Over the past six months, the Marshall City Council has explored a potential sale of Marshall House, a senior and disabled citizen housing community owned and operated by the city that opened in 1980.
In its regular scheduled meeting on June 21 at the Marshall Regional Law Enforcement Center, council voted to move forward with a sale, choosing Integra Housing Group over two other potential purchasers after lengthy discussions.
Director of Special Projects and Code Enforcement Eric Zuzga met with each of the three organizations that were in the running to purchase Marshall House (Integra, ACD and Glick Family Foundation). Zuzga said Suntree Apartments (Glick) in Saint Johns, Michigan, was his first visit and that he came away impressed.
“Nice facility, well-kept, built about the same year Marshall House was. They haven’t done any major improvements on the facility since then, and that’s okay, it’s in good condition,” said Zuzga. “The staff was very impressive. Glick was probably the most impressive group through the whole process—they wowed me; I will tell you.”
While council members Scott Wolfersberger and Jim Schwartz agreed with Zuzga and leaned toward Glick, council members Ryan Underhill, Ryan Traver and Mayor Joe Caron favored Integra. Council member Jacob Gates said he was split on the matter but ultimately leaned slightly toward Integra, which had the highest offer to the city at $10,300,000, to help pass a motion to choose Integra as the buyer.
“I think the flexibility we have with the Integra offer is that they’ll work with us to help develop that position (service coordinator) to what we’re looking for and what the residents are looking for,” Caron said. “And like Ryan was saying, it also helps with the huge improvement in the actual physical (appearance) of the building as well, it kind of extends the life of it for 30 to 40 more years with the investment that we’ll be making, so that kind of ensures years ahead that the building is going to be sound for residents.”
Caron also added that while selecting the group with the highest offer was not the top priority, the return on the property should still be factored into the equation.
“It wasn’t our top priority but being fiscally responsible and making sure we get our full return on this investment that we’ve made over the years is also important,” said Caron. “Between all of those facts, I would probably tend to lean a little bit more toward the Integra offer.”
Glick’s offer to the city for Marshall House came in at $9,500,000, while ACD pitched the second-highest offer at $9,600,000—still $700,000 of Integra’s top offer.
While Wolfersberger and Schwartz raised several key questions and made compelling arguments to select Glick, council ultimately decided to move forward with a sale after Traver made a motion for council to select Integra’s offer, with the vote passing 4-2.
Also on the agenda at the June 21 meeting was a public hearing for the consideration of an OPRA exemption request for the redevelopment of the second and third floor of Schuler’s Restaurant, which would assist in the redevelopment of the second and third floors into seven apartments, with the request being for 12 years as allowed by the OPRA statute.
OPRA is a tool to encourage the redevelopment of blighted structures created by the legislature in 2000. It works by freezing the taxable value of a property of up to 12 years, which then provides incentive for a property owner to make improvements to a building without the burden of an increase in property taxes for that period.
The original exemption was only for the second floor with plans on reconstruction of the third floor to come at a later date. But restaurant owner Sue Damron expanded the project to include the third floor and requested the exemption to include the most recent aspect of the project.
“I thought this was a great project before and think it still is,” Wolfersberger said during the council's opportunity to comment before the public.
Council unanimously approved the request from Schuler’s for the 12-year OPRA exemption.
Informational items on the agenda included the “Walk of the Witches” and Vintage Garden Market events, both of which were approved by council.
Along with the proposed sale of the Marshall House, council passed nine other items in the meeting under reports and recommendations.
On the consent agenda, the council voted to approve five total items.
For more information, visit cityofmarshall.com.