Downtown land purchase to aid in future development

Three properties along North Evans Street will soon be owned by the City of Tecumseh after council approved their purchases Monday evening. The total cost for the three properties is $230,000. It is being purchased “in an effort to improve the North Evans Street corridor by providing open public space, more parking, retail opportunities and a more aesthetically pleasing north entrance to the community,” according to the internal loan and development agreement between the city and the City of Tecumseh Downtown Development Authority (DDA). “This is something we've been working on for years,” said councilmember Gary Naugle. The three properties are 213 N. Evans St., 101. E. Logan St. and the 100 N. Evans St. block and have been identified in the city's strategic plan as an area for improvement. The properties are owned by the Hamblin Company. “The properties will be part of a long-term strategy to enhance the primary entrance into our downtown from the north,” states the resolution's summary. The DDA will pay 50 percent of the purchase price. The balance will be loaned to the DDA by the city. In addition, the DDA is conducting and paying all costs of due diligence and closing costs. The DDA will also have to secure city approval for all development of the property.“Many years ago, people sitting right here supported the idea of the purchase of privately held land in and around our downtown area and they provided public parking that if it did not exist our city would not be the beautiful city that it is today,” said councilmember Laurence Van Alstine Jr. “I think we as a council should take consul from them and learn from their example of forward thinking.“Do we know exactly what's going to occur with this property in the next year, two years, five years?” Van Alstine Jr. added. “No, we don't. We have to hope that perhaps this council, perhaps councils to follow us, certainly in conjunction with the DDA, will use it for the better good. It just presents a tremendous opportunity for us.”The loan agreement is for 16 years at an interest rate of 2.12 percent. The closing date of the sale is scheduled for September 1. Final payoff of the $115,000 loan would be in June, 2031 with a total cost including interest of $142,834. The approval for the internal loan agreement between the city and DDA and the purchase agreement between the city and the Hamblin Company came after council exited a 45-minuted closed session discussion on the purchases. “During the closed session meeting that we had, the pros and cons were discussed,” said councilmember Ron Wimple. “This discussion on purchasing property was not taken lightly. Everybody had a voice and a choice in this discussion in trying to move Tecumseh forward.” Part of the purchase agreement reserves 21 parking spaces on the corner lot for Hamblin Company employees.