Property sale gets OK
Published 4:04 pm Tuesday, August 23, 2005
By By JAN GRIFFEY / Niles Daily Star
NILES - The city council gave its OK to the sale of city-owned property on Main Street between Fourth and Fifth streets at its meeting Monday.
However, that approval came only with a last-minute stipulation that the city council must give its OK to the final plans for construction of a building on the site.
Chemical Bank Shoreline, through its developer Fiskars Construction and Engineering of St. Joseph, are seeking the property for construction of a new banking facility here.
The agreement with the city calls the sale of the two lots by the city at a price of $86,000. The city must provide a Phase I environmental study and a stake survey of the property, as well as waive tap fees for water, sewer and electric utility hookups, which councilmembers estimated would cost less than $5,000 in total.
Per the agreement, the city also has the right to buy the property back at the same initial sale price plus prorated 6 percent interest should the buyers not start construction within 12 months from the date of sale of the property.
"We don't want anyone buying the land, sitting on it and selling it to someone else later on," said Terry Eull, city administrator.
Several council members questioned parking as the site, as well as how traffic would enter and exit the facility onto what are already congested roadways - Main and Fifth streets. Eull said both those streets are state-controlled roadways and any plans would have to be approved by the state.
Eull said the bank's plans for the site are "in flux" in terms of arrangement of the proposed building and parking on the site.
Councilmember Dan Vanden Heede questioned the city's use of proceeds from the sale of the property.
The city paid about $250,000 for the purchase of the two lots that make up the site - formerly known as the Gary's Standard property and the Aalfs Petroleum property - as well as demolition of the service station facility on the Gary's site.
Eull said only about $75,000 of that amount came from the city's general fund. The remainder of the money came from the revolving loan funds.
Eull said it is yet to be determined if the money from the sale of the property can go to the city's general fund, or whether it must be paid back to the loan fund.
In other action Monday night, the council:
Approved vacating a portion of Pokagon Street to facilitate the construction of the new Niles-Buchanan YMCA. The council also transferred city-owned property, formerly known as the Kawneer and Berman property, near Front and Pokagon to the YMCA for its project.
Appointed Brian Hess to fill the unexpired term of Mitt Drew on the Niles Parks and Recreation Board. Drew resigned because he moved away from the City of Niles.
Ended its meeting with a closed session to discuss negotiations with the Steelworkers Union.