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The city of Detroit will acquire 14.45 acres of leased land from the Great Lakes Water Authority in its effort to deliver 200 acres to Fiat Chrysler Automobiles NV for its $2.5 billion plant expansion on the city’s east side.

According to a purchase agreement, the Detroit Brownfield Redevelopment Authority will purchase for $1 million the property at 11900 Freud and 11900 Jefferson. The agreement includes an easement for the regional water system to have access to operate the Conner Creek CSO Facility.

The authority's board approved an agreement Wednesday afternoon, finalizing the purchase.

Due to a regional sewage disposal system lease agreement, the Great Lakes Water Authority has the right to sell and receive proceeds from the sale of the property if it is no longer needed.

The Detroit Water and Sewerage Department also stands to receive at least 40 percent of the proceeds since it still owns the property but leases the facility, spokesman Bryan Peckinpaugh said. The money is slated to go toward the sewerage department’s general fund and help its infrastructure and sewer improvements, he added.

The water authority approved the sale at its March 13 board meeting.

The purchase agreement calls for an inspection within the next 180 days. The deal would be closed 30 days after that period ends.

The property sits south of Fiat Chrysler's Jefferson North Assembly Plant. The automaker plans to invest $2.5 million in expanding its Mack Avenue facilities and $900 million investment in the Jefferson North Assembly Plant on Conner Street.

Last fall, the Detroit Brownfield Redevelopment Authority board approved initial steps in the city's request for assistance in assembling land to establish market-ready industrial sites in the city. The authority received $10 million in initial funds from the city from its 2014 bankruptcy exit funds to acquire properties and conduct environmental testing.

As of Wednesday, the city had one month left, until April 27, to acquire 200 acres of land and secure City Council approval for the development.

The city declined to comment on the status of the land assembly.

cwilliams@detroitnews.com

Twitter: @CWilliams_DN

Staff Writer Mark Hicks contributed.

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