The city of Chelsea just got a little bigger. At their June 17th meeting, the Chelsea City Council approved an agreement for the conditional transfer of property between the City of Chelsea and Lima Township. The agreement, which has been in development for over 7 years, allows for the transfer of approximately 46 acres of land located northeast of the intersection of North Freer Road and Old US 12 from Lima Township to Chelsea. 

Chelsea City Manager Marty Colburn presented to the Council and explained that a PA 425 agreement is an economic development tool that allows two adjacent municipalities to work together on land transfers and development plans for the purpose of economic development. 

In this case, the Lima Township property owner, David Wolf of Wolf Land Development Company, is interested in building a mixed-use development that would include about 172 residential units along with two medical office buildings. That sort of development requires certain municipal services that Lima Township simply cannot provide–like city water, sewer, and electricity. Because Chelsea can provide those needed services and because the development supports the city’s goals for business and housing growth, it is in the city’s best interests to agree to the transfer.

The agreement shows that Chelsea will be responsible for providing all government services to the developed property that they provide to current city properties, including tax collection, zoning, public safety, road maintenance and repair, building permits, code enforcement, election administration, etc. However, it also specifies that the costs associated with extending water and sewer to the development are the responsibility of the developer and not the city. 

In exchange for the property, Lima Township will receive one mil of the property taxes that Chelsea collects from the developed property, annually, for the duration of the forty-year agreement. Undeveloped currently, it generates only about $100/year in property taxes. At the conclusion of the agreement, the property will become a permanent part of the city of Chelsea.

Said Mayor Jane Pacheco before the vote, “I’m thrilled that we’re moving forward with this. I can tell you we’ve had a number of conversations with the school district and we need the rooftops. Hopefully, we’ll be able to help the school district out with some new families to the neighborhood.” 

The approved agreement will now be forwarded to the City Clerk and then the County Clerk for filing with the state.