Michigan Economic Development Corporation (MEDC) has withdrawn support from the Munising Marketplace project.
While this sounds concerning at first glance, it is important to note that the MEDC is a single part of the entire investment. There will need to be a significant restructuring should MEDC not return to support the project.
Currently the Munising Marketplace is also funded by other entities which means the project is continuing. Concerns about the MEDC withdrawal include a time restriction as legislation going into effect later this year could render the property unavailable. The current owner will not hold the property indefinitely.
Renovare Development, the developer heading the project has drafted a letter to the MEDC as has the County Commission requesting that they reconsider their stance.
Predevelopment funding was provided by Michigan State Land Bank and Alger county over four years of planning. Significant funding included third party consultants related to the New Markets Tax Credit.
The Munising Marketplace is a proposed three-story building to be placed on Superior between Maple and Birch which will, upon completion, create 12,400 square feet of space on the ground floor and 39 new residential areas ranging from efficiencies to two-bedroom units. A 2,500 square foot Workforce Development Center is planned for the ground floor that includes a training center.
The Michigan Strategic Fund, part of the MEDC has broad authority to promote economic development and create jobs. At the same time, Micha 6 community in Pontiac, MI recently received $12.6 million, or 55% of their project cost. Olympia Detroit also received grants and loans on top of the Brownfield request.
The MEDC had planned on $8.5 million to be used for the development of the Munising Marketplace project.
At the center of the withdrawal is a request from the MEDC for a letter of intent for the final tenant in the ground floor commercial area. The request came with a 10day deadline which overlapped the Christmas/New Year’s holidays. This final requirement was not listed in emails sent to the development team in August and October. Also, MEDC has historically passed MSF requests without a full commitment from all tenants.
Despite the setback, other funding is unchanged, and the project will continue. Devin Olson, city manager points out that, “This is not the end of the project.”
The county and the developer are both creating letter writing campaigns to government officials, asking MEDC to reconsider their position. The Lt. Governor of Michigan recently visited Munising and approved the efforts to develop this building.
Renovare Development did not return calls for comment.
