$80 million for the train station? Skeptics doubt it.

Some say $80 million could put a big dent in fixing the exterior, public areas and installing HVAC.

In the more than 20 years since the trains stopped running at the Michigan Central Station, dreamers and schemers have suggested all sorts of new uses for the depot: a casino, convention center, world trade mart, Detroit police headquarters and more.

Nothing worked. All the ideas were dashed by the realities of renovating a huge ruin of a century-old building remote from the immediate downtown.

So it’s no surprise that skepticism greeted the surprise declaration last week by Dan Stamper, a top aide to train station owner Manuel (Matty) Moroun, who with his family also owns the Ambassador Bridge, that the Morouns would spend $80 million to fix up the station in coming years.

Some say $80 million could put a big dent in fixing the exterior, public areas and installing HVAC. But most developers interviewed by the Free Press said it would cost much more to restore the building to its former glory, with some previous estimates in the $300-million range.

Skepticism arose partly this week because of where Stamper made his revelation — before the Detroit City Council, where he was trying to persuade council members not to sell land in southwest Detroit for the government’s New International Trade Crossing bridge project.

The NITC bridge would siphon traffic and toll revenue away from the Ambassador Bridge. Moroun for years has been trying to block the new bridge. Promising to clean up the train station might have been a bid to win a few votes from a skeptical council.

Skepticism also arose because Moroun, who has owned the train station since the 1990s, has moved at a snail’s pace to renovate it. He has increased security and replaced a few windows but otherwise has left the station pretty much as he found it.

n 2003, when then-Mayor Kwame Kilpatrick announced the depot would become the city’s new police headquarters, the project was to have cost $100 million to $150 million. But there were doubters then, too, who said restoring the landmark to service could cost up to $300 million.

Then there are the costs of other, smaller historic rehabilitations in downtown Detroit.

Book-Cadillac Hotel: $190 million.
Fort Shelby Hotel: $75 million.
Broderick Tower: $53 million.
The Broderick is only 200,000 square feet, give or take — Michigan Central Station is almost three times that size.

“Eighty million, to me, is a drop in the bucket for that building,” said Roger Lesinski Sr. of Rochester Hills, one of the partners in the Broderick renovation. “I have no idea what they’ve invested to date in terms of the partial window replacement, but to restore that building and install all the mechanical systems, the heating, the electrical, the elevators, etc., is going to cost a lot more than $80 million.”

Others are more hopeful, albeit cautiously so.

David Di Rita is a principal at the Roxbury Group, which is doing a $92-million renovation of the David Whitney Building in downtown Detroit. Like the train station, the Whitney is one of those 20th-Century Detroit landmark buildings, loaded with jaw-dropping architectural detail and history.

Unlike Michigan Central, however, the Whitney wasn’t destroyed by scrappers, vandals and the elements. So while Di Rita is hopeful, “given the scale and advanced state of deterioration, that price seems a little light.”
Still, he said, “a great deal of good could be done with $80 million to put it back on the path toward being a productive building again. You could probably return the building’s core and shell, shore up its exterior, get windows, basic HVAC, fix up public areas, maybe the concourse. If they were looking to just bring the building back from the brink, that may be enough money.”

But if they’re going to restore the depot’s dazzling décor, Moroun would have to open his wallet a bit wider. When it comes to the ornate plasterwork and marble lining the station’s walls, floors and ceilings, “there is so much damage — and there is so much of it. It would certainly be the most expensive part of the renovation if they can pull it off.

“Most importantly, the building can be restored, and anyone who thinks otherwise doesn’t understand how well these buildings were built. Despite the neglect and abuse that building has taken, it is absolutely salvageable — and is worth the cost to save it.”

Michigan Central Station by the numbers:

$2.5 million: Cost, in 1913 dollars, to build
$58.9 million: Cost, in 2013 dollars, to build
1913: Year the depot opened, on Dec. 26
1988: Year the depot closed, on Jan. 5
18: The number of floors of the building’s office tower
8 million: The number of bricks in the building
7,000: The number of tons of structural steel used
3,000: The approximate number of employees who worked in the building in the 1940s
4,000: Average daily number of passengers at MCS in 1945
1,000: Average daily number of passengers at MCS in 1967
74: Number of years depot was in service
$110 million-$300 million: Estimated cost to renovate the building
$5 million-$10 million: Estimated cost to demolish it

Originally posted by: The Detroit Free Press

Detroit EM To Go Ahead With Land Sale For New US-Canada Bridge Despite Objections

DETROIT (WWJ/AP) – The Detroit City Council might not like a proposal to sell 301 city-owned properties to build a new bridge between the U.S. and Canada — but that’s not going to stop state-appointed Emergency Manager Kevyn Orr.

The council on Tuesday unanimously rejected the $1.4 million deal to make way for a new commuter bridge to Windsor, Ontario, saying the proposal did nothing to protect the Delray neighborhood or its nearly 900 residents who would be forced to move.

Orr is expected to push the deal through, anyway.

Under Michigan state law, Orr has the power to veto council’s vote and go ahead with the sale. Otherwise, the council would have until Sept. 16 to submit an alternative plan. A state emergency loan board would then decide between Orr’s original plan and the council’s counter-offer.

The U.S. State Department approved the bridge project last year, but construction hasn’t started yet. Canada is paying most of the $2 billion project’s cost on both sides of the border and plans to recoup the money through tolls.

The new span would cross the Detroit River about two miles south of the Ambassador Bridge, from the Brighton Beach neighborhood in Windsor to the Delray neighborhood in Detroit. Officials say they hope to open the bridge in 2020.

The project is opposed by the owner of the existing Ambassador Bridge, Manuel “Matty” Moroun, whose family wants to build its own second span. Records show the Moroun family has spent over $1 million since 2009 in their fight to stop a new government-owned span.

An estimated 2.7 million trucks pass through the Detroit-Windsor crossing, carrying $120-billion worth of goods annually.

Originally posted by: CBS Detroit

More tenders issued to advance construction of DRIC bridge

Several tenders to advance construction of the planned $2.1-billion Detroit River International Crossing (DRIC) project are being issued over the next several weeks with the first being issued on Tuesday.

The Windsor-Detroit Bridge Authority (WDBA) is rolling out requests for proposals and seeking quotations on information technology, finding office accommodations, website development and others.

“These requests for proposals mark an important step towards the WDBA becoming fully operational,” said Michael Cautillo, the WDBA’s president and CEO.

“We look forward to having local and area businesses compete and for them to be part of this exciting project.”

Information on the RFPs and other opportunities will be published in local newspapers, on the MERX electronic tendering system and eventually on the new WDBA website.

Decisions on the RFPs are expected to be made within weeks, according to a spokesman for the WDBA.

More office and project related opportunities will be issued over the coming months, Cautillo said.

The WDBA will oversee planning, construction and operation of the DRIC bridge which will connect the industrial communities of Brighton Beach and Delray. It is expected to open in 2020.

Originally posted in: The Windsor Star

New bridge authority seeking bids for services

The Windsor-Detroit Bridge Authority, the entity that will build a new government bridge between Canada and the Motor City, is seeking bids for suppliers to help it get organized.

The Windsor Star was reporting this week that initial requests issued Tuesday, known as tenders, were asking for proposals and quotations on computer services , office space, website development, and more.

The Star quoted Michael Cautillo, the authority’s new president and CEO , as saying the proposals being sought would be a key step in helping the newly formed authority to get organized.

“We look forward to having local and area businesses compete and for them to be part of this exciting project,” Cautillo told the Star.

As reported by the Free Press recently, Cautillo has said the authority eventually will hire 40 to 50 staffers to help him run the project.

The future span, known in Michigan as the New International Trade Crossing, is planned to connect Detroit and Windsor about two miles downstream from the Ambassador Bridge. The bridge is expected to be ready for traffic around 2020 and to create thousands of construction jobs.

Originally posted by the: Detroit Free Press

Purchase of first U.S. properties for new border bridge close

The Windsor Star
Dave Battagello

Detroit’s city council is being asked to approve the sale of 301 properties needed for a new border crossing bridge to Windsor.

They will be the first properties acquired on the U.S. side if Detroit council approves the request by emergency manager Kevyn Orr, as expected within the next 10 days.

The properties are largely vacant, “tax-reverted” parcels with a total price tag of $1.4 million.

The state of Michigan would be the new owner of the properties, which the Canadian government would buy from it for the $2.1-billion Detroit River International Crossing project. Ottawa has budgeted $631 million over the next two years for the project, including the land purchases.

Canada has committed to paying Michigan’s share of the project cost, up to $550 million, to buy land and build a feeder road linking the bridge plaza in Detroit to the I-75 freeway.

The government expects to recoup its investment through tolls.

The Windsor-Detroit Detroit Bridge Authority was established last month to get the project moving. It has already staged a handful of meetings and has plans to establish an office in Windsor and begin hiring about three dozen staff in the coming weeks.

“The WDBA continues to work with our Michigan colleagues to advance this important project,” said authority CEO Michael Cautillo said Thursday. “All involved are encouraged that the issue will be considered by Detroit’s council.”

The DRIC bridge, scheduled to open in 2020, will link the downriver industrial communities of Brighton Beach in Windsor and Delray in Detroit.

Nearly all property required on the Canadian side for the project has been acquired by Transport Canada.

In total, there are roughly 1,000 residential and commercial properties that need to be expropriated and purchased for the bridge, plaza and feeder roads in Delray.

It is anticipated the overall cost for those properties will be about $300 million — roughly the same amount spent in Windsor to buy land for the $1.4-billion Herb Gray Parkway.

The parkway – the new border feeder highway that will link with the DRIC bridge – is expected to be completed late next year.

Originally posted by The Windsor Star

U.S. needs to step up on Detroit-Windsor bridge project: Gov.

OTTAWA – Michigan Gov. Rick Snyder said Wednesday the U.S. “needs to do a better job” on the Detroit-Windsor bridge, a project that’s been in the works for more than a decade.

Proposed back in 2002, the bridge is needed to facilitate trade between the U.S. and Canada – the largest trading partners in the world – but that’s been mired in controversy and setbacks since the beginning.

Snyder was joined by Transport Minister Lisa Raitt Wednesday for the joint announcement of a review panel, appointed to oversee all phases of the bridge construction.

Canada is funding most of the $1 billion project, with Washington only on the hook for the construction of a customs plaza on the U.S. side of the bridge.

That funding – $250 million – was thrown in doubt several months ago when Washington indicated it may not have the money.

Snyder thanked Canada for its generosity in the deal and described the U.S. position on the bridge – that it needs the bridge but doesn’t want to pay for it – as irrational.

“To be blunt, I think the U.S. federal government needs to do a better job,” Snyder told reporters.

Trade between the state of Michigan and Canada stands at roughly $75 billion a year, “far more than any other country,” Snyder said.

Raitt told reporters “our government won’t let financing disagreements get in the way of constructions timelines.”

Originally posted by: Toronto Sun

Snyder, Canadian transportation minister vow new bridge will be built

Canada’s top transportation minister vowed today that construction of a new bridge between Detroit and Windsor won’t be stopped by a dispute with the U.S. federal government over paying for a new customs plaza on the Detroit side.

The U.S. government so far has failed to commit to funding the U. S. Customs plaza for the New International Trade Crossing bridge between Detroit and Windsor, set to open in 2020. Failing to agree to pay for the roughly $250-million facility where incoming trucks would be inspected by U.S. Customs workers has been a sore point in the ongoing bridge saga.

At a news conference this morning to announce the members of two bodies that will build and oversee the bridge project, Canadian Transport Minister Lisa Raitt said that the dispute over paying for the plaza on the Detroit end of the new bridge will be resolved.

“Our government won’t let financing disagreements get in the way of construction time lines,” Raitt, flanked by Gov. Rick Snyder, said. “We are going to be building a bridge, and we are going to stick to our time lines. … It’s time to get the work done and financing arrangements in our point of view will not hold up our construction time lines.”

At the news conference, Raitt and Snyder announced the appointments to the Windsor-Detroit Bridge Authority, a Canadian entity that will build the span, and to the joint International Authority, which will oversee the project.

The WDBA will hire a private contractor or team of contractors to perform the actual construction work. The International Authority will settle disputes on procurement of materials and hiring of workers, tasks that are supposed to be split equally between Canadian and U.S. firms and workers.

The three Michigan representatives appointed by Snyder to the six-member International Authority were Michael Hayes, president and CEO of the Midland Center for the Arts and a former vice president with Dow Chemical; Birgit Klohs, president and CEO of the Right Place, a West Michigan economic development agency; and Matt Rizik, the chief tax officer of Rock Ventures and a former longtime partner at PricewaterhouseCoopers.

Snyder, echoing his earlier comments on the matter of the customs plaza funding , chided the U.S. federal government for its failure to commit to funding the facility.

“That’s something I’m going to continue to have strong and ongoing dialogue with the United States government,” he told the news conference on the Canadian waterfront. “The government of Canada has been fabulous. To be blunt, I think the U.S. federal government needs to do a better job.” To the extent that the U.S. government doesn’t want to pay for its own facility, Snyder said, “I don’t believe that’s a rational position to take, and I think it’s something that’s inappropriate.”

But both Raitt and Snyder emphasized the positive today. Snyder noted that the bridge project has received multiple permits and approvals in the past year, and the appointments announced today will allow the project to move ahead even faster.

“We’re on a time line to get this bridge built,” Snyder said.

The bridge project, known as the New International Trade Crossing in Michigan and as the Detroit River International Crossing in Canada, will cost about $950 million. Because Michigan legislators have blocked any state funding for the project, Canadian is fronting all the costs except for the customs plaza and will be paid back through future tolls.

Some observers have suggested that Canada might even pay upfront for the customs plaza, too, and be repaid through tolls, but Michigan officials, both within the Snyder administration and among the state’s congressional delegation, are working hard to convince U.S. officials to pay for the customs plaza.

They see it as a matter of fairness for the U.S. to pay for its own facility. And they worry that if Canada has to pay even for a U.S. customs plaza, negotiating with Canada over other issues will become more difficult.

With a planned opening in 2020, the new bridge project remains in the early stages of planning and organization. The first visible signs that something is happening may occur later this year as the Michigan Department of Transportation, using Canadian money advanced for the project, begins buying up the hundreds of parcels in southwest Detroit’s Delray district needed for the bridge approaches and customs plaza.

Originally posted by John Gallagher in the Detroit Free Press