May 30, 2014 Category: Commercial Real Estate
However, due to the nature of historical landmarks, it can be costly to maintain the properties, especially if a property has been neglected for an extended amount of time in Michigan or in any other state. This is why one commercial real estate development company is looking to demolish a particular historic building.
This building was constructed about a century-and-a-half ago. The local city government currently owns the brick house and is now looking to sell the property to the commercial real estate development firm. The firm had submitted a proposal and was given informal designated developer status by the city council. The company is now looking to secure official city council approval to move forward with the project, which is calling for the demolition of the historic building.
However, the city also looked at one other potential investor’s proposal who wished to preserve the historic building. This second proposal was submitted in 2012, but after six months’ time, the city informed the potential investor that the property was no longer available due to the development firm’s designated developer status. This incident has raised concerns that the development firm received unfair favorable treatment — an allegation that the city denies.
This case is an example of the many variables that may affect a proposal for commercial real estate development in Michigan or in any other state. Potential developers would be wise to thoroughly research relevant rules and regulations in order to fully analyze an opportunity’s profitability. Having the correct legal knowledge will also assist in avoiding any unnecessary lawsuits due to non-compliance.
Source: buffalonews.com, Developers offer opposing plans for historic Fruit Belt property, Susan Schulman, March 15, 2014