Title
Purchase of 693 Navahoe Avenue, Detroit, MI
Body
Agenda of: February 24, 2021
Item No.: 2021-045
Amount: $11,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: January 25, 2021
RE: Purchase of 693 Navahoe Avenue, Detroit, MI
MOTION
Upon recommendation and opinion of Randal M. Brown, General Counsel, the Board of Directors (Board) for the Great Lakes Water Authority (GLWA):
(1) Approves the purchase of 693 Navahoe, Detroit, MI from Mack Village Limited Partnership; 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 closing documents.
JUSTIFICATION
To provide the ability to safely and reliably isolate the Freud Pump Station wet well, and pump dry weather sanitary sewage to the WRRF, GLWA needs to construct an access shaft and sanitary pump station east of the Freud Sewage Pumping Station. Working with Arcadis, GLWA’s consultant on this project, GLWA has identified properties that it needs to acquire adjacent to the Ashland and Fox Creek interceptors. One property adjacent to the interceptors and near the Freud Sewage Pumping Station is owned by Mack Village Limited Partnership. GLWA inquired to purchase the property. Mack Village Limited Partnership is willing to sell the property to GLWA for $11,000.00 plus closing costs. Based on information and belief, the purchase price is equal to Mack Village Limited Partnership’s acquisition costs from the Wayne County Treasurer ($500.00), plus taxes, stormwater costs, and maintenance to the property since it was acquired in 2013. Additional land acquisitions are necessary to support the construction of the access shaft. GLWA consulted with its broker, JLL, to confirm that this was a reasonable purchase price for 693 Navahoe.
BUDGET IMPACT
There are sufficient funds allocated for the access shaft construction in the CIP to acquire the land.
COMMITTEE REVIEW
This matter was presented to the Legal Committee at its meeting on January 27, 2021. 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.