Council approves release of obsolete sanitary easement under Eastland building to aid Northpointe refinancing

Harper Woods — The City Council approved termination and release of a 10-foot-by-200-foot sanitary-easement parcel under Building 1 of the Eastland Commerce Center to NP Eastland Commerce Center Industrial LLC for consideration of $1, clearing an encumbrance the developer needs to finalize refinancing.

Staff said the sanitary line that previously ran under Building 1 was demolished and rerouted during mall redevelopment, that Northpointe funded the rerouting work and that the easement now sits beneath Building 1. Northpointe requested the release to provide an accurate legal description needed for permanent debt financing on a roughly $140 million bond issue; staff said timing was pressing because interest rates are changing weekly.

The city manager said he reviewed the request with the city attorney and the engineering department; both concurred that releasing the easement presented no outstanding problems for the city. The city will sell the easement to Northpointe for $1 and authorized the city manager and city clerk to sign necessary documents.

Council asked whether the city would retain any future liability for the former line; staff said the line was rerouted and the city would not retain liability for the abandoned easement. The council approved the termination and release by roll call vote.