DeNooyer dealership seeks brownfield credits from Benton Township

By Tony Wittkowski | Business Reporter | The Herald-Palladium

BENTON TOWNSHIP — A Kalamazoo car dealer is seeking help from the Berrien County Brownfield Redevelopment Authority for some unexpected costs attached to a Benton Township property.

In the process of buying township property along M-139, DeNooyer Automotive Group LLC paid to have some environmental assessments done on the land, which once housed a gas station. Contaminants were found, and DeNooyer is looking to recapture some of the assessment costs through the county’s brownfield authority.

Because the county needs the local government’s joint approval, Berrien County Community Development Director Dan Fette was at Benton Township’s board meeting Tuesday.

Trustees agreed to place the property in the brownfield plan just as they did the purchase agreement with DeNooyer: unanimously.

Fette said while the Berrien County Board of Commissioners has not approved the brownfield, the Brownfield Authority had.

“We will have a public hearing on Dec. 1, at which it is anticipated to be approved,” Fette told trustees. “DeNooyer has taken additional environmental investigations and have to prepare something called a due care plan.”

By placing the property in the brownfield plan, DeNooyer would be given tax incremental finance reimbursement to cover some of the environmental costs to redevelop the commercial property along M-139.

Fette said the brownfield would cover DeNooyer’s costs of no more than $39,500, while the township will be repaid for no more than $75,000 it incurred from land preparation costs.

Fette said it will take some time for the Kalamazoo car dealer and the township to receive returns because DeNooyer does not have a specific redevelopment plan for the site.

“Right now they intend to just close on the purchase and continue to explore their options,” Fette said. “…Worse case scenario, reimbursing these costs could take up to 25 years, but I doubt that would happen. As they start putting down pavement and building structures, we’re going to see the reimbursement process accelerate.”

To account for that, the county put provisions into the brownfield plan.

Once DeNooyer submits a redevelopment plan to the township, they can come back to the county’s brownfield to amend the plan to include additional development costs they may have.

“They’re purchasing a pretty large property from you and investing a lot of money. I doubt they’re going to want that property sitting there vacant for very long,” Fette said. “I wouldn’t be surprised if in the next year you didn’t have a better idea of what they are planning.”

Redeveloping 10 acres

The property in question has two parcels that total about 10 acres on the west side of M-139 and south of I-94.

The smaller of two parcels, numbered as 2488 M-139, contained a gas station for nearly 40 years. The township acquired the parcel of land from the county after it was foreclosed on for unpaid property taxes.

The larger of the two parcels at 2860 M-139, had a hotel on it until the township demolished it in 2014. The township was given the parcel as a donation from Wells Fargo after the hotel was foreclosed on over the owner’s unpaid mortgage.

Todd DeNooyer, general manager of DeNooyer Chevrolet in Kalamazoo, said these actions are just precautionary and do not confirm what they intend to do with the Benton Township property.

“I followed the lead of our real estate attorney,” DeNooyer said Tuesday. “If we do want to redevelopment it, we have nothing specific in mind. We’re just trying to weigh our options and identify the contaminations.”

In August, DeNooyer hired an engineering firm to conduct a Phase I environmental site assessment of the property.

The investigation found that the smaller of two parcels that formerly contained leaking underground storage tanks has contaminated materials that also migrated into the neighboring property. The investigation also revealed the known contamination occurred before either the township and DeNooyer became owners of the site.

Trustees first approved the sale agreement with DeNooyer Automotive for the property during a July board meeting.

The agreed upon price is still for $390,000. The original asking price was $400,000. The property was listed for a year and half before the township got an offer close to the asking price.

Contact Tony Wittkowski at twittkowski@TheHP.com or (269) 932-0358. Follow him on Twitter: @tonywittkowski.

(Author’s Note: This article was originally published on Nov. 16, 2016)

Benton Township to get new police vehicles

By Tony Wittkowski | Business Reporter | The Herald-Palladium

BENTON TOWNSHIP — Trustees have agreed to update the vehicle fleet for the Benton Township Police Department.

At Tuesday’s board meeting, trustees voted to buy two new 2017 Ford Explorers. Each vehicle will cost $29,510, with an additional $345 for one of the vehicles to include a bumper hitch for pulling a trailer.

Both are 2017 Ford Police Intercepter Utility vehicles with all-wheel drive.

Controller Kellie Nelson told trustees the money is available as the township budgeted to replace two police vehicles in 2016.

The vehicles will replace two squad cars – one rendered unserviceable due to severe engine problems and another that will be transferred and used as an ordinance vehicle.

“(Public Works Supervisor) Andy (Jordan) is usually pretty good about getting everything out of the cars that we can use,” Supervisor Kevin White said. “It’s pretty much a shell of a car once Andy is done with it.”

M-139 property update

Trustees were given an update Tuesday on the two lots along M-139 that are in the process of being bought by a Kalamazoo car dealership.

Benton Township trustees in July approved a sales agreement with DeNooyer Automotive Group LLC for property at 2860 S. M-139.

“We have been in touch with DeNooyer and there are just a few more pieces of information they have requested,” Nelson said. “We anticipate the sale will close this year as everything is progressing very nicely. We’re working on finalizing their requests and are working on a closing date.”

Nelson said the property’s buyer is working on the title. The agreed upon price is $390,000.

The township bought the nearly 10 acres in 2013 and eventually demolished the former Holiday Inn that was on the property in 2014.

Todd DeNooyer, general manager of DeNooyer Chevrolet in Kalamazoo, has said there are no immediate plans for the two parcels.

Contact Tony Wittkowski at twittkowski@TheHP.com or (269) 932-0358. Follow him on Twitter: @tonywittkowski.

(Author’s Note: This article was originally published on Sept. 8, 2016)

M-139 eyesore to be demolished

Workers have begun clearing out the interior of the shuttered Purple Onion restaurant building along M-139 in Sodus Township in anticipation for its demolition. (Tony Wittkowski | HP Staff)

By Tony Wittkowski | Business Reporter | The Herald-Palladium

SODUS — A vacant building along the M-139 corridor where Sodus Township meets the Benton Township business district is expected to be razed by mid-June.

The building at 2699 M-139, which last housed a restaurant known as The Purple Onion, is going through a lengthy process to be torn down.

Sodus Township Supervisor David Johnson said they were originally in negotiations more than a year ago with Benton Township to clean up the M-139 portion near the I-94 interchange.

Benton Township officials approached Johnson with a proposition to use a section 425 agreement. The agreement is considered a “temporary annexation.”

Under the agreement, Benton Township would have annexed the parcels of land for 10 years, with a potential 10-year extension. If the restaurant had been reconfigured to fall within Benton Township for at least the next 10 years, the parcels of land would have been bound to stricter ordinances, additional building codes and higher property taxes. Johnson said if the restaurant belonged to another jurisdiction, it could have been condemned.

“We started negotiating that because they (Benton Township officials) wanted to get that corridor cleaned up,” Johnson said. “It’s a long process, but they have more resources. No owner would want us to turn it over because they would be subject to more stringent ordinances.”

Benton Township Comptroller Kelli Nelson said the township received several complaints about the property. Nelson said the jurisdictional boundaries aren’t clear, and a lot of residents thought it was a part of the township.

“The agreement would have allowed us to use our resources to get the property cleaned up a bit,” Nelson said. “The townships are always looking for an opportunity to work together and clean up the corridor. It’s a highly visible area. It’s the first thing people see when they get off the highway.

“However, the legal agreement was deemed unnecessary.”

Sodus Township trustees tabled the agreement until township officials had a chance to speak with the owner.

After an in-depth inspection by building officials, Johnson met with the owner – Rajesh Bhardwaj, CEO of Cosmo Management Group Inc. – to explain what they found and how the agreement was a possible solution.

“He said he would be compliant and asked what the first step would be,” Johnson said. “I told him if he got it demolished by June 14, then we wouldn’t go through with the agreement. On April 6, they pulled a demo permit and have been clearing out the interior since then.”

Bhardwaj said his company is now in the planning stages of trying to secure a cafeteria or fast-food chain to replace the vacant restaurant.

Johnson said once the inside is gutted, the entire structure will be coming down.

“Sodus Township has never done (the agreement) before,” Johnson said. “This was a brand new, out-of-the-box idea. The building was past being rehabbed – it had to be demoed. The owner has been very cooperative. Everything we have wanted to be in compliant with he has done.”

Contact Tony Wittkowski at twittkowski@TheHP.com or (269) 932-0358. Follow him on Twitter: @tonywittkowski.

(Author’s Note: This article was originally published on May 3, 2016)

Furnishing a business: Paul reflects on time with Slumberland, Fairplain Plaza

Jim Paul, owner of Slumberland Furniture in Benton Township, is pictured Thursday. Before opening Slumberland, Paul had a big impact on Benton Township’s Fairplain Plaza shopping center. (Don Campbell | HP Staff)

By Tony Wittkowski | Business Reporter | The Herald-Palladium

BENTON TOWNSHIP — Jim Paul has always found commercial real estate fascinating.

Unlike his father, who made his mark in residential real estate, Paul was interested in developing business. That interest led to him buying and developing a portion of property that would one day become one of Benton Township’s largest shopping centers – Fairplain Plaza.

Paul, 61, is a St. Joseph Township resident but grew up in Chicago. About a decade after Paul decided to sell Fairplain Plaza, he operates a Slumberland Furniture along Napier Avenue in Benton Township.

Staff Writer Tony Wittkowski sat down with Paul to discuss his current business venture and his impact on the M-139 business corridor in Benton Township.

How long have you been running Slumberland?

We opened Slumberland on July 31, 2011.

How did you get into the furniture business?

A circuitous way. I had purchased the property in late 2006 and was working with several potential users. When the financial crisis started in 2008, I had some users and they all put the brakes on. When I was doing Fairplain (Plaza), I found one of the most underserved categories for this area was furniture. I made a call to Ashley Furniture. They informed me they liked the market, but it was not big enough for a corporate store. They offered licenses and I looked into that.

Several months later I happened to see a Slumberland store in Freeport, Ill., going into a former grocery store. I called them and they looked at this market and had a franchisee who was interested. They also had a person at corporate who actually grew up in the area and said it would be a great place for a store. After the franchisee turned it down, I asked to open one because I was interested in doing something with the building.

I hear you’ve had quite the impact on the M-139 section in Benton Township. What is you’re affiliation there?

I first had Fairplain Plaza under contract in 1988. I closed on the purchase in 1997 after it went through a bankruptcy. I’ve probably invested more than $25 million in the retail district in the last 20 years. I happen to think it still has positive growth potential and that’s exciting to me.

How did you become developer of the shopping center?

I started buying buildings that were in need of repair or reuse. Rather than building them brand new, I saw an opportunity in taking a property that maybe others didn’t see had potential. The return on your money wasn’t 10 percent, it was 500 percent. It was much greater than your typical real estate return.

What made you sell Fairplain Plaza?

It got to the point where I was trying to sign retailers on for multiple offers because of Fairplain’s growth in size. I couldn’t do that because I wasn’t that large of a developer. It was time for someone of a larger size to own it. That was the driving factor.

What has it been like for you to see Fairplain Plaza change over the years?

Rewarding because when I look at it now almost 20 years later, it still looks like a pretty fresh shopping center. That was always our desire. Time and weather has its effects, but it still looks relatively new.

Where do you see yourself in 10 years?

Now that I live here, hopefully I can bring my talents in retail development and do another significant project that would bolster this community. Not just today, but for the next 30 years. This community offers so much to people who want to live here and that’s people of all ages. I want to see this place get better.

Contact Tony Wittkowski at twittkowski@TheHP.com or (269) 932-0358. Follow him on Twitter: @tonywittkowski.

(Author’s Note: This article was originally published on March 14, 2016)

Indoor flea market in Benton Township opens Sept. 1

By Tony Wittkowski | Business Reporter | The Herald-Palladium

BENTON TOWNSHIP — A new flea market will open Tuesday near the intersection of Napier Avenue and M-139 in Benton Township.

As manager of the flea market/resale store, Steve Peterson is leasing the former Big Lots building at 1800 S. M-139 in the hopes of making the largest indoor flea market in Southwest Michigan.

The Dowagiac resident has been working on getting the market up and running for six months, trying to find a location that would provide the size he wanted.

“We will be renting out spaces to vendors in our 24,000-square-foot building, so you can set up your very own indoor resale space,” he said. “I’ve seen a lack of indoor flea markets in the area. Other cities are successful with things like this, including resale stores. But they won’t be as big as this.”

This Saturday and Sunday the market will accept walk-in vendors from 10 a.m. to 6 p.m. It will also be a time for vendors to set up their booths for the grand opening.

Once the flea market is up and running, it will be open 1-8 p.m., Tuesday through Sunday. Peterson said the point-of-sales system will be operational in time for the grand opening, which allows customers to make purchases with credit and debit cards.

“We chose this that time of day to accommodate anyone on different working shifts,” Peterson said. “There are a lot of outdoor flea markets that close for the winter time, but this would be good year-round.”

Booths vary in size and are rented for a pre-determined price per month, plus 10 percent of sales go back to the house. Booths will be rented on a first-come, first-served basis. Seller’s renting options will consist of 10-by-10, 10-by-20, and 10-by-30 foot spaces. Vendors are welcome to rent on a month-to-month basis with no long-term commitment.

While Peterson is leasing the 24,000-square-foot space, he plans on absorbing additional space next door for what used to be Ridge & Kramer Auto Parts. By doing so, the market would swell to 65,000 square feet.

The market has enough spaces for 50 to 60 vendors, Peterson said. If all spaces are filled, there are waiting lists available.

Peterson said he will use 6,000 square feet of the available space to sell items he has purchased for resale.

“It’s well known that fall is the busiest time of year for flea markets,” he said. “I went full force and dove into this. You can set up your booth for arts and crafts, holiday decor, gifts, new and lightly used items.”

Vendors can sell just about anything at the market with the exception of live animals, food – as the building does not have a food license – or anything illegal. Items sold must be clean and in good condition, and Peterson reserves the right to refuse any items unfit for the market.

Anyone interested in the indoor flea market/resale store, can email Peterson at sales@allthis2ndhand.com or call 714-381-9759. Others can go online at www.allthis2ndhand.com and visit their Facebook page for more information.

Contact Tony Wittkowski at twittkowski@TheHP.com or (269) 932-0358. Follow him on Twitter @tonywittkowski.

(Author’s Note: This article was originally published on Aug. 28, 2015)

The fair effect: BCYF brings more business, traffic in Berrien Springs

By Tony Wittkowski | Business Reporter | The Herald-Palladium

BERRIEN SPRINGS — As thousands flock to the fairgrounds for this year’s Berrien County Youth Fair, business owners can look on with both anticipation and hesitation.

The fair attracts so many from within the county it provides a boost in sales at a time when summer is coming to close, while also bringing in a considerable amount of traffic.

Stationed along M-139, just a three-minute walk from the fairgrounds, is local sandwich shop Baguette De France. Owner David Kissinger said he looks forward to this time of year as his business sees a 25-30 percent increase in sales throughout fair week.

“We are pretty steady all day long,” he said. “We have more staff come in on fair week, so we can provide good customer service to get people in and out of here fed.”

Kissinger said the extra boost first came Sunday when fair workers got into town to set up their equipment. Since then and throughout the week, a lot of them have been returning to his sandwich shop.

Day Break Cafe owner Priscilla Riden said she too has seen extra numbers during fair week in the 12 years they have been in operation.

Enough so, that Riden brings in three people to work the floor rather than the normal two.

“Usually it brings in more business, especially on days when it rains,” she said. “It brings in an extra couple hundred of dollars a day, but it doesn’t happen every day.”

Some businesses that benefit from the increase in customers also find the amount of people in town as a deterrent. Such is the case for Apple Valley Natural Food Market ‒ on the other side of M-139.

“Every year, it causes the biggest problem at our entrance,” said general manager George Schmidt. “There have been a few times I have had to call the police for traffic control.”

Schmidt said the fair’s exit is in front of Apple Valley’s entrance, which hinders feasibility to regular customers.

“Around fair week regular customers steer clear of us,” he said. “My biggest concern is the traffic problem. I’ve seen customers drive in our entrance the wrong way because traffic cut them off.”

Over the last few years, Schmidt has noticed a slight peak during fair week. However, he attributes this to the combination of fair goers, fair vendors who stop in for particular items and what’s known as “freshmen week.” Fair week normally coincides with the return of students who attend Andrews University ‒ farther north along M-139.

When the Berrien Springs population expands this time of year, there are some businesses that don’t see additional profits through their own obscurity. As the owner of One Stop’s Bar & Grill, Bill Warren said businesses that are not on M-139 normally don’t see the influx of profits come their way.

“We don’t get a whole lot of customers that week,” he said. “During fair week we always watch traffic go by.”

While Warren doesn’t see additional sales, he said the people that work at the fair often go to local restaurants for a break. Warren has been going to the fair for more than 50 years and said he knows why some restaurants might not draw more people.

Outside of the rides and exhibitions, fair food plays a detrimental role in retaining attendees.

“That’s one of the biggest draws of the fair outside of the rides,” Warren said. “As far as the food goes, that’s what they are looking for. That’s what they wait the whole year to get. The only ones that are interested in something to eat at restaurants come in the morning.”

Contact Tony Wittkowski at twittkowski@thehp.com or (269) 932-0358. Follow him on Twitter @tonywittkowski.

(Author’s Note: This article was originally published on Aug. 21, 2015)