DPS Thorn Apple Valley Transaction

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Detroit Public Schools Property Transaction: Thorn Apple Valley

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DPS Thorn Apple Valley Transaction

  1. 1. Detroit Public Schools Property Transaction: Thorn Apple Valley Objective: DPS sought to drive efficiencies and improve service delivery by consolidating various support services from around the city in a “hub” location, with excellent access to all major transportation routes. Rationale: Previously, maintenance activities were being conducted at a number of disparate sites across the city, a practice that was wasted time and money because of a lack of centralized management control. A hub approach is more efficient and saves time and money in the long run. Course of Action: DPS identified a site for a new maintenance hub, the former Thorn Apple Valley meat packing facility located at 1425 E. Warren. • Cost of the building, which was completely redeveloped and in turnkey (move-in) condition, was $25 million. • The building is accessible by major freeways and main routes, making all services more efficient. • A centralized service facility also allowed centralized management control. Cost Considerations: The current DPS emergency financial manager compares the reported sale price of the building a year earlier to a developer to the price DPS paid for a fully redeveloped building in 2002. • As a result of the consolidation, DPS estimated a 10-percent savings in service manpower costs in reduced windshield times from the landlocked buildings formerly housing service departments. • The developer assumed a risk when purchasing and redeveloping the building. • The Director of Audits at the state Department of Education agreed that the turnkey approach met the spirit of the School Code for competitive procurement. ###

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