Title
Request to Sell 90, 102, and 114 Stimson Street and 78 Peterboro Street, Detroit, Michigan 48201
Body
Agenda of: June 28, 2023
Item No.: 2023-236
Amount: $2,000,000.00 less closing costs and brokerage fees
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.,
Chief Executive Officer
Great Lakes Water Authority
DATE: June 23, 2023
RE: Request to Sell 90, 102, and 114 Stimson Street and 78 Peterboro Street, Detroit, Michigan 48201
MOTION
Upon recommendation and opinion of Suzanne R. Coffey, Chief Executive Officer, and Randal M. Brown, Deputy Chief Administrative and Compliance Officer and General Counsel, the Board of Directors for the Great Lakes Water Authority (GLWA):
1) Approves the sale of 90, 102, and 114 Stimson Street and 78 Peterboro Street, Detroit, Michigan 48201 (the “Properties”), at a purchase price of $2,000,000.00, less closing costs and brokerage fees, to a joint venture entity to be formed between Queen Lillian Development and Platform Holdings; and
2) Authorizes the Chief Executive Officer to take such other action as may be necessary to accomplish the intent of this vote, including executing the Purchase Agreement and any closing documents.
JUSTIFICATION
The Properties are vacant parcels. In 2000, the Properties were purchased for $797,500 with the intent to build a new administrative building.
Pursuant to the Regional Water Supply System Lease, Regional Sewage Disposal Lease, and the Master Bond Ordinance, the Properties are part of the Detroit Local Sewer and Water Facilities that were paid for in whole or in part with common-to-all funds, and thus GLWA has the right to sell the Properties, as they are no longer needed or useful in connection with GLWA’s operations to support its service to wholesale customers.
By selling the Properties, they will be returned to productive use as either residential or commercial facilities.
BUDGET IMPACT
To be determined upon the closing and consultation with Bond counsel.
COMMITTEE REVIEW
This matter was presented to the Legal Committee at its meeting on June 28, 2023.
SHARED SERVICES IMPACT
There is no impact to the Shared Services Agreement between GLWA and DWSD.