The Thompson Block project is moving forward, but without the involvement of the Beal family, Ypsilanti city officials say.

At its regular Tuesday night meeting, the Ypsilanti City Council discussed the project with city staff. Beth Ernat, Ypsilanti's director of economic development, told council she has met with the project's point person, realtor Tyler Weston, several times over in recent months.

She said Weston informed her Thompson Block Partners LLC, of which Stewart Beal is the resident agent, is in the process of buying out Stewart Beal and his father, Fred Beal.

Ernat and City Manager Ralph Lange said the Michigan Economic Development Corporation won't provide up to $1 million in funding promised for the project if the Beal family remains a part of it. That decision stems from Beal Construction's role in the May 11 accidental death of a worker at the Thompson Block site.

"A group that doesn't include the Beals is moving forward," Ernat told Council. "Investors are buying out the Beals. The MEDC has expressed to them in no uncertain terms that if there is continued Beal involvement in the Thompson Block, (then investors will not receive) funding."

The historic building, at 400 N. River St., is currently under construction after a 2009 fire gutted it. The development plans call for first-floor retail space and lofts above.

The Michigan Occupational Safety and Health Administration issued Beal Construction five citations that included $35,000 in fines for "serious" safety violations. A "serious" violation is found if there is substantial probability that the employer knew, or should have known, of a hazard that could cause death or physical harm.

"That project has no future as long as they're in it, so now we try to get a credible developer on it," Lange told Council.

Weston and Stewart Beal both told The Ann Arbor News they had no immediate comment on the ownership situation. State records show Beal is still the Thompson Block Partners LLC's resident agent.

Weston said the ownership group has successfully raised $5.8 million needed to complete the project, construction is moving forward and around 40 percent of the roof is finished.

"We are going to move forward with Thompson Block project and find best solution to bring the building to fruition," he said, adding that a tentative September completion date still stands.

On Tuesday, some council members informally directed staff to move forward with the demolition process just in case end-of-the-year deadlines aren't met. Several council members expressed frustration over the project's continued delays and issues.

"This was the first thing we did when I got on Council in 2006 and here we are ten years later still dealing with it," said Council Member Brian Robb.

Ernat stressed that the city will move to seek a judge's demolition order immediately.

"From an economic development standpoint, we want to give the new investment group enough time to secure the development," she said. "Our goal is success, but at the same time, it's a dangerous building, it impacts the neighborhood, and Council has to weigh giving them an opportunity for success with the continued dangerous building situation."

The city could also revoke its Obsolete Property Rehabilitation Act credit worth $530,000. The issue will be back before council for further discussion at a yet-to-be-determined meeting.

Tom Perkins is a freelance reporter for The Ann Arbor News.