Nearly seven years after purchasing the property, the owners of the former Michigan Inn hotel have listed the property for sale.

The 4.5-acre property located at 2800 Jackson Ave. in Ann Arbor is listed for $3.5 million with Colliers International agents Jim Chaconas and Dick Timmons. The property is owned by the Michiginns Real Estate LLC, according to city records.

Currently zoned R-5, the site is only designated for use as a hotel. Any changes to the property’s use would have to be approved by the city, meaning the hope is to sell the land to a hotel developer.

“It’s being marketed as a hotel site,” Timmons said. “We’re just looking to market it and sell it under its current zone.”

The site was subject to much controversy in 2008 when the city of Ann Arbor filed a motion against the former owner, Dale Newman of Five Point Five Corp., to have the building torn down as it was considered an eyesore in the community.

During the battle to have the buildings on the property torn down, the property was bought by former builder Larry Hiss of Scio Township. Hiss reached an agreement with the city to have the buildings torn down under the city’s watch and he would pay for the costs, according to Timmons.

Some remediation of the site and removal of asbestos and paint was also done as part of the process.

Because of the work done on the property there are Brownfield credits in place in the neighborhood of $300,000, Timmons said. Those credits would go back to the owner as property value increases with future developments.

The 129-room hotel and restaurant was originally built 1968 and was a Ramada Property.

City records indicate the property has an assessed value of $879,100 giving it an estimated market value of slightly less than $1.8 million based on assessments.

Matt Durr is a business reporter for The Ann Arbor News. Email him at mattdurr@mlive.com or follow him on Twitter.