Local developer Chuck Schneider came a step closer last week to purchasing a piece of property owned by Oxford Village, so he can build a mix of 76 residential units on it.
In a 3-0 vote, council approved a list of general terms for the sale of 98 S. Glaspie St. to Schneider. A purchase agreement must now be drafted and return to council for final approval.
Under the terms, Schneider would buy the former industrial site in ‘as is? condition for $225,000.
‘Under Michigan law, if we sell ‘as is,? we’re not going to hear about environmental issues again once he’s gone through his due diligence,? said village attorney Bob Davis.
Schneider’s been negotiating with Davis, village Manager Joe Young and Councilman Tom Kennis.
Purchased by the village for $700,000 in March 2006, 98 S. Glaspie St. consists of two parcels totalling approximately 3.5 acres with two attached buildings totalling 21,400 square feet. The buildings are in extremely poor condition.
In November 2012, village residents voted 1,069 to 521 to grant the municipality the authority to sell the land.
The main reason the village bought the property was because of its close proximity to the municipal water supply’s wellfield. Officials didn’t want to risk another industrial user moving in and possibly contaminating the groundwater.
‘This development plan by Mr. Schneider is 100 percent consistent with your goals and your plan,? Davis said.
Schneider is looking to construct a three-story multiple family complex containing 36 condominium units, plus 40 two-story, attached, single-family row houses.
Right now, the property is zoned for single family residential use (R-1 and R-3).
Schneider wants the portion zoned R-1 to stay as is, but he’s planning to request the R-3 portion be rezoned to multiple family (RM-1).
‘I have no issue with any of it, except perhaps, the sale price,? said Councilman Bryan Cloutier.
An appraisal commissioned by the village last year valued the property at $305,000.
Schneider’s offer is based on the fact that he’ll have to pay to have the buildings demolished.
Davis told council Schneider is ‘firm? on the price.
‘We worked on that for a while,? he said.
Based on calculations provided by Young, if the property is developed as Schneider proposes, it will generate an estimated $44,816 annually in additional property tax revenue for the village, plus $50,000 to $60,000 more in water and sewer revenues each year.
Because government-owned property is exempt from taxation, the 98 S. Glaspie St. site hasn’t provided any revenue for the village in nine years.
The potential of this development adding 100 new residents to the village population would increase the amount of fuel tax money the municipality receives from the state by $4,000 annually and revenue-sharing funds by between $8,000 and $11,000 per year, according to Young.
‘More people is good,? Davis said.
‘I think if we can get past (the purchase price) . . .then everything else, at least in my opinion, looks to be quite beneficial long-term,? Cloutier said.
Village President Sue Bossardet noted how the potential influx of new residents would provide more customers for the downtown area’s shops and restaurants.
The village hasn’t done much with 98 S. Glaspie St. since buying it. It’s been used for event parking, storing road salt for the Department of Public Works and boats for a private company, and as a makeshift skate park for local youth.
In the past, officials have considered using the property to expand Scripter Park, house a community/senior center and relocate the village offices and police station.
None of those plans came to fruition.
‘The village does not have money to do anything with that property,? Bossardet said.
Under the terms negotiated with Schneider, the village would have 60 days after closing to remove the historic Smith Silo that’s stood on the property for many years.
Founded in 1906, Smith Silo, one of the best known silo manufacturers in the Midwest, moved to Oxford in 1930 to be close to its source of gravel. The company was located at 98 S. Glaspie St. through the 1970s.
A Smith Silo was donated to the Henry Ford museum in 1976. Another stands in Seymour Lake Township Park and is used as a pavilion.