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.