Two housing developments in Petoskey still making progress
Editor's Note: The online version of this story has been updated with a correction to Tina DeMoore's quote.
PETOSKEY — The need for more units of affordable housing in the Petoskey area is being addressed by several entities, including city officials and the Petoskey-Harbor Springs Area Community Foundation.
Recently, both the Lofts at Lumber Square and Michigan Maple Block projects received updates as the developments continue to move forward.
Lofts at Lumber Square
The Petoskey-Harbor Springs Area Community Foundation recently announced that the proposed Lofts at Lumber Square apartment building has received state approvals.
At its June 2023 meeting, the Michigan Strategic Fund board gave its approval for the project, which includes key components of the project’s funding such as state loans, grants and Brownfield tax credits totaling $7.6 million, or 46 percent of the project’s total cost.
The Petoskey-Harbor Springs Area Community Foundation purchased the property at 900 Emmet St. in May 2022 to preserve it for workforce housing.
“Throughout our 30-year history, we’ve identified community needs and looked for unique and innovative solutions to meet those needs. What our community needs now is housing,” said Sarah Ford, director of community philanthropy at the community foundation.
The project — a proposed 60-unit apartment building located on Emmet Street in Petoskey intended for middle income households — is protected by deed restrictions that will ensure the apartments remain affordable.
According to the community foundation, the development would be targeted at households earning between $46,000 and $102,000 per year and is expected to provide homes for approximately 165 people. Target rents are projected at $1,150-$1,550 per month, depending on apartment size.
Officials said they plan to break ground on the project later this year.
More: High-density apartment complex coming to former Maple Block Co. site
Michigan Maple Block
The City of Petoskey continues to work with developers on a proposed mixed-use commercial residential project at the former site of the Michigan Maple Block Company, 1420 Standish Ave.
At their meeting on Monday, city council members gave approval for city manager Shane Horn to apply for a $1 million Brownfield loan from the Department of Environment, Great Lakes, and Energy (EGLE). The project had already received a $1 million EGLE Brownfield grant, and Horn said “EGLE has kind of left a window open for us to follow up with the loan piece.”
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The vote was not unanimous among the council members, with council member Tina DeMoore voicing concerns about potential risk and the city’s role in applying for a loan.
“I assess that the risk of a $1 million loan to the city outweighs potential benefits, particularly given other funding mechanisms available to a well-capitalized developer,” she said. “Therefore I will not vote to support moving the $1 million loan application forward this evening.”
The vote passed 3-1, with council member Derek Shiels absent.
“It still remains a loan and I certainly value and understand the concerns that have been expressed here this evening,” Horn said. “I think anytime you have a development this large you have to utilize all the tools in your toolbox. And this is certainly a tool that the developer is not going to have access to. These opportunities are not passed on directly to the developer, they are through public entities such as the city.”
The proposed housing development would create over 200 units, which will include workforce housing. The entire project is estimated at over $70 million.
— Contact Jillian Fellows at jfellows@petoskeynews.com.
This article originally appeared on The Petoskey News-Review: Two housing developments in Petoskey still making progress
