Despite a few rumors flying around the barber shop, the James Lumber property in Oxford Village has not been sold and it doesn’t appear it will be anytime soon.
‘We’re really nowhere,? said Spike Pearson, commercial broker with the Grand Blanc-based Bruce G. Pollock & Associates Commercial Real Estate, the firm which is handling all the James Lumber properties. ‘It’s in limbo-ville right now.?
Pearson blames most of it on the state economy.
‘We’re in a mess here economically,? he said. ‘Developers of all types are holding their cards.?
According to Pearson, ‘there’s one bonafide written offer on the table right now? for the 3?-acre property at 43 E. Burdick St., however, due to certain circumstances, he’s not been authorized to respond to it.
‘We would all like to see it sell,? he said. ‘Somebody is probably going to garner a very excellent buy.?
The property, which contains a 20,000-square-foot building, was originally listed for $1.6 million, but the asking price was reduced to the current $1.2 million.
Pearson noted for tax purposes the property was valued it at a ‘very aggressive? $1.7 million.
‘The real value will be decided by the James Lumber Co. and the bank at the end of the day,? he said.
Despite only having one offer on the table, potential buyers have been inquiring about it.
‘I can assure you we’ve spoken with over 60 parties exhibiting some level of interest,? Pearson said.
Two other offers to buy the land were made, however, one was withdrawn because it was ‘not responded to in a timely fashion? while the other was for ‘basically the back half of the property.?
‘The ownership entity doesn’t feel that would be in their best interest,? said Pearson, referring to the latter offer.
Pearson was ‘disappointed? someone local hasn’t purchased it.
‘In my opinion, it’s a whole lot better if someone local were to buy the property assuming they had an approved and acceptable development idea or concept in mind.,? he said.
Carolyn Bennett, executive director of the Oxford Downtown Development Authority, said her board would like to see a ‘mixed use? consisting of entertainment and housing (i.e. dense lofts or townhouses) on the James Lumber property.
The property is currently zoned as part of downtown’s Central Business District (C-1).
To aid the in the property’s future development, Bennett said the DDA’s ‘in the process of declaring it a brownfield.?
Brownfields are abandoned, idled or under-used industrial and commercial facilities where expansion, redevelopment or reuse is complicated by real or perceived environmental contamination stemming from its previous use.
‘James Lumber is not a contaminated site. It’s brownfield in the sense that it’s functionally obsolete (as a lumber yard),? she explained. ‘Quite frankly, the idea of opening a small lumber yard in the downtown district is not what people are thinking.?
Bennett noted the lumber business these days is dominated by big chains like Home Depot or Menards.
Having the James Lumber property declared a brownfield ‘makes it eligible to get a Michigan Business Tax Credit,? she said.
‘This makes the property more marketable to a developer,? Bennett explained. ‘It’s not only the sale price that makes the difference, it’s the ability to provide an incentive to a developer to do the type of development that we would like to see.?
The amount of this state tax credit is based upon the amount the developer invests in the project, according to Bennett.
Other former James Lumber locations seem to be doing better on the market than Oxford’s.
‘We’re going to close on the sale of Ortonville here in the next 10 days,? said Pearson on Nov. 1.
The former Ortonville store is due to become a Tractor Supply Company outlet.
Pearson said there are ‘offers working? on the Grand Blanc location and he’s expecting an offer for the Flint location on the Robert T. Longway Blvd.