City of Petoskey discusses state grant opportunities

Jillian Fellows, The Petoskey News-Review
·3 min read
The former site of the Michigan Maple Block Co., which closed down in 2020, sits on about 12 acres of land which will be used as the location of a new, high-density apartment complex.
The former site of the Michigan Maple Block Co., which closed down in 2020, sits on about 12 acres of land which will be used as the location of a new, high-density apartment complex.

PETOSKEY — City officials both celebrated a grant award and approved a submission for another funding opportunity during the Petoskey City Council meeting on March 20.

The grant award comes from the Michigan Department of Environment, Great Lakes and Energy (EGLE) and is designated for the replacement of entry doors and windows at the Winter Sports Park.

“We always want to celebrate when we receive grants,” said city manager Shane Horn. “This is a $20,000 grant from EGLE through their Community Energy Management grant program to support our Winter Sports Park window and door project.”

Horn added that there is no match requirement involved in the $20,000 grant.

The door and window replacements are part of ongoing work at the Winter Sports Park. According to city documents, improvements to the Winter Sports Park are identified in the 2023 Capital Improvements Plan and $200,000 is earmarked in the 2023 budget for the needed work.

The Winter Sports Park is located at 1100 Winter Park Lane in Petoskey.
The Winter Sports Park is located at 1100 Winter Park Lane in Petoskey.

More:High-density apartment complex coming to former Maple Block Co. site

The city council also approved the submission of an EGLE Brownfield grant and loan for the Michigan Maple Block housing project.

“We as a staff have been working with the developer and his team, really going back to August of last year, on this project,” Horn said. “As you know, this is a multi-faceted project. It’s a project from a Brownfield standpoint that needs a lot of assistance. And so this would help us to move forward with demolition, environmental cleanup.

“They are also exploring funds from the Land Bank to potentially assist with this project from a cleanup standpoint. It’s a significant lift environmentally, just demolishing the structure is a significant endeavor just in and of itself and then you have all the environmental (considerations).”

According to city documents, EGLE provides Brownfield grants and loans of up to $1 million to local units of government and Brownfield authorities for environmental response activities, asbestos abatement and demolition to support private redevelopment projects.

The proposed housing project for the former Michigan Maple Block property, estimated at over $70 million, would consist of a mixed-use commercial residential project with over 200 units, including workforce housing.

Horn added that the city has supported the project thus far, including using Redevelopment Ready Communities dollars to help with some of the environmental costs.

“Obviously we’ve reached a point where this is kind of the first step in the process,” he said. “This is a proposal. Nothing is finalized yet. This essentially just authorizes the submittal of a proposal to EGLE.”

Michigan Maple Block Co. closed down in 2020 due to challenges from the COVID-19 pandemic.
Michigan Maple Block Co. closed down in 2020 due to challenges from the COVID-19 pandemic.

Horn did note that there is a loan component involved in this application. He described the terms as “very attractive” with a 1.5 percent interest rate, a 15-year payback, and the first five years being interest free.

“We can pay the loan back through our TIF (Tax Increment Financing), through the Brownfield,” he said. “So there’s certainly some attractive components to a loan, however, and I’m very clear here, this is a loan, so it’s a little different mechanism from what we anticipated or what we’ve used before.”

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Several council members expressed some concern and asked questions about the loan, how repayment would work and what risks there are to the city.

“So first of all, I absolutely support this project. Second of all, absolutely support the grant,” said council member Tina DeMoore. “Third of all, have huge concerns about the City of Petoskey being a guarantor of a $1 million loan and carrying the full risk of this project.”

It was noted during the March 20 meeting that more details and protections could be put in place when the development agreement is approved, which the council would need to do before they approve a resolution accepting the loan.

The council unanimously approved the grant and loan submission to EGLE.

— Contact Jillian Fellows at jfellows@petoskeynews.com.  

This article originally appeared on The Petoskey News-Review: City of Petoskey discusses state grant opportunities