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 file photo)

IRON MOUNTAIN — Plans for a downtown Iron Mountain development at the site of the former Appliance and Furniture Mart have gotten a green light from both the city and Dickinson County, with demolition work underway.

The project calls for renovation of the main buildings into parking, commercial space and up to 20 apartments.

It’s eligible for a maximum of $932,650 in property tax reductions that will be carried out over an estimated 17 years.

“In the end, it’s a great story,” Commissioner Joe Stevens said Tuesday as the county board approved a brownfield plan that makes the tax break possible. “It’s bringing a property that’s been empty for a decade back to life.”

In all, seven parcels at 111 East Ludington St. were acquired by Eden Property Collection LLC in January. The planned improvements are:

— The former appliance store will be converted to commercial/retail space on the first floor, with apartments on the second floor and parking in the basement.

— The former furniture mart will be redeveloped as covered parking with apartments on the second floor.

— A structure in the southwest corner will be demolished and redeveloped as green space/parking.

— The current loading dock will be demolished and become a driveway and the entrance for underground parking.

— An elevator in the appliance store will be replaced, with stops on three levels to provide access from basement parking to the upper floors.

The property meets the definition of blighted as defined under Michigan’s Act 381 tax increment financing, said Myron Berry of Mountain Engineering of Kingsford, who prepared the brownfield plan.

The current taxable value of the property as determined by Iron Mountain’s assessor is $204,487. Taxes on the current valuation will continue to be collected as now.

The estimated future taxable value once the buildout is complete is $1.99 million. Taxes paid on the increased valuation will be captured by the authority and used to reimburse the developer for eligible costs.

Some of the reimbursable expenses include demolition work, $250,000; elevator, $200,000; asbestos and lead abatement, $150,000; and site preparation $70,000.

Also, various utilities will need to be reconnected, including water and sewer. The water line size must be increased to support an automatic fire suppression system. Estimated cost for these activities is $80,000.

In a presentation to the county board during a public hearing Tuesday, Berry explained that the true cost for some items, such as asbestos abatement, might actually be lower. If that’s the case, it could reduce the time it takes for the developer to be reimbursed through tax captures, he noted.

Only eligible expenses documented with contractors’ invoices or timesheets and approved by the Dickinson County Brownfield Redevelopment Authority will be reimbursed.

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

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.

The authority will also received $2,500 for administration costs for the first three years, followed by $1,000 per year until the capture is complete.

On Tuesday, Mindy Meyers, executive director of the Dickinson Area Economic Development Alliance, thanked the county board for its approval and Beau Anderson of Eden Property Collection for moving the project forward.

Iron Mountain City Council endorsed the brownfield plan Oct. 6.

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