A much-anticipated transit center project in Troy and Birmingham may be in jeopardy as a legal challenge over the property mounts.

Farmington Hills-based Grand Sakwa Properties — which, under a consent judgment in 2000, conditionally transferred a piece of property to Troy for 10 years for development of a transit center — has filed a motion in Oakland County Circuit Court requesting the property be returned.

Troy City Attorney Lori Grigg Bluhm said there will be a hearing on the company’s motion Aug. 11.

Under the judgment, Bluhm said, Grand Sakwa was allowed to construct a mixed-use development that was not permitted under city ordinances in exchange for giving Troy the property to develop a transit center. According to the motion, that development is at Coolidge and Maple.

In its motion, Grand Sakwa says the judgment required the project be fully funded by June 2, but it wasn’t.

Bluhm disagrees, saying most of the project’s cost is covered but will be reimbursed through a $1.3-million federal appropriation and an about $8.4-million High-Speed Intercity Passenger Rail Program grant.

Stephen Estey, a lawyer for Grand Sakwa, said Thursday he couldn’t comment on the motion, which argues funding sources Troy claims to have “do not mean that the Transportation Center is funded at all by the city, but rather constitute only potential funds which are not yet secured or immediately available and, indeed, may be canceled at any time.”

Bluhm said, “We certainly disagree with the contents that are contained in the motion.”

According to July estimates published for a joint meeting of the Troy Planning Commission and Birmingham Planning Board on Tuesday, the multimodal transit center is projected to cost about $10 million. It would provide Amtrak, SMART bus, taxi and other services.

In addition to federal dollars, Troy and Birmingham have set aside funds, and the project will receive a $250,000 state grant for LED lighting, Bluhm said.

Read more: Challenge over land threatens Troy transit center | freep.com | Detroit Free Press http://www.freep.com/article/20100730/NEWS03/7300385/1005/News03/Challenge-over-land-threatens-Troy-transit-center#ixzz0wT1WvIrh