Title
Approval to sell 90, 102, and 114 Stimson Street and 78 Peterboro Street, Detroit, Michigan 48201
Body
Agenda of July 19, 2023
Item No.: 2023-171
Amount: $2,000,000.00, less closing costs and brokerage fees
TO: City of Detroit
Board of Water Commissioners
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Request to Sell 90, 102, and 114 Stimson Street and 78 Peterboro Street, Detroit, Michigan 48201
MOTION
Upon recommendation and opinion of Gary Brown, DWSD Director, the Board of Water Commissioners:
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 Director 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. Such plans did not come into fruition and the Properties were acquired by GLWA pursuant to the Regional Water Supply System Lease, Regional Sewage Disposal Lease, and the Master Bond Ordinance (the "Leases").
Financial records indicate that regional bonds were used to acquire the Properties and pursuant to the Leases, 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. 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. Under Section 5.8 of the Leases, the City shall cooperate with the Authority in arranging the execution and delivery of a deed for the disposition of any real property.
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