The site, which used to hold a state mental hospital, is in Washtenaw County's York Township. Toyota is paying $9 million for the land. Gov. Jennifer Granholm and state lawmakers decided to sell the property to Toyota, convinced the potential for hundreds, maybe more than one thousand, new research jobs was more valuable to the state than a higher bid it received for the property. An Oakland County developer, DPG-York LLC, had bid $25 million for the land, planning to develop it primarily as residential.

When DPG-York didn't win the bid, it sued the state. The Michigan Court of Appeals upheld the state's action in February, saying the state had a right to consider other factors besides the price offered, including whether use of the property would attract skilled jobs.

An attorney for DPG-York said Monday the legal challenge is far from over. Stephen McKenney said DPG-York is appealing to the Michigan Supreme Court. McKenney also has filed a separate appeal in the casewith the state appeals court.

"I'm aware of governor's announcement; however, I don't believe it changes any of the facts of the case," McKenney said. "The governor's announcement is far more political than it is legal."

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