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IRON MOUNTAIN -- A new Dollar General store could be coming to Iron Mountain's north side, on city-owned property that has been empty since 2012.
The Iron Mountain City Council on Monday authorized working on arrangements to sell a portion of the former Khoury Inc. manufacturing site to Overland Group LLC of Birmingham, Ala., the preferred developer for Dollar General in Michigan.
The city has owned the 10.724 acres at the northeast corner of U.S. 2 and Blaine Street since 2012. Overland is interested in 220 feet, or approximately one-third of the highway frontage, City Manager Jordan Stanchina said.
The city's Tax Increment Finance Authority purchased the property at 1010 N. Stephenson Ave. for $875,000 from Khoury in 2007, and the city retained ownership after TIFA dissolved in 2012.
The assessed value on site was $575,851, nearly $300,000 less than what the city paid in 2007.
Initial plans to develop the entire property drew little interest, so the city more recently has focused on selling portions.
The city's infrastructure committee had reviewed the request. The next step will be for the developer to meet the second set of requirements set by the real estate policy, which includes the survey and legal description, which the city already has, and a site plan for the proposed development, Stanchina said.
The council also will need to negotiate a price, have a public hearing and approve the sale by a five-sevenths vote, Stanchina said.
In his written request to the city, Overland Group representative Jonathan Weimer noted the property now is zoned business 1, which fit the intended use. The store would be 70 by 130 feet and open sometime in 2018.
"A more precise time cannot be known until approved by our client and the turnover date is accepted/set by them," Weimer said.
In May, the council agreed in concept to a property swap with the Michigan Department of Natural Resources, which has a north/south 20-foot recreational easement through the center of the former Khoury property.
The council had learned the DNR was willing to relinquish that easement if the city would provide a comparable property -- a 20-foot recreational trail easement adjacent to the existing railroad track.
Stanchina noted this allows the DNR to maintain their trail connectivity while improving the marketability of the city land and the vacant railroad property to the north.
The DNR is expected to take a couple of months to complete background work on the potential swap.