Grosse Pointe Farms to acquire closed store building at Mack and Moross

GROSSE POINTE FARMS — The fate of the shuttered Jo-Ann fabric and craft store at 18850 Mack Ave. is no longer a question mark.

In keeping with purchase of other commercial properties over the last couple of decades at the corner of Mack Avenue and Moross Road, Grosse Pointe Farms officials opted to acquire the last of these — the Jo-Ann building — after the store closed earlier this year when its parent company declared bankruptcy and closed all its stores.

The Farms City Council voted unanimously Oct. 13 in favor of buying the building for $2.4 million, which will be paid out in three equal, interest-free installments of $800,000 over the next three fiscal years. City administrators said the first payment will be made at closing, the second will be made on or before the first anniversary of closing, and the third payment will be made on or before the second anniversary of the closing. Money for this expenditure will come from the city’s capital project fund.

“We’ve had an interest in securing that property for a number of years,” City Manager Shane Reeside said.

The Jo-Ann parcel — along with the rest of the parcels on the corner — were rezoned from commercial to community service many years ago, as the city anticipated future public uses for the prominent gateway to the Farms.

Longtime residents might remember doing their shopping at Mack and Moross. As Reeside said, the Mack and Moross corner was once home to multiple businesses, including Kroger, Sears and A.L. Price stores. The most recent building to come down was Kroger; the 21,000-square-foot grocery store was demolished in 2011.

The corner largely consists of green space and athletic fields now. Farms officials haven’t determined a future use yet for the property.

In the interim, the city will use the vacant, 17,089-square-foot Jo-Ann building for storage.

“We have a strong need for equipment storage for our Public Service Department,” Reeside said.

He said the building would be used on an interim basis to store equipment that would otherwise be left outside, along with equipment and materials for the Water Department.

As of June 30, the city had about $2.8 million in its capital project fund, Finance Director Tim Rowland said. This purchase wouldn’t exhaust that fund, as Rowland said the city typically adds roughly $1.2 million to it annually.

City Councilwoman Beth Konrad-Wilberding said the city’s Public Safety Department has always said they need a greater presence on Mack Avenue, something neighboring communities have recommended as well.

“We want to have some control with Mack Avenue, not only to enhance whatever we want to do with the green space behind the different properties (the city has purchased), (but because) if we didn’t buy it, how do we know what goes there and how do we know if that’s going to be compatible with our community or the future plan, to make sure we really do secure that area,” Konrad-Wilberding said.

For years, Farms officials have mulled the prospect of building a new city hall and public safety complex on city-owned property at Mack and Moross, although it hasn’t gone much beyond speculation. The current City Hall is in the middle of a residential area on Kerby Road.

City Councilman John Gillooly said the forthcoming Culver’s restaurant on Mack in Detroit, across the street from the Farms, and a Chick-fil-A being built on Mack in Detroit across the street from Grosse Pointe City, are expected to have a big impact on the area.

“We’re going to see a growth of traffic on Mack Avenue in the coming months like we’ve never seen before,” Gillooly said of the anticipated visits to these popular national eateries by customers.

He said he agreed with Konrad-Wilberding.

“The best thing for the city to do is to make sure that we acquire that property so it fits with our intended use,” Gillooly said.

Farms resident Andy Dervan was worried about the price of the property, noting that the city is already saddled with big-ticket projects including sewer separation of the Inland District and a new pool and bathhouse at Pier Park.

“This is a lot of money that we’re spending,” Dervan said. “I have concerns about all of this spending and how it’s going to impact our tax bills.”

Mayor Louis Theros said the acquisition wouldn’t result in a tax increase for residents, because the city has several mills that are falling off the tax rolls.

“This purchase will not hit your tax bill,” Theros said.

City Councilman Neil Sroka said the price of the property was a bit higher than he had hoped it would be, but he concurred with fellow council members that buying it was important for the city in the long run.

“You only get one bite at this apple,” Sroka said. “We have to think about the long-term use at this property. … We may not get this opportunity again.”

Although administrators acknowledge it’s unlikely, should the Farms decide to sell the Jo-Ann property in the next five years, they have agreed to give half of any sale proceeds in excess of $2.4 million to the seller, while the city would retain the other half of those profits.