REDICO’s proposal for a two-story retail and office building east of Schaefer Road, north of Osborn Street, and west of the parking deck did not come to fruition, and the property has been returned to the city for remarketing.
By SUE SUCHYTA
Times-Herald Newspapers
DEARBORN – REDICO, a Southfield-based real estate development, construction and property management company, has returned land to the city after failing to develop it as promised.
The property, east of Schaefer Road, north of Osborn Street, and west of the parking deck, had been proposed as the site of a two-story retail and office building.
REDICO must pay $125,000 in remuneration to the city, per its agreement.
Jeff Watson, director of Economic and Community Development, said at the Oct. 5 mayoral briefing that REDICO provided city officials with a draft deed, which the Legal Department is reviewing, and that title insurance was requested from them, to which REDICO was resistant, since it was giving the land to Dearborn, not selling it to them.
He said city officials want to ensure that the title to the land is clear, regardless.
Watson said REDICO has neglected to directly address the renumeration issue, as well, when in conversation with him.
City Attorney Debra Walling said there had been six amendments to the original development agreement with REDICO, which the city council authorized.
Councilman Robert Abraham said that, when the deal began looking less likely to succeed, the idea was put forth that if the property came back to the city, Dearborn would receive $125,000 from REDICO.
“They can push the costs around any way they want, as far as I am concerned, at closing, after everything is reconciled, there should be a check to the city of Dearborn for $125,000,” he said.
Watson reiterated that the development agreement states that clearly.
Abraham said if the city has to pay for the title insurance, it will seek repayment for it from REDICO.
Walling reiterated that title insurance is the seller’s responsibility in any closing.
“We should get the property, and $125,000, and a clean, clear title,” Abraham said.