The City of Marquette is currently working with the Michigan Economic Development Corporation (MEDC) to obtain a Community Development Block Grant (CDBG) in the amount of $8 million for the demolition of a portion of the former Marquette General Hospital, owned by the Northern Michigan University Foundation. 

The buildings contain a significant amount of contamination from asbestos and lead paint. Total extraction abatement and renovation costs have been estimated at $389/sq. ft. for 812,000 sq. ft. of building space for a total cost of $315.9 million. A determination of functional obsolescence has been made by a certified level IV Assessor due to out-of-date heating, plumbing, and electrical throughout the structures. The age and stone/masonry construction of the older buildings provide significant barriers to retrofitting necessary updates.

This property has significant barriers to reuse for the original construction purpose and is facing chronic vacancy as a result. The complex was purpose built as a hospital and adaptive reuse into contemporary commercial or residential uses is exceptionally difficult due to the layout and structure. Additionally, this hospital no longer holds a Michigan Certificate of Need required to operate as a hospital and would not likely be able to obtain one in the future due to the existence of the newly constructed regional hospital that replaced this facility. As a result of this obsolescence, the value of the property has dropped precipitously from over $18 million to under $11 million in less than ten years.

The CDBG application requires a public hearing prior to final approval by the City Commission.