Alma to market State Street Plaza property after $190,000 appraisal; commission backs land-bank demolition plan with reimbursement caveat

Alma City staff reported an appraisal of the State Street Plaza building at $190,000 and told commissioners they will begin marketing the property if the commission is amenable.

City Manager Eric said the appraisal "came back at 190,000. If the commission is amenable we'll start marketing it for sale," and commissioners voiced support for marketing the building and bringing back any agent selection to the commission if bidding or agent engagement is needed.

Separately, staff updated the commission on plans to demolish the Prospect Building in the State Street Plaza with funds awarded to the Gratiot County Land Bank Authority. The land bank has executed an agreement to reimburse demolition costs, but local members and staff expressed unease because some of the state’s awarded funds have federal ARPA origins and the state has in recent communications asked land banks to confirm strict procurement and sequencing before reimbursement. Eric summarized the local land bank’s concern and said he had a video conference scheduled with the state land bank and Greater Gratiot to confirm the critical path.

Commission discussion focused on risk and backup funding. One commissioner asked a worst-case question: "Worst case scenario, if they didn't, are we capable of —" and staff answered the city has a dedicated State Street Plaza enterprise fund that could pay for demolition if reimbursement did not arrive. Eric said that fund would not touch the general fund or other enterprise funds. Several commissioners said they favored proceeding so the project can move forward, while insisting staff follow the state land bank’s procurement and documentation steps.

Why it matters: demolition removes an unsafe or blighted structure and prepares a downtown parcel for redevelopment; selling or marketing State Street Plaza property could return a capital asset to the local tax base or be repurposed.

Next steps: staff will proceed with the video conference with the State Land Bank and Greater Gratiot, follow the required procurement and critical-path items the state requests, and return to the commission if the land bank requests a formal local resolution or if staff needs authority to use its enterprise fund.

Ending: Commissioners agreed to begin marketing the State Street Plaza building and to continue coordination with the Gratiot County Land Bank Authority on the Prospect Building demolition, with staff to report back after the state conference call.