Land value increase changes makes city re-think sale

By TEREASA NIMS
Sunday Times Newspapers

ALLEN PARK — A letter from a commercial real estate company may have thrown a wrench into a deal for the city to close with the Boji Group, of Lansing, in the sale of the property where the municipal offices currently are.

The Boji Group wanted to purchase the west four acres, from a total of 11, of the property for an estimated $1 million. However, City Administrator Karen Folks asked CBRE Inc., the commercial real estate company that handled the sale of the Southfield Lease Properties, to assess the value. City officials learned the property was worth more than they thought.

The Boji Group wants to erect a Holiday Inn Express and Hardee’s Resturant on the property. It originally wanted to buy the west four acres for the project, but is entertaining the possibility of purchasing the entire 11 acres, Boji Group attorney John Hindo said.

The property, once valued at $225,000 per acre, is now, according to CBRE, valued at $275,000 per acre. This has city officials discussing the sale further.

“It was pretty informative,” resident Robert Turner said of the Dec. 2, special city council meeting. “It was a good meeting.”

An estimated 25 residents showed for the 90-minute meeting.

Some residents were confused whether the city was selling four acres or all 11, or if it plans to build a new city hall.

“It raised more questions than it provided answers,” one resident said.

The council asked that CBRE come in to articulate its assessment at a future meeting.

(Tereasa Nims can be reached at tnims@bewickpublications.com.)