Saline sues developer Concannon over unfinished downtown redevelopment
Questions continue to circulate about the inactivity surrounding a years-old construction site near the heart of Saline’s downtown that Michael Concannon once hoped to turn into a mixed-use development.
Now the city is suing him and the corporate entities behind Village Marketplace and Lofts to force the completion of demolition stage of the project and make repairs to city property.
This photo from early 2009 shows the incomplete project.
AnnArbor.com files
A note from Concannon to the city in February states that the lack of financing “effectively kills the project.” It once called for 30 residences, retail space and below-grade parking in a 63,130-square-foot structure.
Concannon added in that note, cited in the lawsuit, that the best option appears to be “finishing the project to the status of a city park.”
The 1.45-acre property along Michigan Avenue in downtown Saline is a former auto dealership and gas station. The parcel includes four separate lots, according to documents filed with the lawsuit.
Concannon acquired the property and obtained city approvals in 2007 to build the Village Marketplace and Lofts.
In late 2006, he received permits to demolish the structures on the property. Yet Concannon “failed to comply with the permit,” according to the lawsuit.
The buildings and underground tanks were removed, “leaving a large hole in the land of varying depths,” the lawsuit says. Temporary fencing was erected around the site, but the lawsuit says that damaged sidewalks, curbs and streets remain unrepaired.
The site plans for the development expired in February, and over the last year Concannon has been dealing with several other lawsuits surrounding his developments in Washtenaw County.
They include:
• A Washtenaw County Circuit Court judgment over an unpaid $26,000 landscaping bill that resulted in The Dakota Building on West Stadium being sent to auction in September to cover the debt.
• A lawsuit by Huntington National Bank over a $2 million debt tied to the purchase of the former Greek Orthodox church on North Main Street.
• A lawsuit by Fifth Third Bank over missed payments on $2.9 million loan on an office building on East Washington and house on East Huron that Concannon planned to redevelop into a high-rise.
City officials sought a remediation plan for the Village Marketplace by May 1, and asked the work to be completed by July 1. When that didn’t happen, Saline City Council voted July 12 to move forward with the litigation.
City Manager Todd Campbell and city attorney Allan Grossman declined to comment for this story, as did Concannon.
The city seeks reimbursement for the $10,700 cost of a temporary sidewalk, in addition to a resolution to the zoning violations.
Paula Gardner is Business News Director of AnnArbor.com. Contact her at 734-623-2586 or by email. Sign up for the weekly Business Review newsletter, distributed every Thursday, here.
Comments
Celyn
Fri, Aug 20, 2010 : 5:39 p.m.
I think the should turn it into a public pool because saline does not have one
MB111
Fri, Aug 20, 2010 : 2:23 p.m.
It does seem that the media has forgotten that the Banks are responsible. Ask any small business person how easy it is to get a loan - IMPOSSIBLE. Also it laughable that the mass media reports that Banks say there is no demand for credit. from Truth & Justice There are several salient facts of public record that where not mentioned in the story. The first fact being that the project was full tilt under construction and was only stopped because the bank pulled the developers financing. The second fact is that the developer sought and has obtained alternate financing but the project is no longer commercially viable. My research into area projects shows that all of this developers project(s) have stopped because all of the developers loans have been pulled by the banks. But this story can be heard and is being repeated by the banks against other local developers as well, not to mention around the State, Nation and the World. It is important to remember that the banks with the support of taxpayer dollars in the trillions supplied by the government have a publically documented history of this sort of activity. It will be long time before things will change for the better.
Truth & Justice
Fri, Aug 20, 2010 : 1:08 p.m.
There are several salient facts of public record that where not mentioned in the story. The first fact being that the project was full tilt under construction and was only stopped because the bank pulled the developers financing. The second fact is that the developer sought and has obtained alternate financing but the project is no longer commercially viable. My research into area projects shows that all of this developers project(s) have stopped because all of the developers loans have been pulled by the banks. But this story can be heard and is being repeated by the banks against other local developers as well, not to mention around the State, Nation and the World. It is important to remember that the banks with the support of taxpayer dollars in the trillions supplied by the government have a publically documented history of this sort of activity. It will be long time before things will change for the better.
wlhneighbor
Fri, Aug 20, 2010 : 12:57 p.m.
I live across the street from one of Mr. Concannon's projects and have followed its progress from the beginning. Michael Concannon is one of the good guys as far as developers go. He began his projects just before the economy tanked and simply ran out of money. Mr. Concannon and his representatives have always been willing to work with the neighbors and keep us informed of progress. The best solution all around would be for Concannon to be able to borrow enough money complete his projects. Suing him is not going to accomplish anything except perhaps push the company into bankruptcy. How can you get blood from a stone?
Paula Gardner
Fri, Aug 20, 2010 : 6:28 a.m.
@John Alan The lawsuit isn't about forcing development on the site - the site plan has expired. It's seeking to force the developer to either finish the demolition or cover the costs of it. Things like filling the big hole, repairing sidewalks that were damaged by the demo, etc - basically to make the site level and safe. @racerx, Yes, Mike Concannon also did West Towne - those condos at Liberty and Maple. Haven't looked into those lately, but the last i heard they may not have had certificates of occupancy to allow move-ins. That project on Stone School is moving into the hands of a new developer, and wasn't Concannon's. Here's a column on it: http://www.annarbor.com/business-review/developers-seek-to-restart-stalled-affordable-housing-project-off-stone-school-road/ Since I wrote that, the developers did get the site plan extension from City Council.
racerx
Fri, Aug 20, 2010 : 1:33 a.m.
Does Concannon also have unfinished projects in Ann Arbor? Didn't he do that development on the corner of W. Liberty and N. Maple road where the housing condo's are half finish? How about the half finish condo's on Stone School Rd. across from Pheasant Run apartments? Why, then, doesn't the city of Ann Arbor go after these developments? They're just as much an eyesore as that hotel on Jackson road that was torn down, by court order. Seems selective. Though I'd be very pissed if I brought one of the above mentioned units and have to look at undeveloped lots every day.
John Alan
Thu, Aug 19, 2010 : 11:44 p.m.
Is City of Saline out of Michigan? Given the way that financial institutes are loaning money...... nothing will happen for a fairly long time. The city must have too much tax money that they have opted to pay attorny fees and court cost and go sue this guy..... EVEN if this guy can get the financing, due to the fact that there is not much is happening around here so why does the city think that this guy is going to finish the project and end up with vacant proerties and pay FAT property taxes to the city and payments to the bank and sit on bunch of vacant retail space and appartments!!!! Look at what the sale price is for retail space in downtown saline... (example Kelly Bar -- total of $300K for three buildings 103,105,107 West Michigan Ave. -- this is half the city assessed value of the property). Now the city is suing this guy for trying not to move forward with a plan that is not going to work in this economy.... Just amazing... They must have too much tax money.....
Veracity
Thu, Aug 19, 2010 : 9:52 p.m.
Nick: You are baffled why the library parking lot was ever demolished. The explanation is that the DDA and City Council hope to replace the surface parking facility with a profitable commercial project that will generate jobs and tax revenue. Several proposals for building of hotels and convention centers on top of the new parking facility are being considered. Each requires a subterranean parking structure strong enough to support a 12-story hotel on top. The underground parking facility is being constructed to the needed specifications. The underground parking facility being built is actually a gift to whichever developer is selected to build a hotel and conference center. Hotels require available parking on site and would have to pay for its construction. Instead, the citizens of Ann Arbor will pay $87.5 million for the parking structure over the course of the 20-year authorization of the bonds. Sadly, neither developer can guarantee that enough money will be loaned to them to complete their projects. Even if the hotel/conference center is completed, neither developer can guarantee that the enterprise will generate enough revenue to reimburse the city for the cost of the bonds. As a matter of fact, the poor occupancy rate for Ann Arbor's existing hotels and the lack of demand for another hotel/conference center during this prolonged recession bodes poorly for any future commercial success. Instead, Ann Arbor may incur costs that will cripple it financially while a white elephant is created that will defile our downtown.
Speechless
Thu, Aug 19, 2010 : 9:02 p.m.
With regard to Mr. Concannon, it seems he's begun to steal some of Craig Schubiner's limelight as the region's poster child for pratfalls in commercial development. While he'll never match the single-project majesty of Schubiner's incomparable Bloomfield Park ghost town out by Pontiac, Concannon's Marketplace nonproject in Saline, in tandem with his nondevelopments on N. Main and on E. Washington in downtown Ann Arbor, may now draw more combined attention from the civil authorities than Schubiner's ghost town annex in the former Geogetown Mall on Packard. The Dakota Building's situation is a bit different, in that it actually got built.
Jay Thomas
Thu, Aug 19, 2010 : 3:15 p.m.
Does AnnArbor.com have a photo of Mr. Concannon? I've never seen one; he seems to keep a low profile.
Nick
Thu, Aug 19, 2010 : 12:04 p.m.
@Veracity: I'm still baffled why the library parking lot was ever demolished. If anything, they could have put in a parking structure like they should have done with the lot across the street and solved a lot of problems. Then again, it's Ann Arbor. As for this Saline Hole, they should have just kept it as a gas station. Beats the heck out of the Saline Pit of Despair.
ffej440
Thu, Aug 19, 2010 : 11:09 a.m.
Its clear this developer is in a hole he can't get out of..No pun intended. It's a sad time when banks loan money to buy property but then won't extend further credit to develop. With the uptown residents so vocal and the city so restrictive I doubt anyone would want to purchase this property. What could it be used for except a parking lot or park? He probobly owes a bunch on this site also, so the bank would have to be paid off. Better to sue him and then the bank if he defaults to get the best cleanup we can.
InsideTheHall
Thu, Aug 19, 2010 : 10:20 a.m.
Saline needs to declare eminent domain and seize the property. It is a safety hazard and the owner/developer has been unresponsive to remedy the situation. Send in Craig Hoeft and some of the good ol Saline boys and git er done!
Paula Gardner
Thu, Aug 19, 2010 : 9:24 a.m.
@MB111, As far as I can tell, the vast majority of unfinished projects in this region don't involve lawsuits by municipalities. I don't plan to stop reporting on troubled projects that have high visibility and reach the courts for resolution. And if I've missed some, I'm willing to catch up - feel free to email or call.
MB111
Thu, Aug 19, 2010 : 9:03 a.m.
There are dozens of unfinished (or never started) projects in the area. Why this witch hunt?
Rasputin
Thu, Aug 19, 2010 : 8:32 a.m.
That reminds me of something... oh, yeah, the Thompson Block in Ypsilanti.
Veracity
Thu, Aug 19, 2010 : 7:58 a.m.
Annarborites should take notice as this may be the destiny of the library parking lot. A city councilman announced recently that a contract has been extended to a company to do a feasibility study of the Valient Partners and the Acquest proposals to build a large hotel and conference center next to the library. So the approval process proceeds forward. Valiant Partner developers had already acknowledged that financing will be difficult to obtain and then only if Ann Arbor pays for the conference center by issuing bonds. If floated these bonds will cost Ann Arbor $800,000 annually for twenty years without an identified secure revenue source to pay for servicing the bonds. A special millage or an income tax will be needed to prevent default on the bond payments. Meanwhile nobody knows the true cost for building the proposed hotels and city council can not even require proof of adequate funding before approving the start of the project. Write your ward council person and inform that person that you do not favor building a hotel and conference center in this economy and particularly do not want the city to go into debt in order to assist the financing of the private development.
ez12c
Thu, Aug 19, 2010 : 7:34 a.m.
I agree that restoring this site is long overdue. What an eyesore it turned out to be. Too bad the economy fell so badly ~ apparently this is just another of the developer's headaches right now. Fill it in then plant some grass and trees. Green space in a downtown would look nice.
Gorc
Thu, Aug 19, 2010 : 7:14 a.m.
I am curious if Concannon is behind with paying the property taxes. If so, in due time the property could changes hand and then something good could with the land.
samue1eb
Thu, Aug 19, 2010 : 7:11 a.m.
I think it would be nice to use that space for the farmer's market. Create a similar setup on a smaller scale of the Ann Arbor farmer's market. The rest of the land to be used as a city park and additional parking for the market.
SMAIVE
Thu, Aug 19, 2010 : 6:31 a.m.
At this point, it's such a danger to the public, something needs to be done now. I dread the hole on the property every time it fills with with water after a storm. It's an accident waiting to happen. Sure turn it into a park, as long as Concannon signs over the property free and clear. I hope there isn't a deal in the works to purchase it with taxpayer dollars and then clean it up.