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Ryan Eashoo
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http://abclocal.go.com/wjrt/story?section=news/local&id=5843375
Binding arbitrator says city must pay $6 millionBy Cathy ShafranFLINT (WJRT) -- (12/18/07)--A $6 million price tag being put on downtown Flint's tallest building is sending sticker shock through the mayor's office.
The outrage comes from the decision of the binding arbitrator, which was released a week ago.
The last page concludes that for the city acquire Genesee Towers for condemnation, it has to pay the owner $6 million.
Tuesday night city officials were reacting with shock to the arbitrator's bottom line.
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"I was astounded," said city attorney Trachelle Young. "Absolutely."
When she first looked at the bottom line, Young said she couldn't figure how the arbitrator had arrived at the figure.
"If you've been inside the building and see how it's deteriorating daily and how the facets may fall down any day, any minute, how can you say that's worth $6 million?" Young said.
"I think it should be nowhere near that amount.
"I think if anything (it would be) in the $1 million figure. Quite frankly, he didn't pay $1 million for the building when he purchased it because it wasn't worth $1 million then and it's only deteriorated since then.
"I'd like to see $100,000 or less, because quite frankly I don't think it's marketable in its condition, and you'd have to put $1 million in just to even start trying to work on that building. So again I don't see the figure he put on that building as reasonable."
Young confirms that since the city entered into binding arbitration, they are now legally committed to acquiring the building.
But she says they will fight to the state appeals court if necessary, arguing that the arbitrator used improper data to determine the value of the building and expert and attorney fees.
If they lose in appeal?
"If we're required to pay it, we'll find the money to pay it," Young said. "We don't have $6 million sitting in a fund not allocated. If required, we would have to find the money somewhere."
Young says it was the city's plan to demolish the building once it's acquired. Outside sources say demolition costs could run between $3 million and $4 million.
Young says the city is in discussion with an entity whose plans could save the building from the wrecking ball.
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7 comments
Post A Comment 1 Randy813643 12/18/07 8:37 PM EST
I think the city is trying to pull a fast one,in regard to the value and marketability of Genesee Towers! I have a Degree in Mechanical Engineering. With a remodeling investment, in my opinion, this building could be renovated for possible use as a joint City/County Building-like Detroit has.<br/>Or, Office space for the upcoming intermodal hub. Though I respect Flint's City Attorney, She is going to have a hard time convincing a board of Engineers and a Arbitrator, that Genesee Towers was that Poorly Built ... Mark As Violation
2 Roscoe_Van_Zandt 12/18/07 9:21 PM EST
Guess Flint hasn't learned its lessons. You don't just destroy perfectly good buildings. Autoworld's main complex need not have been destroyed, it would have served as a perfect little mall or common area for UM Students. The Buick City Headquarters needed repair, but it was gorgeous in and out, and would have perhaps served as an office or a school or even an extended African American art complex - an extension of the FIA. Please do not let the Genesee Towers come tumbling down. It's a great building that has potent... Mark As Violation
4 flintiteman 12/19/07 9:34 AM EST
Once again, we have seen what happens when the city is being run by a bunch of amateurs. Now this 6 million dollar mistake will cost all flint residents. I just wish someone could have explained to Ms. Young what "binding arbitration" means. Apparently a legal term our brilliant legal department did not fully understand. Entering into binding arbitration based on wishful thinking is not anyway to represent this city. Ms. Young should resign - NOW. Mark As Violation
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5 Geneseenitall 12/19/07 11:07 AM EST
Wow, he bought the building for $550,000, invested nothing into it, and now it's worth $6,000,000. That's a heck of an investment. Maybe the arbitrator thought it was located in downtown Ann Arbor instead. Did you notice the other ABC 12 story about the old Medical Arts Building on Flushing Road? Same owner. He also used to own the Durant Hotel. I guess being a slumlord and speculator pays off if you keep at it long enough. Mark As Violation
6 misterbee71 12/19/07 3:46 PM EST
Ridiculous. If you let buildings sit and rot instead of doing something with them, this is what happens. Now the city, and whoever else wants to join them can use the buildings decay as a reason for demolition. Seems like someone is trying to do in Flint what Detroit has been doing with it's perfectly good buildings with historic significance. Very sad. How about investing a bunch of money to recondition/rehab the building instead of spending it on demolition..... Mark As Violation
7 tbausack 12/19/07 4:59 PM EST
i don't know that i'd consider the tower a perfectly good historical building. if i had lots of money laying around, i know i wouldn't want to buy that building for $6 million--especially given the shape its in. plus it's actually kind of ugly. i'm sure the owner is very happy about this though. owning a dumpy building in a city with probably one of the weakest economies in the nation and getting $6 million for it--that's a good deal! Mark As Violation
8 tbausack 12/19/07 5:04 PM EST
i'm not sure this qualifies as a perfectly good historical building. i know i wouldn't pay $6 million for it. it's actually kind of ugly. the owner must be very happy though! owning a dumpy building and getting $6 million for it in one of the worst local economies in the nation--now that's a good deal! Mark As Violation |
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Flint Michigan Resident, Tax Payer, Flint Nutt - Local REALTOR - Activist. www.FlintTown.com |
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Wed Dec 19, 2007 8:24 pm |
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Ryan Eashoo
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I think Kumar should have an open house and let the public in the building to see that its solid, but needs some renovations. He needs to get it into the hands of someone who can renovate it. He is incapable of doing the job!
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Flint Michigan Resident, Tax Payer, Flint Nutt - Local REALTOR - Activist. www.FlintTown.com |
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Wed Dec 19, 2007 8:26 pm |
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twotap
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I would think for $6,000,000 you could buy half of whats left of downtown Flint.  |
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Wed Dec 19, 2007 8:51 pm |
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Adam Ford
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| We're not really going to pay that are we? |
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Wed Dec 19, 2007 9:28 pm |
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last time here
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that arbitrator was either drunk or paid off.
it's a dump!!! it's not historically significant. it has that mid 50s drab
look about it. i'd raise holy hell!!!! it ain't over yet!! 
theres gotta be something, if not illegal, most certainly unconventional
about this guesstimate. no way a slumlord should be allowed to rob
a city like this. methinks theres a worm in the woodpile..... 
just curious...who was the arbitrator?? |
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Wed Dec 19, 2007 10:25 pm |
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Tegan
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historical significance is in the eye of the beholder. I personally think its ugly, but in the 1950s and 1960s, people thought that the bungalow style house was ugly, too.
anyway, regardless of historical significance, tearing down the building would not be the "green thing" to do. Can you imagine all of that building material going to the landfill?
On another level, keeping the building, particularly the parking structure part of the building, would probably net the city more money than if the city spent the money to demolish it on top of the cost of obtaining it.
On an interesting side note, in the 1980s, the city of Flint wanted to demolish the old Kearsley Park Pool AND Pavilion, but given the astronomical cost of demolishing a solid concrete structure, the Flint decided to just tear down the pool and leave the pool house as a pavilion for the park. Today, it is a very valuable community jewel.
I know its totally different from the Genesee Towers, but is something to think about. |
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Wed Dec 19, 2007 11:21 pm |
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last time here
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actually tegan, they did the same thing at berston and it's a nice
and well used place.....i think theres something up with the arbi"traitor".
curious to find out who it was and if he/she has any past connections
to the city????? 
this stinks to holy hell. |
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Wed Dec 19, 2007 11:26 pm |
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Tegan
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I love the Berston Field House! It makes me happy when I drive by it because its almost always busy.
The identity of the arbitrator probably should be made public, but in the end, it really doesn't matter. There is so much scandel and crap revolving around this whole issue that no matter what happens, people are going to be pissed off. |
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Wed Dec 19, 2007 11:47 pm |
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00SL2
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I believe I read somewhere that Val Washington was the arbitrator on the Genesee Towers subject. He was in the news recently:
Former Genesee County Judge Val Washington appointed state deputy treasurer
Posted by Marjory Raymer | The Flint Journal November 30, 2007 15:15PM
Categories: Breaking News, Genesee County, Legal
Former Genesee Circuit Judge Valdemar Washington has been appointed state deputy treasurer for local government services starting Monday.
"Valdemar will be a welcome addition to the executive office," said state Treasurer Robert J. Kleine, who appointed Washington. "I look forward to working closely with him on the many initiatives and programs administered by the Bureau of Local Government Services.
Washington served as a Genesee Circuit judge from 1986-91 and currently operates a law firm specializing in mediation and conflict resolution.
Source:
http://blog.mlive.com/flintjournal/newsnow/2007/11/former_genesee_county_judge_va.html
Accessed: December 15, 2007
See: michigan.gov
Bureau of Local Government Services
Mission Statement dated November 29, 2005
http://www.michigan.gov/documents/treasury/MissionStatement_188983_7.pdf |
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Thu Dec 20, 2007 12:00 am |
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Dave Starr
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| Are the taxes on it up to date? |
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Thu Dec 20, 2007 9:13 am |
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last time here
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oh yeah, this is definately a "tainted" decision.
i am soooo tired of political machines and their machinations. 
LEAVE US ALONE!!!!!! LEAVE US BE!!!!!!!!   
Last edited by last time here on Thu Dec 20, 2007 2:16 pm; edited 1 time in total |
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Thu Dec 20, 2007 12:22 pm |
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Josh Freeman
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I believe that over $1 million of that $6 million was attorney fees. Which would lower the cost to below $4 million. There were additional costs as well. I've seen a copy of the decision and if I remember correctly the building was actually in the $3 millionish range.... Still a hefty sum for that building but not quite like it is being portrayed....
Thought it was kind of funny on the news the other night when Trachelle was saying that the building was worth only around $100,000. I wonder if the owner could use that in court to get the property taxes lowered? Apparently Trachelle is not only the City Attorney but has also taken over the property assessment division too. |
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Thu Dec 20, 2007 12:48 pm |
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00SL2
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quote:
Dave Starr schreef:
Are the taxes on it up to date?
Parcel Lookup at http://taxes.cityofflint.com:
Sirius Satellite Radio, Inc., 1221 Avenue of the Americas, NY, NY 10020, owes $1222.79 for 2007 Personal Property taxes. 2007 SEV $21,100.
University Club of Flint, 120 E. First St.,Flint, MI 48506, owes $19.44 for 2007 Personal Property Summer Taxes. 2007 SEV 27,600.
V. & Wf Sasika Vemulapalli, 120 E. First St., #1900, Flint, MI 48502. 2007 SEV $1,841,700. 2007 Summer Taxes $1,283.47 + $33.79 Penalty, plus Water Lien $4,363.82; $1,283.47 Paid to Date, Balance Due $4,397.61.
Dated Accessed: December 20, 2007 |
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Thu Dec 20, 2007 12:49 pm |
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Josh Freeman
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I believe part of the dispute with the City is over tax issues.
A few years back the city came in and changed the water meters in the basement. Apparently they did not do something right and ended up flooding the place out. Then they charged him for the water that flooded the building. The owner refused to pay and the charge was added to the taxes. I think because he was delinquent on these fees it may have affected his status in the tax free zone... whereby he was no longer exempt. I may have things jumbled a bit but the intial issue stemmed from this water problem. (I think) |
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Thu Dec 20, 2007 1:00 pm |
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last time here
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i shouldn't have mentioned mr.brewer and i take that back, BUT, i do
have a funny feeling about this situation. it still smells.
i guess the battle continues..   |
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Thu Dec 20, 2007 2:15 pm |
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