Detroit's Historic Leland House Auction Halted Amid Tenant Displacement Concerns
A federal bankruptcy judge has intervened, halting the rapid auction of Detroit's historic Leland House in downtown Detroit. The building, a 99-year-old landmark, was at the center of controversy after its owner sought to sell it with plans to include an adjacent parking lot that is not owned by the debtor.
The halt came amid concerns from tenants and advocacy groups who claim the proposed sale would strip them of their rights without due process. The U.S. Trustee, secured creditors, neighboring property owners, and tenants had objected to the sale, citing concerns over valuation, structure, and bidder protections.
In December, Judge Maria Oxholm barred DTE Energy from disconnecting power to the building without court approval, allowing the owner to secure a $1.2 million loan to address some debts. However, the recent auction proposal was met with resistance as it included an excessive stalking-horse bid of $3.5 million and a breakup fee of $200,000.
Tenant advocates hailed the ruling as an important pause, ensuring that any future sale cannot happen behind closed doors or at the expense of those who lived in the building. The court's decision gives tenants "breathing room" to preserve their leases and protect their rights.
The Leland House has a long history of controversy, including a power outage that forced an emergency evacuation in December. Tenants are still trying to retrieve their belongings, which have been deemed unsafe by the city.
The halt in the auction raises questions about why the city has not advocated for its tenants. Former Mayor Mike Duggan received significant donations from DTE Energy executives, and his predecessor's silence on behalf of residents has sparked concern that the energy giant may be trying to acquire the property.
In response, DTE spokesperson Amanda Passage denied any intention to purchase the Leland House, stating "We have no plans to pursue the purchase of Leland House." However, the proposed sale highlights ongoing tensions between developers, corporations, and community interests in Detroit's evolving landscape.
A federal bankruptcy judge has intervened, halting the rapid auction of Detroit's historic Leland House in downtown Detroit. The building, a 99-year-old landmark, was at the center of controversy after its owner sought to sell it with plans to include an adjacent parking lot that is not owned by the debtor.
The halt came amid concerns from tenants and advocacy groups who claim the proposed sale would strip them of their rights without due process. The U.S. Trustee, secured creditors, neighboring property owners, and tenants had objected to the sale, citing concerns over valuation, structure, and bidder protections.
In December, Judge Maria Oxholm barred DTE Energy from disconnecting power to the building without court approval, allowing the owner to secure a $1.2 million loan to address some debts. However, the recent auction proposal was met with resistance as it included an excessive stalking-horse bid of $3.5 million and a breakup fee of $200,000.
Tenant advocates hailed the ruling as an important pause, ensuring that any future sale cannot happen behind closed doors or at the expense of those who lived in the building. The court's decision gives tenants "breathing room" to preserve their leases and protect their rights.
The Leland House has a long history of controversy, including a power outage that forced an emergency evacuation in December. Tenants are still trying to retrieve their belongings, which have been deemed unsafe by the city.
The halt in the auction raises questions about why the city has not advocated for its tenants. Former Mayor Mike Duggan received significant donations from DTE Energy executives, and his predecessor's silence on behalf of residents has sparked concern that the energy giant may be trying to acquire the property.
In response, DTE spokesperson Amanda Passage denied any intention to purchase the Leland House, stating "We have no plans to pursue the purchase of Leland House." However, the proposed sale highlights ongoing tensions between developers, corporations, and community interests in Detroit's evolving landscape.
. People gotta be careful with what they give away, ya know? The city's gotta make sure its people are taken care of first, not just big corps like DTE Energy 
. I mean, Mike Duggan got those donations from the execs, maybe he was trying to curry favor or something 
. But tenants got rights too, and they shouldn't be treated like they're disposable 
. The halt is a good thing, it gives them time to figure out what's gonna happen next 
. Maybe we can even get some community land trusts in there to make sure the building stays affordable for everyone 
.
! I mean, can't they see that tenants are already struggling? The city should be fighting for them, not letting big corps like DTE Energy just swoop in and take over. And what's with the stalking-horse bid of $3.5 million?! That's outrageous 
. I'm all for progress and development, but not at the expense of our communities! We need to make sure that everyone has a seat at the table and their voices are being heard 
.
It's surprising that the city hasn't been more vocal in its support for its residents, especially considering the history of controversy surrounding the Leland House. The fact that former Mayor Mike Duggan received significant donations from DTE Energy executives raises some eyebrows and highlights the need for greater transparency in government. 
According to a quick Google search, the building has been on the market for like, 3 years now... 
That $3.5 million "stalking-horse" bid is still whack, btw 
. The data says Detroit's affordable housing shortage is getting worse by the day 
Anyway, it's good that tenants have "breathing room" to protect their rights 
. Maybe the city should be looking into implementing some affordable housing initiatives ASAP? 
And what about all those shady dealings with DTE Energy? 
. This whole thing just highlights how corrupt it can be when big business tries to swoop in and take over our cities... anyway, let's keep an eye on this one 
The city is just letting DTE Energy walk all over its tenants like they're nothing! I mean, come on, a $3.5 million stalking-horse bid is just outrageous. Those people have been living in that building for years and now they're being forced to deal with some corporate giant swooping in and trying to take advantage of them.
. It's puzzling that more has not been done by city officials to advocate for the residents, given their long history of activism and community engagement 
. Ultimately, this halt provides a much-needed pause to allow for more thoughtful consideration of the Leland House's fate and the needs of its tenants 
.
they tried 2 auction it off & now a judge has stopped it cuz of tenant concerns 
. its like the city is prioritizin big corps over ppl who actually live there 
.
I mean, the city should really step up and advocate for their own people 
. The fact that former Mayor Duggan received those big donations from DTE Energy raises some serious red flags 
. Hopefully, this pause gives tenants a chance to breathe a sigh of relief and organize themselves 
. tenant advocates are literally fighting for their rights & breathing room 
and it's amazing to see them not giving up 
Like, can't a building just be sold without stripping the people living there of their rights? 
we need to make sure our communities are being protected, not just preserved for the sake of profits