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Grosse Pointe Farms council authorizes $2.4 million purchase of 18850 Mack Avenue to secure municipal control
Summary
City Council voted to buy the former Joanne Building at 18850 Mack Avenue for $2.4 million, payable in three $800,000 installments over two years, to secure municipal control of a commercially zoned parcel for future community use and near-term storage needs.
Grosse Pointe Farms City Council voted Oct. 13 to purchase the property at 18850 Mack Avenue (the former Joanne Building) for $2,400,000, payable in three equal installments of $800,000 without interest over two years.
City Manager Shane Reeside told the council the city has long had interest in securing the corner property — rezoned previously from commercial to community service — to control future use and provide interim municipal storage for public-works and utilities equipment currently stored outdoors. Staff described the building as approximately 17,000 square feet; the managers said the purchase price equates to roughly $140 per square foot.
The purchase agreement approved by the council requires the city to pay $800,000 at closing, $800,000 on or before the first anniversary of closing, and $800,000 on or before the second anniversary of closing. The council’s motion includes a reversion clause: if the city sells the property within five years, it must pay the seller 50% of net sale proceeds exceeding $2,400,000, as defined in the purchase agreement.
Council members described public-safety and long-term planning reasons for the acquisition. Council member Beth said municipal control of the site helps protect Mac Avenue and improves options for storage and future public uses. Council member John said new commercial traffic on Mack Avenue makes the city’s control over nearby parcels desirable. City staff said funding will come from the capital project fund and that, per staff, the purchases would not create an immediate tax increase; staff noted several mills that had fallen off and existing capital allocations that will absorb the payment schedule.
Some residents voiced concern about the city’s overall tax and capital program burden. Joe Durbin said he was concerned about cumulative tax impacts from multiple recent capital initiatives. City staff responded that the purchase is planned from capital funds and that operating-tax consequences were not expected from the acquisition.
The council authorized the city manager and city clerk to execute the purchase agreement, subject to form review by the city attorney. The motion passed on a roll-call vote.
