The Dexter Leader
A Heritage Newspaper
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Village decides to pass on Pilot property deal
By Sean Dalton, Staff Writer
PUBLISHED: October 30, 2008
Village officials put the brakes on internal talks this week to purchase the former Pilot Industries building at 7931 Grand St.
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The village sent a letter to property owner Katie Davis and her representative John Evans at Ann Arbor-based Swisher Commercial Real Estate officially announcing intentions to back away from the deal.
The business, once part of a global parts manufacturing operation based in Ontario, closed down in 2004 and has since been vacant.
It was one of several sites that the council visited in July on a tour of potential office space. Most council members were impressed, and an enthusiastic discussion of the property's potential took place at a work session that same day.
Further deliberations led to a decision to back off of a determination on the property, which has been on hold with Davis while the village hashed out the details.
"Our agreement is pretty much over as of Nov. 3," said Village Manager Donna Dettling, who added that to extend the agreement would have cost the village $5,000.
The original concept on the table was a municipal center large enough to house village offices, police, fire, recreation and other village government functions and services.
Options ranged from leasing to buying the building outright.
Dettling says that partners in such a venture were interested "from the very beginning," but support never materialized into helping with the bottom line.
"They were at the table from the beginning and would want to partner with us from the beginning, but they weren't bringing any money to the table," Dettling said. "We would have had to invest the money on their behalf."
Village officials said this is largely why there was a shift to buying and developing the Pilot property, but even that was shot down during a closed session Monday.
"The cost at this point and being able to finance it at this point would be a big challenge," Dettling said.
The decision had mixed reactions on the council.
"I think that it's a fabulous opportunity, but it's one that the village, right now, considering the economic times, can't afford to take on," said Village President Shawn Keough.
"We can't even physically sell a bond if we want to finance it. There's no market for municipal bonds, and we likely don't have the cash on hand to make a property offer."
Keough says that the town hall meeting two weeks ago sent a clear message to him: "Live within your means," he echoed.
He added that the village also conferred with its bond counsel, who represents many other communities throughout Michigan, and the conclusion was clear.
"Other communities that our bond counsel represented who were trying to sell bonds basically got everything set and ready to go and they pulled it because there was no market for them," Keough said.
Village Trustee Jim Carson took the opposite view.
"I think that purchasing the property would have been a good investment for the village to make to ensure our future economic development," he said.
"Even though recent upheavals in the financial market have had no immediate impact on the village, we must be watchful of the potential impact that the downturn in the state and national economies could have on the village as we plan for future fiscal years."
Still, Carson said he is "disappointed," but understands why the choice was made.
Former village president Paul Bishop, who has been critical of the village courting any form of involvement with the Pilot building, was relieved.
"I think this was a good decision," Bishop said. "The fact is it was going to cost taxpayers in the village an awful lot of money to redevelop that property."
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