It’s by no means a done deal, but it appears the James Lumber property in downtown Oxford could finally have an owner after sitting vacant for two years.
Local investor and property owner Ron Zilka confirmed he has a purchase agreement for the 3?-acre property located at 43 E. Burdick St.
‘I’m not positive that I’m going to exercise it,? said Zilka, noting there are still some issues to be resolved. ‘I don’t consider it a deal yet.?
The agreement comes with a 60-day period for due diligence during which Zilka could nix the deal. He admitted passing up this opportunity wouldn’t be easy considering the property originally listed for $1.6 million and he got ‘one hell of a deal.? He didn’t wish to disclose the price.
James Lumber closed its Oxford store, along with its other locations, in late 2006 after 11 years in business here.
Zilka’s concerned about finding a tenant for the 20,000-square-foot building given its size and location. ‘It’s not going to be an easy building to lease as a single unit,? he said. ‘Everybody wants to be on M-24.?
Zilka doesn’t want to divide the building into units and lease them to multiple tenants because that would increase his cost.
Currently, the property is zoned as part of downtown’s Central Business District (C-1), which allows for a variety of uses including retail, office, service, restaurants, taverns, department stores and specialty shops.
Zilka has been talking to Oxford Twp. Parks and Rec. Director Ron Davis about the possibility of his department leasing it and installing two indoor basketball courts as part of a teen center concept.
‘I think that would just be dynamite,? Zilka said. ‘I’ll bend over backwards for that to happen. It just seems to me like parks and rec. is the ideal candidate.?
Right now, Davis doesn’t have any hard numbers on what such a project would cost, but he’s working on the details to see if it’s feasible. ‘I really haven’t priced the flooring, the baskets, the bleachers, score clocks, all that type of stuff,? he said.
Installation of a fire suppression system, required by law, and the remodeling of the restrooms are other costs to consider.
Besides basketball, the courts could be used for other sports like volleyball and floor hockey. ‘You could do a wide variety of stuff if you had a facility like that,? Davis said.
Besides finding a tenant, another obstacle Zilka must overcome with this property was put in place by the Downtown Development Authority.
In order to be eligible for tax credits, the DDA had it declared a ‘brownfield.?
Brownfields are typically properties associated with environmental contamination from a previous use. In James Lumber’s case, there was no contamination, but it was considered functionally obsolete, which allowed it to be declared a brownfield.
‘It shouldn’t be a brownfield,? Zilka said.
According to Zilka, it’s not easy to get a financing because of this designation.
‘Banks won’t touch it with it being labeled a brownfield,? he said. ‘That would have to be lifted.?
Zilka is talking with the DDA and village about getting the designation removed.
Overall, Zilka’s hoping this project will be as successful as his other local real estate investments.
‘I’ve just had such good luck in Oxford,? said Zilka, who owns two industrial buildings on S. Glaspie St. totalling 31,000 square feet. ‘I’ve never had a vacancy for more than 15 days since I bought it over four years ago.?