University of Michigan seeks to purchase building near Law Quad
The University of Michigan is seeking to purchase a .14-acre parcel on Oakland Avenue in Ann Arbor near the Law Quad on central campus.
The negotiated price, according to documents: $730,000, more than triple the parcel’s assessed value.
The property — which sits adjacent to South Hall, Weill Hall and the U-M Law School admissions office — is a 2,018-square-foot rental home owned by Oakland Tec LLC. The company is registered to Eric Aupperle of Ann Arbor.
The building is assessed at $213,500 for the 2011 tax year, according to Ann Arbor assessment records. Under Michigan law, a property’s assessed value should be nearly equal to half of its market value.
The purchase will be put to a vote before the U-M Board of Regents on Thursday.
U-M seeks to buy 716 Oakland.
From the City of Ann Arbor
In a request memo addressed to the regents, U-M Executive Vice President and Chief Financial Officer Timothy P. Slottow said that acquiring the property “will further the university's options for development in the area.”
Kellie Woodhouse covers higher education for AnnArbor.com. Reach her at kelliewoodhouse@annarbor.com or 734-623-4602.
Comments
Mokay
Sat, Sep 17, 2011 : 3:56 a.m.
$12,288. That's how much in taxes we will be NOT COLLECTING every year due to this purchase. I find it completely ridiculous that they aren't required to pay that. Were the ones that have to pay for it when they bring rapists to town. Tax History Year Property taxes % Change Tax assessment % Change More entries 2010 $12,228 -0.0% $205,581 -0.3% 2009 $12,233 -0.0% $206,200 0.9% 2008 $12,233 2.3% $204,267 2.3% 2007 $11,956 4.1% $199,675 3.7% 2006 $11,486 3.2% $192,551 3.3%
Somargie
Wed, Sep 14, 2011 : 2:39 a.m.
Another land grab & lost of taxes to the City of Ann Arbor! I hear the sound of the cutting of more services from the City of Ann Arbor. Greed brings more Greed and the buying of property by the UM is just another step towards destroying Ann Arbor. If they keep this up, they'll demand more permanent street closures and for the City of Ann Arbor to be called the University of Michigan, MI...since they will own everything. All that money that they throw around is money they took from the City of Ann Arbor from the lost of taxes. They can't pay their nurses a decent salary, AA police for the mess of football traffic, nor the services from the use of firefighters but they can pay a huge amount of money for some property to completely take over. When do the rights of the residents trump the rights of a greedy university. If you like the City of Ann Arbor, then you would not support another land grab that drains our town.
Tom Joad
Tue, Sep 13, 2011 : 11:26 p.m.
Judging by its position on the map seems like a sensible inclusion. The remaining block an island between the law and business schools is flagshipped by Dominicks...Let's all hope owner Richard Devarti holds out in the future.
Lovaduck
Tue, Sep 13, 2011 : 4:30 p.m.
Location, location.
Tag
Tue, Sep 13, 2011 : 4:05 p.m.
Has anyone looked for what the City of Ann Arbor property taxes are on this property? How much is the city losing out on $8,000 or so per year?
Craig Lounsbury
Tue, Sep 13, 2011 : 3:52 p.m.
"You can't rely on those numbers to assess whether the University overpaid for the property." alternately.... You can't rely on those numbers to assess whether we the people of the State of Michigan will end up overpaying for the property. Its worth noting that the board of regents that we elected to run our University on our behalf needs to approve the purchase.
John Q
Tue, Sep 13, 2011 : 2:55 p.m.
The value of a rental property isn't fully reflected in the "market value" or "assessed value" of the property. You can't rely on those numbers to assess whether the University overpaid for the property.
Major
Tue, Sep 13, 2011 : 1:12 p.m.
Just say no. Put it before the people for a vote. Just say no. Better yet, let's sell them the streets, fire and police force's. They'll be the best in no time!!! (and no taxes lost)
David Paris
Tue, Sep 13, 2011 : 2:22 p.m.
@Rod: I don't know, but possibly based on eminent domain. If it could be argued that the population as a whole would benefit more from the taxes of the property than from the sale transaction to the university, especially in this downward spiral of an economy, and subsequent loss of tax revenues, he may have a point. Hey, you asked, I'm just throwing things out there.
Craig Lounsbury
Tue, Sep 13, 2011 : 1:40 p.m.
Rod, the question isn't whether a property owner can sell his property, the question is why WE as the buyers are paying so much above market value. And make no mistake market value and what the Government pays are not the same
Rod Johnson
Tue, Sep 13, 2011 : 1:32 p.m.
Put it to a vote based on... what? "The people" get to tell a property owner he can't sell his own property now?
NHolmes
Tue, Sep 13, 2011 : 1:02 p.m.
@Ignatz - " They'll pay 50% more for a property than what it's worth," ... a property is worth whatever someone is willing to pay. That's supply and demand - doesn't have a whole lot to do with SEV. The seller knew he had a strong negotiating position and pushed the U to pay as much as he could. Good for him. Shame it comes off the tax rolls though.
Ignatz
Tue, Sep 13, 2011 : 3:19 p.m.
I reckon when you have deep, deep pockets, money is no object.
Craig Lounsbury
Tue, Sep 13, 2011 : 12:03 p.m.
This is good news. The SEV on the property will go up after the sale then the city can collect more taxes off the structure and maybe rehire a fireman or police man...errrr.......no wait.....I forgot.....the property is coming off the tax rolls.
Ignatz
Tue, Sep 13, 2011 : 11:39 a.m.
Same old song from the U. They'll pay 50% more for a property than what it's worth, then turn around and tell the employees that there's not a lot of money for raises. Step three is rewarding the administrators for making such great purchases.
AAJoker
Tue, Sep 13, 2011 : 10:38 a.m.
You might want to check the definition behind your numbers. The SEV (state equalized value)/assessed value of $213,500 on the A2 assessor website is set at 50% of the market value, thus the state feel the property is worth $427,000. Google is your friend: <a href="http://wiki.answers.com/Q/What_does_State_Equalized_Value_mean" rel='nofollow'>http://wiki.answers.com/Q/What_does_State_Equalized_Value_mean</a>