The council is responsible for the group's business for the CentralTerritory Adult Rehabilitation Centers. Most of the Southeast Michigan-basedcouncil wants to build a $16-million rehabilitation center on the 30-acreformer Kmart site.
One of the main problems is that Steve Karas, of Karas Realty Advisors and amember the Advisory Council, is handling the sale for Yono. He also was theone who recommended the firm Helen Barton and Associates of St. ClairShores, which performed the controversial appraisal.
A few members, such as James Cunningham, have protested the land purchase and Karas' involvement. He told his fellow council that the land is worth much less, more like $1million, if that. He pointed to an Oakland County study of the property thatshowed it wasn't worth much more than half a million dollars.Cunningham said that based on appraisals from friends and of his own nearbyproperty, that there's no way the Kmart land is worth $4.5 million.
However, other council members who back the sale said that county appraisalsare historically undervalued. Also, waiting and performing more work for thesale will cost even more money, said Administrator Merle Miller and councilmembers Jack Kinney and Scott Norton. The current rehabilitation center inDetroit is old and requires too much maintenance, and a replacement needs tobe built soon, the men said.
In August, Miller and Councilman Dick Behr tried to push for a newappraisal, which would cost less than $2,000. The ensuing vote was 7-6against another appraisal.Cunningham said he has nothing against the property, and knows it's the bestsite, favored by the City of Pontiac and the Advisory Council. He justdoesn't want to pay more than it's worth.
Land in Pontiac is difficult to appraise, as the city is no longer known asthe marketplace center for Oakland County. Rather, city land is low invalue, and there's not much commercial demand. The Advisory Council wants to close on the property in the next two months,and break ground in the spring.
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