In a special meeting held Tuesday at , Dearborn City Council approved the sale of the Dearborn Towers for $6.251 million.
The retirement property, located in Clearwater, FL, was , after voters approved the sale in 2007. However, in the property put a roadblock in the sale earlier this year.
Mayor Jack O'Reilly explained that the city had to have the property inspected to find out how bad the problem is, and how it would affect the market value.
"Evaluation is needed to determine how (the asbestos) will impact remodeling and what is the extent of it," O'Reilly said in January.
Thankfully, not much.
“We fully disclosed everything to the buyer, but (the asbestos) was so minimal that it was a non-factor,” Councilman Robert Abraham told Patch on Wednesday.
In late February, the city hired a broker to represent the property for 30 days. The company, Franklin Street Real Estate, presented three bids to the city on March 9. All three bids–from IMG, Senior Living LLC and Alchemy Management LLC– were significantly above the average of three appraisals, which put the property at a worth of $5.975 million.
At the recommendation of Corporation Council, City Council accepted the offer from Alchemy Management–the highest bid of the three.
Minus brokerage fees and transfer stamps, the city expects to net $6,018,750 from the deal.
Abraham, who admitted his skepticism of the city's ability to sell the property, said he was pleasantly surprised at the outcome.
"I’ll be the first one to admit, I did not expect it to sell, and I expected there to be terms and conditions that would prevent us from selling according to the ballot language passed by voters," he said. "But I was wrong."
A 10 percent nonrefundable deposit has already been given to the city, and the deal is expected to close within a month.
It's hard to tell what will happen to Dearborn Towers at that point–other than a likely name change. Alchemy Management told the city that it intends to turn the property into a condominium community.
Current renters–most of them Dearborn residents–are currently operating on a month-by-month lease. Abraham said the city has been "very transparent" with them about the possibility that they may be required to leave.
The sale, if it is successful, will not impact Dearborn's 2012-13 budget. The expected $6 million to be gained from unloading Dearborn Towers was built into the city's 2011-12 budget. Any amount above $6 million will be included in that fiscal year, which ends June 30.