HomeMy WebLinkAboutResolutions - 2024.09.19 - 41932
AGENDA ITEM: Purchase Agreement for the Sale of 9.53 Acres of Vacant Land on Dixie Highway in
Independence Township
DEPARTMENT: Facilities Management
MEETING: Board of Commissioners
DATE: Thursday, September 19, 2024 9:30 AM - Click to View Agenda
ITEM SUMMARY SHEET
COMMITTEE REPORT TO BOARD
Resolution #2024-4471 _ 24-71
Motion to adopt the attached suggested resolution.
ITEM CATEGORY SPONSORED BY
Real Estate Yolanda Smith Charles
INTRODUCTION AND BACKGROUND
The County owns two parcels on Dixie Highway in Independence Township (marked parcels “B”
and “D” on the survey), which total 9.53 acres of land (“Property”). The Property is zoned C-4
(freeway service district) and was purchased February 8, 2007, in anticipation of building a new
district courthouse (52-2 District) on the Property. Last Year a feasibility study was completed to
address space needs for the 52-2 District Courthouse. This study concluded that the Property is not
ideal on which to build a district courthouse due to site access, property lines, and land
contours. The Property was listed on the market in October 2023 by Colliers International - Detroit
Office. A purchase agreement has been negotiated and staff recommends the offer be accepted.
POLICY ANALYSIS
This is a request to accept an offer made on vacant land owned by Oakland County and execute a
purchase agreement. The sale price of the property is $1.1M which is lower than the listing price in
2023 which was estimated at that time to be between $1.8M and $1.9M. The Department advises
that the price was reduced to $1.65M in May of this year after there were no offers or interest in the
property. Oakland County is responsible for paying the 4% brokerage fee.
The vacant land site was purchased on February 8, 2007 for $2,383,069 according to the closing
statement. The price per square foot paid in 2007 is $5.74.
As noted in July 2023 when the committee authorized negotiations for the sale of the property, all
proceeds from the sale of the property will be allocated to the Clarkston District Court to go towards
a needed expansion.
BUDGET AMENDMENT REQUIRED: No
Committee members can contact Barbara Winter, Policy and Fiscal Analysis Supervisor at
248.821.3065 or winterb@oakgov.com or the department contact persons listed for additional
information.
CONTACT
Paul Zachos, Property Management Specialist
ITEM REVIEW TRACKING
Aaron Snover, Board of Commissioners Created/Initiated - 9/19/2024
David Woodward, Board of Commissioners Approved - 9/19/2024
Walt Herzig, Executive's Office Approved - 9/20/2024
Lisa Brown, Clerk/Register of Deeds Final Approval - 9/23/2024
AGENDA DEADLINE: 09/19/2024 9:30 AM
ATTACHMENTS
1. Dixie Hwy PA 8.20.24
2. 9.53 Acres Vacant Land Dixie Hwy Independence Twp
3. Vacant Dixie Hwy - Clarkston - Map
4. Authorization to Market and Negotiate the Sale - Dixie Highway Vacant Land- Final 6.27.23
COMMITTEE TRACKING
2024-09-11 Economic Development & Infrastructure - Recommend to Board
2024-09-19 Full Board - Adopt
Motioned by: Commissioner Yolanda Smith Charles
Seconded by: Commissioner Linnie Taylor
Yes: David Woodward, Penny Luebs, Philip Weipert, Gwen Markham, Angela Powell, Marcia
Gershenson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ann
Erickson Gault, Linnie Taylor (12)
No: Michael Spisz, Michael Gingell, Karen Joliat, Christine Long, Robert Hoffman (5)
Abstain: None (0)
Absent: Kristen Nelson (1)
Passed
September 19, 2024
RESOLUTION #2024-4471 _ 24-71
Sponsored By: Yolanda Smith Charles
Facilities Management - Purchase Agreement for the Sale of 9.53 Acres of Vacant Land on
Dixie Highway in Independence Township
Chair and Members of the Board:
WHEREAS at its July 12, 2023 meeting, the Economic Development and Infrastructure Committee
authorized the sale of County-owned vacant land on Dixie Highway in Independence Township; and
WHEREAS a cash purchase offer of one million one hundred thousand dollars ($1,100,000.00) with
good terms and conditions was received and codified in the attached Purchase Agreement; and
WHEREAS Oakland County Corporation Counsel drafted and reviewed the attached Purchase
Agreement; and
WHEREAS County Executive Administration and the Department of Facilities Management have
reviewed the attached Purchase Agreement and recommend its approval by the Oakland County
Board of Commissioners.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approves
the attached Purchase Agreement and directs its Chair to execute the attached Purchase Agreement
and all other related documents between Oakland County and Red Barn Property #18, LLC, which
may be required to effectuate the conveyance.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners authorizes the
County Property Management Specialist to sign documents at closing.
Chair, the following Commissioners are sponsoring the foregoing Resolution: Yolanda Smith
Charles.
Date: September 19, 2024
David Woodward, Commissioner
Date: September 20, 2024
Walt Herzig, Chief Deputy County Executive
Date: September 23, 2024
Lisa Brown, County Clerk / Register of Deeds
COMMITTEE TRACKING
2024-09-11 Economic Development & Infrastructure - Recommend to Board
2024-09-19 Full Board - Adopt
Motioned by Commissioner Yolanda Smith Charles seconded by Commissioner Linnie Taylor to
adopt the attached Real Estate: Purchase Agreement for the Sale of 9.53 Acres of Vacant Land on
Dixie Highway in Independence Township.
Yes: David Woodward, Penny Luebs, Philip Weipert, Gwen Markham, Angela Powell, Marcia
Gershenson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ann
Erickson Gault, Linnie Taylor (12)
No: Michael Spisz, Michael Gingell, Karen Joliat, Christine Long, Robert Hoffman (5)
Abstain: None (0)
Absent: Kristen Nelson (1)
Passed
ATTACHMENTS
1. Dixie Hwy PA 8.20.24
2. 9.53 Acres Vacant Land Dixie Hwy Independence Twp
3. Vacant Dixie Hwy - Clarkston - Map
4. Authorization to Market and Negotiate the Sale - Dixie Highway Vacant Land- Final 6.27.23
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true
and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on
September 19, 2024, with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the Circuit Court at
Pontiac, Michigan on Thursday, September 19, 2024.
Lisa Brown, Oakland County Clerk / Register of Deeds
LOCATION MAP
Property Address:
City:State:Zip:48346MIClarkston
Vacant Dixie Highway
AERIAL MAP
Property Address:
City:State:Zip:48346MIClarkston
Vacant Dixie Highway
OAKLAND COUNTY EXECUTIVE
DEPARTMENT OF FACILITIES MANAGEMENT
Authorization to Market and Sell
Vacant Land on Dixie Highway, Independence Township
July 12, 2023
Background:
The County owns two parcels on Dixie Highway in Independence Township (marked parcels “B”
and “D” on the attached survey), which total 9.53 acres of land (“Property”). The Property is zoned
C-4 (freeway service district) and was purchased February 8, 2007, in anticipation of building a
new district courthouse (52-2 District) on the Property. Last Year a feasibility study was completed
to address space needs for the 52-2 District Courthouse. This study concluded that the Property
is not ideal on which to build a district courthouse due to site access, property lines, and land
contours. The Property is currently zoned C-4 that will allow a variety of uses including office,
service stations, restaurants and retail. Accordingly, Facilities Management recommends to
market and sell the Property and negotiate a purchase agreement.
Authorization is needed from the Economic Development and Infrastructure Committee to market
and negotiate the sale of the Property. The Property will be marketed by Colliers International,
who are the qualified and approved commercial property brokerage vendor for the County. The
marketing and sales process is expected to take 12-18 months.
Benefits of the Sale:
The County will obtain the highest price in the current market, which is based on the limited supply
of available large commercial parcels in the Clarkston market. The sale would allow the Property
to be developed, removed from tax exempt status, and added to the property tax roll.
Recommendation:
Facilities Management requests authorization to market and sell the Property through a private
commercial broker and to negotiate a purchase agreement. Only Committee authorization is
needed at this time. Once a purchase agreement is negotiated, it will be brought to the Board for
approval.