By JAMES FINK
Business First

The fate of Statler Towers remains a question mark.

There's a strong desire to preserve an architectural landmark, yet any development plan is going to be heavily dependent on public-sector subsidies and a risk-taking developer who must operate in a cautious lending environment.

Some of the principals in New Buffalo Statler Development LLC remain confident that they can get the remaining funds for the $1.3 million closing costs by Nov. 30 - the deadline imposed by the U.S. Bankruptcy Court - and then raise enough money to follow through on their proposed $100 million redevelopment effort.

Others aren't so sure.

The fate of the Statler may be clearer following an Oct. 26 hearing in Bankruptcy Court. Hon. Carl Bucki may at that point determine whether New Buffalo Statler Development's bid is in default after one of its investors stopped payment on a $261,000 good-faith check. Bucki could set a new auction date, allow New Buffalo to try to reach the Nov. 30 deadline or start the process to mothball the 18-story building.

"It is a doable project, but only if it is done in the right way," said Michael Montante, Uniland Development Co. vice president. "It will need some form of public-private partnership."

Uniland used such a partnership to finance the conversion of the Dulski Federal Building to the Avant building. Still, the cost of that project rose from an original $63 million price tag to more than $85 million.

"With any renovation, you should always expect some form of the unknown," Montante said. "It would be foolish to think otherwise."

Raising private-sector funds may be difficult enough, but with many of the usual public-sector sources cash-starved and being more judicious with their allocation of incentives, financing is sure to be a tough road to navigate.

"Right now, this is not a doable project," said developer Carl Paladino. "It should not be done. It will be a failure in this market. The best thing they could do to the Statler is board it up, warehouse the building and wait for a better day to come."

Shutting down the building is, by most accounts, the least desirable option.

Cleveland developer John Ferchill, who attended the original Statler auction but did not make a bid, said he remains interested.

"I don't work on things that don't work," said Ferchill, who recently tackled the Westin Book Cadillac conversion in Detroit.