10/07/2006

Developers get go-ahead

By CRAIG McCOOL

mccoolrecordeagle@sbcglobal.net

Read the full series

Special to the Record-Eagle/Kevin Johnston

• Permit issued to city officials, not developers - October 6, 2006
• 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 — City officials said Petoskey Pointe developers made their land-acquisition deadline and can move ahead with their $60 million downtown development.

Two city parking lots were turned over to developer Lake Street Petoskey Associates after the city was presented late Thursday with the required paperwork that showed the rest of the land was in place, said City Manager George Korthauer.

Thursday was the deadline in a city-developer property transfer agreement.

"Everything came in. The deed to the city property was released, and the vacations of the rights-of-way, as well," said Korthauer.

Developers had several parcels already, but needed to acquire land owned by Northwestern Bank before they could get the city property. The city, in exchange for the land, is to get $970,000 against the $6,252,000 purchase of part of a public parking ramp planned for the development.

The agreement specifically called for the developers to have "fee simple title" to the bank property.

Korthauer said he didn't know the specifics of the land acquisition, but said city's "special legal counsel is satisfied."

Both the city and developers need to complete utility work at the project site — the block bordered by U.S. 31 and Mitchell, Lake and Petoskey streets — before construction on the $60 million hotel-and-condo can begin. The city hasn't been noticed of any construction timeline, Korthauer said.

"They'll be coming to the city to bring a work schedule," he said.