10/06/2006

Permit issued at the last minute

It's handed over to city officials, not developers

By CRAIG McCOOL

mccoolrecordeagle@sbcglobal.net

Read the full series

Special to the Record-Eagle/Kevin Johnston

• Deadline awaits city, developer - October 4, 2006
• Officials satisfied; public is not - October 3, 2006
• Recent soil borings don't match '94 findings - October 1, 2006
• Consultants to meet with brownfield officials - October 1, 2006
• Developers net $4.5M credit from flawed tests - September 24, 2006
• Brownfield tax break considered 'crucial' - September 24, 2006
• Petoskey Pointe $4.5 million brownfield tax credit time line - September 24, 2006

See related editorials:

• Petoskey Pointe tax credit application process tainted - October 1, 2006
• Brownfield sites get cash, real contamination waits - September 19, 2006

PETOSKEY — Petoskey Pointe developers scrambled to obtain a building permit as time elapsed on a land acquisition deadline for their $60 million project.

A fee of $6,500 to Emmet County for a building permit arrived Thursday, the final day before a deadline in a city development agreement lapsed, said chief building official Dick Crawford.

Crawford declined to issue the permit directly to developers Lake Street Petoskey Associates, however, because they didn't yet own all of the land required for their downtown hotel-condo project.

The permits were drawn up Thursday and turned over to city officials at the request of Petoskey City Manager George Korthauer.

Korthauer said Wednesday his request was "assurance for the city" that developers met their obligations set forth in the agreement. It was not, he said, a mode of helping them meet the Oct. 5 deadline.

"I asked that it be done this way. I want to make certain that all of the documents are in place. It's just assurance for the city," he said. "We want to make sure that all of those conditions have been met."

In order to acquire city land needed for the project, developers by Thursday were to have the rest of the land assembled and a permit to start construction.

Late Thursday afternoon, county records showed the developers, in addition to the city property, still had not acquired land owned by Northwestern Bank.

Korthauer could not be reached for comment as Thursday's deadline passed. Nor could developing partner Jim Wilson.

County Register of Deeds Michele Stine said a four-hour lag existed between the time deed transfers are recorded and the time they are entered into the system.

Crawford, the building official, said he agreed to give permits to the city after initially denying to issue them directly to developers a little more than a week ago.

"The bank wanted the permit issued first, and I said 'No, you've got to have the ownership (transfer) done first," he said.

The city wouldn't normally be involved in the permit process, he said, but giving the pre-drawn permits to the city was a "compromise."

"When the city was satisfied that the property was transferred — apparently the city is going to be right there when it happens — they'll just exchange a title for a permit," said Crawford. "I talked to my civil counsel and she said this is the way that makes sense."