The council Oct. 2 rejected the only other bid, submitted by Mike Segorski, treasurer of the Delta Conservation District, for $55,000 to have “no development — green space” on the property.

In a written statement, Segorski said, “I made my offer for 1 reason and that’s to bring light to the back-room decision of council to sell the land to developers.”

The request for proposal was posted on the city’s website Sept. 9 and closed Sept. 30, giving applicants three weeks to submit a bid.

The city’s move Sept. 4 to put the 5.17-acre parcel up for sale — at Old State Development’s request — sparked debate because it reversed a 1977 decision designating the land for public and recreational use.

Old State Development plans to build 25 condominiums on a 5.17-acre parcel near Willow Creek Road and Third Avenue South. Groundbreaking is expected this fall, said Judy Owens, associate broker and designer for Old State Development. (Contributed photo)

The Michigan Department of Natural Resources in 1972 had sold the city 40 acres, including the 5.17-acre parcel, for $1 for public purposes. But according to information contained in the Sept. 4 council packet, “In 1974, the city council did not designate the property as a park because it was concerned that the property may be needed for a different use in the future.”

It was further stated, “The City Council has determined that removing such designation and selling the property for economic development is in the best interests of the health, safety, and welfare of the public.”

City Attorney Laura Genovich said the deed does allow the city to sell the property if no longer needed.

However, instead of selling the land immediately for development into Stonebrook Condominiums, the council decided it would be fairer to open the property up for bids.

Judy Owens, associate broker and designer with Old State Development, told the council the Stonebrook Condominiums would sell for an average of $500,000 to $600,000. Plans are to break ground this fall.

The marketing plan in the bid states the target would be “Age 50+, middle-to-upper income, with an interest in energy efficiency, convenience, and community.” Also perhaps past Upper Peninsula residents “who have lived elsewhere and are ready to move back to the area.”

Over a 30-year period, the condos would draw almost $5.2 million in city property taxes, about $2.5 million in city utilities and about $7.2 million in other property taxes, according to City Manager James R. McNeil.

Old State Development originally offered the city $44,000 for the property but raised that to $75,000. Delta Appraisal Services appraised the property at a fair market value of $35,000.

The developers also have received a letter of approval for financing the condo project from First Bank, after requesting a $10.3 million loan. Invest U.P. in Marquette will also be working with First Bank to provide a $1 million Certificate of Deposit to strengthen financing of the project.

Dave Harris, real estate broker and Jim Baxter, builder/contractor, are partnering with Old State Development on the project.

According to Old State Development’s bid, “Local labor and material sourcing will be prioritized to stabilize costs and timelines.”

Sophie Vogelmann can be reached at 906-786-2021 or svogelmann@dailypress.net.