Water Street: Council to consider $1.2M Family Dollar purchase agreement, hold public hearing
City Council will decide Tuesday on whether to grant approval to the proposed Family Dollar Water Street development.
Courtesy City of Ypsilanti
Will Ypsilanti give a green light to the proposed $1.2 million Family Dollar development on Water Street?
The City Council will decide Tuesday night following a public hearing that several community leaders have said they plan to attend to speak out against the proposed project.
Council approved a letter of intent Nov. 20 with Core Resources, LLC, Family Dollar's development partner, to purchase and develop approximately 8,320 square feet of the 36-acre Water Street property.
The letter of intent was signed on Dec.10, establishing 90 days for the city to finalize the plans with Family Dollar.
City staff has worked with Core Resources on a few modifications to the concept plan as well as on the purchase agreement with the help of Miller Canfield.
The last formal plan for development of the entire Water Street redevelopment area was a plan from Joseph Freed and Associates in 2006.
At the time, Freed proposed mixed use and single-story commercial development on Michigan Avenue and a mix of residential products through the site, according to city records.
The Freed plan identified the area Family Dollar is interested in purchasing as a potential spot for a one-story drug store on 1.45 acres. Family Dollar will encompass about 1.1 acres.
Consultants working on the city's master plan revision process are looking into a way to integrate the project with the future plan but may suggest a reorientation of the building or change in the parcel size to integrate the parcel into a future scheme, according to City Planner Teresa Gillotti.
City staff will be following up with Family Dollar, the consulting team and council on any particular changes that may impact the development agreement after Tuesday's council meeting.
City officials have argued that the proposed Family Dollar fit within the vision of the Water Street vision.
Joseph Tobianski | AnnArbor.com
Family Dollar is proposing purchasing the land from the city for $210,000 and investing about $800,000 in improvements, not including land cost.
To determine the possible tax amount the city might receive from the development, staff used the AutoZone at 2166 Washtenaw Ave., the closest comparable retailer within city limits.
The taxable value of that property is $341,900 for a 7,864-square-foot building. Based on this, the estimated taxable value for the Family Dollar is between $350,000 and $400,000, which would result in an estimated $30,000 a year in taxes.
If council approves the purchase agreement, it would contractually obligate the city to the proposal. However, council can request a delay in the decision or decline the proposal altogether.
If approved, the agreement would be executed immediately and city staff would begin amendments to the brownfield plan, which would be presented to City Council. Core Resources would immediately begin work on a survey and submit a site plan.
Core Resources has told the city it expects to begin construction this summer.
As part of the purchase agreement, the city agreed to a restriction prohibiting similar discount stores like Dollar General or Dollar Tree from opening on the remainder of the property. However, big-box discount department stores larger than 30,000 square feet, such as Target, Walmart, K-Mart or Meijer, would be allowed to locate there.
Under the purchase agreement, Family Dollar must begin construction within six months of the agreement being signed and open for business within 24 months. If not, the city has the right to reacquire the property at the same price.
Several Ypsilanti residents have expressed concern regarding the proposed development, saying they prefer independent stores to chains for the Water Street property.
City officials have said the proposed development fit within the original Water Street vision.
Mayor Paul Schreiber noted the difference of opinion in his March 5 state of the city address.
"Critics preferred independent retail or a supermarket to attract customers to other businesses downtown," Schreiber said. "Supporters wanted to start development now with a viable proposal.
"In the end, the majority of city council voted to continue negotiations with Family Dollar because the proposal conformed to the planning commission guidelines, fit in with the buildings directly east and north of the site, and provided a building that could be adapted to other uses in the future."
A public hearing will be held prior to the Tuesday vote. The meeting is scheduled to begin at 7:30 p.m., following an hour and a half closed session to discuss ongoing contract negotiations.
Katrease Stafford covers Ypsilanti for AnnArbor.com.Reach her at katreasestafford@annarbor.com or 734-623-2548 and follow her on twitter.
Comments
Ypsi.Support
Wed, Mar 20, 2013 : 12:07 a.m.
A Family dollar is a pretty low-class vision for the area. Isn't the point in the Water Street project to renovate and renue that area? Not to just put in more low-income low-class facilities. Review the overall vision and you'llsee that a Dollar store doesn't fit.
Solitude
Mon, Mar 18, 2013 : 4:18 p.m.
"Will Ypsilanti give a green light to the proposed $1.2 million Family Dollar development on Water Street?" They will if they have any sense. Anyone who wants to complain about the dollar store should have to provide proof they voted yes on the Water Street Bond millage proposal. Those opposed to the bond millage carried on and on about the city not doing anything to market the property or attract business as the reason they would vote no. The property has finally attracted a business that is proposing an attractive building that will "break the ice" on the property, and now that's not ok because some people don't like what this viable, tax-paying business sells. Incredible.
Solitude
Mon, Mar 18, 2013 : 6:46 p.m.
That's hilarious. I suppose the Honda dealership across the street has tons of "historic character," as do the Dairy Queen, the highly modernistic proposed design of the Rec Center and the Walgreens up the road. This site is sufficiently removed from the historic buildings farther west on Michigan Ave., the site can always be redeveloped. What this really is about is people who have decided they don't like the "kind of customer" they imagine will be shopping at this store. As far as the "it's not a destination" comment, that makes no sense. Do you think we should hold out for a Cabela's on the site? Maybe a theme park?
moonunit
Mon, Mar 18, 2013 : 5:13 p.m.
An attractive building? It is a concrete shell tht brings nothing to the historic character of this town. This Family Dollar business targets, or should I say sucks on customers within one square mile per their presentation. It is not a destination, it bring only 8 part-time jobs, it wants exclusivity on Water Street for what is sells, and there is great fear that is will detract from future development versus enhance future development such as what the proposed Rec Center and Train stop (in Depot Town) would do. Have you seen Family Dollar locations that already exist? Just go look at how run down the one on East Michigan looks with its poorly hung sale banner and this in better shape than many. I am also curious if you attended any of the Shape Ypsi sessions and participated in the discussions and listening to the resulting ideas. A FD was not highly regarded by most. I say vote down this parasite business and work the new master plan for the site. Success will come.
tdw
Mon, Mar 18, 2013 : 4:01 p.m.
I have a idea for all the anti Dollar Store whiners.Why don't you pony up 1.2 mill and then you can put what you want there
HB11
Mon, Mar 18, 2013 : 9:15 p.m.
@TDW, the dollar store scenario sets the stage for future business to complement each other in that setting. I realize it has sat fallow for quite some time, but I feel the $30K in taxes it would bring per year is not worth "sentencing" the area to liquor stores, laundromats, and payday loan shops.
PattyinYpsi
Mon, Mar 18, 2013 : 4:22 p.m.
Always the same "idea" whenever anyone raises issues about any construction anywhere, tdw.
K Thompson
Mon, Mar 18, 2013 : 3:37 p.m.
Thisaid sad for the entire Ypsilanti community. As others have noted, Ypsilanti does not need another low end store selling more cheap Made-in-China plastic merchandise. How is this a Vision for down town? Why wold this be a destination for anyone? A city continues to degrade when quick-buck stores, -deals, and -real estate bargains are made in place of actual vision, planning, and design. Perhaps city officials and development council types should go on a retreat, play giant versions of Sim City on big screens, maybe even use existing Ypsilanti layout. What kind of city would you like to see? What will it look like in 5 yrs, 10 yrs? How can we get there? What steps can we take? Have competing teams, offer prizes for best design, best practical ideas, and best ideas for funding. Then maybe people would be more inspired than grabbing at a Dollar Store deal.
Catherine Wright
Mon, Mar 18, 2013 : 3:17 p.m.
I know that the plan is to rebuild Ypsilanti and allow for businesses and residents to thrive but if our Great White Hope is a Family Dollar being built downtown, we may as well pack up now. I live 3 minutes away from Family Dollar and I can count on 1 hand the number of times I've been there in the past 5 years. Family Dollar is not the answer. Family Dollar will not bring people downtown. SMH.
moonunit
Mon, Mar 18, 2013 : 2:10 p.m.
Family Dollar on Water Street ... just a really bad and short-sighted idea. Let the Shape Ypsi effort play out before doing anything else on Water Street. There was lots of great discussion and resulting ideas last week and Family Dollar didn't play into any of it. Tell FD to focus on building on on their target property by West Michigan and Ellsworth and leave Water Street alone for now. To the City Council, do you want to be know as the "Family Dollar" City Council ... the Council that killed the Water Street dreams?
dading dont delete me bro
Mon, Mar 18, 2013 : 6:05 p.m.
that's in the township
Solitude
Mon, Mar 18, 2013 : 4:24 p.m.
That's just what the city needs, an estimated $30K per year in taxes paid to any of the surrounding communities instead of the city. Also, explain in detail please how approving this project "killed the Water Street Dreams." The city needs more money and less fantasy. It was fantasy, with no thought to reality, that saddled the city with the Water Street bond debt to begin with. The time is now to get something moving on that property.
justalittleone12
Mon, Mar 18, 2013 : 12:01 p.m.
I think it is time we see some development on Water Street and I support the Family Dollar plan. I believe the demographics surrounding Water Street support this type of discount concept and they will fill a need for the nearby neighborhood. I personally would prefer to see an independent business invest and develop the Water Street property, but it isn't realistic. There aren't many independents who have access to $1 million and those that do have not shown any interest in investing in Ypsilanti's Water Street property.
Solitude
Mon, Mar 18, 2013 : 4:27 p.m.
One dollar store on a small corner of this property is not going to stop anyone else who may be interested from coming forward. If anything, the sight of something being built there has a better chance of attracting more attention and interest, not less.
PattyinYpsi
Mon, Mar 18, 2013 : 4:21 p.m.
We really don't know who has shown or would show interest in the Water Street property, since the task of finding tenants has been given to a realtor who doesn't live in Ypsi or have any stake in the outcome. If there were a more aggressive and imaginative pursuit of tenants for that area, who knows what businesses might have shown interest?
HB11
Mon, Mar 18, 2013 : 11:22 a.m.
If your vision for the future is a dollar store, that is not a pretty sight for downtown Ypsi.
tdw
Mon, Mar 18, 2013 : 3:59 p.m.
I hate to break the news to you but a empty lot for decades is not a pretty sight for downtown either
K Thompson
Mon, Mar 18, 2013 : 3:41 p.m.
Voted to agree with this comment, but screen jumped and recorded thumb down.Sorry. I do vote Thumbs Up. Editor, please change if you can.
dading dont delete me bro
Mon, Mar 18, 2013 : 10:49 a.m.
"The letter of intent was signed on Dec.10, establishing 90 days for the city to finalize the plans with Family Dollar." march 10th was a week ago...
Katrease Stafford
Mon, Mar 18, 2013 : 1:41 p.m.
Dading, You're correct. The purchase agreement was originally slated to be considered at the March 5 meeting, but two council members could not be there on that date, but they definitely wanted to be part of the decision. I believe they were able to work something out where they could consider it at this meeting instead. Also, in the purchase agreement, it states if the city isn't able to make a decision in the allotted time, they can ask for an extension.
dading dont delete me bro
Mon, Mar 18, 2013 : 10:46 a.m.
consider or REconsider...?