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>> ICONIC DETROIT HOTEL FALLS
VICTIM TO THE PANDEMIC AND ITS
RESTRICTIONS.
WE’LL TALK TO THE OWNER OF THE
BOOK CADILLAC.
FEWER BABIES?
BAD NEWS FOR THE FUTURE ACROSS
THE U.S. AND HERE IN MICHIGAN.
AND WHY DID WE SPRING OUR CLOCKS
FORWARD LAST WEEKEND?
TODAY IS SUNDAY, MARCH 21ST,
2021.
AND THIS IS FLASH POINT.
>> HI, WELCOME TO FLASH POINT.
WELCOME TO SPRING AND WHAT WE
ALL HOPE IS A SEASON OF RENEWAL.
THE PROGRESS ON THE VACCINE HAS
BEEN PRETTY PROMISING OF LATE
AND TOMORROW, FORD FIELD GOES
FROM NFL STADIUM TO MASSIVE
VACCINE CENTER, BUT THE PROGRESS
IS TEMPERED BY BIG JUMPS IN
CASES OF COVID INCLUDING THESE
WORRISOME VARIANTS WHICH IN TURN
MAKES IT MORE IMPORTANT FOR THE
VACCINE EFFORT TO PUSH FORWARD
AND ACCELERATE.
AS WE START TO POKE OUR HEADS
OUT FROM QUARANTINE QUARTERS
WE’RE STARTING TO TAKE IN SOME
PANDEMIC FALLOUT AND ONE
INTERESTING TAKE AWAY IS WHAT
DIDN’T ACTUALLY HAPPEN.
A LITTLE LATER THIS MORNING, FAR
FROM A BABY BOOM, WE’RE GOING TO
TALK ABOUT A DROP IN BIRTH RATES
AND IT’S FAR MORE CONSEQUENTIAL
THAN MANY PEOPLE REALIZE.
UP FIRST, WE KNOW HOW BAD THE
PANDEMIC HAS BEEN FOR THE
HOSPITALITY AND TRAVEL INDUSTRY.
THIS WEEK WE LEARNED THE
BOOK-CADILLAC HOTEL IS IN
FORECLOSURE.
WE’RE GOING TO TALK WITH THE
OWNER JOHN FURCHILL.
ALSO, ARE YOU TIRED OF CHANGING
CLOCKS TWICE A YEAR.
A LOT OF PEOPLE ARE.
SHOULD WE DO ANYTHING ABOUT IT?
IT’S ALL TODAY ON FLASH POINT.
♪
ALL RIGHT.
LET’S START WITH THE NEWS THAT
BROKE LAST WEEK ON THE BOOK
CADILLAC WESTIN HOTEL A DOWNTOWN
DETROIT.
IT WAS IN MANY WAYS ONE OF THE
REAL STARTING POINTS FOR THE
RESURGENCE OF DOWNTOWN.
AND IT’S LONG SEEMED TO ME THAT
IT WAS MORE THAN A HOTEL OPENING
OR A BUILDING REHAB.
THE WAY THAT GREAT BUILDING CAME
TOGETHER AND CAME BACK TO LIFE
SET THE BAR PRETTY HIGH FOR
OTHERS WHO WANTED TO BE A PART
OF THE DETROIT COMEBACK.
I’M HAPPY TO HAVE WITH US, THE
MAN WHO BROUGHT THAT BACK TO
LIFE, THE CURRENT OWNER, JOHN
FURCHILL.
GLAD TO HAVE YOU BACK ON FLASH
POINT ALTHOUGH NOT UNDER THE
CIRCUMSTANCES YOU WOULD PREFER,
RIGHT?
>> YEAH, IT -- ONCE IN A
LIFETIME EVENT LIKE THE
PANDEMIC, NOBODY COULD PREPARE
FOR AND IT JUST, IT JUST SAD IS
PROBABLY THE RIGHT WORD TO LOOK
AT WHAT’S HAPPENING AND
ESPECIALLY TO THE HOTEL, BUT
ALSO TO THE WHOLE CITY OF
DETROIT AND THE STATE OF
MICHIGAN.
>> YOU’RE 77 MILLION DOLLARS IN
DEBT AND HAVEN’T BEEN ABLE TO
MAKE A PAYMENT ON IT SINCE LAST
MAY, BUT YOU SAID SOMETHING
TRILLION IN WEEK, THE MORTGAGE
HOLDER, THE NOTE HOLDER IS CITY
REAL ESTATE FUNDING, AND YOU
SUGGESTED THAT YOU DON’T THINK
THEY’RE ALL THAT INTERESTED IN
WORKING WITH YOU BECAUSE THIS IS
A PROPERTY THAT MAYBE THEY’D
LIKE TO HAVE.
>> WELL, I DON’T -- YEAH, I SAID
THAT, BUT IT JUST -- WE DON’T
REALLY GET ANY RELIEF FROM THEM
AT ALL.
I MEAN, WE’VE PUT -- WE’VE
ALREADY PUT $5 MILLION IN TO
KEEP THE LIGHTS ON, TO DO THE,
YOU KNOW, JUST THE SECURITY,
JUST YOU KNOW, AND THE MINIMUM
AMOUNT OF PEOPLE COME IN.
WE HAVE ONE OR TWO PEOPLE
WORKING THERE IN TERMS OF THE
RESERVATIONS AND STUFF LIKE
THAT, BUT WE STILL HAVE
SECURITY, WE STILL HAVE HEAT, WE
STILL HAVE ELECTRICITY, WE STILL
HAVE TAXES.
>> SURE.
>> WE HAVE THE REST OF THAT
GOING ON SO THERE’S REALLY NOT
MUCH WE CAN DO.
WHEN WE WERE IN OUR HEYDAY, WE
WERE RUNNING AT 40 TO $42
MILLION A YEAR AT REVENUE AND
NOW WE’RE DOING MAYBE 3, 4, 5,
IT’S NOT VERY MUCH, LET’S PUT IT
THAT WAY.
WE CAN’T DO MUCH ABOUT IT.
>> DO YOU SEE ANY HOPE FOR YOU
TO BE ABLE TO HANG ONTO IT OR
HAVE YOU BASICALLY GIVEN UP ON
THAT IDEA NOW?
>> WELL, WE’VE HAD A NUMBER OF
VERY INTERESTED AND VERY
WELL-HEALED INVESTORS, PARTNERS
THAT CAME IN AND OFFERED TO WORK
WITH US, WE’RE WORKING WITH A
FEW NOW, BUT THE LENDER IS THE
LENDER, YOU KNOW, AND I DON’T
THINK THEY REALIZE THE
DIFFICULTY, WHAT WE HAVE TO DO,
BUT WE’RE TRYING TO GET THEM TO
GIVE US SOME LEEWAY TO DO SOME
THINGS AND WE’RE NOT OUT OF IT
AND WE’RE NOT AWAY FROM IT YET,
BUT WE HAVE A WAYS TO GO.
OUR GAME PLAN RIGHT NOW IS TO
TRY TO DO IT AS HONORABLY AS WE
CAN AND AS GOOD AS WE CAN TO DO
THE RIGHT THING, BUT AT THE END
OF THE DAY, THERE’S A VERY
UNIQUE SITUATION IN MICHIGAN
CALLED RIGHT OF REDEMPTION AND
IF THEY TAKE IT, WE’VE GOT TWO
YEARS TO TAKE IT BACK SO THAT--
RIGHT NOW OUR GAME PLAN IS TO
TRY TO GET A DEAL RESOLVED NOW
SO WE CAN GO FORWARD AND GET
OPEN AND START IT RUNNING AGAIN,
DEPENDING ON THE STATE OF
MICHIGAN WHICH HAS BEEN
HORRENDOUS IN TERMS OF--
WE’VE NEVER SEEN IN THE FIVE
STATES WE’RE IN, THIS IS BY PAR
FAR THE WORST STATE TRYING TO
GET BUSINESS DONE.
IN FACT, I CAME IN HERE FOR A
MEETING ONE DAY AND ONLY PLACE I
COULD GET TO EAT WE WENT TO THE
CONEY ISLAND THE ONLY THING OPEN
IN THE WHOLE DOWNTOWN.
>> A LOT OF DETROITERS WOULD SAY
YOU DID PRETTY WELL THAT’S OF
COURSE THE CLASSIC DETROIT
LUNCH, BUT I’M CURIOUS THOUGH,
THE ENTIRE HOSPITALITY SPACE, I
MEAN, YOU’RE RIGHT, MICHIGAN HAS
SHUT DOWN.
THE GOVERNOR’S MOVES HAVE SHUT
DOWN BUSINESSES TO A LARGER
DEGREE TO A NUMBER OF OUR
NEIGHBORS, BUT HOTELS,
HOSPITALITY, THE LACK OF TRAVEL,
THE LACK OF REALLY ANY
INTERNATIONAL TRAVEL, I MEAN,
HAVEN’T ALL HOTELS FARED ABOUT
THE SAME?
>> NO.
IF YOU WERE IN--
I’M IN FLORIDA THIS WEEK.
IF YOU WOULD SEE WHAT--
AND ARIZONA AND THE HOTELS ARE
COMPLETELY FILLED, THE
RESTAURANTS FILLED.
WE HAVE NOT SERVED ONE OUNCE OF
FOOD SINCE THE DAY THE PANDEMIC
HIT AND IT’S JUST NOT -- IT’S
UNBELIEVABLE.
YOU JUST CAN’T GET ANYWHERE AND
I DON’T KNOW WHAT THE AGENDA IS
AND I THINK I SAID THIS ALREADY,
MY EMPLOYEES, THESE 400 PEOPLE
DON’T HAVE JOBS.
>> YEAH.
>> AND YOU KNOW, I DON’T KNOW
WHAT THEY’RE DOING AND I KNOW--
WE TRIED FOR A LONG TIME TO KEEP
THEM ALL ON, BUT JUST COULDN’T
DO ANYTHING ABOUT IT.
>> I WAS GOING TO ASK YOU THAT
NEXT.
OUR APPROACH IN THE U.S. IS
DIFFERENT FROM IN EUROPE AND
GAVE MONEY TO BUSINESSES UNDER
THE CONDITIONS THAT YOU GO AHEAD
AND KEEP YOUR EMPLOYEES ON THE
PAYROLL.
IN THE U.S. WE DECIDED WE WERE
BETTER OFF LETTING BUSINESSES
LAY THEM OFF AND BACK FILLING
AND SUPPORTING UNEMPLOYMENT
PROGRAMS.
HAVE WE DONE THIS RIGHT?
>> NO.
WE HAVE -- WE USED A LOT OF OUR
-- WE HAD SOME PPP MONEY THAT
WE’VE USED, BUT IT REALLY WASN’T
THE RIGHT WAY TO DO IT.
NOW THE NEW PROBLEM THAT’S GOING
TO COME UP IS ONCE THIS THING
GETS UP AND RUNNING, THERE’S A
LOT OF PEOPLE NOT COMING BACK TO
WORK BECAUSE THEY CAN MAKE MONEY
STAYING HOME AND IT’S GOING TO
AFFECT US ENORMOUSLY AND I SEE A
DOWNSIZING OF THE WHOLE -- THAT
INDUSTRY THAT, YOU KNOW, THE
HOSPITALITY INDUSTRY BECAUSE
YOU’RE GOING TO HAVE TROUBLE
FINDING PEOPLE THAT WANT TO GO
TO WORK.
>> YOU MENTIONED THE RESTAURANT
AND FOOD.
THAT’S A BIG PART OF THAT SPACE
AND MICHAEL SIMONS ROAST WHICH I
REMEMBER AS YOU WALKED ME
THROUGH THE WEEK BEFORE THE
OPENING, THE RESTAURANT IS THERE
MICHAEL SIMON HUNG OUT WITH YOUR
KIDS AND AT YOUR HOUSE WHEN HE
WAS A YOUNGSTER AT IN
CLEVELAND.
AND SHOULD WE WORRY ABOUT IT IF
IT’S NOT ATTACHED TO THE HOTEL?
>> MICHAEL IS A FRIEND, CLOSER
TO MY SON WHO OWNS THE
RESTAURANT.
THEY’RE MAKING DECISIONS BASED
ON THEIR OVERALL FOOD INDUSTRY.
THE BOOK CADILLAC WILL BE ONE OF
THOSE DECISIONS.
THEY HAVE CLOSED A NUMBER OF
MICHAEL SIMON RESTAURANTS
ALREADY BECAUSE THEY DON’T--
THE SAME PROBLEM THEY DON’T
REALLY HAVE ANY WAY TO BE
FINANCIALLY VIABLE WITH THE
RULES IN PLACE TODAY.
>> LASTLY, JOHN, I’VE TOLD YOU
ONE-ON-ONE BEFORE.
I’M WONDERING IF YOU HAVE BEEN
ABLE TO DEVELOP A FULL
APPRECIATION FOR JUST WHAT THE
BOOK CADILLAC MEANT AT THE TIME.
IT WAS ONE OF THE FIRST THINGS,
OF COURSE, WITH MANY TO FOLLOW,
BUT AS I MENTION, IT SET THE BAR
AWFULLY HIGH.
I HAVE TO BELIEVE THE PRIDE YOU
FEEL IN THAT PROJECT MUST BE A
BIG PART OF THE PAIN YOU’RE
FEELING NOW OVER WHAT’S
HAPPENING.
>> IT’S DEVASTATING, TO BE
HONEST WITH YOU, BECAUSE THIS
WAS -- THIS IS THE TROPHY
PROPERTY THAT WE HAVE.
IT’S THE TROPHY PROPERTY IN
DETROIT.
I MEAN, IT IS--
THE MEAN EVERYBODY WENT THERE
WHEN YOU HAVE PEOPLE LIKE ROGER
PENSKE AND DAN GILBERT AND
PEOPLE SAYING IF YOU DON’T COME
HERE AND GET THIS THING STARTED
UP WE DON’T KNOW WHERE THIS ALL
WOULD HAVE COME ABOUT AND NOW I
LOOK AT DETROIT AND I BELIEVE
THAT DETROIT WILL BE THE BIGGEST
TURN AROUND IN THE HISTORY OF
AMERICAN CITIES WHEN IT’S DONE.
IF YOU SEE THE OTHER AREAS I’VE
BEEN IN FIVE OTHER STATES AND
CITIES AND PLACES LIKE THAT
WE’RE DOING BUSINESS, DETROIT’S
ACTUALLY IN BETTER PHYSICAL
SHAPE THAN ANYPLACE ELSE, LESS
DAMAGE, LESS HARM OF PROTESTS
THAN ANYPLACE ELSE WE ARE, I’M
PROUD OF THE CITY OF DETROIT AND
I THINK EVERYBODY OUGHT TO GET
BACK TO WORK AND YOU KNOW, THESE
GOVERNORS DON’T UNDERSTAND THE
REAL WORLD.
IT JUST GETS DOWN TO THAT AND
THEN MAKE NO SENSE.
THEY DON’T MAKE ANY SENSE AT
ALL.
>> WE’RE GOING TO HOPE FOR
BETTER THINGS AHEAD FOR YOU
HERE, JOHN.
I’M GRATEFUL FOR YOUR TIME TODAY
AND HOPEFULLY WE’LL TALK ABOUT
BETTER THINGS AHEAD NEXT TIME WE
MEET.
STAY SAFE.
>> THANK YOU.
>> WE’LL TAKE A QUICK BREAK.
WHEN WE COME BACK, WHAT DOES A