VBT LDFA votes to send letter to Sovereign Partners

Doug Peters, a member of the Van Buren Township Local Development Finance Authority, said he thinks the LDFA should write a letter to Sovereign Partners to find out if they intend to sell the former Visteon property.
At the LDFA regular meeting on Nov. 9, Peters, a retired attorney, said Sovereign should let the LDFA know immediately if it has made the decision to sell or list the property. He said he had heard this and had concerns.
Peters made a motion that a letter be sent to Sovereign Partners from the LDFA asking them to immediately inform the LDFA if they plan to sell, list or transfer the Grace Lake property. LDFA member John Delaney seconded the motion.
“My only concern,” said Ron Akers, director of the VBT Planning and Economic Development, “… We can ask them. But when they’re working on a deal, they would want to keep it quiet.”
“If we ask them as a courtesy …” Peters said.
LDFA chairman Michael Dotson said the LDFA could let them know we intend to send such a letter.
“We have no authority over a private business,” said VBT Supervisor Linda Combs.
“We have authority because there is a failure to meet tax obligations,” Peters said. “We should ask them of any intent immediately … and if they are found to have had a fraudulent sale of Visteon to Sovereign, our ability to sue Sovereign is impaired if we haven’t asked to be informed. They should know we are not sleeping or just silently sitting here smiling.”
Peters said he has requested it and there is no copy of the lease agreement between Sovereign and Visteon and no copy of the sale and purchase agreement. He said there is no reason to look the other way and, “If we do, it’s to our detriment.”
“I’m willing to write a letter as a request, in a positive tone, seeking a partnership,” chairman Dotson said.
Peters said it should go to Sovereign as well as LDFA member Danylo Dobriansky, because he’s not sure Dobriansky is a member of this committee (the LDFA) or more a member of Sovereign Partners.
Akers said the only down side is the staff works at the direction of the VBT Board of Trustees and they need to work on a partnership with Sovereign and a formal letter might be upsetting.
“You want to be good to both, but your bread and butter is with us,” Peters said. “Friendship is nice, but we can put out a letter to pull their chain. We’ve been nice for 24 months.”
Dotson said he didn’t want to turn this into an adversarial situation.
“Sovereign can show its good faith by furnishing the information sought,” Peters said. “On rare occasions, real estate firms are not duplicitous, cheating, scowling dogs … We don’t know what Visteon has over there.”
He was told Visteon leases space from Sovereign and Peters said it could be for just a dollar.
Dotson said he’d be glad to write a letter asking Sovereign to advise the LDFA on their plans for the property.
“I think that’s a little tame,” Peters said. “We should ask them to immediately advise us of any sale, listing, or transfer. Visteon sold to Sovereign and we found out after the deal is done.”
Peters said the letter should be run by the township attorney first.
“I wouldn’t expect a reply,” said LDFA member Leonard Armstrong.
The LDFA then voted unanimously to send the letter to Sovereign Partners with a copy to Dobriansky.
In other business at its Nov. 9 meeting, the LDFA:
• Was informed Chris Hayes has resigned from the LDFA and so there is a vacancy to be filled;
• Heard Akers say the proposed freeway sign at Grace Lake was approved by the Board of Zoning Appeals and when Sovereign comes in with the formal request, “We’ll be happy to issue them a sign permit”;
• Heard Akers announce the request for proposals to purchase the property owned by the LDFA on Ecorse Road has been posted in the Independent, MI.com, and seven days in the Ann Arbor News and seven days in the Jackson paper. Deadline is the end of November. If there are no bids, they can hire a broker, Akers said. Peters said all these postings show, “We’ve done our due diligence”;
• Unanimously approved, for the third time, the revisions to the LDFA bylaws that includes provisions for participation in meetings by members not present. The changes now go on to the township board for final approval;
• Approved the six meetings scheduled for 2017: Jan. 10, March 15, May 9, July 11, Sept. 12, and Nov. 15. Extra subcommittee marketing meetings will be added;
• Heard Peters note that he has heard the new supervisor is inclined to drop the LDFA. Akers said as long as there are financial obligations that can’t happen – and the LDFA collects revenue from the county and other entities. Combs said there have been a lot of rumors. “Any statement made about dissolution … He’s used to working with the county. He needs coaching on how a township operates… There were some remarks made in haste… I’m confident he’s in it for the right reason”; and
• Heard Matthew Best, deputy director of VBT Planning and Economic Development, say that in 2017 he anticipates construction at Grace Lake. “All signs point to some activity out there. I think there is good news coming.” He said the buildings there now are all filled.
LDFA members absent from the Nov. 9 meeting were Jelani Karamoko and Danylo Dobriansky. Present were Chairman Dotson, Leonard Armstrong, Chuck Covington, Supervisor Combs, Doug Peters, John Delaney, James Williams, and Shareen Barker.