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January 23, 1983 - Image 3

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Publication:
The Michigan Daily, 1983-01-23

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The Michigan Daily-Sunday, January 23, 1983-Page 3,

Ren Cen defaults, faces
unsure financial future

DETROIT (UPI) - The glittering
silver-glass towers of the Renaissance
Center, designed to reflect the city's
rebirth from turmoil of the late 1960s,
are now tarnished by mortgage default
and an uncertain financial future.
Sitting on Detroit's riverfront, the
massive office-hotel complex was sup-
posed to mark a new life for the city's
sagging downtown. Instead, it sym-
bolizes the economic calamity that has
befallen the Motor City - depression-
level unemployment.
On Jan. 11, "Ren Cen" was declared
in default on a $200 million mortgage by
its main lenders. The owners missed a
January payment of $10 million and a
spokesman for Ford Motor Land
Development Corp., which owns 65 per-
cent of the complex, said he did not
know when the payment would be
made..
SIX DAYS later, Detroit officials

were informed the center would not be
able to pay $2.2 million in city, school
and county taxes.
"We will pay the taxes as soon as our
revenue permits," said Richard Routh,
Ford Land spokesman. "We're
generating enough revenue to pay nor-
mal operating expenses and we'll con-
tinue to do that.
"That includes payments for payroll,
vendor services, supplies, utilities, in-
surance - the kind of things important to
keeping the center open."
ROUTH described the tax delinquen-
cy "as part of our continuing financial
difficulties at the center."
No one in the city believes the four 39-
story office towers and 73-story Westin
Hotel will someday stand vacant,
although there is a nagging uncertain-
ty about what will happen.
One group of investors, led by
Theordore Netzky of Chicago, offered
$505.5 million - including the assum-
ption of $200 million in debt - for the

complex, but Netzky was unable to find
the necessary financing. Heitman;
Financial Services, Inc., of which Net-
zky is a partner, submitted a revised
purchase agreement for $275 million
last week.
ONE REAL estate appraiser values
Phase One - the four office towers and;
the hotel - at $250 million to $320 million.
This is far less than Ren Cen cost in
1977, when it opened with a flourish.
Henry Ford II had convinced 50 other
investors to put up $357 million to build:
the complex.
Chic shops such as Halston, Mark
Cross, Cartier, Lavin, and Charles
Jourdan were among the first stores in;.
the "World of Shops."
The excitement of the opening years
did not last. The recession gripping the
auto industry and the city for four years
took its toll.
Losses so far have reached $140:
million and Ren Cen was inevitably
labeled a "white elephant."

U's new V.P. engineers fund-raiser

Daily Photo by MARK GINDIN
The Goodyear blimp passes over the beleagured Renaissance Center during last summer's Detroit Grand Prix. The
building's owners have defaulted on the mortgage and the building faces an uncertain future.

-HAPPENI NGS-
Sunday
Highlight
A Focus on Fitness Weekend is being held in CCRB from 12-8 p.m. It is
open too all people of all ages, fitness levels, and physical abilities. For in-
formation, call 763-4560.
Films
CFT-My Fair Lady, 2, 4:45, & 7:30 p.m., Michigan Theater.
Mediatrics - Lawrence of Arabia, 5 & 8:30 p.m., MLB 4.
Hill St.-The Burmese Harp, 7 & 9 p.m., Hill St. Theater.
Silent Film Society - Orchids and Ermine, 5 p.m., Webers Inn.
AAFC-A Very Moral Night, 7 p.m., Behind the Brick Wall, 9 p.m.;
Philemon and Baucis, 10 p.m., Lorch.
C2-An American in Paris, 7 & 9 p.m., Angell Aud. A.
Performances
School of Music - Flute recital, Susan McGinn, 2 p.m., Recital Hall.
School of Music - Bryan and Keys Duo, Keith Bryan (flute), Karen Keys
(piano), 4 p.m., Rackham.
School of Music - Bass Trombone Recital, Henry Charles Smith, 8 p.m.,
Recital Hall.
Professional Theater Program - "The Diary of a Madman," by Nikolai
Gogol, 2p.m., New Trueblood, Frieze Bldg.
Canterbury Loft - "Equus" by Peter Shaffer, 8 p.m., Residential
College Theater.
UM Friends of Common Ground-Classical Jazz: A Symphonic Concert, 2
p.m., Performance Network, 408 W. Washington.
Rowing Club - Benefit Concert, Epicurean,8 p.m., Rick's American Cafe.
Meetings
Pan-Hellenic Association - Sorority Winter Rush, open house, 1-3 p.m.,
Anderson Room, Mich. Union.
Women Engineers-Crystal Mountain Ski- Trip, info. in Rm. 144 W.
Engineering.
Racquetball'- Practice mtg., Cts. 1 through 5, 9 a.m.-noon, CCRB.
Miscellaneous
UAC-Mini Course registration, Union Ticket Office.
School of Metaphysics - Open House, 1-5 p.m., Lecture on dreams, 3 p.m.,
209 N. Ashley.
Museum of Art - Sunday tour, Dale Jerome, "The Nude" exhibition, 2
p.m.; "Jean Paul Slusser: 1886-1981" exhibition.
Exhibit Museum - "Orion & COmpany" 2,3 & 4 p.m.
Monday
Highlight
The Panhellenic Association will sponsor Soroity Winter rush today. The
activities will begin with an open house at the Union from 1 to 3 p.m.Atten-
dance is mandatory. For more information, call 663-4505.
Films
Cinema Guild - Samuri: Part Two, Japanese Film Series, Free, 7 p.m.,
Lorch.
Pilot Program - Battered Women, 8:45 p.m., Alice Lloyd Red Lounge.
Performances
Music at Michigan - String Bass Recital, John Kennedy, 8 p.m., Recital
Hall.
Eclipse Jazz - Workshop series on Jazz Improvisation by David Swain,
Trotter House, 1443 Washington Ave., for info. call 763-5924.
Guild House - Poetry reading, Bill Chown and Michael C. Myers, 8 p.m.,
802 Monroe St.
Speakers
Near Eastern and North African Studies - Brown Bag, Eric Schlkegel,
"Travels in Egypt and North Yemen: 1981-82: A slide presentation," Noon,
Commons Room, Lane Hall.
CRLT - T. A. Workshop, Dean N. Osterman, "Classroom Lec. and
Discussion management," 4-6 p.m. & 7-10 p.m., registration required, call
783-2396.
Chemistry - Inorganic Seminar, James A. Fee, "Some Transition Metal
Components in Bacterial Respiration," 4 p.m., 1200 Chem.
Computing Center - Lec., Forrest Hartmen, "Intro. to MTS File Editor, I-
Basic Commands," 3:30-5 p.m., Sch. of Bus. Ad.
Linguistics - Lec., Sally McConnell-Ginet, "Discourse and Meaning: The
Pragmatic Routes of Sexist Semantics," 4 p.m., 3050 Frieze.
Miscellaneous
Christian Science Org. - Mtg., 7:15 p.m., Rm. D, League.
Tae Kwon Do CLub - Practice, 6-8 p.m., Martial Arts Rm., CCRB.
Farm Labor Organization Committee - Mtg., 7:30 p.m., 308 E. William.

Soviet spy
satellite
expected to
crash this
evening
(Continued from Page 1)
Pentagon said there is a 70 percent
chance the satellite will land in the
ocean, a 2 percent chance it will hit the
United States, and a 3 percent chance it
will hit Canada.
The Canadians, mindful of the chunks
of nuclear-powered Soviet satellite
Cosmos 954 which fell into the remote
Northwest Territories in January 1978,
put a 50-member rapid response team
of scientists and technicians on alert.
They are ready to track down any
radioactive debris using"a gamma-ray
spectrometer, the equipment which
played a key role in providing the first
positive fix of the Cosmos 954.
CHINA, THE Soviet Union's long-
time communist rival, said it worked
out contingency measures to deal with
the latest Soviet satellite if it falls -on
Chinese territory, but it did not
elaborate..
In Japan, the Environmental
Disaster Prevention Section of the
Science and Technology Agency
mobilized 100 radiation experts and
special gear to survey for fallout at 32
scattered locations.
In France, the government alerted 22
mobile civil defense units, supplemen-
ted by 400 teams of firemen and
policemen equipped with radioactivity
detectors.
In West Germany, special helicopters
were mobilized along with ground
vehicles and crews to help clear up any
contamination. The government said it
would hold the Kremlin responsible if
the satellite fell on West Germany.
Satellite mania got out of hand in the
Austrian city of Graz Thursday when
residents reported a reddish-yellowish
ball moving at high speed. A small
forest fire started soon after but falling
snow extinguished it.
The townsfolk insisted the blaze was
connected with falling UFO chunks, but
on Friday a local investigation proved
the fire was caused by a discarded
cigarette.

(Continued from Page 1)
the endowment aspect. If we are suc-
cessful in raising the money, it will be
invested and, through the interest ear-
ned, we hope to build a better financial
base," Cosovich said.
SUCH MAJOR fund-raising cam-
paigns are nothing new to Cosovich,
who directed many similar projects for
Stanford. But Cosovich said the
University's ties to government will
make his responsibilities here different
than those he had in California.
"Here you are dealing with state
government, with a political animal,
something not considered at a private
school," Cosovich said. "Because of the
lack of stability in the state's fiscal
house inevitably there will be greater
demands placed on private funds."

to- support faculty research and
teaching.
FUNDS FROM THE upcoming five-
year campaign will be evenly divided
between studentmand professor grants
and improvements for University
buildings, including the Chemistry
Building, the replacement hospital and
Tappan Hall, Cosovich said.
Cosovich said the University's five-
year plan should not be seen as an
inherently disruptive process.
"Careful self-examination . . . is
very healthy for any institution," he
said. "I am absolutely certain the
University will emerge as a better
place."

Cosovich bases his prediction on his
earlier experience directing Cosorich
development during a budget reduction .planning5-year fundraiser
process Stanford went through 10 years.p n -dr
ago.

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