Ford sells shuttered Dealership in Gary, Indiana for $10
 

A newspaper report indicates that Ford sold a shuttered dealership in Gary, Indiana for $10 to the local government Redevelopment Commission. For the full report - click here

The report caught my attention for several reasons:

I thought it was interesting that Ford was selling off the real estate and the low selling price made sense once I read that the soil under the dealership was contaminated.

I also thought it was interesting that Ford placed a restrictive covenant on the property that prevented the ground from being disturbed. I wonder if this is an inexpensive way of addressing a contamination issue without paying to have the site cleaned up?

I thought it was amazing that the Redevelopment Commission only received one bid for the lease of the 7.5 acre dealership and that the bid was for only $200 per month. That's a hell of a deal considering that Ford had been paying $36,000/year in property tax. (The Redevelopment Commission retains the right to reject the winning lease bid of $200/month.)

While I'm not familiar with Gary, IN it appears this location is very close to a major Interstate. I can't help but think that the community would be better served if this point were re-established as a new car dealership but maybe there's a reason why that hasn't happened.

I just did a quick Google Search and found a Loopnet listing for this property back in 2006 - it looks like this dealership has been closed for a long time.

Closed a long time. Ground was contaminated as well. City wants to clean it and use it for expansion around Indiana University local campus housing expansion. No dealer in their right mind would consider using that location today. At one time 30 years ago it was a huge dealership with big sales numbers. Urban blight killed it.

Only issue is Gary is in sad shape financially. How the city will make up a $30,000 tax shortfall is the big question.

Property is about 1 1/2 mile south of I94 on Grant Street...about 12 miles east of Illinois/Indiana border.

Thanks for the update - it's great to hear from someone who knows the market that this is no longer a viable point. (I hate to see closed dealerships but I understand that some locations reach a point where they are no longer viable - mostly due to urban blight.)

It appears that Ford got the better end of this deal when they sold the property to the Redevelopment Commission for $10. If the property is contaminated and has been on the market for six years without finding a buyer Ford was smart to cut their losses and dump the property.

I'd still be interested to know if Ford has completely severed their liability for cleaning up the contaminated soil?

Concerning the $30,000 in property tax - based on the current top lease offer of $200/month for the dealership I'm betting that it's going to be a long time before the Redevelopment Commission generates enough rent to offset the loss in property tax.

That's why I thought the point must be viable. As a West Coast guy when I see a dealership location near a major freeway off-ramp I just assume it's a goldmine. :)