The News Herald: Breaking news coverage for Southgate, MI.
The City Council raised questions Tuesday about the terms of a loan for tenant improvement allowances tied to 104 acres of city-owned property.
Southfield-based Real Estate Development and Investment Co. manages the property on behalf of the city. Gregory Erne, REDICO chief investment officer, said including a tenant improvement allowance in each lease is common practice.
The allowance fronts the tenant money to improve the rental space, but the amount is paid back with interest through lease payments.
A motion to pay the bills associated with tenant improvement was approved 5-2, with Councilmen Kevin Rourke and Kyle Tertzag dissenting.
Among the tenant improvement allowances were Unity Studio’s for $225,000 and the Center for Film Studies for $10,000.
Rourke said he was not comfortable with how the bills were presented nor what the tenant improvements were, so he voted against approving the bills.