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Detroit Mayor Archer Releases Consultant's Study On Proposed Detroit Government Center

29 July 1997

Detroit Mayor Archer Releases Consultant's Study On Proposed Detroit Government Center

    DETROIT, July 29 -- Detroit Mayor Dennis W. Archer made the
following statement today as he released a study by Arthur Andersen LLP
regarding the conversion of the General Motors Building into a Detroit
Government Center:

    When General Motors Chairman Jack Smith and I presented the vision for the
proposed Detroit Government Center last year, it was clear that a great deal
of additional information would be required in order to assess the viability
of the project.  The City of Detroit commissioned a feasibility study that has
now been completed by Arthur Andersen LLP.  The purpose of this study was to
obtain a greater level of detailed understanding about this complex project.
It first helped us to better understand current occupancy costs of City
government and compare them with potential occupancy costs at the proposed
government center.  The study then outlined a range of possible outcomes.
This report represents the culmination of an exhaustive analysis of a great
many variables involved in this project and focuses on the set of parameters
by which this new development might become feasible.
    As I have consistently stated, pursuit of this project will depend on the
assurance that the transaction will be completed at no additional cost to the
City of Detroit, while providing us with an improved operating environment.
If the potential risks described in the study prove to be real, I will not
recommend proceeding.  However, if a lease structure can be fashioned that
eliminates these risks on the part of the City, then I remain committed to the
project because it represents a tremendous opportunity to improve delivery of
city services to our citizens.  I will, under these circumstances, vigorously
carry it forward to the City Council.
    We have progressed from the original vision through the detailed analysis
phase of this important project.  The next step is to assemble key
participants in order to resolve the risks identified in the Andersen study.
It is anticipated that this phase will take a few months to complete.  A key
component of this process is the selection of a potential landlord who is
qualified, experienced and financially strong enough to insure that the
renovations to the General Motors Building will meet our high standards and to
fulfill all of the other obligations required by this role.
    My position on this issue is strongly supported by public opinion in the
City of Detroit.  Calls to my office, daily interaction with the citizens of
Detroit, and polling data, all suggest that Detroiters support this move -- if
it makes financial sense.  Experience also shows that the more people know
about this issue the more strongly they support the move.

SOURCE  City of Detroit