City manager provides update on J.C. Penney, other building projects

The former J.C. Penney Co. building is seen in downtown Petoskey.
The former J.C. Penney Co. building is seen in downtown Petoskey.

PETOSKEY — Interior demolition work is set to begin this month at the former J.C. Penney building in downtown Petoskey.

The J.C. Penney project was one of many that city manager Shane Horn provided an update on during Monday’s Petoskey City Council meeting.

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Lofts at Lumber Square 

Planning for the Lofts at Lumber Square project continues to move forward, with the city receiving an updated site plan on Monday.

“As you may recall, we had a special meeting with the developer and ownership group of this project,” Horn said. “The planning commission wanted a little bit of a softer look to make sure that it blends well with the surrounding neighborhood.”

The project is a proposed 60-unit apartment complex in place of the former Hankey lumber yard, at the southwest corner of Emmet and Fulton streets.

Horn said the updated site plan will be on the May 17 planning commission agenda.

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

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.

Michigan Maple Block 

Another proposed housing project is also in the works for Petoskey.

Horn said the city is still working with the developer and EGLE Brownfield on the project, which would bring an apartment complex with approximately 200 units to the former Michigan Maple Block Company at 1420 Standish Ave.

“We did receive word that the (Department of Environment, Great Lakes, and Energy) Brownfield grant and loan proposal that we explored a few meetings back is still being evaluated and vetted,” Horn said. “Likely we’ll hear something yet this month to come back to this body to discuss further, direction-wise, how we would like to proceed. So that is ongoing. Multiple layers involved with that.”

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City Park Grill rental rehab

If all continues as planned, Horn said construction could start on a rental rehabilitation project at City Park Grill sometime in early June.

“We did receive the development agreement through (Michigan Economic Development Corporation) last week. So we’re finalizing our kind of due diligence, environmental and historical reviews.”

Horn said that whenever Community Development Block Grant funding is involved in a project, notices must be sent to specific groups regarding the work that will be done to a historic structure, such as the City Park building at 432 E. Lake St. Any responses to those notices are due back by May 3.

“So once that process has reached its culmination, we expect that construction will start sometime in early June for that project,” Horn said.

This project would add five rental units above City Park Grill.

J.C. Penney’s store in downtown Petoskey closed permanently on Sunday, Oct. 18, 2020.
J.C. Penney’s store in downtown Petoskey closed permanently on Sunday, Oct. 18, 2020.

J.C. Penney 

Since it closed in October 2020, the historic J.C. Penney building at the corner of Mitchell and Howard streets has been shuttered and empty.

First opened in 1926, it was Petoskey’s last remaining traditional department store.

More: J.C. Penney's Petoskey store to close Sunday after 94 years downtown

Now, Horn said plans to renovate the building with condos on the second floor, retail on the first floor and parking below are finally underway.

“We did have a pre-construction meeting last week with the owners and contractors for that project,” Horn said. “That will start on May 8 with demo work, interior work. That’s exciting to finally see some progress there with that project.”

Horn added that a temporary covered platform will be installed during the work so pedestrians walking by are kept safe.

The same contractor and ownership group will also be working on the Obsolete Property Rehabilitation Act properties at 316-318 Lake St. at the same time.

“They’ll be working on both projects really at the same time concurrently,” Horn said.

— Contact Jillian Fellows at jfellows@petoskeynews.com.  

This article originally appeared on The Petoskey News-Review: Petoskey city manager provides update on J.C. Penney, other projects