Nothing like an erosion of tax base to get government to change it’s hidebound ways. We are glad to see that Pittsfield Township is leading the way in the Ann Arbor area as this AnnArbor.com article suggests.
David Kwan is a development consultant working for Midwestern Consulting. David can be reached at 734.646.7109.
The new Pittsfield Township Costco store would be behind Tyner Furniture
It was only about four years ago that Costco tried to develop on the Washtenaw County Road Commission site in Scio Township. Had that site plan been granted, Costco would have built a store a little bigger than the Lowe’s on the south side of I-94 at Zeeb Road. The Washtenaw County Road Commission would have had a long-term lease revenue stream of approximately $750,000 per year – enough to support an estimated $13-$15 million in road improvement and maintenance bonds. And Scio Township would have realized roughly $9500 in annual property tax revenue.
Now Costco is planning a new store in Pittsfield Township near the Ann Arbor Airport. While site plan approval is far from fait accompli, removing eight industrial buildings to make room for the store will result in a loss of about 140,000 square feet. That should benefit demand for surrounding properties as distribution and service oriented tenants search for space along Ellsworth and State Street. The proposed development probably won’t help the nearby Ann Arbor Research Park as much.
The Miller family, owners of Tyner Furniture which abuts the planned Costco site, will certainly see the value of their real estate investment soar over time. There is room on the site to expand in-line retail space while leaving the furniture store intact. The new Costco project could also spur an interest in redevelopment of the Motel 6 and Cherry Blossom sites near the Ellsworth and State Street intersection.
David Kwan is a development consultant working for Midwestern Consulting. David can be reached at 734.646.7109.
Zingerman's Deli is an Ann Arbor landmark
Ironically the two greatest business icons of Ann Arbor are both about food and at totally different ends of the spectrum. First is Domino’s Pizza, the world’s largest pizza delivery company. From their website, I learned that Domino’s Pizza is number one in customer satisfaction in a 2009 survey of consumers of the U.S. largest limited service restaurants, according to the annual American Customer Satisfaction Index™.
In contrast to the instant gratification model perfected by Dominos, Read more…