Detroit discussed vacant land sale with Sam Zell, Blackstone

The Detroit Free Press reports:

The investment banker representing the City of Detroit had talks with billionaire real estate investor Sam Zell and investment firm the Blackstone Group about selling them the city’s vacant property — but the investors weren’t interested, the Free Press has learned.

The revelation comes as the value of Detroit’s abandoned and blighted property — which the city considers assets in its Chapter 9 bankruptcy — is in dispute.

Creditors argue that city-owned property is a source of significant value that is being ignored in the city’s bankruptcy restructuring blueprint, called a “plan of adjustment.” The creditors argue the approximately 22 square miles of vacant or blighted property the city owns could be sold — with the proceeds distributed to creditors and even reinvested in the city.

But Ken Buckfire, president of the city’s investment banking adviser Miller Buckfire, testified that city-owned land “to some extent has negative value,” according to a deposition transcript obtained by the Free Press.

An interesting article. Maybe that land would be worth more money if Michigan's state legislature re-drew Detroit's boundaries : taking that 22 square miles out of Detroit.