DALTON TWP. - The Dalton Township board has approved a large land sale that could eventually lead to the construction of hundreds of new single-family homes near the village of Lakewood Club.
The board voted unanimously July 8 to sell 177 acres to Ron Leatherman, owner of Norton Shores-based Leatherman Builders LLC. Leatherman recently approached the township about the property, which prompted the board to put the land up for bid.
Leatherman was the only bidder. The township agreed to sell the property for $222,000.
Leatherman has stated his goal is to eventually build and sell more than 200 single-family homes on the property, according to Dalton Township Supervisor Jeff Martin.
The undeveloped property is located south of Lakewood Road and west of Russell Road.
If fully developed, the new project could dramatically increase the population in the lightly-developed surrounding area. The village of Lakewood Club, which is part of Dalton Township, only has a population of about 1,300.
The new residential development is one of three projects that got the thumbs up from the township board at the meeting.
The board also approved a commercial development of 27 buildings for light industrial use in a business park on Whitehall Road, along with a 58-duplex residential development near the same business park.
When all of the new development is complete, the township will significantly expand its tax base.
“If all three projects that were approved at the July board meeting are able to reach their full potential, it will be over $100 million worth of development in Dalton Township over the next couple of decades, including both residential and commercial growth,” Martin said.
The sale of the 177 acres does not mean new houses will be popping up on the site quickly.
Before anything can be built, the title check process for the many parcels in the purchase area must be completed, and Leatherman will have to work with the township planning commission on the details of the project.
A few parcels within the development site have other owners, and Leatherman will have to either try to purchase that land or work around it as he plans his project, Martin said.
Leatherman has indicated that he will pursue the project incrementally by building and selling a certain number of homes at a time, based on market conditions.
“It will be market-driven,” Martin said. “There is no way to tell exactly when it will be done. They are hoping to get all the paperwork done in the next year.”
The township gained possession of most of the land bit by bit over the years, with much of it obtained from the state of Michigan or Muskegon County.
There was some initial hesitation on the part of some board members over the sale price of the property, Martin said. The total value could be worth more than $2 million, but the sale price had to be weighed against the many costs the developer will face, even before construction.
Another consideration was the fear the property would be sold, no development would occur and the purchaser would simply resell it for more than he paid the township.
Township board members considered the possibility of including a provision in the sale agreement stating Leatherman would have to build a certain number of homes by a stipulated date, or the township would have the option to purchase the undeveloped portions back from him.
That idea was shelved because board members understand such a large development will take time, and because they trust Leatherman.
“That could have forced us into a situation where the township might have bought (some of the land) back,” Martin said. “But we would not be selling it to him if we didn’t expect him to build residential homes there.
“He will have to make a lot of investments, for roads, gas lines, power lines, and building the homes themselves. He presented himself as a conservative builder and said he does not do a ton of building on spec. If things are going well, there may be about 30 (houses constructed) per year.
“He has a track record of doing what he says he’s going to do.”
