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Could Livonia Gov't Try for Another Annexation?; The O/E Suggests So
Topic Started: Jul 30 2009, 11:58 AM (447 Views)
Ms. AK
Veteran
http://www.hometownlife.com/article/20090730/OPINION/907300312/1202/EDITORIAL++Vote+yes+Aug.+4+on+land+purchase,


EDITORIAL: Vote yes Aug. 4 on land purchase
JULY 30, 2009

Last year, citizens of Northville Township rallied their neighbors in Livonia to shoot down an attempt to annex 414 acres of land, commonly referred to as the former state psychiatric hospital property, owned by developer REIS.

Now, township residents faced with a vote of their own -- whether or not to buy most of that land from the developer at a price of $23.5 million.

REIS would retain the prime corner of land at Seven Mile and Haggerty roads for future commercial development.

During these unbelievably tough economic times, each voter must ask themselves if they can afford it. The cost to a homeowner with a $300,000 house would be $12 per month. That may or may not be a lot of money; each voter will have to make that determination. If you feel that's affordable, we would encourage you to vote yes. Here's several reasons why:

* This is probably a once-in-a-lifetime opportunity to purchase 336 acres for future use that township residents will have a say in, via Master Plan public hearings.

* Commercial density will drop to half of what the developer will be allowed to do currently (which is the equivalent of another 12 Oaks Mall), and the traffic congestion will be much less.

* Planned office, single- and multi-family housing and multi-story senior residential will be eliminated.

* The possible need for another school will be eliminated.

* The possibility of a second annexation attempt would be eliminated. Livonia has lost four large taxpayers (Quicken Loans, a GM assembly plant and three auto dealerships), and its residents may be more accepting of an annexation.

* The bond will not be used to fund the property cleanup and residents will not pay for the cleanup. The Brownfield Redevelopment Financing Act will allow the township to capture new taxes from REIS's 68 acres of development for the cleanup.

* The appraisal by Allen Associates values the property at $6.5 million more than the proposed purchase price.

If the above points make sense to you; if you trust that your elected officials are doing what is best for you; and if you feel that you can afford the additional taxes ... vote yes on Tuesday.
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steve emsley
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No way REIS tries again purchase or not.

They got everything they could EVER WANT in the "consent agreement" with Northville Twp.

If they annex the land they lose the agreement (ultra dense zoning, greening exemption, Brownfield funding) and have to start over again in Livoina at a higher tax rate.

The annexation threat is a lie being used to scare people into voting yes on a very bad proposal that will make the Twp. REIS' lender.

I wrote this for those that have better things to do than follow the shenanigans... the Twp. Board went from HOLIER THAN KIRKSEY to behaving EXACTLY like he was during the last annexation attempt.

http://www.box.net/shared/jtj3mu2nfa
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Spanky
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steve emsley
Aug 3 2009, 04:06 PM
No way REIS tries again purchase or not.

They got everything they could EVER WANT in the "consent agreement" with Northville Twp.

Steve~What makes you think that Kirksey won't give REIS everything they could ever want? Especially given their 'relationship'?

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Ms. AK
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The O/E did another story today on the topic (see below).

This is one thing to consider: If Northville goes for this tomorrow--they will be bailing out what is REIS' multi-million dollar debt.

REIS has got to be seriously hampered right now--tens of millions wrapped up in a failed business deal. They are literally sitting on a "toxic" asset and not making any money on the land deal in this economic climate.

REIS has everything to gain--and I don't trust them based on the way they got this on the ballot the first time around by planting "security" trailers on the site.

In this economy, banks aren't lending and REIS has no where to go right now. That land will be up for sale for a long time. I think Northville might be getting duped.

Northville will still have to deal with the reality that REIS can still put up big boxes at Haggerty/7.

I don't know, but something kinda stinks.

http://www.hometownlife.com/apps/pbcs.dll/article?AID=/20090802/NEWS12/90802001&s=d&page=2#pluckcomments

Group of Northville residents against bond proposal
BY PAM FLEMING • STAFF WRITER • AUGUST 2, 2009


Voters head to the polls on Tuesday to cast their ballot in a special election on a bond proposal to buy about 332 acres of the former Northville Regional Psychiatric Hospital property at Seven Mile and Haggerty roads.

Northville Township resident John Cauffiel said Thursday night he’s talked to several professionals about the township’s proposal to purchase a piece of land from developer REIS for $23.5 million.

“I’ve talked to bankers, attorneys, major accounting firms, developers, builders, Realtors and appraisers about the proposal,” Cauffiel said. “The overall consensus was that the township was way overpaying for the property, and that they (township leaders) were crazy.”

Cauffiel and a few other residents had a press conference outside township hall Thursday evening urging people to vote no to the hospital property purchase and no to higher taxes on Aug. 4.

“Why did the township consent to only one appraiser by name in the purchase agreement, and who picked the appraiser?” they asked. “To our knowledge, there has not been an independent review of this appraisal,” Cauffiel said.

The residents say that cleanup of the property will cost millions and that the final environmental report has not been completed.

“The figure of $17 million for the cleanup is from old reports furnished by the seller,” he said. “We do not know how much it is going to cost, but the township has agreed to hold harmless the sellers of all costs and liabilities and even the state of Michigan, who created this mess.”

Many residents have doubts about whether the commercial development will be able to generate enough money to fund the cleanup of the property, Cauffiel said. “Meijer’s (store) on Eight Mile Road, which resides on 31 acres, for example, pays $333,000 a year in taxes,” he said.

He also asked during a meeting on a Michigan Natural Resources Trust Fund grant application for 39 acres on the property at township hall Thursday night why the township gave REIS a right of first refusal on the property for 10 years.

Ernie Essad, attorney for the township, who was instrumental in negotiating the deal with the developer, said this served as an incentive for REIS to develop the land and create the “critical mass” needed to provide tax dollars and eventually brownfield dollars to pay for the cleanup of the township’s portion of the property, should the bond proposal pass.

Cauffiel said residents are also concerned about costs to develop passive recreation on the proposed portion of land the township wants to buy, as well as future maintenance and security costs. Mark

Abbo, township supervisor, has stated numerous times that the cost to the township to maintain the property is well within the township’s budget. Chip Snider, township manager, said Thursday night that John Werth, director of public safety, has said that the township police department is well-equipped to provide security to the property without adding officers.

Another question residents have are what will the costs be for an on-site demolition contractor to manage the cleanup project.

“Why are our elected officials pushing this in a state financial crisis with Michigan employment at 15.2 percent?” Cauffiel asked. “Our state government is in dire straits economically, running record deficits, and property values are still failing.”

Abbo said he believes the economy will rebound, and that REIS will be able to create a commercial development to fund the cleanup of the property.

Cauffiel has created a Web site, www.izzyfrizzy.com, a domain name he created for his daughter but never used.

pfleming@gannett.com | (248) 349-1700, ext. 260
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Ms. AK
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I'm not supporting this website, just posting for FYI.

From www.izzyfrizzy.com:

Vote - NO to Hospital Property Purchase and NO to Higher Taxes on August 4th.

Key Points Related to Hospital Property Purchase:

$23.5 Million, over 100,000 per acre for polluted land, with several large buildings that need to be demolished. The Township will be stuck with all liabilities on a "yes" vote and subsequent purchase, and will hold the State of Michigan harmless.

Why did the Township consent to only one appraiser by name in the purchase agreement? Who picked the appraiser?(Clause 7 purchase agreement)

Clean-up will cost millions. The Final Phase 2 Environmental Report has not been completed. The figure 17 million for cleanup are from OLD reports furnished by the seller. We do not know how much it is going to cost but the Township agrees to hold harmless and indemnify the sellers of all costs and liabilities, and even the State of Michigan who created this mess. (Clause 6.4 in the purchase agreement)

The clean up funds (Brownfield) has to be funded first. Only after the REIS 81 acre development is up and paying property taxes, can the township petition the State to get these taxes rerouted to the Brownfield called Tax Incremental Financing (TIF). The State could turn it down.

It is doubtful this tax revenue will pay for the clean up. The Township will have to float a 20 million or so bond to pay for the clean up and hope for some recapture. This amounts to a 1.5M a year payment of principal and interest assuming a 20 year bond at 5%, it is very doubtful the new REIS development property taxes can pay for this huge clean up. All property taxes cannot be re-routed, at best 80%. Meijer's on 8 mile for example pays $333,000 a year in taxes, which resides on 31 acres.

Tax Incremental Financing (TIF) cannot be used for the 23.5 million acquisition cost.

5 year limitation: If the REIS property is not developed in 5 years from acquisition date, you cannot create a TIF, or re-direct of taxes for the Brownfield. There is nothing in the Purchase agreement compelling REIS to start development. They could sit on the property and do nothing, and the Township will be out.

Why did the Township give REIS the right of first refusal to buy the property back for the next ten years in the purchase agreement if the township decides to sell it? (Clause 14 purchase agreement)

The tax increase would not include any potential tax increase next year as a police and fire millage are up for renewal.

The township is already developing plans to sell a portion of the land to the state. Specific details have not been finalized. Should not all the details be known before a vote?

How much will you need for Park development, 5 or 10 more million?

Future maintenance and security annual cost?

How much will an on-site demo contractor cost just managing the project?

Why are our elected officials pushing this in a State financial crisis, Michigan unemployment 15.2%. Our State Government is in dire straits economically as well, running record deficits. Property values still falling.

Click on related links:
Complete Purchase Agreement

Troubling Clauses in the Purchase Agreement

Land Deal:Questionable aspects from HomeTownLife.com

Opinions from Concerned Citizens

Frequently Asked Questions about Act 381 (TIF)

Need a vote NO yard sign click here or Email ozzy0374@yahoo.com


Would you like to work the Polls on August 4th? click here or Email clem@prodigy.net


Be a Block Captain or Email clem@prodigy.net


Click here for a printable version to pass out to friends.


Edited by Ms. AK, Aug 3 2009, 05:40 PM.
Krome on Cars

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steve emsley
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OH, somthing STINKS for sure.

My point is, they already have EVERYTHING they could ever want in the consent agreement with Northville Township.

Not to oversimplify because I know you are all smart, but the last annexation attempt was because REIS wanted to build, let's say, a pool. In the agreement, The Twp said "build 6 and here is $17mil to clean your lad, and don't worry about the trees, you can clear cut.

There is really nothing more Livonia can give them... I mean, the Twp. authorized 1,000,000 sq. ft. in commercial alone.

So, they would have to pay to BEG Livonia for an annexation, get all the wild zoning variances again, get the Brownfield monies again, get the greening exemptions, get a VERY expensive sewer tap and on and on.

They would be starting over simply HOPING to get something more and there just is not much more to get.

They also get a higher property tax rate in Livonia...

So, no one has been able to present to me anything Livonia can give that would be worth all of the risk, time and money to annex.

I am open to hear though what it is they could gain.
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steve emsley
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Anna Krome
Aug 3 2009, 05:35 PM
This is one thing to consider: If Northville goes for this tomorrow--they will be bailing out what is REIS' multi-million dollar debt.
Yes... we will become their financier. They cannot get loans for this development in this climate. We all know that. This deal will lead to the RAPID development of 7 and Haggerty... financed by Northville Twp. tax dollars. They get the prime, commercial real estate, we get the contaminated buildings. All for the LOW, LOW price of $24 million (that is what the ballot says this morning)...

The land is currently has an assessed value of $10mil. PER THE TWP BOARD and is taxed on $5mil... ODD 2/3 appraises at 3x this.

It is a sham.

Sorry for the double post.
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steve emsley
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Well.. "we" bought it. Guess we will see what we get in the coming months.
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