Council moves forward on listing of city property
Tecumseh City Council voted unanimously on Monday, May 5, to list city-owned property at 102 N. Maumee St., across from City Hall, with Howard Hanna. Offers on the property would include meeting a list of conditions outlined under a development agreement.
“The conditions would have to be met and submitted with any proposal then brought back to City Council,” said City Manager Kevin Welch. “Any sale would have to be approved by a supermajority vote [five council members].”
Welch said requests for proposals were sought from three realtors and Howard Hanna was the only one that responded.
Local business owners, Potter Family Foods, recently expressed interest in the property to build and open a Chomp Burger restaurant.
The vote was split 4-3 at the April 21 council meeting on whether to sell the property or not, but Welch had reminded the council members that a sale could be conditional with the development agreement and would be open to the supermajority vote. Council members Gary Naugle, Vicki Philo, and Ron Wimple were initially hesitant to sell.
Welch and City Attorney Scott Baker recommended the following criteria, including a listing price of $165,000. The property was appraised at $131,000 by Affinity Valuation, and received a market value of $132,000 by Howard Hanna. Offers for purchase must also include: purchase price, proposed development conceptual plan, number of full time equivalent jobs that would be created, draft site plan, proposed business plan, proof of financial viability/financing of project, i.e. letter from bank or financial institution securing funds if the project moves forward, and investment estimates.
The City would also require an agreement to purchase with an up to six-month due diligence including: supermajority approval by city council; Tecumseh Planning Commis-sion site plan approval; traffic impact study; and development agreement with specific milestones such as one-year construction start-up or 24-month completion for COO (certificate of occupancy) from date of sale.
In his recommendation, Welch also pointed out that the city would consider offers to purchase that result in development of the property in accordance with an agreed upon development plan between the buyer and seller. The city would also reserve the right to accept or reject any or all offers to purchase based upon the city’s sole determination of the highest and best use of the property and a supermajority approval of Tecumseh City Council.
Welch pointed out that it is the intent of the city to sell the land for development and therefore, would encourage all prospective buyers to provide as much development plan detail as possible.
The Howard Hanna agreement is for 12 months and would net a commission of 7 percent.
There was also a provision that should Chomp Burger, which expressed initial interest in the property, submit an offer to purchase within the first 30 days of the agreement, the commission would be reduced to 4 percent.
The resolution noted that the final agreement would be subject to any changes suggested by City Attorney Baker.