Item Coversheet

City of Marquette, MI
300 West Baraga Avenue
Marquette, MI 49855


Agenda Date: 3/13/2023

New Business
Resolution of Intent to Sell City Property, Cliffs-Dow - Roll Call Vote

BACKGROUND: 

Parcel 0510990, commonly known as Cliffs-Dow, is a City-owned former industrial brownfield located at 2001 N. Lakeshore Blvd. in the City of Marquette. The site was historically utilized as a factory producing pig iron and wood derived chemicals from 1902-1969 and sat vacant until 1997 when the City purchased the entire 77-acre property with the intent of securing control over redevelopment options for a large portion of lakeshore property. As a condition of the sale, the City agreed to bear all responsibility, liability, and compliance requirements related to the site. Following the acquisition, the City sold 32-acres on the North and South ends of the property within the next two years, but has retained control over the remaining acreage, which has been reduced due to the necessary relocation of portions of Lakeshore Boulevard and Wright Street. The City has continued to monitor contamination levels on the site and has engaged in limited remediation efforts, including a source area removal of 845 tons of tar conveyance materials, wood tar, and soil in 2011.

 

Following a purchase inquiry from a developer for the remaining property, the City released a Request for Developer Qualifications (RFQ) in 2018 to seek qualified developers. Responses were received from S & P Enterprises and Veridea Group. A subcommittee of the City Commission reviewed the responses and recommended negotiating the sale of the property to Veridea Group. The recommendation was subsequently approved on July 17, 2019 and a resolution of intent to sell was adopted.

 

Since the resolution of intent to sell was approved, the City Manager’s Office has engaged in negotiations with Veridea Group for the sale of the property, in addition to conducting required environmental monitoring and reporting. Due to multiple factors, the parties have been unable to come to an agreement for the sale.

 

Last year, the State of Michigan was allocated $34.2 million from the State budget and is seeking an additional $63.6 million in funds from the U.S. Department of Veterans Affairs to replace the aging D.J. Jacobetti Home for Veterans. The Cliffs-Dow site has been identified by the State as an ideal replacement location for a new veterans home due to its location within the City of Marquette, the size of the property, and proximity to the hospital and lakeshore. Accordingly, the State has requested to enter into negotiations for the sale of the property.

 

Given the unique circumstances of this request and the nature of the Cliffs-Dow site, the City Manager is recommending approval from the City Commission to suspend negotiations with Veridea Group and enter into negotiations with the State of Michigan for the express purpose of the construction of a new veterans home.  

 

The City Manager commends efforts by Veridea Group to envision the future of an extraordinary portion of City-owned property and looks forward to future partnerships with upcoming community development efforts.


FISCAL EFFECT: 
To be determined by negotiations.

RECOMMENDATION: 
Suspend negotiations with Veridea Group and adopt the attached Resolution of Intent to Sell the subject property to the State of Michigan.

ALTERNATIVES: 
As determined by the Commission.

ATTACHMENTS:
Description
Resolution of Intent to Sell