Negotiations between Wayne County and the Ilitch organization over land next to Comerica Park continue to drag on, pushing back construction of the $1.5 billion District Detroit development.

The negotiations concern five land parcels that the Ilitch organization needs for at least three of District Detroit's 10 planned new buildings or building rehabs.

The land, mostly in use as surface parking lots, is owned by the county through the Detroit Wayne County Stadium Authority. The Stadium Authority also is the owner of Comerica Park and Ford Field.

The Ilitch organization's Olympia Development of Michigan is developing District Detroit in collaboration with New York developer Stephen Ross' The Related Cos.

In an interview Friday, the Stadium Authority's lead negotiator, Richard Kaufman, a former deputy for the county, said the main sticking point now in negotiations is what happens to proceeds from the potential land sale.

More: Officials in deep negotiations with Ilitch organization over price of parking lots

The Ilitch organization wants the money to go toward future improvements to Comerica Park, where the Ilitch-owned Detroit Tigers play, Kaufman said.

However, the county would prefer the sale proceeds instead go into the county's coffers.

"It would be public money, as opposed to public money going for a private purpose,” Kaufman said.

An Olympia-ordered appraisal in fall 2022 valued the five parcels at $25.5 million. A more recent county-ordered appraisal put the value at $35.3 million.

Even though the sale price hasn't been finalized, Kaufman said the bigger question in negotiations right now is what happens to the sale proceeds. That sticking point was first reported by Axios Detroit.

“That is the main item," Kaufman said. "There are other issues we haven’t agreed upon yet, which I don’t foresee as a problem, but you don’t know for sure until you’ve solved the biggest issue."

An initial schedule for District Detroit envisioned a summer 2023 groundbreaking for the first of the 10 buildings: a 17-story office high-rise at 2200 Woodward, currently a surface parking lot. But that is on one of the parcels the Stadium Authority still owns.

Olympia Development declined comment for this article.

"It is our general practice not to comment on ongoing conversations with third parties," Olympia said in a statement.

From the Stadium Authority's perspective, there is no deadline for reaching a deal to sell the parcels.

“The county is happy to have things continue as they are," Kaufman said. "It's the Ilitches, as part of District Detroit, who want to buy this Stadium Authority property to use for a different purpose. It’s really their need to get the property. We have no need to get rid of the property.”

Comerica Park opened in 2000 and this spring debuted several upgrades, including new LED light fixtures, new outfield walls and clubhouse renovations. The Ilitch organization recently hinted at the possibility of more stadium upgrades in the future when speaking with the news media.

A groundbreaking is expected to happen sometime this year for a project that is separate but related to District Detroit: a downtown Detroit academic research center known as the University of Michigan Center for Innovation.

The U-M Board of Regents last month approved construction of the $250 million project. The UMCI would be built west of the Fox Theatre, on what is now mostly surface parking lots that the Ilitch organization owns and is donating for the project.

As part of the deal, U-M will pay Olympia $9.6 million for a nearby 1.2.-acre parcel needed for constructing a parking structure.

Formerly known as the Detroit Center for Innovation, the UMCI could eventually enroll up to 1,000 students and is envisioned as a catalyst for the anticipated future demand for office space and housing that justifies construction of District Detroit. If a UMCI groundbreaking doesn't happen this year, the center would lose a $100 million state earmark.

Contact JC Reindl: 313-222-6631 or jcreindl@freepress.com. Follow him on X @jcreindl

This article originally appeared on Detroit Free Press: Ilitches said to want county's sale proceeds for Comerica upgrades