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Downtown IM brownfield project to include residential housing

The long-shuttered former Appliance and Furniture Mart building at 111 E. Ludington St. in downtown Iron Mountain could be redeveloped under a plan that would use brownfield financing to cover part of the cost. (Betsy Bloom/Daily News photo)

IRON MOUNTAIN — A proposed redevelopment of the former Appliance and Furniture Mart in downtown Iron Mountain includes demolition of a nearby structure and renovation of the main buildings into parking, commercial space and up to 20 apartments.

The project is eligible for a maximum of $932,000 in property tax reductions that could be carried out over a period of 17 years, according to an estimate under review by the Dickinson County Brownfield Redevelopment Authority.

Myron Berry of Mountain Engineering of Kingsford presented a brownfield plan for 111 E. Ludington St. to the Dickinson County Board this week. He noted the site has been vacant for years and utilities have been disconnected.

“I’m glad to see it’s going to be refurbished and used,” Commissioner Joe Stevens said.

The property is owned by Eden Property Collection LLC of Iron Mountain. It’s zoned B-2 general business, which is appropriate for the project, Berry said.

Abbey Anderson was sworn in last month as Dickinson County’s new prosecuting attorney. Anderson succeeds Lisa Richards, who stepped down after serving more than 12 years. Anderson has more than 11 years of legal experience, including two years as an assistant Dickinson prosecutor. (Courtesy photo)

The plan includes:

— The first floor of the furniture mart and the basement of the appliance store will be used for parking lots. A covered drive will be installed to access the basement parking.

— The second floor of each building will be residential housing, with a maximum of 20 units.

— The first floor of the appliance store will be offices or retail businesses, depending on the demand, with an Eden Property Collection workshop in the southwest corner.

— In order to have access from the basement parking to the upper floors, an elevator formerly used by the appliance store will be replaced, including stops on all three floors.

— The parcel on the southwest corner, where a building will be demolished, will be converted into green space or parking.

The property meets the definition of blighted as defined under Michigan’s Act 381 tax increment financing, Berry said.

When a brownfield redevelopment generates new tax revenue, those new taxes can be captured by the brownfield redevelopment authority and given back to the developer to reimburse them for eligible costs. Only eligible expenses documented with contractors’ invoices or timesheets and approved by the authority are reimbursed.

Berry said there’s no known history of contamination or environmental issues on the site, except for asbestos and lead materials and pigeon droppings. Appliance parts and other items from previous uses are still present, he added.

Various utilities will need to be reconnected, including water and sewer, Berry said. The water line size must increase to support an automatic fire suppression system.

The current taxable value of the property is $204,487, the brownfield plan states. The taxable value after the improvements is estimated to rise to nearly $2 million.

Under the plan, the brownfield authority will capture up to $150,000 in tax revenues for its revolving loan fund once the developer is reimbursed. That capture may require two years, based on projected taxes.

Once the plan is approved by the brownfield authority it will come back to the county for its approval. Some of the main expenses include demolition work, $250,000; elevator, $200,000; and asbestos and lead abatement, $150,000.

Mindy Meyers, executive director of the Dickinson Area Economic Development Alliance, said the organization is working to “make sure we’re giving developers what they need.”

Past projects undertaken by Eden Property Collection include Sandstone Studios at 208 E. Ludington St. in Iron Mountain

In other action Monday, the county board:

— Heard Mari Negro, a member of the Northpointe Behavioral Healthcare System Board, share concerns over the future of the agency’s services as the Michigan Department of Health and Human Services launches a new mental health framework. MDHHS is opening its regional behavioral health contracts to outside nonprofits, which critics say could weaken local oversight. Responses from bidders are due Sept. 29. The contracts are for the delivery Medicaid-covered services in conjunction with community mental health service providers such as Northpointe, currently under the umbrella of Marquette-based NorthCare Network. The county board had considered a resolution to support maintaining local control for community mental health, but never reached agreement.

— Agreed to enter into an opioid lawsuit settlement involving eight drug companies. The companies are Mylan (now part of Viatris), Hikma, Amneal, Apotex, Indivior, Sun, Alvogen and Zydus. Controller Brian Bousley said he can’t yet say how much the county will receive, as the settlement will be split between the state and numerous local governments. Michigan could receive up to $24.5 million, according to Attorney General Dana Nessel.

— Welcomed Abbey Anderson as the county’s new prosecuting attorney. Anderson succeeds Lisa Richards, who stepped down as of July 31 after serving more than 12 years. 41st Circuit Court judges Mary Brouillette Barglind and Christopher Ninomiya appointed Anderson after interviewing several applicants. Anderson has more than 11 years of legal experience, including two years as an assistant Dickinson prosecutor.

— Heard Stevens say he was “really happy” that county voters Aug. 5 approved a 20-year millage renewal for the Bay College Iron Mountain campus. The requested renewal was 0.9987 mills, or just under $1 per $1,000 of taxable value. Rejection would have likely led to program cuts at the Iron Mountain Campus, as well as tuition increases for Dickinson County students.

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Jim Anderson can be reached at 906-774-2772, ext. 85226, or janderson@ironmountaindailynews.com.

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