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Development Land Sales Requests

URBAN RENEWAL LAND/SURPLUS PROPERTY UNDER DEVELOPMENT AGREEMENT


STANDARD PROCEDURE FOR THE PURCHASE OF URBAN RENEWAL LAND


Processing Time:  Six (6) to Nine (9) Months

Introduction

Before any formal consideration of a development proposal can commence, it is necessary for a Developer to submit an Offer to Purchase to the Planning and Development Department.  The Offer must include the following:

A.    A letter offering to purchase the land subject to the terms and conditions of a City of Detroit Development Agreement (form document available upon request) and a deposit (certified or cashier’s check payable to “Treasurer, City of Detroit”) of 10% of the purchase price.

B.   Preliminary site plans of the development proposed.  Such plans may include elevations and other architectural drawings.  All plans shall be in sufficient detail to allow for a review as to compliance with zoning regulations, Master Plan concepts, any applicable Development Plan requirements and general neighborhood compatibility.

C.  Two completed copies of an Offeror’s Statement of Qualifications indicating that the Developer possesses the legal capacity and financial ability to undertake and complete the development proposed in the preliminary site plans (Forms available upon request).

Before any Development Agreement can be executed, the Developer must comply with the City of Detroit Fair Employment Practices Ordinances and in federally assisted projects, with the HUD equal employment opportunity requirements.


Steps To Be Followed In Processing An Offer To Purchase

1.  Planning and Development Department Review

    a. Developer’s proposal assigned to Project Manager for review.  Upon satisfactory Review, the Project Manager will place proposed sale on Citizens District Council’s agenda.

    b. Project Manager reviews Offeror’s Statement of Qualifications.

    c.  If Title Commitment has not already been secured, Project Manager will order Title Commitment for Title Policy.

    d. Deposit check forwarded to Cashier’s Office and deposited.
    

2.  Citizens District Council Review
Planning and Development Department (P & DD) staff will make presentation along with Recommendations. Developer will be requested to be present to answer any questions.
 

3.  Housing Commission Authorization to Present Proposal to City Council.

Planning and Development Department (P & DD) staff will make presentation along with
Recommendations. Developer will be requested to be present to answer any questions.

 

4.  City Planning Commission

    a.  Exhibit “B” is forwarded to the City Planning Commission for review prior to the Public Hearing so as to allow for their comments prior to City Council’s action.

    b.  Planning and Development Department (P & DD) staff will make presentation along with recommendations. Developer will be requested to be present to answer any questions.

 

5.  Advertisement of Public Hearing

    a. Resolution to Council requesting authorization to hold Public Hearing.

    A preliminary Development Agreement, including an Exhibit “B” which is the narrative description of the proposed development, is prepared prior to requesting the City Council to schedule public hearing since the Development Agreement, along with the Offeror’s Statement of Qualifications, must be available for public inspection.

    b.   Advertisement posted in local media (Ten days prior to date of Public Hearing)

    

6.  Public Hearing Held by City Council

    a.  Planning and Development Department  (P & DD) staff will introduce development proposal at Public Hearing.

    b.  City Planning Commission will make presentation of proposed development along with recommendations. Developer will be requested to be present to answer any questions. All interested parties will be given an opportunity to be heard.

 

7.  City Council Approval

    This step authorizes the execution of the Development Agreement by the City.  When Executed as authorized by City Council, the Development Agreement constitutes the City’s formal commitment of the land to the developer.

 
8.  Execute Development Agreement and Quit Claim Deed

    Development Agreement must be signed by the developer within 60 days after City Council approval and returned to P & DD for signing by the City.  If not, action may be initiated to rescind all prior approvals, thereby allowing the City to entertain other offers.

          

9.  Close Sale and Transfer Title

    a.  Full payment of purchase price plus pro-rated payment in lieu of property taxes must be made at this time.
    b.  The deposit is retained by the City until the proposed development Agreement.
    c.  Planning & Development Department records Development Agreement.

   
10.  Submission of Construction Plans and Evidence of Equity Capital and Mortgage Financing.

    Generally, construction plans will be submitted to the City for approval within 120 days of the execution of the Development Agreement and Evidence of Equity Capital and Mortgage Financing within 180 days of execution of Development Agreement.  If either construction plans or evidence of financing isn’t furnished in appropriate time, the Development Agreement may be declared to be in default.

 
11.  Issuance of Certificate of Completion

    Upon developer’s request after completion of the development, an inspection will be made to assure performance and the Housing Commission will be requested to authorize a Certificate of Completion and a refund of the Security Deposit.



STANDARD PROCEDURE FOR PURCHASE OF SURPLUS PROPERTY UNDER DEVELOPMENT AGREEMENT

Processing Time:  Six to Nine months
1.   Upon receipt of a request by a developer/purchaser for the purchase of property from the City, it is necessary to take the               following steps:

    A)  Determine the developer/purchaser’s proposed use of the property, getting as much detail as the party can then make available.

    B)  Determine the existing zoning; determine if the proposed use is allowed as matter-of-right, is allowed with approval, or is not alllowed under the existing zoning classification.  Inform the developer/purchaser of the status of the proposed use under existing zoning and of the source for information regarding zoning changes or waivers if such would be necessary to accommodate the proposed use.

    C)  Review with appropriate Planning and Development Department (P&DD) staff the proposed use of the property to determine its consistency with departmental goals or with an adopted Development Plan, if one applies to the property; and, based on this review, submit a recommendation regarding appropriateness of sale to the Director of Development activities for concurrence.

    D)  For properties where a sale for the proposed use is to be inappropriate, notify the prospective purchase that the Offer to Purchase is declined and the reason for this action.

    E)  For properties where a sale is found to be appropriate, notify the requesting party that a formal Offer to Purchase is required.

 
2.      Secure formal purchase offer. Before any formal consideration of a development proposal can commence, it is necessary for a Developer to submit an Offer to Purchase to the Planning and Development Department.  The Offer must included the following:

    A)  A letter offering to purchase the land subject to the terms and conditions of a City of Detroit Development Agreement  (form document available upon request) and a deposit (cash or certified or cashier’s check payable to “Treasurer, City of Detroit”) of          10% of the purchase price.
    
        B).  Preliminary site plans of the development proposed.  Such plans may include elevations and other architectural drawings. All plans shall be in sufficient detail to allow for a review as to compliance with zoning regulations, Master plan concepts, any applicable Development Plan requirements and general neighborhood compatibility.
    
    C).  Two completed copies of an Offeror’s Statement of Qualifications indicating that the Developer possesses the legal capacity and financial ability to undertake and complete the development proposed in the preliminary site plans.  (Forms available upon request).

 
3.          Planning and Development Department Review.

    A)  Deposit check (memo to cashier, copy to Accounting).

    B)  Preliminary Site Plan reviewed by Project Manager and/or Cluster Team for approval, including the review a check for conformance with zoning requirements.

    C)  Development Division reviews Offeror’s Statement of Qualifications.


4  City Council Approval.  This step constitutes the City’s formal commitment of the land to a developer and authorizes the execution of the Development Agreement.  A preliminary Development Agreement, including and Exhibit “B” which is the narrative description of the proposed development, is prepared prior to requesting City Council approval.  In proposals calling for major development, the Exhibit “B” is forwarded to the City Planning Commission for review so as to allow for their comments prior to City Council action.


5  Execute Development Agreement and Quit Claim Deed.
 

6  Close sale and transfer title.  At this time, developer pays the full purchase price plus prorated payment in lieu of property taxes.      The “Good Faith” Deposit is held until the developer has satisfactorily completed the Development.

 
7  Project Manager records Development Agreement.