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SG-W:/ Latest Update on "Green" Investment
- Subject: SG-W:/ Latest Update on "Green" Investment
- From: Smileysmlc@aol.com
- Date: Mon, 26 Jul 1999 10:30:25 EDT
Well...as of this moment, our purchase of the land in Superior Township is on
hold. We are still pursuing a purchase, but the owners came down with a
sudden case of greed.
A quick recap: three partners own the property, and the major partner (50%)
had originally called and said that one of his partners wanted to sell...so
they were all ready to sell. He asked if we were still interested...and I
said "yes". He quoted a price of $6,000/acre over the phone and we agreed to
meet to further discuss it.
Unfortunately, when we met, one of his partners didn't attend...so we met
with two of them. They started out asking for $6,000/acre, and after much
discussion they accepted a written offer from us for $5,000/acre--$400,000
cash to be paid within 30 days. We thought we had a deal. (They bought the
property two years ago for $3,500/acre). The major partner indicated that he
just had to check with his other partner. He took my fax number so that he
could fax back a signed contract.
He didn't get back with me for a few days, so I called him a couple times in
the meantime to inquire. He finally called me back and said that "his
partner thought they should get $7,000/acre". Well...this rather floored me
and I had a few choice words for him which I kept to myself.
He offered to still sell it to us for $400,000 cash right now--and put the
balance (nearly $160,000) on a Land Contract that could be paid off in 6
months to a year. How generous! I tried to reason that the property wasn't
worth that much--we'd pay it if we thought it was. He countered that maybe
it wasn't worth that much now, but that it would be in a couple of years or
so. He then brought up one of the most novel ideas I have ever heard. He
said: "just think of it as buying the property early".
Needlesstosay, we didn't come to terms. That's the bad news. The good news
is that he gave his permission for the DNR to have an appraisal done for the
property. They know that the DNR will pay up to $5,000/acre for the
development rights, so I think they're just looking to see what that offer
might come in at. We are hoping that once they see the appraisal numbers,
they may come to their senses and still sell it to us...hopefully back in the
$5,000 to $6,000 range.
We may not get as good of a deal as we had thought, but we are still hopeful
that we will get the property. The appraisal should be done within 30 days,
but it may take a few weeks more for the DNR to review it. So...our need for
money through loans is put on hold, too.
Although we are discouraged, we are certainly not giving up. This is a very
key piece of property and we will do our utmost to secure it.
Thanks again for your interest and support. I'll keep you posted.
Southeast Michigan Land Conservancy
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