The demolition of the old Detroit Saturday Night building — 550 W. Fort St. — for surface parking would have a negative impact on the adjacent Fort Shelby hotel historic district, according to a unanimous vote (there was one abstention) made by the Historic District Commission Wednesday evening.

The opinion of the commission is required for any adjustments made to properties adjacent to a historic district. The Fort Shelby hotel — which is owned by Emmett Moten Jr., who also owns the Detroit Saturday Night building — has been a historic district since 2004.

"The Fort Shelby has already lost some context with the buildings that have already been torn down. The last thing that we need to do to a historic district is to further erode the context of that district," Dennis Miriani, vice chair of the commission said as the commission talked through their decision, laying out what would become the foundation for their final vote.

"To me, it is significantly detrimental to the historic district to tear this building down because it removes a piece of what is a few remaining pieces of context of the neighborhood that existed. And so, I think we need to be very firm in saying this is detrimental to the historic district and pass that along to the mayor and let the chips fall where they may."

While the commission has now weighed in on Moten's demolition plan — a prerequisite for the developer to pull a demolition permit — what happens next ultimately rests in the hands of the city's Buildings, Safety Engineering and Environmental Department.

"The commission's recommendation is strictly advisory and speaks only to the demolition's potential to affect the adjacent designated local historic district (the Fort Shelby hotel)," Tim Carroll, a spokesperson for the City of Detroit wrote in a statement Wednesday prior to the vote, adding the following day: "The City has no legal basis for denying a building or demolition permit for 550 W. Fort, since the property is adjacent to, and not located within a historic district. However, following the advisory recommendation of the Historic District Commission, the City will work closely with the owner to encourage alternatives to demolition, including adaptive reuse of the structure."

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Since August when 21 Century Salvage, a demolition company contracted by Moten, attempted to pull a demo permit from BSEED, the old Detroit Saturday Night building has become a flashpoint in the battle over the future character of downtown Detroit.

While a BSEED inspector flagged the request over the summer because of the building's proximity to the Fort Shelby, which triggered the need to get a commission opinion, now that the recommendation has been given, it would appear as though a demolition permit can be pulled.

Following the meeting, Jennifer Ross, a staffer for the Historic District Commission, explained that what happens next is in the hands of the building department.

Activists attempted to secure protections for the building in August by sending a letter to City Clerk Janice Winfrey and City Council requesting a historic review of the building and a temporary historic designation to stop a possible demolition. The council, which is on recess until Jan. 7, never took up the request.

While the commission was asked to just weigh in on how a demolition would impact the Fort Shelby historic district, the broader context, and differing views for downtown all came up Wednesday evening.

For Moten, who has long been part of Detroit's public and private development sector, the need for the demolition boils down to two things. One, a need to pay back a loan to a Detroit pension fund, and a belief that accessible parking is necessary to sell condos. And two, a contention that the demolition of 550 Fort St. has always been a part of his vision for the bigger rehab of the Fort Shelby Hotel.

In 2007, Moten purchased three neighboring properties: the hotel (525 W. Lafayette); the old Detroit Saturday Night building (550 W. Fort) and a surface parking lot (500 W. Fort). This, he says, was all part of the Fort Shelby vision.

The three properties were purchased with a loan from the General Retirement Systems of the City of Detroit — a $17-million construction and permanent mortgage loan to Fort Shelby LLC (the hotel borrower) and a $14.65-million construction and permanent mortgage loan to Fort Shelby Residential LLC (the residential borrower).

As Moten explained Wednesday night, parking has always been his plan for the Fort Shelby development. He just wasn't able to make this happen earlier because of the recession.

In 2016, as Moten struggled to pay back his pension fund loan and so he began selling units within the Fort Shelby as condos. According to Moten, selling condos without on-hand parking is difficult. He needs 22 spots, he told the gathered crowd Wednesday night.

"With an HOA — the homeowner's piece — we have to provide parking spaces," Moten said. "In order for us to proceed and pay our mortgage to the pension fund off — the General Retirement Fund in Detroit — what we have to do is create 22 more parking spaces."

"We're asking to follow what we said we were going to do in 2007," he continued. "In 2007, we would have taken that lot, demolished the building and created a parking deck, and the economy said no. There was no money."

According to Moten, he has to notify the pension fund by Friday as to what is going to happen next.

"I know there is a concern from the community, 'Why are you tearing the building down?' You're talking to a group of us who put $95 million down with guarantees, signed on the dotted line, to do a historic building and when we did it, we said we were going to do this," Moten said, pointing to both the work he had already done for preservation on the Fort Shelby, what he contends were always his plans for parking, and finally to the debt he needs to pay back.

"I don't go around knocking buildings down, that's not my character. My character is trying to fulfill an obligation to a lender. I live up to that. We live up to that. And making sure that the residents that buy those units are properly protected in that specific space. That's why we went to the building department in August saying we were ready to move forward. ... The one thing you don't have is a guarantee sitting on the table with a bank ... saying, 'Hey, you better get this done or we're pulling the rug.' We can yell and scream about 'Save! Save! Save!' but this was what was presented to City Council in 2007," he said.

Preservationists in the audience Wednesday night, contend the building, which was completed in 1914 to house the newspaper offices of Detroit Saturday Night, is an important piece of publishing history. They also argue that Detroit does not need more parking lots.

"In terms of what has been discussed and the need for surface parking, I think that stands on its own as a reason not to demolish (the building). So rarely is demolishing a building like this, for the sake of surface parking, a service to an adjacent district," said Francis Grunow, who penned the August letter to the Detroit City Council asking for a temporary historic designation. "To me, that's the most troubling part about demolishing what is a structurally sound, recently occupied building, that would be removed for surface parking. I realize that's not necessarily part of the designation process per se, but this is at a time when we have more surface parking downtown than at any other point in Detroit's history. So there is a disconnect. There is a problem."

Ultimately, the commission's responsibility Wednesday was to weigh in on whether or not the demolition of 550 W. Fort St. would positively or negatively affect the facade, structure and historical integrity of the adjacent historic district.

"Our task is to send a letter to the mayor and City Council regarding the demolition. We are to give an opinion as to whether the proposal will have a positive effect, a negative effect or no effect on the Fort Shelby hotel," Chair James Hamilton explained.

While the demolition now rests in the hands of BSEED, those pushing for preservation are hoping the fight is not over.

Eric Kehoe, the president of Preservation Detroit, noted Moten's history of deal-making as an asset — and evidence of a possible compromise — in his public comment that was read by colleague Melissa Arrowsmith:

"It’s clear Mr. Moten, the owner, has an impressive track record of development in the city," Kehoe wrote, pointing to several massive projects Moten has been involved in over the years including the Poletown Plant in Hamtramck, an addition to Cobo Hall and the Fort Shelby.

"What I’m saying is he knows how to get deals done, which is why this presents another chance to work some magic," Kehoe continued, before breaking down the current situation in the simplest terms:

"Here’s where things stand now. Mr. Moten hopes to pay back his business loan from the city’s pension fund by creating surface parking at 550 W. Fort. The condo owners want parking spots. Thousands of Detroiters and visitors have signed a petition letting us know that they want to see this building developed. The city government has offered parking two blocks away. And neighbors like Fort Presbyterian Church are open to conversations about the well-being of the area. Somewhere in there is a deal to be made."

Arrowsmith also made her own plea noting that one thing that she does for the organization is to find ways to help people get rehabs done, with either financial help or otherwise.

"I'd love to talk to you more about how we can do this, and how it can be profitable and how it can benefit Detroit," Arrowsmith told Moten.

Moten has invited Kehoe and the Preservation Detroit team to visit the Fort Shelby on Friday to see the rehab work he has done.

"I told him to come on down to the hotel, walk through it, get a feel for what it is. See what has been done. We're receptive to any suggestions, but I've tried everything," Moten said.

At the meeting, Ross noted that Maurice Cox, the City of Detroit's planning director, had presented Moten with various alternatives for a demolition, one of which included a partial demolition.

Moten would not comment on his thoughts on these alternatives.

Allie Gross focuses on development, housing affordability, and income inequality. Contact Allie Gross at AEGross@freepress.com. Connect with her on Twitter @Allie_Elisabeth.