Planned razing of apartments stalls due to bankruptcy

The village of Milford has halted the demolition of the former Woodlands Apartment building at 200 Peters Road due to a bankruptcy filing by the building’s owner.

“We’ve given direction to the contractor to put the demolition on hold until this matter is resolved,” said Village Manager Arthur Shufflebarger.

He added that the building’s owner, Milford Housing LLC, has filed a bankruptcy proceeding in the U.S. Bankruptcy Court in Bay City.

After the Milford Village Council held an executive session at its Monday, Aug. 1 meeting, the council approved a recommendation by the village’s attorney to hire its own bankruptcy attorney to represent the village.

“The owner has raised a question regarding the value of the property and how the village went through the demolition selection process,” Shufflebarger said.

This move comes almost a month after village officials approved a $26,430 bid from Cordelia Excavating of Clinton Township for the demolition of the building, which Shufflebarger said was set to begin within a few days.

Since 2003, building tenants have brought forward numerous complaints about the building, ranging from collapsed ceilings to broken water pipes. Other tenants have claimed that the building’s conditions, including a mold buildup, had also negatively affected their health.

The vacant three-wing, single-story building includes 24 units and was first ordered to be demolished by Timothy Brandt, the township’s building official, back in February 2009 after a dangerous building hearing was held.

Milford Housing had previously filed an appeal in Oakland County Circuit Court alleging violation of procedural due process, but the appeal was dismissed.