Less than a month before the holidays, the historic Leland House in Detroit told residents they must leave because DTE Energy plans to cut electricity on Wednesday due to a hefty outstanding debt.
Management for the 20-story tower, which now operates as an apartment building, notified tenants on Black Friday that DTE intends to disconnect power, giving residents of roughly 40 occupied units just a few days to move out.
The building’s owner, Leland House Limited Partnership Company, owes the delinquent bills and is also behind on a rising water bill. The company asked the utility for a one-week extension to pay a $43,000 deposit, but DTE declined.
“It is with a very heavy heart that I write this letter,” management told residents in a Nov. 28 notice. “After exhausting all possible options, we have been informed that the building will be required to shut down effective Wednesday, December 3, 2025.”
DTE would not disclose “customer-specific information,” but said it works with customers to avoid shutoffs.
“We can share that our goal is always to work with each customer to find a solution before service is impacted,” DTE spokesperson Amanda Passage tells Metro Times. “We offer a variety of payment arrangements to help avoid interruptions and put customers on a sustainable path forward.”
The shutdown threat comes as the city of Detroit accelerates its own legal actions against the blighted property. The Detroit Law Department said Monday it recently secured permission from U.S. Bankruptcy Judge Maria Oxholm to move forward with its state public nuisance case despite the building’s Chapter 11 filing earlier this month. Oxholm ruled on Nov. 24 that the automatic stay does not apply to the non-monetary portions of the nuisance case, clearing the way for the city to resume enforcement.
That case is now back before Wayne County Circuit Court Judge Annette Berry, who issued an order in January requiring the owners to complete emergency repairs. After those repairs were not made, the city filed an emergency motion last week asking Berry to order the defendants to demonstrate why they should not be held in contempt. A hearing is scheduled for Dec. 5.
City officials said they will help residents relocate after obtaining consent from the Leland House’s attorneys to allow Detroit’s Housing and Revitalization Department “unfettered entry” into the building on Monday to speak directly with tenants and coordinate relocation assistance.
The Leland City Club, a popular nightclub known for its goth and techno nights, will also close until more is known.
The Leland House’s owner is registered to Michael Higgins, a Detroit landlord who died in September 2023 and never followed through on a promised $120 million renovation that was announced in 2018. In the years since, the building has become mired in lawsuits, code violations, unpaid bills, and mounting debt.
The Leland House Limited Partnership Company filed for bankruptcy in early November, reporting $10 million to $50 million in assets and liabilities.
The city also sued Higgins’ ownership group in 2023, alleging blight, unsafe conditions, and improper building use. Inspectors found broken elevators, inoperable smoke detectors, heat exchangers submerged in water, and common areas with temperatures in the 40s. At the time, the city called the building “not fit for human habitation.”
A consent agreement stemming from the lawsuit requires the owners to fix the elevators, address safety violations, and bring the building into compliance. But the partnership has struggled to secure financing for the repairs or pay off its utility debts.
Birmingham-based Tir Equities LLC, owned by mobile-home-park operator Ara Darakjian, has been trying to buy the Leland House. But Darakjian said the sale cannot move forward until major repairs are completed and the building’s outstanding bills are settled.
The legal action has been building for months. On Aug. 27, the city moved to reinstate its nuisance case over the company’s failure to comply with the judge’s repair order. On Nov. 3, the ownership group filed for bankruptcy. The city sought and won permission to proceed with enforcement on Nov. 24, and filed its emergency contempt motion the next day.
Meanwhile, the ownership group says it is scrambling to prevent the power shutoff. Luis Ramirez, representing the Michael Higgins Trust and the Leland House ownership, said they have been trying for weeks to secure financing to cover DTE’s deposit and fund long-overdue building repairs.
“A $43,000 payment for a deposit to DTE Energy is due by Wednesday, December 3, or power will be shut off in the building,” Ramirez said in a statement. “We requested a one-week extension from DTE, which was denied. We obtained financing, but we are concerned the funds for DTE will not be available from the lender by December 3.”
Ramirez said management alerted tenants on Friday because “without a last-minute resolution — they will be required to seek new housing.”
“Our priority is the safety and stability of residents, and we are working around the clock to prevent disruption and keep the building operational,” he said. “We will provide updates as soon as new information becomes available.”
Opened in 1927 as a luxury hotel, the Leland was once a four-star destination near the city’s grand movie palaces. Over the decades it gained a reputation as one of Detroit’s dingiest towers, operating with some of the cheapest rents downtown and a long list of safety failures. A 2014 fire revealed that the building’s standpipe system didn’t work, forcing firefighters to battle flames primarily with handheld extinguishers.
Today the Leland’s occupancy has dwindled to just 40 occupied units. It still houses City Club, the long-running alternative nightclub inside the former ballroom, and a small diner on the ground floor.
If DTE cuts power as scheduled Wednesday, the building will be effectively uninhabitable.
Management told tenants they will “continue to communicate updates and support you throughout this transition.”
It remains unclear how quickly residents will be placed in new housing, but city officials said they are doing everything they can to help residents relocate.