The Dexter Leader
A Heritage Newspaper
Weekly Publication
DDA buys former DAPCO building
By Sean Dalton, Staff Writer
PUBLISHED: May 8, 2008
The Dexter Village Downtown Development Authority announced signing a major property deal recently that could secure future commercial expansion in the downtown area.
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DDA officials and Tupper Properties LLC, the owners of the former DAPCO factory, reached an agreement on March 27 this year for the purchase of the property at 3045 Broad St.
The purchase will close in September 2012 for $1.6 million. The property is appraised at $2 million, according to DDA officials.
"The transaction is somewhat complex," said DDA Chairman Dan O'Haver. "However, it allows both parties to achieve their mutual goals."
Much of the payment will be placed in an interest-bearing escrow account at National City Bank along with the deed after a 60-day period which will allow the DDA to perform due diligence
DDA funds are taxes captured from business property in the downtown district.
If the DDA finds the property "suitable for purchase" then Tupper Properties will receive $300,000 up front with the remaining $1.3 million placed in the account.
The building will continue to be a private facility until the final purchase date in 2012, so the purchase will be financed with taxable bonds which will be recalled that year and reissued as tax-free after closing.
According to O'Haver, the deal is structured so the DDA doesn't have to be a landlord.
It also allows current tenants time to secure leases and find new office space.
A lower purchase price could be possible if bids for demolition and the extension of Jeffords Street - the intended goal of the purchase - can go out immediately upon acquisition of the property.
There was some discussion last week of using the DAPCO building for village offices and meeting space.
As it stands all options will be looked at, including the Mill Creek Terrace Building that will be built on Jeffords after the village rescinded an offer on the Dexter District Library building on Fourth Street.
O'Haver applauded the village for its cooperation with the DDA over the last several years, citing joint meetings out of which came the strategy of the DAPCO property purchase.
"A year ago the DDA and the village council had a joint strategic meeting and at that meeting we identified four strategic things for the DDA to work on for the next year and a half," O'Haver said, pointing to the DDA development plan, securing bonds, and working with the village on recordkeeping and treasury operations.
O'Haver said that the purchase of DAPCO started out as a "dream session" with the owners.
"If you're going to have a DDA, this is the kind of thing you want it to do," he said.
He also singled out Village Trustee Donna Fisher for taking part in the meetings, during which both parties "walked away from (the table) several times."
Fisher called it a real "coup" for the village and discussed some of the village's potential intentions for the property in its search for new office space.
"When we take possession it could be looked at," she said, confirming that "all options are still on the table for discussion."
"I think (O'Haver) really did a good job representing the community," Fisher said Tuesday.
"We met (the owners) at a luncheon and he gave a good impression at the outset that closed the sale of the property."
The DDA has already received initial bids for the plan that came in $100,000 below estimates, according to O'Haver.
"What we are seeing is big bang for our bucks," he said. "Costs are coming in significantly under our expectations, even though the economy is bad."
A portion of the site will remain a DTE Energy substation. The rest, including the DAPCO structure, will be demolished for the Jeffords extension, as well as the site itself, which will be used for "to be determined" commercial development in the future.
Next on deck for the DDA:
Baker Road Streetscape is in the process of being completed this year.
Prioritization of funding and maintenance items in the district for 2009.
Another joint meeting with the village to help direct redevelopment options for the DAPCO site.
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