The Ypsilanti Courier
A Heritage Newspaper
Weekly Publication
City Officials continue struggle with Water Street
PUBLISHED: March 13, 2008
When community members talk about improvements to the City of Ypsilanti the conversation almost always turns to one thing. Water Street.
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So what is the future of Water Street? That's exactly what will be discussed at the city council next Tuesday.
City Manager Ed Koryzno said his office would make a presentation to bring members of the city council up to date on the Water Street property.
The presentation will also touch on the recent Request for Qualifications and Proposal for real estate services related to the redevelopment project.
According to Planning and Development Director Karen Hart, the city placed a notice for the RFQ/P in the Ann Arbor News, on the city's Web site, Michigan's Intergovernmental Trade Network as well as contacted members of the National Brownfield Association.
Despite the city's efforts, only one company, CB Richard Ellis, responded to the RFQ/P.
"There hasn't been a lot of interest with people offering to develop the property," Koryzno said.
CB Richard Ellis, a national real estate firm, was able to get their proposal in before the Feb. 12 deadline however, other companies such as Sperry Van Ness | Lillie & Associates LLC were not aware of the RFQ/P.
Gary Lillie, managing director of Sperry Van Ness | Lillie & Associ-ates LLC, asked the city to re-open the bidding process and expand their notice system.
"I don't subscribe to the Ann Arbor News and there are a lot of commercial brokers who are not from this area," Lillie said. "They could have contacted the Michigan Commercial Board of Realtors who would have broadcast to all its members."
Koryzno said one of the considerations the city might make is to have another request for proposals.
Lillie said he would like to bring a couple of proposals to the city. He suggested Water Street has enormous potential as long as the city keeps an open mind.
"About a year ago I had a prospect out of California looking for Brownfield properties in the in the $5 million to $50 million range," Lillie said. "He basically described Water Street."
However, Lillie said the city showed little to no interest in getting information to the broker.
Lillie would like to see condominiums and apartments at the Water Street location and commercial space along Michigan Avenue.
"Ypsilanti has a superb location on I-94, between the Detroit market and the Ann Arbor market," he said. "Ypsilanti really has a good base it could become a neat city all over again just as it once was."
INFO BOX
Water Street timeline:
1999
The city is awarded 7 million in grants and loans from the Environmental Protection Agency.
2001
Biltmore Properties, Inc. wins first bid as the project developer.
May 2003
Homrich Inc. is hired by the city to demolish 170 E. Michigan Ave., 32 Water Street and 40 Water Street
July 2003
Biltmore Properties Inc. announces plans not to include commercial store-front space in its development plan.
October 2003
City receives a $300,000 Community Development Block Grant for environmental studies, engineering, design, relocation expenses legal and property management costs.
Fall 2004
Demolition of buildings and initial soil remediation reveals soil contamination much greater than had been anticipated.
December 2004
Ypsilanti ends negotiations with Biltmore Properties Inc. on the Water Street project citing the allocation of costs and responsibilities associated with environmental issues and Biltmore only wanting to develop residential property.
July 2005
The city pays Biltmore $725,000 for the information the company has acquired during negotiations.
August 2005
Deadline for new RFP process ends with no response from developers.
April 2006
The City Council selects Joseph Freed and Associates as its preferred developer for Water Street.
May 2006
The city approves the spending of $205,000 from its general fund to pay for information Biltmore Properties Inc. acquired during its negotiations with the city.
October 2006
The City approves an additional $100,000 from its general fund to pay for any legal and environmental fees associated with Water Street.
November 2006
County approves city's Brownfield plan for Water Street. Cost to bring the land up to standards is estimated at 3.7 million. An additional $3.8 million is predicted as the cost to demolish existing buildings, update infrastructure and shape land.
December 2006
Joseph Freed and Associates pull out of negotiations with the city.
Company cites poor market for the decision.
February 2007
City's Planning Department holds community meeting to discuss the project.
January 2008
City issues a Request for Qualifications and Proposals.
February 2008
One company, CB Richard Ellis, responds to the RFQ/P.
March 2008
The City Managers office will hold an informational meeting regarding Water Street at the City Council meeting next Tuesday.
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