City/DDA shouldn’t be in real estate

Old fire hall rented; successful liquidation business thriving

 

Disclaimer: As I always say with my columns, these viewpoints are mine and mine alone. They do not necessarily reflect the opinions of anyone else at the newspaper.

The topic of city-owned buildings has been in the news – and headlines of this paper – over the past several months and beyond.

The most recent controversy of whether or not a branch of the city, the Downtown Development Authority (DDA) and it’s spin-off “IC Holdings”, should take over three properties on E, Third St. that are owned by the city, have sparked renewed issues.

Intentionally, I waited to write this column until the city commission met December 3rd.

While the item was on the agenda, newly elected Mayor Barb Yockey handled the situation swiftly, saying she would form an adhoc committee to review options.

Several months ago, a Memphis-based business, Sage Creek Winery, was very interested in purchasing the three properties from the city and move their production to Imlay City.

The deal was moving along at a snail’s pace, as the issue of the contaminated property became an issue. A potential deal went sour.

Other deals since then have not worked out either.

Following a devastating fire at his business located on the east side of M-53, just north of Almont, J&J Liquidation owner Jim Slack contacted the city about the possibility of a five-month lease on the old fire hall.

An agreement was made and J&J Liquidations began moving in to the old fire hall.

I can testify, what a great business Slack has going on. I stopped in there two weeks ago and the off-street parking lot was filled. Inside, Slack and his staff have made a great new business very successful and he couldn’t be happier.

He shared his thoughts of wanting to keep the location and work out something with the city long term.

The business was packed, literally. You could hardly move around at times, as people looked for bargains. This business is not a thrift store, if you will.

Semiloads of items including Cabela’s hunting equipment and Milwaukee tools fill a portion of the store. Dozens of people were checking out toys from Matel and other manufacturers

Fast forward to a meeting last month, where the DDA/ “IC Holdings” announced they wanted the three city parcels. They hope to remediate the contaminated property and sell the parcels. Banking who knows how much money in the DDA coffers. This is where I have an issue.

I don’t feel the city, or any branch of the city, should be involved in purchasing property. Especially this one. The city is already on the hook for the contaminated soil. Currently, there is a very successful business operating in the fire hall.

Now, if the DDA has their way, it could appear as though they are “chasing” J&J away from the old fire hall and hoping the city will sell the property to “IC Holding.”

The DDA wants the old fire hall in particular for a fall-back location for summer concerts and special holiday events and other activities.

J&J has offered to purchases all three properties. In addition, they said they will tear down the old sign shop, saving the city from spending thousands of taxpayer dollars if a contractor were to be hired to do the demolition.

It would seem the logical thing to do, in my opinion, would be to sell all three parcels to J&J. Short of that, there are options.

Another resonable solution could be the city sells the old fire hall to J&J Liquidation, if the two sides can reach some sort of agreement.

The DDA could then rennovate the old DPW building for their use.

I can tell you, since the meeting last month, I am not the only one who scratches their head and wonders why the DDA is interested in doing this.

Slack told me face-to-face, he is thrilled with how well the business is doing and he loves being in Imlay City. He has been supportive of the downtown area, the Chamber of Commerece and donated to charities.

The city has wanted a business on the property for some time. It’s there now – don’t send them packing.

Take the $150,000 being offered for the old fire hall and DPW and say thank you very much. In turn, that money could go a long ways towards the construction of a large pavillion across the road at Lamb Steele Park.

It could even turn in to a community fundraising event with various organizations matching the city’s portion to build a large first-class community pavillion that in turn could be home to the Farmer’s Market, Concerts in the Park, SummerFest, WinterFest and other community activities.

If nothing else, it’s something to ponder.

Contact Dave at editor@pageone-inc.com