A Brownfield Plan is being proposed for the redevelopment of the former hospital located at 420 W. Magnetic Street. The Northern Michigan University Foundation (NMUF) is leading a consortium of public and private partners to facilitate the redevelopment. The proposed project would remove the buildings on the property to provide for an effective reconfiguration and redevelopment. NMUF will acquire the property from DLP Marquette General Hospital, LLC and is serving as an equity investor and facilitator to secure a master developer for the site. The approach is proposed to focus on housing of all product types and price points, including affordable housing, as well as commercial uses that will enhance and support the community. The specific components of the development will be based on an agreement between NMUF and a master developer. The estimated investment is $166 million. This project is also expected to receive $5 million from the Michigan Economic Development Corporation in the form of Community Development Block Grant funds.
The size and scale of the buildings on the property that will need to be removed represents a significant cost and barrier to redevelopment. The project will not be able to proceed with the burden of almost $20 million of demolition and asbestos abatement without brownfield tax increment financing support. In addition, the redevelopment is anticipated to require infrastructure improvements, including the proposed reconstruction of College Avenue and associated infrastructure. The total brownfield TIF capture is estimated at $44.6 million with an estimated capture period of 15-17 years. These costs are also Brownfield Eligible Activities and may be reimbursed. At the end of the capture period, it is estimated that the property will be producing $4.4 million per year in tax revenue.
A public hearing must be held by the City Commission for the approval of the Brownfield Plan.
Approval of the Brownfield Plan will provide for the reimbursement of Brownfield Environmental and Non-Environmental Eligible Activity costs, including environmental due diligence and environmental response activities, lead and asbestos abatement, demolition, site preparation, infrastructure - including the reconstruction of College Avenue and other public improvements - and interest through the capture of future increased taxes generated by additional private investment.
The Brownfield Plan was presented to the City of Marquette Brownfield Redevelopment Authority at their May 19, 2022 meeting and subsequently approved. Notices were sent to the taxing jurisdictions in compliance with the requirements of Act 381.
This public hearing was scheduled at a Special Meeting of the City Commission held on May 16, 2022.