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March 13, 2016 8:00 a.m.
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Foundation
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Renovation of firehouse expected by 2017 auto show
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Photo by Crain's file photo
Cleaning and rehabilitation of the brickwork on the historic firehouse exterior is set to begin over the next few weeks as part of
efforts to renovate the building into a boutique hotel.
Renovation of the historic firehouse across from Detroit's Cobo Center into a boutique hotel — a
project that's been in the works for three years — is finally set to move forward.
Developers of The Foundation Hotel in downtown Detroit said they have secured needed financing
for the $34 million project.
The independent, 100-room hotel, which will tell the story of Detroit's past, present and future, is
expected to open early next year, said Mario Tricoci, co-founder and CEO of Chicago-based Aparium
Group, which is developing the hotel with Walter Cohen, owner of 21 Century Holdings LLC in
Southfield.
"We're going to work really hard to get to an opening by the auto show next year," he said.
"We've been getting so many phone calls ... (inquiring about) incorporating the hotel into various
programs for the auto show."
Tricoci said the developers closed on a loan from U.S. Bank for about 47 percent of the project's
cost, or $16 million, late last month.
Rounding out financing are a subordinate loan for about $5.8 million from the Michigan Economic
Development Corp.'s Community Revitalization Program, nearly $4.8 million federal historic tax
preservation credits and a $7.5 million investment from majority owners Tricoci; Aparium's other
principal, Kevin Robinson; Chicago-based Agman Partners; and Cohen as a minority owner.
McIntosh Poris Associates in Birmingham is architect on the project, and Detroit-based Sachse
Construction is general contractor. Simeon Deary Design Group in Chicago is doing interior design
for the hotel, Tricoci said.
The project, which is expected to create about 100 jobs, has taken longer to come together than
originally expected, he said. Detroit's bankruptcy filing slowed the process of getting approvals to
purchase the building. The developers had to go through the state to sign off on the sale, following
the appointment of the emergency manager.
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There was also protracted discussion with the National Park Service over the design of the hotel to
make sure it maintained historic integrity and qualified to secure the federal historic tax credits,
Tricoci said.
In addition to the historic firehouse, the hotel will include the former Pontchartrain Wine Cellars
building on Larned, a 13,000-square-foot, four-story building that shares a wall with the fire station.
The developers acquired the building in 2013 for $1.25 million, Cohen told Crain's in 2014.
Sachse has completed selected demolition, with some things being salvaged to be reincorporated
into the hotel, Tricoci said. There's also a model room completed, and cleaning and rehabilitation of
the brickwork on the firehouse exterior is set to begin over the next few weeks.
Creating a vision
As manager of the hotel and restaurant, Aparium is guiding its branding, concept, design and
positioning, Tricoci said.
"We couldn't wait to get the financing behind us. We are
now getting ready to do the fun stuff."
Much of what guests will see in the hotel will have roots
tied to Detroit or the state of Michigan.
"To the extent we can find someone locally to
incorporate local elements in the project, we are actively
seeking them out," Tricoci said. "We have been
cultivating those relationships for three years."
Aparium is talking with local distillers, brewers, coffee
roasters and farmers to deliver an authentic Detroit
experience. It's also contracted with several local
manufacturers, vendors and artists for metalwork,
lighting, restoration work, artwork, sculptures and
multimedia art forms, he said. But he declined to give
further hints on what guests will find, beyond mentioning
Aparium in conversation with the College for Creative
Studies, among others.
Mario Tricoci, co-founder and CEO, Aparium Group
The design for The Foundation Hotel won't be an obvious
Detroit firehouse restoration; instead, the hotel will tell
Detroit's past, present and future stories "as a nod to
where we believe ... Detroit is headed next," Tricoci said.
"We've seen a lot of ideas that represent Detroit's past, (and) that's very important, very informative.
But I think it's important now to think about where Detroit is going now in its future. ... We want to be
a part of that and celebrate local thought leaders."
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That said, there are historic elements the developers want to preserve, he said. Among them are the
current entryway and elevator lobby, the commissioner's suite and elements of the "apparatus
room," with its big red doors, where the fire engines once sat.
As part of the restaurant, a loft overlooking the apparatus room will have an observation kitchen
that can be used for private events and as a rotating room for Detroit's newest chefs or very
prominent chefs who will come back home and share their culinary talents with the local market,
Tricoci said.
The restaurant planned for the Foundation will be staffed with local, cultivated and trained talent,
Tricoci said, noting Aparium is out in the Detroit market looking for culinary talent, starting with the
executive chef.
"This will be a tremendous opportunity ... for a chef (who) really wants to make a name for himself or
herself."
Detroit continues to be an event-driven market for downtown hotels, said Michael Damitio, senior
vice president, acquisitions and development for Vos Hospitality, which manages the Aloft Detroit.
The Aloft, a boutique brand of Starwood Hotels & Resorts Worldwide Inc., which opened in the
David Whitney Building in December 2014, did better its first full year than projected, Damitio said.
And 2016 is off to an even better start for the 136-room hotel.
"The challenge any time you're opening a niche product is you're trying to find your market. We
certainly believed there was one in Detroit, and we found it," Damitio said.
"The Foundation is its own animal. I'm sure it will find its own market, as well."
Sherri Welch: (313) 446-1694. Twitter: @SherriWelch
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dwight mannsburden • 3 days ago
Fond memories of the DCX days when they held press events there, with food, music and
Dieter Zetsche slinging drinks.
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• Reply • Share › Justin Thompson • 4 days ago
This is class.
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