BY JOHN GALLAGHER • FREE PRESS BUSINESS WRITER • May 1, 2008
The Detroit Economic Development Corp., a quasi-public arm of the city, approved a $700,000 loan Wednesday for the Watermark, the east riverfront condominium project being built by civic and business leader Dave Bing.
Like most proposed residential projects in Detroit and elsewhere, Bing's project, announced in 2006, has been stymied by poor market conditions. The loan is meant to help him carry the project's costs through this year until the market recovers enough for Bing to break ground.
"We believe this is a good use of our funds to keep this project moving forward," Brian Holdwick, vice president of the Detroit Economic Growth Corp., told the DEDC board.
Ed Tinsley, Bing's top development aide, said Wednesday that the Watermark's senior lenders are requiring that Bing sell about 65% of his 112 units before releasing construction money. As of this week, the Watermark has sold 22 units and has another 12 sales "in flow," Tinsley said.
Bing and his partners, who include a roster of Detroit sports and civic leaders, have invested more than $3 million in the project and face another $3.9 million in costs this year for design, engineering and marketing.
The Detroit Economic Development Corp., a quasi-public arm of the city, approved a $700,000 loan Wednesday for the Watermark, the east riverfront condominium project being built by civic and business leader Dave Bing.
Like most proposed residential projects in Detroit and elsewhere, Bing's project, announced in 2006, has been stymied by poor market conditions. The loan is meant to help him carry the project's costs through this year until the market recovers enough for Bing to break ground.
"We believe this is a good use of our funds to keep this project moving forward," Brian Holdwick, vice president of the Detroit Economic Growth Corp., told the DEDC board.
Ed Tinsley, Bing's top development aide, said Wednesday that the Watermark's senior lenders are requiring that Bing sell about 65% of his 112 units before releasing construction money. As of this week, the Watermark has sold 22 units and has another 12 sales "in flow," Tinsley said.
Bing and his partners, who include a roster of Detroit sports and civic leaders, have invested more than $3 million in the project and face another $3.9 million in costs this year for design, engineering and marketing.
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