Farmington DDA Property Purchase in the Works

The (DDA) and are completing "due diligence" activities for the purchase of property on the northwest corner of Grand River and Warner St. that includes . 

DDA director Annette Knowles said the restaurant remains open for business while the deal is pending. The purchase would give the DDA control over 33 parking spaces located behind the restaurant. 

"The higher purpose is to redevelop the property, taking down the building and replacing it with a building that is consistent with our Master Plan," Knowles said.

If the DDA is successful in acquiring the property, a portion of it will likely be sold to a private developer for new construction. She said standards have changed, giving potential developers greater flexibility than in the past, allowing more than one story and mixed or multiple uses. 

City manager Vince Pastue said Tuesday that the environmental, title and other work should be completed within the week. The $430,000 purchase price is being financed by the city for two years, through funds that would have been invested in low-interest certificates of deposit (CD), he said. 

The transaction is being treated like a "general investment", he explained.

While the city will probably earn a higher rate of interest, Pastue added, officials are also supporting reinvestment and redevelopment in the downtown area. 

"The broader community benefits from a stronger downtown. Everyone agrees we need more public parking in that area, and we have to work in a cooperative manner," he said. "From an economic development standpoint, everybody's gotta be pulling together."

The DDA plans to repay the loan through funds generated by the downtown tax increment financing (TIF) district, Knowles said, as well as proceeds when the property is sold. She said officials want to see something develop within 18 to 24 months. 

If this deal goes through, what kind of business would you like to see occupy this prominent corner in downtown Farmington? Share your vision in the comments below.