Title
Request to Sell 235 South McKinstry, Detroit, MI 48229
Body
Agenda of: July 27, 2022
Item No.: 2022-325
Amount: $1,400,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: July 22, 2022
RE: Request to Sell 235 McKinstry, Detroit, MI 48229
MOTION
Upon recommendation and opinion of Suzanne R. Coffey, Chief Executive Officer, and Randal M. Brown, General Counsel, the Board of Directors for the Great Lakes Water Authority (GLWA):
1) Approves the sale of 235 South McKinstry, Detroit, MI 48229 at a purchase price of $1,400,000.00 to Newer Horizons, LLC; 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 235 South McKinstry property contains a warehouse to store large equipment primarily for the Water Resource Recovery Facility (WRRF).
The 235 South McKinstry warehouse needed significant improvements, including roofing and electrical improvements, however, the costs for improving the warehouse outweighs its future value to GLWA. GLWA no longer occupies 235 South McKinstry. Closing costs, including the brokerage fee will be deducted from the purchase price proceeds.
Pursuant to the Regional Water Supply System Lease, Regional Sewage Disposal Lease, and the Master Bond Ordinance, GLWA has the right to sell Leased Water Facilities that it no longer needs to support the service to wholesale customers.
BUDGET IMPACT
To be determined upon the closing and consultation with Bond counsel.
COMMITTEE REVIEW
This item was presented directly to the full Board of Directors.
SHARED SERVICES IMPACT
There is no impact the Shared Services Agreement.