the temple's seventh floor.
There also are two massive ballrooms that host weddings and meetings, and a vacant 10-story office tower that could house lofts or apartments, Betz said.
You can reach Robert Snell at (313) 222-2028 or rsnell@detnews.com
Ilitch takeover of Masonic Temple may spur development of decaying area
Robert Snell and Louis Aguilar / The Detroit News
DETROIT -- Ilitch Holdings Inc.-- the billion-dollar family empire of sports, entertainment, pizza and real estate in downtown Detroit -- hopes to venture into a long-abandoned stretch of the city: the Cass Corridor.
Ilitch's Olympia Entertainment is negotiating to take control of the iconic Masonic Temple, a city landmark mired in so much debt its owners, the Masons, face losing the building. The deal could be announced within a week to 10 days, said Bill Betz, president of the Masonic Temple Association, which would continue to own the 16-story landmark.
An Ilitch-run Masonic could be an energizing development for an area trapped in poverty and decay, according to city, business and neighborhood officials. It is the one spot left in the city core that could most benefit from a business titan who revived the Fox Theatre area 20 years ago, they say.
A Masonic deal could be transformational, Betz said.
"In five years -- the whole neighborhood -- you won't recognize it," he said.
Security and money from entrepreneurs willing to back projects near an Ilitch endeavor will likely follow the Little Caesars Pizza owner into "the Corridor," developers and city officials said.
Ilitch Holdings spokeswoman Karen Cullen would only say "discussions are continuing."
For now, though, much of the Cass Corridor looks forgotten and mean. Across from the Masonic is Cass Avenue Park, where on a recent afternoon a group of bare-shirted men with grocery carts full of personal belongings sat in a circle, sharing a bottle wrapped in a paper bag.
'Lots of things happen'
The Ilitches would not be the first major players to enter the Corridor, specifically the southern part, defined by Cass Avenue between the 1-75 service drive and Martin Luther King Boulevard. Other influential developers have purchased blighted properties with intentions to restore them to housing and small businesses, adding to the few already there. There's a dog day care center and renovated housing that advertises DSL access.
"Obviously a lot needs to be turned around down there," said George Jackson, president of the Detroit Economic Growth Corporation, the quasi-public city agency promoting Detroit development. "But it's the logical place for growth if you want what's happening in Midtown to merge with all the growth that's going on downtown.
"With the Ilitches jumping in there, it becomes very interesting. Because when they set up shop in an area, lots of things happen."
One thing that could happen is the Masonic becomes a solid, steady venue for entertainment again.
But only after the Ilitches pay off the Masonic's outstanding bills, Betz said.
The Masonic association's debt grew in recent years as other Masonic organizations relocated from the Gothic-style building to the suburbs and entertainment bookings plummeted.
The association, which would still own the building under the deal that's being negotiated, owes about $242,000 in delinquent property taxes and unpaid water and sewer bills, and faces possible foreclosure in March.
There are parallels between the Masonic venture and Ilitch's work over the past 20 years that created a sprawling sports and entertainment district along Woodward just south of Cass Corridor across I-75. And while the company has similar deals with Cobo Center, Joe Louis Arena and Comerica Park, all of which they do not own, the company essentially controls all commercial business at those locations and reaps the revenue.
Slide worsened in 1980s
In the 1970s, the Cass Corridor was filled with Appalachian families and still had an area called Chinatown, said Patrick Dorn, executive director of the Cass Corridor Neighborhood Development Corporation, which rehabilitates and builds affordable housing nearby.
Those with enough money left and the neighborhood started to decay once property owners started selling to negligent owners, Dorn said. The slide worsened in the 1980s when the city made the area home to social service providers such as homeless shelters.
"That was the finishing touch," Dorn said.
"Whenever you have isolationism where there's nobody there, except people you wouldn't want to meet in the dark, you're not going to be the first one to put money in."
The neighborhood is exceedingly poor, especially compared to the rest of the city. Median household income is $8,317, far below the city's median household income of $29,526, according to the U.S. Census.
It is the second poorest census tract in the city, and arguably the poorest populated area.
Joel Landy, a 30-year resident of the Cass Corridor, says he's been a part of more than $20 million in investments there and he intends to invest at least that much in the near future. He owns more than 45 properties ranging from small storefronts to multiple housing units to empty lots.
On a recent drive through Cass Corridor, Landy pointed out brothels and drug havens as well as restored buildings and new retailers.
"It looks pretty tough but there's so much opportunity and many beautiful buildings. I welcome the Ilitches because they've been a great force. I just hope they look around the area and notice what else needs to be done in the area," Landy said.
Other prominent developers such as Dwight Belyue have also recently purchased properties in Cass Corridor the past few years. "You know, when the Ilitches set up shop in the Fox, that area didn't look all that different from Cass Corridor," Belyue said, who owns the Belmar Development Group. He and Seattle developer Mike Dunne bought three apartment complexes on the corner of Cass and the I-75 service drive that were known crack and prostitute dens.
Betz, the Masonic president, said a deal to transfer management of the Masonic is imminent, though he refuses to identify Ilitch by name despite a Ilitch Holdings representative confirming the company is in negotiations.
"All the pieces of the puzzle, I believe, are in place," Betz said.
The temple has two theaters, which seat 4,400 people and about 1,550, respectively. A third theater sits unfinished on the temple's seventh floor.
There also are two massive ballrooms that host weddings and meetings, and a vacant 10-story office tower that could house lofts or apartments, Betz said.
You can reach Robert Snell at (313) 222-2028 or rsnell@detnews.com
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