Landowner selling 28 parcels to Detroit for $444,000 for future airport upgrades

(FOX 2) - The Detroit City Council has approved the purchase of more than two dozen properties owned by a land speculator that has been the subject of lawsuits brought forth by the city.

During its council meeting on Tuesday, members signed off on the purchase of 28 properties for $444,135. The sale was to Michael Kelly, who owns hundreds of other properties around the city, according to a search tool that identifies land speculators in the city.

However, the city will be reimbursed by the federal government because the properties are for future plans for the Coleman A. Young Municipal Airport.

Local perspective:

The parcels of land that Detroit is buying are part of the French Road Mini-Take Project. They are located at Kenney Street, French Road, Nuernberg, Dobel, Almont, Dobel, Elgin, Wisner, Montlieu, Lyford, and Leander.

City council documents note the properties are owned by Michael Kelly and entities he controls, including Latino Housing.

Detroit initially offered to buy the land for $74,600 before a settlement of nearly six times that amount was agreed upon. Airport Director Jason Watt later recommended the purchase.

Zoom out:

The city is buying the land because of a mandate from the Federal Aviation Administration based on safety concerns.

The airport also wants to expand its runway as well as add a new air traffic control tower and flight school. According to Watt, the FAA will reimburse the city of Detroit for 95% of the land purchase because it's required by the government.

Detroit will end up paying a little less than $25,000.

Dig deeper:

Kelly is among the biggest owners of land in the city of Detroit, according to PropertyPraxis. The database lists him as the owner of 283 properties.

He has also been the subject of several lawsuits brought by the city as it tried to fight land speculators, according to Outlier Media. The city's argument that the "invest and neglect" business model had ruined neighborhoods was the focus of high-profile legal challenges that were eventually dropped.