The Durand City Council unanimously voted to approve a resolution rescinding the bid award for the Reed Road property awarded during the Dec. 6 council meeting, thus concluding the residential development project offered through representatives from Aspen Properties, LLC.

   According to the resolution, the council had awarded the bid to Nicholas Kelley and Kelly and Sons, LLC (Aspen Properties, LLC) for the purchase of four city parcels for the price of $950,000 during the Dec. 6 meeting. Following, the city required proof of financials toward completion of the proposed purchase agreement. The purchaser was unable to provide “evidence of financial ability in the requisite time.” The city has taken the stance that it will not enter into a purchase agreement with out the necessary proof of finances, which were not provided.

    Durand City Attorney Matthew McKone and Durand City Manager Cameron Horvath, recommended rescinding the bid to council.

   Horvath provided the following statement, “On Monday, April 4 the Durand City Council rescinded a bid award for the Reed Road property. The bid award was contingent upon a purchase agreement and development agreement that was satisfactory to the city. During this process in development it is typical for the sellers of the property to require some proof of financial validity to fulfill the terms of the proposed purchase agreement. Unfortunately, despite several requests from the city and its legal counsel, the verification wasn’t provided. The city is disappointed the project won’t move forward as planned, but we also don’t want this property tied up and prohibited from other potential opportunities. The city will continue to look into other options and field inquiries as they are received for the property. The Reed Road property is important to Durand’s future and the ground work as a result of this process has already been laid for the site’s ultimate user.”

   The Reed Road property, which is owned by the city, includes 190-acres. Following the bid award, the potential investors, along with city representatives and the Shiawassee Economic Development Partnership (SEDP) had confirmed planning for a large-scale residential development that could have included 700 to 1,000 new doors.

   During the Monday meeting, some council members continued the discussion of finding value in a housing development – recognizing the major shortage of housing needs in the county.

   SEDP President/CEO Justin Horvath (no relation to Cameron Horvath) emphasized the city now has momentum in drawing alternate party interest in the property. “We are talking to a number of housing developers on projects,” Horvath stated. “Single family homes, condos, apartments. We’ve got some traction on this. There has been some interest, so we would certainly be happy to talk to some of those developers about it.”

   Justin Horvath also suggested a second opportunity to utilize the property based on recent interest in redeveloping/reutilizing the railroad system as another avenue for the city to consider.

   “We are working on a new rail logistics study through out partnership with the I-69 International Trade Corridor and there is a consultant that is working in Shiawassee, Genesee, Lapeer and St. Clair counties on trying to identify opportunities to grow rail service in the region and they’re very, very preliminary,” Horvath shared. “They just started in Shiawassee County last week or the week before. They came through the area and there was a suggestion that that could be a good site for service out of CN Line.”

   Overall, the council seemed more interested in looking to housing. Council member Matthew Schaefer said, “The idea had been good even if it didn’t work out. Multi-family housing, single family housing, condos.” 

Durand City Council Rescinds Bid Award on Reed Road Property with Project Proposal was last modified: April 12th, 2022 by Karen Elford