Residents of the Leland House received notice a day after Thanksgiving that the storied building would be shutting down in less than a week, leaving them frustrated and confused.

“Are we getting an eviction notice? What’s happening?” said longtime resident Paul Kearns, 71, on Monday, Dec. 1.

The downtown Detroit building, located at 400 Bagley St. and home to the longtime Leland City Club, is what remains of the historic Leland Hotel. The building has also been steeped in controversy in recent years over renovations. On Dec. 1, a U-Haul moving truck sat outside the towering old building and a few people filtered in and out of the frigid lobby. The building, whose owner is facing bankruptcy, has 40 occupied units and could lose power in the next few days.

“After exhausting all possible options, we have been informed that the building will be required to shut down effective Wednesday, December 3, 2025. This is not a decision we ever wanted, and we are deeply saddened that circumstances have led us here,” reads a letter, dated Nov. 28 and signed Leland House Management, provided to the Free Press.

Management told residents in the letter that it would be doing everything it could to help them and that over the next few days, the city of Detroit would provide resources and support relocation.

In a statement, Luis Ramirez, a representative for the Leland House’s owner, said the building is part of a Chapter 11 bankruptcy case and owes a $43,000 payment to DTE Energy by Wednesday or power will be shut off. The owner requested a one-week extension but was denied, according to Ramirez.

“We obtained financing, but we are concerned the funds for DTE will not be available from the lender by December 3. Because of this, tenants were notified last Friday that 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. We will provide updates as soon as new information becomes available,” Ramirez said, via a spokesperson, on Dec. 1.

The city of Detroit’s law department has also been involved in the bankruptcy case in recent months and got permission to connect with tenants to discuss relocation.

Even before this week’s upheaval, the Leland has had a rocky past.

In 1927, it originally opened as the Detroit-Leland Hotel with 720 rooms. In the 1960s, the building was renamed the Leland House and was renovated to include apartments. The hotel eventually stopped taking overnight guests. The late real estate developer Michael Higgins bought the building in 1980 and the Leland City Club opened in the mid-1980s. A planned $125 million overhaul of the 22-story building stalled and was at the center of a lawsuit a few years ago. And more recently, the building’s owners filed for bankruptcy protection ahead of its sale to new owners, according to a Crain’s Detroit Business report.

“Many of you have lived here for years, and we are truly grateful for the trust, community, and kindness you’ve shared with us. Watching this building become a home for so many wonderful people has been one of the greatest privileges of our work. We are deeply sorry that this sudden change is happening, and we sincerely apologize for the hardship it brings,” the letter to residents read.

Kearns, a 15-year resident who also works the front desk, said it’s impossible to move out nearly 60 units so quickly and the notice leaves residents stranded. The building only has one passenger elevator and no freight elevator. He pays $550 a month for rent and utilities for about 750 square feet − a deal he said you can’t really get anywhere else downtown. The short notice − at a time when the week’s forecast calls for snow and cold temperatures − is also inhumane, he added.

“I’m flabbergasted. It’s not fiscally possible. It’s not physically possible to make this happen on Wednesday. Where are they going to put us?” he said.

There are people who have lived in the building for 30 years and have nowhere to go, he said.

“We need time. A lot of us are old,” he said.

The building is not an approved rental, according to the city of Detroit’s compliance map. The taxpayer, listed as Leland House, owes $297,773 in overdue property taxes, according to Wayne County records.

In a statement, DTE Energy spokesperson Amanda Passage said the company does not disclose customer information, but said there are payment arrangements to avoid interruptions.

“Any customer – whether residential or business, large or small – experiencing financial hardship is encouraged to contact us as soon as they believe they will be unable to make a payment, so we can work together on the best solution for their situation,” Passage said in an email.

Free Press reporter JC Reindl contributed to this report.

Reach reporter Nushrat Rahman at nrahman@freepress.com.