Ypsilanti delays decision on $1.2M Family Dollar development on Water Street property
Ypsilanti's City Manager Ralph Lange and Mayor Paul Schreiber watch a presentation during a city council meeting to discuss the proposal for a Family Dollar store on the city's Water Street property Tuesday Mar. 19th.
Courtney Sacco I AnnArbor.com
Ypsilanti postponed its decision on the proposed $1.2 million Family Dollar development until April after council members and residents expressed concern over aspects of the project.
The Ypsilanti City Council voted 5-2 Tuesday night, with council members Brian Robb and Susan Moeller as the two no votes, to delay a decision on the purchase agreement until April 23.
Council member Daniel Vogt said his mindset a year ago, in regards to the Water Street property, was that any development was better than nothing. However, he said his thinking has now changed and believes the city should take its time when picking future developments.
"I think we need to delay this and not get involved with a commitment," Vogt said. " I think we want to let the master plan run... I have nothing against Family Dollar, but I don't think we're ready to commit. I think it would be wrong."
Vogt said he believes a decision on Family Dollar should be delayed until the Shape Ypsi master plan process is completed.
The master plan is expected to be completed near the end of the summer.
Mayor Pro Tem Lois Richardson said the 38-acre Water Street property has been vacant for years and is in long need of development.
In 2010, the city considered a proposal from Burger King to open a location on 1 acre of Water Street. Burger King offered to purchase the parcel at Michigan Avenue and Park Street for $400,000. The city council ultimately rejected the proposal.
"I don’t think that just because we’re in a flurry of creating a new master plan that it's going to have that much of an effect on Water Street," Richardson said. "I don't see any sense in us postponing or tabling it. I think we have done that over the years and I really think we have sat on it long enough. I think it's time for us to move on."
The delay will allow the city and Family Dollar to come to an agreement on some terms that could potentially change the location of the store on the Water Street site, and increase the size of the area it would occupy, among other things.
"In 2006, Joseph Freed and Associates had proposed a full scale development plan for the site," said City Planner Teresa Gillotti. "They had proposed a pharmacy and they had sized it at 1.4 acres."
One of the changes to the purchase agreement could see Family Dollar's footprint increase from 1.1 acres to 1.4.
"It is a goal of this master plan process to have a master plan for the Water Street site," Gillotti said. "We currently don't have that now, but we're in the discovery phase."
This past week, the city met with community members to discuss the master plan process and Gillotti said Family Dollar was a recurring topic.
"One of the things that came up most frequently of this discussion of the parcel was that the curb cut should match Lincoln Street to the north and one of the things that was suggested was to make the parcel slightly larger," Gillotti said. "There was quite a bit of conversation about where the building should be orientated on site."
The property is currently slated to be located on the northeast corner of the Water Street site, at the intersection of Michigan Avenue and Park Street, but that could change.
Dave Heikkenen speaks out against the proposal for a Family Dollar store on the city's Water Street property during a city council meeting Tuesday Mar. 19th.
Courtney Sacco | AnnArbor.com
Core Resources Representative Bill Tippman said the company, which is the developer for this project, is willing to work with the city on some modifications.
"We would very much like to bring that business deal to a close and bring that flexibility to accomodate that master plan process," Tippman said. "We have approvals that we need to get corporately first that we need to get to move forward."
However, Tippman cautioned council to remember that in order to move the project forward, they must approve the agreement soon. Tippman said he wasn't notified of the master plan update process until last week.
"I just want to respectfully remind council that 90 days ago we signed a letter of intent," Tippman said. "The other party (Family Dollar) is left with a deal that’s different than what we had 90 days ago. We would like to get the deal done."
Dave Heikkenen, owner of Heikk's Decorated Apparel Studio at 133 W. Michigan Avenue, urged council to consider not moving forward with the Family Dollar plan until the master plan process is fully completed or possibly not at all.
"There's a lot of vision for the property and very few of them are complimentary to the Family Dollar," he said. " I would defer the whole thing... Ann Arbor is talking about a 14-story high-rise, we have to set our sights higher."
Heikkenen criticized Family Dollar's other locations in the Ypsilanti area, saying he feared the proposed one might not be kept up.
"The one on East Michigan Avenue has a crooked sign hanging," he said. "It looks dilapidated... We have to maximize the value of this property and raise our standards."
Council member Pete Murdock said it's time to move the proposal forward into a reality.
"We've heard a lot of discussion about Family Dollar and whether it's the right project and that we need a vision and a plan," Murdock said. "The fact is, we have a vision and a plan."
Mayor Paul Schreiber is in favor of the project moving forward, citing sustainability and predictability as things the city needs.
"I do support having a Family Dollar proposal and I wold also like to see it be more instep with the grid structure that the master plan is going to come up with," he said. "I think Family Dollar is a good use and we will have a diverse group of people using the store... It's like Walgreens without the liquor and drugs."
Council approved a letter of intent Nov. 20 with Core Resources, 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.
Family Dollar is proposing purchasing the land from the city for $210,000 and investing about $800,000 in improvements, not including land cost. 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.
Family Dollar hopes to begin construction by this summer.
Katrease Stafford covers Ypsilanti for AnnArbor.com.Reach her at katreasestafford@annarbor.com or 734-623-2548 and follow her on twitter.
Comments
David Wanner
Fri, Apr 19, 2013 : 2:59 p.m.
Why not invest your time on a new crime fighting plan for Ypsi where the reputation has gotten so bad instead of worrying about a family dollar? Get your priorities straight.
Ypsi Eastsider
Thu, Mar 21, 2013 : 2:39 a.m.
Passed on a deal for $400,000 so they could accept a worse deal for $210,000. The City paid $1.1 million for the 1.4 acres and is going to sell it for $210,000. A real bunch of financial geniuses we got here. The expected tax revenue would be the same as the city already gets for the run down condemned Smith Furniture building downtown. What's next? Give Water Street land away? Oh wait, that is the plan. The City plans to give 10 acres of land they paid $8.2 million to the County for a Rec Center.
K Thompson
Thu, Mar 21, 2013 : 2:24 a.m.
Delay, Good. Family Dollar, still tacky, still bad. Does not show ling term vision for the town, just short term profit, eventual eyesore.
Ben Petiprin
Wed, Mar 20, 2013 : 11:15 p.m.
City council is about as paralyzed as our national congress, but over infinitely stupider issues. Any decision you make will be hated by some, just do what appears best for you. That being said, just go with the Family Dollar already. Stop listening to these delusional people who will settle for nothing less than a 10,000 seat opera house.
Catherine Wright
Wed, Mar 20, 2013 : 4:12 p.m.
Look not all development is good so waiting to me seems like a logical thing to do. If you want to see a beautiful, thriving Ypsilanti then you have to bring in businesses that everyone can and will utilize. Businesses that bring in business and offer jobs to residents of Ypsilanti. We accept the offer form FD and they create 15 jobs? Maybe? And then they pay their workers minimum wage and do not offer health care or other benefits. The city makes $30k in taxes? Then what? Whose going to shop there? Do you really think they do that much business? The people that are encouraging the FD project, do you plan on shopping there? Have you been to a FD? They are dirty, unorganized and with questionable products at best. Those who think developing this land with a FD is a great idea must not plan on see Ypsilanti thriving. FD would just take up space where an actual business that could benefit the city and its residents could be. Maybe our city officials should be marketing to better companies with more opportunities that offer a chance of success. We also must require the current business owners to maintain their properties. There are so many businesses in Ypsilanti that are just eyesores. Hey if we get the Family Dollar, maybe we can get another liquor store and a check cashing place. Oh and another discount cellular phone company! Oh I know maybe we should get a methadone clinic and a plasma center there too. Oh yes and we really need another pay by the hour motel!!! Now the ideas are flowing. Grrrrr………I just get so upset when people talk down about Ypsilanti. Have pride in your town! Powers that be, if you want Ypsilanti residents to spend time and money in our home town, give us a home town worth spending money and time in.
amazonwarrior
Wed, Mar 20, 2013 : 1:37 p.m.
My mental image of a Family Dollar store downtown is just plain TACKY. It will eventually become an eyesore like the other FD stores I've seen, as well as a hangout for teenagers who have nothing else to do. In a previous meeting I believe it was mentioned that the city wants them to build a second story on the building. Maybe it could be used as the new City Hall that they are whining they want.
Solitude
Thu, Mar 21, 2013 : 2:45 a.m.
Yeah, it would really be a shame to have teenagers hanging out at a store near a recreation center, we're much better off with them out committing home invasions.
Concerned Citizen
Wed, Mar 20, 2013 : 1:29 p.m.
What happens if there is another economic downturn. Then even Family dollar won't be wanting to develop there. You know what, any developer is looking at this as a sign that the political climate in Ypsilanti is not conducive to business. It's time to develop the property. Everyone who is bitching about the Family Dollar seem to follow the same type of political philosophy that got us into the water street fiasco in the first place. This whole boondoggle is a great opportunity for people to open their eyes and realize the inherent flaws in government central planning, and pull away from it! Encouraging it more just adds to the problem.
lumberg48108
Wed, Mar 20, 2013 : 1:36 p.m.
actually, during economic downturns, Family Dollar and related stores thrive, for logical reasons
Thomas Jones
Wed, Mar 20, 2013 : 1:12 p.m.
GOOD! Dollar store really.... you have got to be kidding...
Really??!!
Wed, Mar 20, 2013 : 12:31 p.m.
The city's elected officials and appointed staff members epitomize incompetence and ineffectiveness. Just when you think you've heard it all, our very highly compensated city planner states "we're in the discovery phase" of creating a plan for the Water Street site. This statement is as laughable as it is pathetic. Where is leadership on the city council? Where is leadership from the city manager? One need not wonder why our city has failed at every level.
dading dont delete me bro
Wed, Mar 20, 2013 : 12:29 p.m.
water park! = water street
joe golder
Wed, Mar 20, 2013 : 5:19 p.m.
Attached to family friendly hotel!
denniso800
Wed, Mar 20, 2013 : 12:13 p.m.
Just keep waiting............ It will all get better, on it's own. NOT!
ypsilanti
Wed, Mar 20, 2013 : 11:56 a.m.
I don't like the idea of a Family Dollar (or Burger King) any more than anyone else. But how long is too long to wait for the kinds of businesses originally envisioned for the development? One more year? Five more? Ten more? Fifty? No amount of visioning or tweaking of a master plan is going to turn a mostly worthless parcel of land into a valuable market commodity. The question is whether we have reached the point where it is better to cut our losses and accept workable but less desirable options. Is it really fiscally responsible to continue visioning and dreaming, waiting for this parcel to be rescued by some abstract concept of an as yet unknown and unidentified business or development that so far has no history or track record of wanting to locate here?
ypsiguy57
Wed, Mar 20, 2013 : 11:43 a.m.
Family dollar is nothing like a walgeens. And why fill the space with the same type of business when the city bought the same types of property they paid to tear down? Family dollar is not what the residents want and certainly wont fit into the master plan. Lois Richardson is useless and does not have her constituents in mind.. we need new leadership. Schreiber is just a continuation of the Farmer era. Nothing changes city leaders are incompetent. We should recalls most
jns131
Wed, Mar 20, 2013 : 10:34 p.m.
I second the motion. No Family Dollar. Something better will come along and make this are look top dog. Look at all the new restaurants coming in.
Thomas Jones
Wed, Mar 20, 2013 : 1:13 p.m.
As an Ypsi Resident I agree! No Dollar Store!!!
klatte
Wed, Mar 20, 2013 : 10:44 a.m.
No use is good enough for some people. There's something to be said for getting some momentum.
average joe
Wed, Mar 20, 2013 : 10:34 a.m.
The city has owned the property for (?) years and they STILL don't have a master plan, much less know with certainty what they want it to look like?
Michael
Wed, Mar 20, 2013 : 2:36 p.m.
Master Plans are intended to be updated every so often. This is what Ypsilanti is doing right now. The current Master Plan is out-of-date and needs to be updated to reflect the city's vision for the property.
Katrease Stafford
Wed, Mar 20, 2013 : 11:42 a.m.
Hi average joe, The city does have a master plan from 1999 that mentions the Water Street property, but it has no extensive layout or "vision" included. City officials have told me they want to make sure the new plan revision fully includes the property since it encompasses such a large part of the city. This is the first time they've done a master plan revision since 1999.