‘We were so close’
Babcock: No Finlandia properties sold off yet
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Garrett Neese/Daily Mining Gazette
Quincy Green is among the Finlandia properties taken into receivership with the impending closure of Finlandia University.
HANCOCK -- Despite rumors, no Finlandia University properties have been sold off yet by the new court-appointed receiver, Hancock City Manager Mary Babcock said at Wednesday's council meeting.
O'Keefe, a Bloomfield Hills-based financial and strategic advisory firm, was appointed by the Ingham County court as receiver over Finlandia University, putting it in charge of selling university assets and meeting the university's debt obligations.
Finlandia announced its closure after 126 years in March, driven by declining enrollment and mounting debt.
Unfortunately, Finlandia went into receivership before the city finalized its purchase of Quincy Green. The city had approved an agreement with Finlandia to buy the community space for $150,000 in February.
O'Keefe is not selling the property separately yet, feeling it's in the best interest of the lien holders to keep the properties together, Babcock said.
Once a buyer has been lined up, the city can ask them to set the property aside at that time, Babcock said.
"It's very disappointing," she said. "We were so close."
Hancock did provide proof of insurance to O'Keefe, which will allow it to hold its summer events on Quincy Green as usual, Babcock said.
The one item O'Keefe agreed to still sell are all three parcels for the Ryan Street Community Garden. No purchase agreement has been signed yet, Babcock said.
In an interview earlier this month, O'Keefe CEO Patrick O'Keefe said some purchase agreements were tentatively in place. Housing was one use being looked at for properties, he said.
Over the next couple of weeks, O'Keefe will be trying to get a clear picture of the situation with Finlandia's parcels. That includes any lien agreements and claims on real and personal property, such as gym equipment.
O'Keefe had originally planned to finish by September, but has since pushed the end date back.
"It is taking them quite a bit longer than they projected," in part because Houghton County has fewer of the records online than the firm is used to, Babcock said.
A liquidator from O'Keefe was at Finlandia over the weekend conducting an inventory of personal property assets. Online and in-person sales will happen at some point once the items have been cataloged, Babcock said.
Finlandia is current on its bills to the city, Babcock said. It does owe $43,000 for ice time to the Portage Lake Multi-Rec, which operates the Houghton County Arena. The city will take over operations of the arena in July.