ALLEN PARK, Mich. – The city of Allen Park may finally be getting rid of a financial albatross that contributed to the city going into receivership.
Allen Park Emergency Manager Joyce A. Parker has announced the city has entered into a purchase agreement with New York-based Time Equities Inc. for a 104 acre site adjacent to city hall.
That site, now known as Southfield Lease Properties, was going to be the centerpiece of a movie production center. Allen Park sold more than $25 million in bonds in 2009 for a project that was to be named Unity Studios. But that project never got off the ground and the city was on the hook for the bonds and was left to maintain the property.
The site was put up for sale in late 2012. Time Equities Inc. has a 30-to-45-day due diligence period before closing on the sale.
If it comes to fruition, Allen Park will be able to refinance the outstanding balance and retire the debt. It will also relieve the city of paying more than $1 million per year for taxes, insurance, maintenance and utilities on the city. The city will also benefit from tax revenue from future development.