IRON MOUNTAIN — A developer has gained permission to put up a new three-unit building at 1950 S. Stephenson Ave. that will be anchored by Starbucks, the world’s largest coffeehouse chain.

Iron Mountain City Council on Monday approved a special use permit for a drive-thru at the site, based on the city planning commission’s recommendation. Under the city’s zoning ordinance, a permit is required for all drive-thrus to ensure standards are met.

“No issues” were identified during a May 13 hearing on the application from Logic Design & Architecture Inc. of Wauwatosa, Wis., City Manager Jordan Stanchina said. A citizen who raised concerns cited the effect on local small businesses, but that’s not part of the governing ordinance, he said.

As proposed, Starbucks will offer an indoor cafe, outdoor seating and a drive-thru with anticipated hours of 5 a.m. to 9 p.m. daily but varying on weekends.

The site will have room for two additional retail spaces. The development of 5,100 square feet is the first at the location since a May 20, 2017, blaze consumed an entire EZ Stop Mobil gas station storefront and part of a Burger King restaurant.

The property owner is listed as 1950 S. Stephenson Ave. LLC, with Lava Francis of Wild Bill’s Tobacco in Troy as the contact. No construction date has been revealed, though it’s expected to be this year.

In another matter, Stanchina reported the Michigan Department of Transportation has hired global firm WSP to look into traffic-design issues along the south U.S. 2 corridor. Even though there have been serious crashes in the area, an initial review suggests it’s not considered dangerous enough to merit special construction aid, he said.

“They’re going to look at everything and everything has a price tag,” he said.

In other action, the council:

— Receive no comments during a public hearing on the 2024-25 fiscal year budget, which was adopted as proposed. The total millage rate for city government will be 21.1421 mills, or $21.14 per $1,000 of taxable value, down slightly from the current rate of 21.236 mills, or $21.24 per $1,000 of taxable value. The budget will include a 20% increase in sewage usage rates and a 5% increase in water usage rates. The additional monthly cost is about $5 for a household using 3,700 gallons. Iron Mountain’s rates will still rank among “some of the lowest” in the Upper Peninsula, Stanchina said.

— Issued a statement of thanks to the many area fire departments and agencies that responded late Friday to a fire that swept through a 10-unit apartment building at 630 E. H. St., claiming the life of a 46-year-old woman. Council member Ken Clawson said Iron Mountain firefighters arrived within four minutes of the call. Several other building tenants had injuries that were not considered life threatening, authorities said.