Hello all and hope your staying healthy! I was wondering. We have park in prime location in very good neighborhood with about 300’ lake frontage and was wondering what would be involved in changing park to land and building houses to then sell. Asking mostly about the legal part…in Michigan…if anyone knows and has any experience with this type of thing. The park has 27 spaces and 21 of those are TOH. Not totally settled on the idea just wondering.
Before you even consider such a move, you need to talk to some land brokers and see what the value of the property is. Mobile home parks are not the highest use of land, but they are not of low value, either. Unless there is a huge premium for the land vs. the park, you are never going to take the shot at development as it will require a number of costly and contentious zoning and city council votes. Yes, the city will probably approve your plan just to get rid of the park, but you will be in the news for weeks and may end up in litigation with the residents.
I’ve redeveloped a 100+ lot park in Springfield, Missouri into a Harley Davidson superstore and apartment complex and it was a huge amount of work and risk. You need to quantify how much that land is worth in a different use and you better be blown off your feet or I would leave it a mobile home park.
I know a park in Florida in which the land is worth $3 million as vacant land vs. $2 million as a mobile home park. It will no doubt be demolished. But you need that type of pricing premium. If it’s just $100,000 more, then forget it.