VBT pays $1.5 million for Ford property

After a brief closed-door session on Monday morning, Sept. 23, the Van Buren Township Board of Trustees voted unanimously to purchase 181.35 acres of vacant land at the northwest corner of Tyler and Belleville roads at a cost of $1.5 million.
The land, across from township hall, extending nearly a half square mile from Belleville to Beck Road, is being sold to the township by the Ford Motor Land Development Corporation.
The board also approved another $50,000 to cover closing costs and other incidentals. All the money is coming from the landfill fund.
At the regular meeting following the 24-minute closed-door session, Township Supervisor Kevin McNamara explained that over the past year that the property has been for sale two developers were interested in the full 181 acres, one for an industrial and warehousing development and one for industrial, warehousing, and trucking.
Another developer wanted to put a gas station at the corner of Tyler and Belleville roads and another developer wanted to put a gas station and strip mall along Belleville Road north from Tyler. The last two failed because Ford was unwilling to split the property.
“I would like to add that this Administration was not in support of these uses and feel they would be detrimental to the community, both physically and ascetically,” Supervisor McNamara said. “But they would have met most of our zoning requirements. And, therefore, would not have been legally stopped by the board’s intervention.
“We are not land speculators. We are Community Developers. The land acquisition is to guard against cheap commercial building designed to be flipped for a fast buck,” he said, adding he wants to build something that allows for community input.
“The citizens working with township planners and developers will create our community’s vision of what should go on this key parcel of land. All of this, of course, must include providing the residents a good rate of return on their investment.
“I further need to emphasize that development of this property will probably not be with this board or the next board. Developments of this size generally only get built when the economy is coming out of downturns, not in the end of an upturn. It will, however, be this board’s task to work with the people of Van Buren, to create the vision and site plan to be proposed to new developers that wish to make this vision come to life.”
McNamara said what VBT is doing is a common method of community building and the closest such example would be the build-out of Canton’s Heritage Park and the neighboring condo and home developments that surround the park and golf course. McNamara said in that project, Canton set the vision and bid out the section to developers to come and be part of the Grand Vision.
He said with the purchase of this property the citizens of Van Buren Township can control their own future.
“We also believe that at this purchase price we can be assured of a fair return on our money. The fact is that we are getting this property for approximately $8,300 per acre versus the ranges in that area that start at $50,000 and go to $250,000 per acre (which is the price Speedway paid),” McNamara said.
McNamara said that former Director of Planning and Economic Development Ron Akers got information last September that Ford wanted to sell 3,000 to 5,000 parcels of land it owned throughout the world to get out of the land business.
McNamara said that on Oct. 4, 2018, he and Akers, and two others from the township met with representatives of companies interested in buying the Ford Land property. They said Ford Land was requiring them to purchase six parcels as a package and that they were primarily interested in industrial development.
They discussed the current zoning of the site (mixed use) and how that was applicable to their plans. In order to change the current land use regulations, they would need to amend the township’s Master Plan. They also discussed the township’s effort in the past to acquire the property.
“We left the meeting indicating that we would be conducting a follow-up meeting with the real estate broker Steven Gordon to discuss the site further,” said Akers in a report of the meeting.
Then a brief meeting was held Oct. 8, 2018 with Steve Gordon from Signature and Associates, Supervisor McNamara, and Akers. Gordon said the meeting on Oct. 4 did not go well as the developers were unable to utilize the Ford Land property for their planned purposes. There was discussion regarding the township’s prior attempt to acquire the property with CBRE broker.
Gordon indicated that the current asking price of the property was $8.1 million. Akers reported they asked Gordon why the drastic increase in price, since the prior asking price was $3.3 million. Gordon said he could not explain the difference, but indicated it may have something to do with Ford’s decision to switch real estate brokers.
Gordon also hinted that they may be able to accept something in the $4 million range as that is what the current developer was going to be paying for it. The township representatives told Gordon they would need to consult with the township board prior to offering a price to them for the property.
On Dec. 5, McNamara sent a letter saying the board of trustees has authorized him to offer $1.5 million for the property.
“I understand this is below the asking purchasing price,” he wrote. “However, as much as we would like to integrate a public park on the property, I’ve been advised by engineers that is would be at least a five-year project to mitigate the wetlands and acquire the funds necessary to build a park. Further, we’ve consulted with numerous developers and it’s anticipated that this property would remain undeveloped until the next economic cycle, approximately 10 years.”
Ford Land did not accept the offer.
Then, a few weeks ago, new for-sale signs went up on the property and the cost was $45,000 per usable acre. Eighty acres would be $3.6 million.
Clerk Leon Wright contacted Ford Land and asked them to reconsider Van Buren Township’s offer. The offer was accepted and closing will be in 30 to 45 days.
McNamara said one of the industrial developers decided to purchase land in Romulus.
“I’m an optimist that we’re not going into a recession,” said Clerk Wright after making the motion to buy the property. He said the price is excellent and the township can go after people “we want to see in the community” to develop there.
Trustee Sherry Frazier, who is a real estate agent, said this is an excellent investment and allows the township to control the property to increase the value to other properties on Belleville Road.
“Hopefully, we’ll be able to put a sign on the property,” Trustee Frazier said, referring to the LED sign she has been asking for at the corner of Belleville Road and Tyler to direct people to the township hall and to tell what’s going on in the township.
“Sherry’s going to get her sign,” Supervisor McNamara said.
Trustee Reggie Miller asked if the township will be able to make a profit on this transaction and McNamara said, “Yes, we can.”
Trustee Miller attended the closed session and open session by telephone and township attorney Patrick McCauley said there is no prohibition in the Open Meetings Act against voting in an open meeting by phone. McCauley said the Michigan Township Association attorney and Attorney General Bill Schuette also have given positive opinions on voting by phone in an open meeting and participation in the discussion. This is the first time anyone remembers ever having a Van Buren Township board member participate in a meeting by phone.