DTE Energy's Threat to Shut Off Power at Detroit's Leland House Amid Outstanding Debt Crisis
As the holiday season approaches, a looming crisis has residents of Detroit's iconic Leland House facing an uncertain future. The historic tower, once a luxury hotel and a four-star destination in its heyday, has become a symbol of neglect and abandonment. With over $50 million in liabilities and debts mounting, DTE Energy is set to cut off power at the 20-story building on Wednesday due to outstanding bills.
The Leland House Limited Partnership Company, which owns the property, notified residents just days before the deadline that they must vacate the premises due to the impending power shutdown. Management stated that they had exhausted all options and were left with no choice but to seek new housing for their tenants of roughly 40 units.
"We can share that our goal is always to work with each customer to find a solution before service is impacted," said DTE spokesperson Amanda Passage, adding that the utility company offers various payment arrangements to help avoid interruptions. However, in this case, the building's owner has been unable to secure financing to cover the $43,000 deposit required for electricity.
The city of Detroit has also taken notice of the situation and is moving forward with its own legal actions against the blighted property. The Detroit Law Department secured permission from U.S. Bankruptcy Judge Maria Oxholm to proceed with a state public nuisance case, despite the building's Chapter 11 filing earlier this month. The court has ruled that the automatic stay does not apply to non-monetary portions of the case, allowing the city to resume enforcement.
Wayne County Circuit Court Judge Annette Berry has issued an order requiring the owners to complete emergency repairs, but the partnership has struggled to secure financing for these repairs or pay off its utility debts. Birmingham-based Tir Equities LLC, owned by mobile-home-park operator Ara Darakjian, is trying to buy the Leland House, but the sale cannot move forward until major repairs are completed and outstanding bills are settled.
The crisis at the Leland House has been building for months, with the city moving to reinstate its nuisance case over the company's failure to comply with a judge's repair order. The ownership group filed for bankruptcy in early November, reporting $10 million to $50 million in assets and liabilities.
As the deadline approaches, management is urging residents to seek new housing, stating that "without a last-minute resolution – they will be required to seek new housing." The city officials said they are doing everything they can to help residents relocate, but it remains unclear how quickly this will happen.
As the holiday season approaches, a looming crisis has residents of Detroit's iconic Leland House facing an uncertain future. The historic tower, once a luxury hotel and a four-star destination in its heyday, has become a symbol of neglect and abandonment. With over $50 million in liabilities and debts mounting, DTE Energy is set to cut off power at the 20-story building on Wednesday due to outstanding bills.
The Leland House Limited Partnership Company, which owns the property, notified residents just days before the deadline that they must vacate the premises due to the impending power shutdown. Management stated that they had exhausted all options and were left with no choice but to seek new housing for their tenants of roughly 40 units.
"We can share that our goal is always to work with each customer to find a solution before service is impacted," said DTE spokesperson Amanda Passage, adding that the utility company offers various payment arrangements to help avoid interruptions. However, in this case, the building's owner has been unable to secure financing to cover the $43,000 deposit required for electricity.
The city of Detroit has also taken notice of the situation and is moving forward with its own legal actions against the blighted property. The Detroit Law Department secured permission from U.S. Bankruptcy Judge Maria Oxholm to proceed with a state public nuisance case, despite the building's Chapter 11 filing earlier this month. The court has ruled that the automatic stay does not apply to non-monetary portions of the case, allowing the city to resume enforcement.
Wayne County Circuit Court Judge Annette Berry has issued an order requiring the owners to complete emergency repairs, but the partnership has struggled to secure financing for these repairs or pay off its utility debts. Birmingham-based Tir Equities LLC, owned by mobile-home-park operator Ara Darakjian, is trying to buy the Leland House, but the sale cannot move forward until major repairs are completed and outstanding bills are settled.
The crisis at the Leland House has been building for months, with the city moving to reinstate its nuisance case over the company's failure to comply with a judge's repair order. The ownership group filed for bankruptcy in early November, reporting $10 million to $50 million in assets and liabilities.
As the deadline approaches, management is urging residents to seek new housing, stating that "without a last-minute resolution – they will be required to seek new housing." The city officials said they are doing everything they can to help residents relocate, but it remains unclear how quickly this will happen.
. As the power threatens to be cut off, I'm reminded that even in times of crisis, we mustn't forget the human cost. 40 residents, forced to seek new housing on short notice... it's a stark reality check. What does this say about our society? Are we willing to prioritize profits over people? 
Can we truly say we're doing enough to support those in need? The city's actions, while well-intentioned, seem like a Band-Aid solution at best. Where's the long-term plan to revitalize and repair these iconic buildings? 
. I mean, can't we all just get along and pay our electricity bills on time? 
The city's gotta step in and help those residents find a new place to live ASAP. This is what happens when you let property owners take advantage of the system... kinda like how I'm stuck paying my cable bill on time every month 
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my heart goes out to the ppl livin in dat historic building gotta imagine walkin into ur home and findin out u r bein evicted cuz u cant pay ur electricity bill 
its not just about da money tho, its about havin a roof over ur head and feelin safe 
dte energy should def look into other options 4 helpin these ppl out maybe some kinda payment plan or somethin 
we gotta take care of each other during hard times 
! I mean, the Leland House has such a rich history and it's heartbreaking to see it falling apart like this. The fact that DTE Energy is threatening to cut off power just because of outstanding bills is just cruel 
. And now the city is taking action against the owners, which is great, but what about the residents? They're the ones who are going to get hurt the most 
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. And I'm not sure why Tir Equities LLC can't just buy the building and deal with all the issues themselves? It's like, come on, you're trying to profit from this mess, at least try to clean it up first 
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. This crisis is just too much 
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. I'm not saying DTE Energy isn't trying to help, but come on, it's a historic building that should be preserved, not abandoned due to some huge debt crisis 
. I'm glad they can move forward with their own legal case against the property owners. It seems like there are some shady players involved here, like Tir Equities LLC 
I feel so bad for the people living in the Leland House. $50 million is a huge debt and DTE Energy's not taking it lightly. They're trying to help with payment arrangements, but it's just one problem after another. The city's stepping in too, which is good, but it's hard to see anyone escaping this situation without a major hit.
DTE Energy's power shutdown at Detroit's Leland House is a mess 
. Can't believe the city and residents are stuck with no end in sight 
. Needed some holiday cheer, not a crisis 
. It's heartbreaking to see a historic building like the Leland House fall into disrepair 
. 
. $50 million in debt & still DTE Energy wants to shut off power? That's just cruel 
. And what about the city's efforts to help them relocate? It's like they're just tossing people out onto the street without a safety net 
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meanwhile the city is trying to help but it's like they're fighting an uphill battle u feel? anyway, i think the city should do more to support the residents like maybe provide some financial aid or temporary housing options 
The city needs to step in and help these people ASAP. This is just another example of how neglect and abandonment can affect people's lives. 