Southfield Council approves consent items, zoning text amendment and $400,000 receiver loan; several routine contracts authorized

Southfield City Council on June 23 approved a slate of routine and substantive measures, including the transfer of several routine contracts and purchases, a zoning text amendment, a community development block grant annual plan and a $400,000 reimbursement agreement for maintenance of a foreclosed commercial property.

The council voted on consent agenda items A through I, approved renewal of the PROTEC (telecommunications right-of-way encroachment membership), authorized OHM Advisors to develop a master plan for Freeway Park for $35,500, enacted ordinance 18-13 to amend uses in the OS (office service) zoning district to allow limited retail and restaurant uses in certain areas, and affirmed the Community Development Block Grant (CDBG) annual action plan for fiscal year 2025–26. The council also approved a property maintenance reimbursement agreement to provide a $400,000 line of credit to the court-appointed receiver for the former Embassy Suites property, to be reimbursed with interest upon sale of the asset.

Why it matters: the ordinance change (No. 18-13) alters allowed uses in office/service zones and could affect development proposals; the CDBG plan confirms the city’s spending priorities for HUD funding; and the receptor/receiver loan directs city funds toward maintenance and securing of a vacant commercial property pending liquidation.

Major items and outcomes

- Minutes: Council approved Committee of the Whole minutes for April 7, and regular meeting minutes for April 21 and April 28, 2025.

- Consent agenda (items A–I): Council approved multiple routine purchases and contracts, including transfer of a Class C liquor license, purchase of sewer-inspection software, HVAC preventive maintenance contract, replacement fire hose for the fire department, bus-stop furnishing installations, GIS services contract, and fabrication/installation of welcome signage for Southfield.

- PROTEC membership renewal: Motion to approve the PROTEC right-of-way/telecommunications encroachment membership renewal passed by voice vote.

- Freeway Park master plan: Council authorized Parks and Recreation to engage OHM Advisors to prepare a master plan for Freeway Park at a contract cost of $35,500. Staff said the work would include drainage investigation, concept design, stakeholder coordination and community engagement; completion was expected in roughly four months if the project kickoff occurs in July.

- CDBG 2025–26 annual action plan: City staff reported a HUD allocation of $409,397 for the next fiscal year beginning July 1. The council adopted the annual action plan and confirmed the 2021–2026 consolidated plan. Staff reminded the public that income eligibility for activities varies by program (HUD limits cited in the presentation). Examples provided during the hearing: a family of four with income below $72,750 could qualify for a home-rehabilitation loan; a 62-year-old with income below $40,400 could qualify for minor home repair assistance; a single person with income below $35,350 could receive one-time rent, mortgage or utility assistance. Staff reported that last fiscal year the home-rehab program completed 15 projects and that the CHORE program processed close to 1,200 work orders for 147 clients; emergency relief funds assisted about 108 households.

- Ordinance 18-13: The council enacted ordinance 18-13, a text amendment to Article 9 updating permitted uses in the OS office/service zoning district to include limited retail and restaurant uses in specified areas.

- Travel expenses: The council approved travel and conference expense reimbursement for several elected officials to attend the 2025 Mackinac Policy Conference and the Michigan Chronicle Pancakes & Politics event (motions included specific names for reimbursement).

- Embassy Suites receiver reimbursement agreement: The council authorized a property-maintenance reimbursement agreement to provide the court-appointed receiver for the former Embassy Suites (28100 Franklin Road) up to $400,000 for site maintenance, grass cutting, securing the property, debris removal and general site security. The city would be reimbursed, with interest at 6%, upon sale or liquidation of the asset. The council approved a corresponding budget adjustment to use fund balance and a support-services contractual account to cover the initial outlay.

- Closed session: The council voted to go into closed session under the Open Meetings Act (Public Act 267, MCL 15.268) to discuss collective bargaining negotiation strategy; a roll-call vote was recorded.

What the votes mean: Most items were moved and approved by voice vote and recorded as "motion carries." The Embassy Suites reimbursement is an interim financing decision intended to protect and maintain a deteriorating asset until disposition; the zoning text amendment changes permitted uses in OS districts and may affect future development applications.

Looking ahead: staff will proceed with the Freeway Park master-plan kickoff if contracts are finalized, the city will submit the CDBG application to HUD, and the city administrator and city attorney will finalize the receiver reimbursement agreement for execution and implementation.