Government Land Regulations : Breaking Down the Barriers
Campbell Corp Restructures 73 Acre Michigan Property to Utilize Area for Resale
Michigan Facility Built on Government Land
The small community of Escanaba, MI was in need. A local pre-existing facility had closed down, spanning a total of 73 acres. Unfortunately our client had no idea how to best utilize the area. The situation was an absolute mess, far more convoluted than normal predicaments property owners face.
One primary challenge to overcome was how the City of Escanaba had already issued an Industrial Revenue Bond (IRB) on behalf of our client. Legal description ran through most of the buildings on site, citing an irregular parcel of land. The city acted out of fear the property owner would sell off some of its buildings and not remain in Escanaba. In other words, the client was trapped.
To make matters worse, our client had mistakenly built part of one building on land owned by the state. A second Industrial Revenue Bond had been issued to a bank on yet another building within the complex, stipulating no addition could be made without written permission. Our client did add on to the property without the bondholder’s approval.
Before coming to us, the client hired a large firm out of Texas to evaluate their position, hoping for the “bigger” consultants to actually provide the best solution. After substantial expense, the contracted firm had no recommendations other than to find one single buyer, which was not possible. Still in the exact hole where they started, the client then contacted the lean manufacturing consulting experts at Campbell Corp for guidance.
After extensive research, followed by multiple meetings with the City of Escanaba, we formulated a plan to subdivide the 43 acres into 10 acre parcels. Campbell Corp’s negotiations meant successfully obtaining the permission needed from the bondholders and overcoming the rules of subdivision. Our executives quickly sold off individual 10 acre parcels with buildings under land contracts, coinciding with retirement of the IRBs.
We petitioned to the State of Michigan for a land swap, whereby the client would give the State land contiguous to State property. In return, the State would give a small parcel back to the client. Immediately following this solution, we satisfied every lienholder, completing the sale of all property. Our client’s end goal was met, having experienced the highest quality service possible in Michigan, home of lean manufacturing sites in Detroit and Grand Rapids.