Update: Van Elslander Mansion Sells

Did I ever get around to mentioning this? Art Van Elselander's spectacular Michigan mansion, which had been on the market for some time, finally sold. At an auction. At a bargain price.

Originally priced at over $15.9 million, easily the most expensive listing in Michigan at the time, it ended up selling for a relatively bargain price of $3.75 million, which is like going to an Art Van store for a new sofa and finding one for $100 in the Clearance Center in the back.

That price is amazingly low. Mr. and Mrs. James Anderson got themselves quite a deal. Hey, if I'd have known it would go for that cheap, I would have put in a bid in the auction. Then again, I would have needed to come up with the money to buy it, so maybe not.


Link:
http://www.detroitnews.com/story/news/local/wayne-county/2014/12/19/art-van-elslander-mansion-sold/20672827/

Back from Hiatus

Yes, we have been gone since the New Year.

I have been very busy getting the Law Offices of John O. Knappmann off of the ground. I can now tell you with certainty: Mission Accomplished. The Law Firm has taken off.

I will focus lawyer efforts on Real Estate and Criminal Law.  Hey, I even started a legal blog Check it out!

So, it finally got to a point that it was possible for me to get back to this here piece of the internet. Posting will be regular, but it might not be every day.

Buckle up and enjoy the ride!
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Art Van Elslander Mansion Sells at Auction

The wonderful mansion of Art Van founder Art Van Elslander, after a year on the real estate market for $15.9 million, was sold at auction yesterday.  We have a link to the Detroit News story on this, but it was covered in other places as well.  It was for sale for a year before being put on the auction block.

Not just any ordinary auction.  In order to bid, you needed to deposit $200,000 in cash or certified funds.  How much the place went for and who bought it is still undisclosed.

We have previously covered the sale of the place, here and here.  It is absolutely stunning and might be the best residence in Michigan.

I'm just hoping the undisclosed bidder is not my wife.  Like many, she would love the place.  But we can't afford the yearly upkeep on a place like this.

Link:
http://www.detroitnews.com/story/business/real-estate/2014/10/29/van-elslander-mansion-sells-reserve-auction/18098043/

Previous:
http://downriverhomes.blogspot.com/2013/10/you-can-buy-art-van-founders-mansion.html

http://downriverhomes.blogspot.com/2014/10/art-vans-spectacular-estate-on-auction.html

Art Van's Spectacular Estate On Auction Block

The founder of Art Van furniture is selling his house.  Everything must go!  You get the bargains!  Buy now!  Free financing for five years!

We're kidding about the financing, but the exclusive abode of Art Van Elslander has been for sale for over a year at $15.9 million without a sale, so now it is going up for auction, instead.  Considering that this is the highest listing price ever in Michigan, it was going to take a certain type of buyer (paging Dan Gilbert!) at the right time to make a sale on this.  So to the auction house it goes.  The Detroit News has the info, along with a ton of great pictures from the auction listing.  Put your bids in on October 28th.

We wrote about this place before, when it first went up for sale last year.  Actually, we had a wittier headline when we wrote about it before, too.  At the time, we called it "the best place in Michigan to live."  It is spectacular.  A lot more pictures after the jump:

New Emergency Manager Doesn't Understand Municipal Finance

I hate to say someone making $150,000/year in taxpayer money does not understand a key part of his job, especially when Lincoln Park residents are affected by his decisions, but it's true here.

New Emergency Manager Alan Coulter gave an interview to the News Herald on his second day on the job.   Among his observations was that he did not know how much more cost-cutting could be done, but that he thought a key was to bring crime under control and grow property values.  He reasons that the increased property values will raise the tax base and catch up to costs as time goes on.

The problem with that reasoning is the peculiar (in Michigan) cross-effects of Proposal A and the Headlee Amendment, both products of the 1990s.  Regular readers of this blog will remember this discussion from previous posts.  The point is, property tax revenues can go up by inflation or five per cent, whichever is less.  And, as property values go up, the overall tax rate goes down a fraction.  So, while property values can go up and up, tax revenues from them in Lincoln Park (and everywhere else in Michigan) are going to creep slightly higher falling further and further behind inflation each year.  This is only counteracted if you have a lot of undeveloped land, which Lincoln Park does not.

But Coulter does not understand this.  Or at least he did not on his second day on the job.  You can't blame the guy, but it is an issue that other qualified people who were not appointed would know.  Betcha this was not in his EM orientation packet from the Governor's office.  He's probably a smart guy and will learn it soon, though.  Then it will be on to Plan B.

On the other hand, Coulter should be commended for saying he was going to work with the elected mayor and council rather than just make all of the decisions himself (which he is allowed to do under the law).  Even if the advisory-committee training wheels (like in Ecorse today) are put on Lincoln Park when he leaves in 18 months or so, these are the people who will eventually have to assume responsibility for keeping the city out of further trouble down the road.

BTW, he is an appointee of the state who are paying his salary.


Link:
http://thenewsherald.com/articles/2014/07/09/news/doc53bc393e7b28e334710141.txt?viewmode=fullstory

http://downriverhomes.blogspot.com/2014/01/a-broken-system-of-funding-local.html

Update: Coulter is Lincoln Park Emergency Manager

Brad Coulter

Brad Coulter has been named by Governor Rick Snyder as the Emergency Manager in Lincoln Park.  He comes from a background in the private sector and is known as a corporate turnaround expert.

We posted earlier this week that this move was rumored to be imminent.  As it turned out, the announcement came out later that same day.

We must confess some curiosity as to why Lincoln Park's City Council took the unusual step of asking for an Emergency Manager from the state when they probably could have operated under a consent decree and retained local control.  Instead, the local elected leaders voted to just abdicate their authority and give up.  For most of them, they were there and voting when the deficit budgets were approved in prior years, and now they will not be making the tough choices to fix the fiscal carnage.

We don't approve of that sort of action, and hope they will not continue to draw a paycheck for what is now a symbolic role in their local community that they served so poorly.

In any case, good luck to Mr. Coulter and the citizens of Lincoln Park.

Link:
http://www.thenewsherald.com/articles/2014/07/05/news/doc53b57476cc69c446412338.txt?viewmode=fullstory

Previous post: http://downriverhomes.blogspot.com/2014/07/breaking-lincoln-park-gets-emergency.html

Movie theater Coming Across Street From Another Theater Not Far From Another Theater (Update)

The owners of Southland Mall announced that they will be tearing down the vacant Mervyn's (which I never went to and did not know had closed) and will be building a cineplex movie theater with leather recliners and digital sound and stuff like that.  It will be operated by Cinemark.

That would be great, except for the announcement the day before (discussed in this blog) that MJR would be putting a cineplex movie theater with leather recliners and digital sound and stuff like that at the former Star Taylor/Spotlight location, which is on the other side of Eurkea Road from Southland.

Anybody think the two can operate virtually identical operations across from each other?  I don't.  I'm not even sure that both of them will actually happen, now.

MJR also operates at their Southgate location, a mile or two away.  And I already had my doubts about MJR keeping two places so close together in the long run.




Links:

Previous post:
http://downriverhomes.blogspot.com/2014/07/but-will-it-be-more-fun.html

Freep article:
http://www.freep.com/article/20140702/BUSINESS06/307020112/Southland-mall-new-movie-theater

More on Charter School Issues

Yesterday's news about Summit Academy has been followed today by a broader examination of the role of school board members at a charter school.  It is well worth the time to read.

Essentially, board members are responsible, but can be removed if they cause too much of a fuss.  The real power belongs to the management company and the chartering university or school system, both of which can profit handsomely at the expense of the kids they are supposed to educate.

Pictured above are Michigan Board of Education members John Austin and Casandra Ulbrich.  They are quoted int he article from the Free Press as opposed to this type of practice.

Stories of charter school board members being denied basic financial information and being forced off of the board when they persist bode ill for this system.  Board members should have some stability in their post, and should be provided with relevant information about the school they are responsible for.  And if a majority of them want to insist on using vinegar-based cleaning products for some reason, then so be it.  (Read the story for context on that.)

Our children deserve better than this.



Link:
http://www.freep.com/article/20140624/NEWS06/306240042/charter-school-boards

Tax Auction Properties Revoked for Taxes

Wayne County Treasurer Ray Wojtowicz has filed suit to get back about 80% of the properties sold in the 2011 Tax Auction...because their new owners haven't paid their taxes.  It would be funny ironic if it wasn't sad.  Let me explain.

As the Detroit News talks about, part of the issue is buyers who buy up large amounts of properties and don't pay any taxes on them (or probably put any other money into the properties) before they flip them to some other buyer.  Some of these sales are on a land contract, so the deed (and taxes) would still be in the name of the auction buyer even if they sold their $500 purchase for $3,000.

This gaming of the system has been known for some time.  We discussed it on this blog last fall, in the middle of the last tax auction, here and here.  Bulk buyers are not in it for the long term.  These buyers might not even know where these properties are and might not have ever seen them in person.

But that is not always the case.  We shared with you the story of an intrepid guy who bought one of these $500 auction houses because it was what he could afford to buy.  He struggled with his finances, his lack of rehab skills, and issues in the neighborhood, but he emerged with a livable house he could call his own.

If bulk buyers are letting properties go again, then it means that the properties were not worth keeping.  Since these are 2012 taxes we are talking about, this means that decision was made almost immediately upon purchase and did not change.

More than anything, these reversions are evidence that our tax auctions need revision.  If 80% are failures, then the system is not working for our community.

Wayne County has had a staggering number of tax foreclosures in the wake of the 2008 downturn, and Detroit has been hit particularly hard.  The tax auction may be the best response to an unworkable situation, but some tweaking (as has been done since 2011) is needed.

Links:

Treasurer sues auction buyers for unpaid taxes:  http://www.detroitnews.com/article/20140619/METRO01/306190041/Wayne-County-wants-reclaim-78-sites-sold-tax-auction-since-11

Tax houses owe taxes: http://downriverhomes.blogspot.com/2013/09/tax-auction-houses-owe-taxes-again.html

Tax houses owe taxes (part two): http://downriverhomes.blogspot.com/2013/09/tax-auction-houses-owe-taxes-again-part.html

A $500 buyers story: http://downriverhomes.blogspot.com/2014/01/a-500-auction-buyers-story.html

Update on Lake Jumping House--It Burned Down (w/video)

In a sad update to a previous post, the owner of the house falling into Lake Whitney in Texas has had to burn it down.  Apparently the dubious nature of the cliff it was perched on precluded using the usual heavy equipment to demolish it and waiting for it to fall into the lake below on its own was too dangerous.  Our own Fox 2 news has the story, which includes video, of course.

What could be an amusing tale is tainted by reports that the owner of this $800,000 house sank all of his retirement money into it and the home is not insured for this kind of hazard.  On top of that, he will have to pay out of pocket to remove the demolished home from the site.



Links:
Previous post: http://downriverhomes.blogspot.com/2014/06/lakeside-house-follows-request-to-go.html
Fox 2 News story: http://www.myfoxdetroit.com/story/25770013/luxury-cliffhanger-lake-whitney-home-set-to-burn-at-10-am

The Steeple Stands Tall

St. Josaphat, the Damaged Era

When last we spoke of the steeple at St. Josaphat in Detroit, the one that had been damaged by winds last November and was in danger of collapsing, it was...in danger of collapsing.  There was no real money to fix it and the outlook was bleak.  Best case plans seemed to be cutting off the steeple to save the church underneath it.

Almost three months later, things are looking up.  About $90,00 has been raised to fix the steeple, iconic along I-75 at Canfield (you can't drive the stretch of freeway without once again noticing it.).  That has funded structural work that has left it stronger than when it was first built.  At least the steeple won't fall off onto the street now.

Looks like they straightened up the place.

Alas, the money raised so far is not the $500,000 or so needed to completely repair the damage and get the church off the the City of Detroit condemned building list.  So it's still not at all clear what will eventually happen.  For now, though, let us savor this partial victory.

For more information on the Save Our Steeple campaign, or to contribute, you can follow this link.

Links:

Deroit Free Press article (http://www.freep.com/article/20140609/NEWS01/306090019/St-Josaphat-church-spire-Detroit)

Save Our Steeple

Brady-Budchen Brentwood Abode Acquired

We gave you a look at Tom-and-Gisle's mansion in Brentwood, CA back in November, but now we're going to have to go back in the archives and change the story, because it is no longer theirs.

Fresh off selling his business selling over-priced headphones to hipsters (or maybe hiphopsters?), Dr. Dre has taken part of his money and put it into the moated palace that was once owned by the celebrity couple.  About $40 million or so of his money.

The house, which you might recall was big enough for their family to live in for extended visits, but billed as environmentally friendly (salvaged tile and solar panels), was expendable because the couple are apparently focusing more on New York as the place to live their dream life.  They will be downsizing to a penthouse in the $10-million range.

Although there are multiple stories on this, we will reference the sports news website Bleacher Report for our information here.  Plus they are the source of the Dr. Dre picture above which we just HAD to use.

So no more pictures of Gisele in her garden.  Reminisce with us here:




Link:
http://bleacherreport.com/articles/2085679-dr-dre-buys-tom-brady-and-gisele-bundchens-moated-mansion-for-40-million

Update: Ferris Bueller House Sells

We told you some long time ago that the house where Cameron lived in the movie "Ferris Bueller's Day Off", complete with glass garage, was for sale in the suburban Chicago area.  Well, it recently sold for $1.06 million.

It had been on the market for about five years and the owners clearly were holding out for more, a lot more.  It just may be that the Ferrari that went out the back of the garage was worth more than the house, after all is said and done.

Link:
http://www.chicagotribune.com/business/breaking/chi-ferris-bueller-house-sells-20140530,0,4958936.story

Update: Most Expensive Listing in America SOLD!

It seems like just yesterday when we filled our dedicated readers in on the most expensive listing in the United States, the Copper Beech Farm estate in Connecticut.  At last report, the price had been slashed $50 million to $140 million.  Then it dropped another ten in January.  You would think that reducing the price so much would position it in front of a whole new cadre of potential buyers, but still it didn't sell.

Well, you can slap a SOLD sticker on that sign in the front lawn, because it is gone for $120 million.  About one-third less than the original ask.  Just to put it in perspective, the broker might have lost three million dollars in commission and will only clear about seven.  Tough times for them.




Link:
http://curbed.com/archives/2014/04/11/connecticuts-copper-beech-farm-sells-for-a-record-120m.php

http://downriverhomes.blogspot.com/2013/11/black-friday-type-discount-on-most.html

Breaking News: Update on Lincoln Park Emergency Manager

We will have more complete information later, but wanted to post this update on the situation from the News-Herald. 

Link:
http://thenewsherald.com/articles/2014/04/09/news/doc534432bb7d0bb064363588.txt

Breaking Update: Tom Brady and Giselle to unload Brentwood Mansion

Following up on our previous story on the spectacular mansion (with an environmentally friendly slant) built by Tom and Gisele, today brings news that they are going to sell it and live in Boston full-time, instead.

Bleacher Report has the info.

Link:
http://bleacherreport.com/articles/1998621-tom-brady-and-gisele-bundchen-reportedly-selling-massive-year-old-la-estate?utm_source=facebook.com&utm_medium=referral&utm_campaign=programming-national#articles/1998621-tom-brady-and-gisele-bundchen-reportedly-selling-massive-year-old-la-estate

Update: Artists Lofts Evictee Gives POV

Remember this?

Awhile back, we posted about the Capitol Park Artists Lofts at 1217 Griswold in downtown Detroit. New owner Dan Gilbert (who has bought just about everything downtown) was evicting the residents and planning to renovate the building. The building is in serious need of repairs and is currently violating housing codes. However, the residents being evicted are artistic types who used a lot of imagination decorating their seedy lofts.

Evictees? Just visiting?  This might be Gustav and Andrew.