Two years of negotiations between the city and the board broke down in November. Mayor Gerald Naftaly tells GlobeSt.com the state had promised to sell the land to Oak Park first, if the city wanted it. "We are willing to pay what they're asking for. Apparently, they're no longer interested in selling to us, however," he says.
Since November, both Oak Park and the state have reappraised the site. Oak Park's reappraisal says the property is worth $2.8 million. State officials say they have reappraised the property as being worth between $3.25 million and $3.75 million.
A 110,000-sf vandalized manufacturing building sits on the property, which is just north of Detroit.
The city and the state had worked out a deal where Oak Park could have purchased the property for $2.5 million. However, the board wanted the city to sign on as a "co-polluter" of the contaminated site.
Mike McReynolds, Oak Park director of technical and planning services, says it would be illegal under federal law to ask the city to take on any liability for the land. The state board took the $2.5 million deal off the table in November. Since then, the Michigan Department of Natural Resources has ruled that eight acres of previously designated wetlands can be developed.
Oak Park already has a written contract to sell the 60-year-old facility and land to Schostak Brothers and Co. for the same amount it pays the state for the property.
"They want to tear down the buildings and build commercial retail development on the front 30 acres, and light industrial in the rear," says McReynolds.
Major James McCrone, state public affairs officer for the Michigan department of military and veterans affairs, says bidding is now open to the public. "Oak Park is welcome to bid on the property," he says.
The armory was built during World War II for the US Navy, and included a manufacturing facility where submachine guns were produced. There is also an airfield on the property that was used extensively during the war. After the war, the armory was used for various military purposes. The National Guard reportedly mustered there during the Detroit riots in 1967. The site has been vacant for almost 10 years.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
