The Ilitches have a gap to fill as they plan their long-awaited rehab of the United Artists Theater in downtown Detroit, and public agencies are coming to the rescue.
Rising costs for construction materials and the pandemic have sent the project $12 million over budget, the Free Press reports, prompting the following government agencies to pony up more aid:
On Tuesday, the Michigan Strategic Fund in Lansing approved a $2 million increase to the project's community revitalization loan to help cover the rising costs. The rest of the gap will be filled through various other funding sources, including a $7.6 million increase in the project's Housing and Urban Development loan and an additional $1 million from the city.
Details on the additional city support were not immediately available. As of October 2019, it had already approved $2.4 million in subsidies for the project.
The now approximately $70-million project to convert the historic high-rise into a residential tower is a partnership between the Ilitches' Olympia Development, which owns the building, and Bagley Development Group.
Olympia bought the building in 1997 and announced plans to rehab it as far back as 2006.
At last check, Bagley Development was planning to raze the historic "movie palace" inside.