City selling former KFC

Published 9:26 pm Monday, June 28, 2010

$30,000 offer made on city-owned 225 S. Front St. by Theresa Savidge for three businesses; council will act July 26.

$30,000 offer made on city-owned 225 S. Front St. by Theresa Savidge for three businesses; council will act July 26.

By JOHN EBY
Dowagiac Daily News

Theresa Savidge made a $30,000 offer Monday night to Dowagiac City Council to buy two S. Front Street storefronts adjacent to City Hall she hopes to turn into three businesses employing 10 to 15 people.

Her bid for 225 S. Front St. must lie on the table for 21 days.

Final action on the proposed sale would be anticipated at the council’s second meeting next month, July 26.

Savidge “has a number of business interests she’d like to pursue,” City Manager Kevin Anderson reported. “She offered $30,000 in cash for the property as is and would make that payable at $500 per month” over five years.

Third Ward Councilman Dr. Charles Burling clarified the business arrangement, since documents referred to both a five-year and six-year payback.

“We’ll negotiate an interest rate on that” five-year payback, Anderson remarked.
“Prior to occupancy, though,” Anderson continued, “she would make some major investments in the building to repair the roof, the HVAC system and the electrical and plumbing, to make sure they’re up to code. The purchaser would be responsible for closing costs as well.

“The council has this offer to review. Action would be to introduce it and to place it on the table for a 21-day review period. The charter requires that there be that period of time in case there are other interested parties” who wish to counter her offer.

“We’re going to end up making all our money back,” Second Ward Councilman Bob Schuur noted, to which Mayor Donald Lyons added, “We’ve already recovered all of our costs.”

The one storefront has been the Michigan Employment Security Commission (MESC) office, a dollar store and, most recently, a pet store.

The other, once a grocery store and Kentucky Fried Chicken, most recently housed Daylight Doughnuts.

There is a third location in back, near Depot Drive, which has been pizzerias, a meat market and an art gallery.

Savidge has that in mind for a sports training and nutritional outlet.

She proposes a gift shop for the pet store and a sandwich and coffee shop for the doughnut place.

It would serve lunch and breakfast and offer Hungarian dishes and pastry.

The audience offered no input, although Mayor Don Lyons answered an e-mail questioning board vacancies. The mayor indicated his written reply listed specific dates various boards met.

“I always recommend the person I feel is most qualified,” Lyons advised the council, which confirmed his reappointment of Mark Shepard to a term on the airport board until May 2015.

“If I feel there are no qualified candidates,” the mayor added, “the seat may remain vacant until I feel there is one I can recommend in good faith.”

It was reported that 13 openings exist on “18 or 19” boards and commissions containing 97 positions, according to Anderson.

Filling vacancies is an “ongoing process,” Lyons said.

Another resolution set a public hearing to consider an application for vacating an east-west alley between Percy and Uneta streets.

“Property owners asked for us to consider vacating it,” Anderson said. “It’s not an alley that’s been used and currently does not have any utilities in it. They’d like to see that made part of their property.

“Our DPS (Department of Public Services) has taken a look at it and does not see any need for it and would support the request to abandon with the caveat of they’d like to see us consider placing an easement through there in case there would be a future need to connect utilities. We wouldn’t completely give up interest in that.”

“The way Michigan law works in vacating a right-of-way,” Anderson added, “is you need to set a public hearing and notify all affected property owners and you have to give at least four weeks notice.”

Also, if ultimately approved by the council, “Half of the right-of-way goes to each adjacent property owner.”

Council approved requests from Beeson Street Bar to close Beeson Street for the MDA motorcycle rally on July 11 and another from Niles Burn Run Inc. for traffic control assistance for its motorcycle rally July 18.

The council approved Schuur’s motion for expenditure of $332,160.79, including $153,786.30 for bills and payroll of $178,374.49.

Burling commented, “I would encourage those individuals who turn to the editorial page in the Daily News to pick up the phone and call us. I think there are questions that could be answered by just a phone call … I would like to see the editorial page remain the editorial page and not the Dowagiac Cheap Shots. That’s my editorial opinion.”

“Where’s the fun in that?” Lyons asked.

Mayor Pro Tem Leon Laylin referred to the front page article on I&M seeking a rate hike and asked Anderson to expound.

“According to my math on that,” Laylin said, “it would generate $10,880,000 for I&M in a five-month period, using their numbers. The question people in Dowagiac are going to have is, ‘How is that going to affect our current contract?’ ”

“No impact at all,” Anderson said. “We have a long-term agreement. What I&M is going for here is a rate increase for all its retail customers, and we’re a wholesale customer.”
“If they get what they asked for, it goes up again,” Lyons noted.

Second Ward Councilman James Dodd consulted his granddaughters to compile a list of youth activities available in Dowagiac, including Calvary Bible Church, St. Paul’s Episcopal Church, Dowagiac District Library, St. John’s Lutheran Church and Fitch Camp.
“St. Paul’s rented a bus and a driver from the school and they’re taking kids to the museum in St. Joe, the zoo in South Bend, Diamond D Ranch, Warren Dunes and picking strawberries for themselves, ages 4 to eighth grade. All you’ve got to do is look. There’s plenty for kids to do,” Dodd commented. “Teen-agers should work on a farm, build up their muscles and see what real life’s all about.”

Anderson said Dowagiac on Monday received a “very nice letter from the City of Niles Utility Department. They were very grateful for the assistance our DPS crew gave during their recent outage and storm restoration. They were very complimentary of the expertise our crews brought. We’re glad to help them because we know if and when our day comes, we know they’ll have our backs as well,” as Niles did in April.

The council adjourned to closed session to meet with the city manager to discuss negotiations related to the purchase of real property.

“As is our practice,” the mayor said, “we will not be conducting any business after that closed session.”