Bidding on the blight bundle in the Wayne County tax auction does not end until later today, but the one person who secretly bid more than $3M for a package of 6,350 properties has come forward. A developer named Herb Strather says he is behind the current bid of $3,183,500 (the minimum bid was $3.175M). If the bid is successful, he will have to pay 10% within 24 hours (that is $318,350). The rest is due in fourteen days. With these pricey bids it is not uncommon for things to fall through (see Packard Plant last year). If Strather does not succeed Wayne County wants to transfer the properties to the Land Bank for their auction process.
The blight bundle has about 2,000 vacant lots, 3,000 structure that need demo, and about 1,000 that are considered salvageable homes. By buying the blight bundle the winner has to agree to either demolish the dangerous properties within six months or submit redevelopment plans. He will have to show financing and get the treasurer's office to sign off on the whole thing. Which is to say, this is a serious uphill battle.
· Tax Auction's Blight Bundle of 6,350 Properties Gets A Bid [Curbed Detroit]
· Ineffective County Tax Auction Finally Makes Blight Bundle [Curbed Detroit]