The sale of the former Leelanau County courthouse property in downtown Leland to local real estate developers will be delayed for at least another month as tests are conducted to determine whether potable water can be found on the 2.4-acre site.

ENVIROLOGIC EMPLOYEES Bob Huntington (left) a
nd Garricc Strauch prepare to dig a test well to
collect soil and water samples just outside the
old county jail in Leland this week.

The county's Brownfield Redevelopment Authority has contracted with a Kalamazoo-based firm, Envirologic, to drill some 45 test wells on the property to determine the extent of groundwater contamination. Envirologic representative David Warwick said his company brought employees and equipment in from its Elk Rapids branch last weekend and will be extracting soil and water samples in Leland through this week.

Meanwhile, a “Leland Property Subcommittee” of the Leelanau County Board of Commissioners met last week with attorney Doug Donaldson of the county Prosecuting Attorney’s Office to discuss a proposed land contract between the county and Varley-Kelly Properties. Local businessmen Jim Varley and Gene Kelly hope to purchase the former county courthouse campus in Leland for $2.4 million and redevelop it into a residential neighborhood.

At last week’s subcommittee meeting, Donaldson outlined proposed changes to the land contract that may be necessary due to delays resulting from the additional soil and groundwater testing. The changes would allow Varley-Kelly Properties to avoid paying interest under terms of the land contract until tests determine whether and how potable water can be provided to the property. Another proposed change would alter a formula under which funds are held in escrow as certain portions of the parcel are sold off as development is under way.

Originally, closing documents were to have been signed April 1. That date was pushed to July 1, however; and officials said this week they are hopeful that a closing can occur within a month.
In earlier discussion between the developers and the Brownfield Redevelopment Authority, experts had suggested that a community water system for the development might require that a well be dug offsite. Additional testing might provide another alternative, however.

Established last year, the Leelanau County Brownfield Redevelopment Authority will manage the cleanup and transfer of the old county campus to the developers according to a complex set of state environmental laws as well as regulations governing local brownfield authorities. Establishment of the brownfield authority has allowed the county to receive state grant funding for the testing and cleanup, and has empowered the county to apply certain tax incentives that will make it easier for developers to finance the project.

During the Leland Property Subcommittee meeting on July 9, commissioners voted 2-1 to accept Donaldson’s recommendations for modifying the proposed land contract with Varley-Kelly properties. Subcommittee chairman and District No. 5 county commissioner David “Chauncey” Shiflett voted “yes” along with county board chairman and District No. 6 commissioner Robert Hawley. District No. 7 commissioner Melinda Lautner was opposed, saying she thought the contract made it too easy for the developers to sell part of the property and leave the county with the rest.

During a public comment opportunity at the subcommittee meeting, former county commissioner Tom Evans said he was grateful that the project was moving ahead “slowly but surely.”

Evans chaired a “Leland Options Committee” for the Leland Township Board that has endorsed the plans Varley and Kelly have presented to redevelop the former county seat. Evans said he appreciated the fact that county maintenance personnel had continued to mow the grass on the Leland campus, and urged county officials to make sure the property is properly maintained before redevelopment gets under way.