Title
Purchase of 14727 and 14729 East Jefferson, Detroit, MI
Body
Agenda of: October 25, 2023
Item No.: 2023- 383
Amount: $149,000.00 plus all closing costs
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: October 23, 2023
RE: Purchase of 14727 and 14729 East Jefferson, Detroit, MI
MOTION
Upon recommendation and opinion of Suzanne R. Coffey, P.E., Chief Executive Officer, and William M. Wolfson, Chief Administrative and Compliance Officer/ Interim General Counsel, the Board of Directors (Board) for the Great Lakes Water Authority (GLWA):
(1) Approves the purchase of 14727 and 14729 East Jefferson, Detroit MI; and
(2) Authorizes the Chief Executive Officer to take such other action as may be necessary to accomplish the intent of this vote, including the execution of the Purchase Agreement and related documents.
JUSTIFICATION
To rehabilitate the Fox Creek outfall and regulator chambers, GLWA needs land for staging equipment, materials and soil near the Fox Creek outfall and regulator chambers. Working with GLWA’s consultant on this project, GLWA has identified properties that it needs near the Fox Creek outfall and regulator chambers. 14727 and 14729 East Jefferson are contiguous parcels to the property where the chambers are located. GLWA negotiated the purchase of the property from the property owner, which appears to be Holmes Holding Group, LLC. There are ownership concerns that will be vetted by the title company to ensure GLWA receives title clear of any encumbrances. GLWA is aware that this property was heavily fined for blight and ultimately the structure on the property was demolished. The amount of the blight tickets and the demolition costs are still being tabulated, but the property owner has agreed that these tickets and costs would reduce the net proceeds from the sale.
GLWA is paying more than the appraised price, however, GLWA secures this property without filing condemnation proceedings. In addition, GLWA secures the property with the structure already being demolished, which occurred sometime after August 2019. GLWA would have had to incur these costs as well. The sale price will not result in a windfall to the property owner, given the blight tickets and demolition costs will need to be paid at closing, reducing the sale proceeds. Based on information and belief, there are over 45 blight tickets against the property.
Additional easements and property acquisitions are necessary to support the rehabilitation of the Fox Creek outfall and regulator chambers and will be presented to the Board as they are negotiated with the property owners.
BUDGET IMPACT
There are sufficient funds allocated for the access agreement in the CIP.
COMMITTEE REVIEW
This matter was presented to the Legal Committee at its meeting on October 25, 2023. The Legal Committee unanimously recommended that the GLWA Board adopt the resolution as presented.
SHARED SERVICES IMPACT
This request does not impact the Shared Services Agreement between GLWA and DWSD.