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Home My WebLink AboutAgendas/Packets - 1967.09.14 - 39467oakland county service center Mrs. Frances Clark Chairman John L. Carey Vice•Chairman Mrs. Velma Austin Secretary 0 Robert P. Allen Daniel W. Barry Clarence A. Durbin Robert O. Felt Donald A. Kalmbach Daniel T. Murphy Mrs: Dorothy Olson Commissioners Kenneth L. Van Natta Director PARKS AND RECREATION COMMISSION • 1200 north telegraph road pontiac, michigan 313 — 338-4751 September 14, 1967 To the Members of the PARKS AND RECREATION COMMISSION Oakland County, Michigan Ladies & Gentlemen: A meeting has been called of the PARKS AND RECREATION COMMISSION as follows: TIME ............ 9:30 a.m. Tuesday, September 19 PLACE ........... Conference Room Auditorium Wing Service Center, Pontiac PURPOSE ......... Consider Land Purchase The meeting is called in accordance with author- ization of Frances Clark, Chairman of the Parks and Recreation Commission. KLV:pm Cordially yours, Kenneth L. Van Natta OAKLAND COUNTY PARKS AND RECREATION COMMISSION September 19, 1967 AGENDA 1. Call meeting to order. 2. Roll Call. 3. Review of property that was viewed September 13, 1967. A. Report on meeting with Mr. Pew. 4. Review of Dr. Varner proposal. 5. Taking over of Groveland in November rather than March. 6. New business. 7. Date for next meeting. Frederic C. Pew 00 South Woodward Birmingham# Michigan September 18# 1967 Mr. Kenneth VanNatta# Director Oakland County Parks &-Recreation Department 1200 N. Telegraph Road Pontiac., Michigan Bear Mr. VanNattas Res Crooked Lake - 337.33 acres Sections.4 and 9 Independence Township This will confirm our recent tentative discussions concerning the possible purchase' by your Department# of 337.33 acres# in Sections 4 and 9 of Independence Township# embracing the entire westerly one-half of 70 acre Crooked Lake. I informed you# several months ago# Chats 1. The property might be made available for purchase at a price of 0750000.00 net. 2. An unsolicited offer of $5600000.00 was refused in April of 1966. It was refused because of the length of the proposed contract to purchase . 7 years o which was not acceptable. . Terms of purchase might now be arranged which could be met by the funds becoming available to the County within the next two or three years. The Crooked Lake property under discussion has been owned since 1939 and has been a very real source of pleasure and recreation to its owners# their families and many of their friends. It was originally purchased for personal use and future residence and has not been offered for sale. Now# howeverp changing circumstances# retirement planning and other factors may make it available for purchase for such a worthwhile improvement as you now plan for residents of,`Oakland County. You have# unofia.cially and without authority yet granted to you to act# indicated that a purchase price of $500,000.00, or slightly more# might be acceptable to the members of your Parks and Recreation Commission. You'have alsoT,,l unofficially# explained an option -purchase plan tailored to the funds available between now and early 1970. r Mr. Kenneth VanNatta, Director Oakland County Parks & recreation Department. (2) September 180 1967. I have investigated circumstances and regulations pertinent to and affecting a seller under such a proposed option -purchase plan. There are certain points of law which must be investigated further « and which analysis is now underway. I have investigated the fair market value of lands in the Clarkston area evidenced by recent sales and find the followings 1. The Detroit Edison Company recently paid to owners in Independence and Brandon Townships® a. $25,000.00 to the owner of land in Section 34 Brandon Township, for a right-of-way across this land comprising approxC4mately 82 acres. The owner retained the right to construct roads across this right- of-way for a subdivision he is planning. This land had no stream or lake frontage and the topography is quite ordinary. The price paid comes to $2,950.00 per acre. b. Detroit Edison has offered to settle a condemnation suit for another right-of-way across the northeast 1/4 of Section 3 Independence Township. This right-of-way comprises 11 acres and passes over the northerly end of Upper Bushman Lake which is a very shallow, marshy small pond. I am informed a settlement was made at $450000.00 for the 11 acres. The price, then, was over 84,000.00 per acre. 2. There have been two other sales within the past 60 days in Section 24 of Independence Township. a. One of these comprises 673 acres in Section 24 of Independence Township and Section 19 of Orion Township. The sale price was $680,000.00, or slightly more than lIg000.00 per acre. b. The other sale comprises 95.3 acres in Section 24 of Independence Township. The sale price was $114,375.00 or approximately $1 210.00 per acre. These lands had no lake or stream features and, certainly, the topography was far less suitable for recreational purposes than the Crooked Lake property. I am sure you are aware of the fact that the 337 acres we are discussing is most unique in its topography and in its ownership of nearly 5,500 lineal feet of frontage along the west shore of Crooked Lake. This lake is one of the few, if not the only, sizeable lake left in Oakland County which has not been developed with cottages and the usual type of lake and resort environment.) Mr. Kenneth VanNatta, Director Oakland County Parks &.Recreation Department (3) September 189 1967 There are two ownerships involved in the 337 acres on Crooked Lake which we are discussing. The writer owns 92% of the property and the rewaining 8% is owned by a very good friend and former associate of the writer. I have tentatively discussed a possible sale with the other owner and have suggested to him the following method of purchase. This method of purchase is as follows. (It is not to be construed as a firm offer to accept such a proposal of option -sale.) Total consideration . . . . . $5550000.00 An option at this price could be granted within the next ten days, running to March 1, 1968 for a consideration of . . . . . . . . . . $ 59000.00 This option would provide for a renewal for one year, from, March 1, 1968 to March 1, 1969, for a consideration of . . . . . . . . . . $10op000.00 This would be paid in March of 1968. The option would be exercised on March 19 1969 with the payment of an additional . . . . . . 60,000.00 and the execution of a land contract for twelve (12) months. Total paid by March 1, 1969 $1650000.00 The land contract balance would then be due on March 1, 1970, together with interest at the rate of six and one -quarter (6-1/4) percent, in the principal amount.of $39020000.00 $5550000.00 $555,000.00 It would be possible to give you possession of the property on March of 1968 upon payment of the $1009000.00 figure recited above so that your available funds during 1968 and 1969 could be used for improvements to the property. Acceptance of.the $555,000.00 purchase price reflects a substantial gift to the County in the form.of a discount from the $5759000.00 price asked. To substantiate the *5609000.00 offer made in March of 1966 a photostat of -a cable sent to me in Jamaica at that time, is attached. I should further inform you that there has been recent and.sincere interest in the property displayed by others whose plan is to develop a championship caliber U01f course with skiiing facilities and other recreational facilities. his is Mr. Kenneth VanNattat Director Oakland County Parks &Recreation Department (4) September 18,* 1967 mentioned only to remind you that the suggested plan of purchase outlined above is not, with this lettero a cowiaiLvaent to option or sell. If your Parks and Recreation Commission can act promptly - within a fewdays from this date • I assure you now of our good faith and willingness to seriously consider such a proposal. Cordially du�5E yam' Frederic C. Pew FCPsvb