Brownfield plan approved for obsolete Kmart building
Dec. 9—TRAVERSE CITY — A Brownfield Redevelopment Plan for the former Kmart that is being transformed into a curling venue was approved by the Grand Traverse County board.
Having a brownfield plan in place allows the project to be eligible to "capture" tax increases on the property generated by its redevelopment, with the money used as reimbursement for brownfield expenses.
The plan was developed by consultant Mac McClelland, who gave a presentation to the county board at Wednesday's regular meeting. After a public hearing, the board unanimously approved the plan.
Redevelopment of the property is expected to increase the tax base, create new jobs and reuse the building, which has been vacant for five years. Once brownfield-approved expenses for the redevelopment have been reimbursed, the increased tax revenue will go to the taxing jurisdictions.
"We're very excited to have this opportunity come before us, to pitch in with our community and achieve both our goals of finding a place to offer our support and our activity, and perhaps to be a spark that leads to redevelopment of an area that's very important to a lot of people," said Kevin Byrne, vice president of the Traverse City Curling Club.
There have already been rumblings of other activities taking place on the property, though he can't make any commitments, Byrne said. In a separate project by another developer, a speed kart racing center is planned for the former Sears building at the Cherryland Mall.
The TC Curling Club purchased the 11-acre former Kmart site in the Cherryland Mall, which includes nine acres of parking lots, for $3.3 million.
The five-sheet curling arena and a warm room, locker rooms, pro shop, kitchen, community room and glassed-in viewing area will take up about a third of the 85,345-square-foot former department store. The rest of the space will be redeveloped for retail and other private uses.
Construction began this summer and the arena is expected to be open in January. The club has been using Centre Ice Arena.
The brownfield plan was approved by the GTC Redevelopment Authority in October and by the Garfield Township Board of Trustees in November.
Before seeking brownfield funds the building was inspected by Garfield Township Assessor Amy DeHann, who found it functionally obsolete — or unable to be used for its intended purpose — which qualifies it as an eligible brownfield property.
The building was constructed in 1976 and has been vacant since 2017, according to DeHaan's inspection report.
Expenses from a baseline environmental assessment; lead, asbestos and mold abatement; demolition; and removal of the lifts total $817,880, according to the plan.
Asbestos must be abated by a certified asbestos abatement contractor, specially packaged up and sent to a landfill certified to accept such waste, McClelland said.
Anne Jamieson from the Grand Traverse County Brownfield Authority said one of the requirements for reimbursement of expenses is that any special waste — asbestos, contaminated soil — must be documented by the landfill.
"We request documentation that the asbestos-containing material or any other type of hazardous material, soil, groundwater ... has been properly handled, managed and disposed of," Jamieson said.
The inspection also found that all of the heating and cooling, electrical and plumbing systems in the concrete block building need to be updated or replaced; an upper level mezzanine once used for storage and offices is not safe to hold people; and two or three lifts in the old automotive center should be removed.
The soil under the auto center was found to have some diesel and oil range organics, although contamination did not exceed state standards, McClelland said.
Over the next 26 years, up to $1.13 million in taxes can be captured, and a detailed accounting of how the money was spent must be given to the authority.
The amount includes expenses for development of the brownfield plan, administrative costs, payment to the state brownfield fund and more.
