VBT LDFA in talks with Grace Lake proposing possible condos there

The Marketing Committee of the Van Buren Township Local Development Finance Authority is in talks with Sovereign Partners, owners of Grace Lake Corporate Center, about possible residential development at the center.
At the March 9 Zoom meeting of the LDFA, Executive Assistant Dan Selman reported that following a discussion at the January meeting, the committee reached out and had a good conversation with Sovereign Partners and “They are open to residential, but it has to be high-quality.”
In another subcommittee meeting in mid February, they talked about collaboration and what is best suited to that site.
“I reached out to Grace Lake for any research” on use of the property, but got nothing from JLL or Aerotropolis, Selman said.,
He said he didn’t know how relative old studies would be in this day and age.
He said they do have another meeting scheduled with Sovereign Partners.
“This is the start of the project,” said LDFA chairman Michael Dotson. “The ball has started to move and we have to keep that ball moving.”
“Is Sovereign Partners more property manager than developer?” asked LDFA member Doug Peters.
Dotson said they are looking for a return on their investment. He said it is positive.
Peters asked if they have offered money for a marketing study and he was told they have not.
“We’re the movers?” Peters asked and Dotson replied, “We’re going to be the squeaky wheel. It’ll make money for them.”
VBT Supervisor Kevin McNamara said they had a plan to move forward, “and the world blew up.”
Peters asked if there was any other type of development suitable other than office-technology. He said the office business is not a good business.
Supervisor McNamara said Sovereign Partners and VBT would be open to working together on residential that wouldn’t compromise the quality of their construction.
Peters asked if they would change the zoning to residential and McNamara said they could.
“If you’re going to change the rules and move the goalposts, be honest about it,” said John Delaney.
“I am honest,” McNamara said. “Sovereign Partners and VBT are willing to look at anything as long as it didn’t impair the quality of Grace Lake … Documents can be set aside by the planning commission, board of zoning appeals and the Van Buren Township board.”
“The world has changed and how we look at it,” Peters said.
“I’m a stickler for the rules, but we can change the rules,” Delaney said.
Matt Best, director of public services, said there is more than three million square feet of warehouse space in the Haggerty corridor and Wayne County Community College has area for expansion.
Best said they have been marketing the vacant property within the LDFA district to several businesses and Aerotropolis has been marketing it, too.
“It depends on who you talk to and a lot of luck. A lot of luck,” Best said.
“Is there any interest in residential?” Peters sked.
Best said there wasn’t.
“We’re the right size for multi-family and condos,” Best said.
“3,500 feet from a landfill?” Delaney asked. “You’d buy a condo 3,500 feet from a landfill? Come on.”
Best said VBT has the lowest tax rates, lowest water rates, freeways, airports … all the right things.
“That’s what economic development is all about,” he said. “Depends on what Partners wants to do. It’s a great location. They already have a permit to build another building.”
“You’re sayin to sit tight … until you have something that looks like office space?” Peters asked.
“We’ve done the heavy lifting,” Best said. “As COVID leaves… if the taxes stay low… You can’t just put out a pamphlet and hope to attract developers.”
“I think we probably should move on,” Peters said.
Dotson said there has been a lot of activity around electric vehicles.
Best said the Center for Mobility is located at Willow Run Airport and Michigan Avenue is going to be a testing route between Ann Arbor and Detroit. The locations along Ecorse are being looked at for manufacture of electric vehicles, Best said.
“As electric cars become more and more the reality, I see headquarters being set up along that stretch,” Best said.
Dotson said he was glad Best had his fingers on the pulse of automonous and electric vehicles.
Delaney asked if Grace Lake is still without vacancies and LDFA member Scott Medlen of Sovereign Partners said they are open to sublease.
Delaney said there actually is no open space without subleasing from GE and Visteon.
“They would be willing to sublease,” Medlin said.
Peters said offices are 30-40% vacant and, “We’re looking for paying tenants. With that capacity, nobody’s going to build a building,” he said.
McNamara said they do have a follow-up meeting with them and, “We will talk to them about what we can do. They are willing to do what they can to make a buck … as long as it doesn’t degrade the quality of what they have.”
“I’d like to know the real capacity open at Grace Lake,” Peters said.
“I’ll try,” McNamara said.
“Also, I’d like to know the sublease rate,” Peters said. “We can get it through the law suit.”
“Haven’t got it yet in the lawsuit,” McNamara said.
Selman then presented the Informational Meeting / 2020 LDFA Synopsis of Activities as required by Public Act 57. Selman went over the key points of LDFA and there were no questions from the audience.
Delaney asked if people can see past LDFA minutes and Selman said the township’s new website has the LDFA minutes and this synopsis will also be posted.
Delaney said old-timers don’t do computers and McNamara said they have a zoom wall at township hall with information.
Dotson commended McNamara’s staff for getting out the information to the public.
“I’ve got good people,” McNamara said.