The Alger County Commission has approved a resolution that will continue the Munising Marketplace and Fire Hall projects. The decision allows project developers Renovare Development to continue to file for state funding and get work started soon on the renovation of the Fire Hall and breaking ground for the Marketplace.
“We were able to get the resolution passed. So now the plan can move forward. They can get in front of the state for their financing from the state. Once that’s completed, I believe then they’ll be able to start construction on the Fire Hall project because there is already a building there so they’ll be able to do some inside work and stuff hopefully this winter,” said County Commissioner D. Michael Nettleton.
The county commission voted 3-0 in favor of the resolution, with Commissioners Rick Capogrossa, D. Michael Nettleton and Kelly Livermore in support. Chair Dean Seaberg was not in attendance, leaving Mick Rondeau to run the meeting. He did not vote in the matter, or any other decision at that meeting, citing a correct, but often unused rule about the chair not being required to vote if there are already enough votes to pass.
Capogrossa and Rondeau had previously voted against the project on Monday, Oct. 16. The pair had various questions ranging from parking and tax collection to private investor disclosure. As county staff clarified any questions about which unit of government dealt with the different approvals needed to complete the project, Renovare also sent out a memorandum to the county commission on Oct. 20 to address concerns over private investment. According to that memo, funds would be invested through the federal Opportunity Zone program.
“The following rules, provided to us by third party counsel, outline the primary limitations that exist in raising funds through this program,” the memo read. “1. Foreign investors are unlikely to be facing capital gains taxes, therefore, they likely would not find much benefit from the Opportunity Zone program. If they are foreign investors that happen to file taxes in the United States and would otherwise pay capital gains taxes, then they can participate. 2. You cannot market broadly. You can ask people to contribute with whom you have a “pre-existing, substantive relationship.”
Multiple officials from other municipal governments attended the meeting, with many of them offering support for the project. While aspects of the project dealing with business were supported, it was the two floors of apartments in the Marketplace project that made a difference for many in support.
“When I first moved here eight years ago, I had problems finding a place to live. Many friends had the same problem and some had to move away and take different jobs,” said Munising City Commissioner Zach Eckert. “Housing is the number one issue for the city and its citizens.”
City and Downtown Development Authority officials, members of the public and other county elected officials all stressed the importance of moving the project forward after years of work in the public and private sectors.
“I appreciate everyone who came to support this or have worked on this for so long,” Livermore said. “This is something that is going to benefit everybody.”
Project developers will now head back to the state for the final approval in additional funds to complete the project. With all of the necessary approvals from the local partners in the City of Munising, Munising DDA, Alger County Land Bank and Alger County Brownfield, everything will be ready to go for the project.
“This was a major milestone in the project for us as a development team. This financing is critical to our pathway moving forward. It is one of the last pieces we need to start really deep underwriting and getting toward closing,” said Jill Ferrari, Managing Partner of Renovare Development.
