Front Page News

City publishes RFQ for Cliffs-Dow site

MARQUETTE -- After years of monitoring the former Cliffs-Dow industrial site, Marquette city officials are requesting qualifications from interested investors for future residential and commercial development at the 2001 N. Lakeshore Boulevard location.

Director of Community Development Dennis Stachewicz said a request for qualifications, or RFQ, was published this week and responses are due by June 15. According to its strategic plan, the city has also requested a no further action approval for portions of the site, which would facilitate the possibility of utilizing the property for economic development opportunities.

"Although we don't expect an immediate decision from the MDEQ, we remain optimistic that we will be successful with our application," Stachewicz said in an email Friday. "The city has had some interest, but no offers to purchase. It is our hope that with the City applying for, and being awarded Opportunity Zoned designation, that we will likely see more interest in this and other sites in the City."

According to the city's 2018 budget, committed funds for the Cliffs-Dow site is currently $1,350,610.

"Those funds are identified but held in abeyance, for any unforeseen mitigation on the site. The actual budgeted amounts for environmental monitoring, associated reporting, and legal counsel are approximately $65,000 per year," Stachewicz said.

Per the city's community master plan, the parcel has been identified as a mixed-use site. The property is also part of an existing brownfield project, Stachewicz said, and it is likely that the city and future investors would seek to amend the plan to encompass the Lakeshore Boulevard relocation project, which would permit the utilization of tax captured funds for the infrastructure improvements. The estimated cost of the project is around $11 million, the budget states.

In the early 1900s, Cleveland Cliffs Iron Company developed the property and produced pig iron at the site for about 30 years. The Dow Chemical Company joined with the Cleveland-Cliffs Iron Company, forming Cliffs-Dow Chemical Company in April 1935. Charcoal and wood chemical derivatives were produced until the property was sold to Georgia-Pacific in 1968.

The property sat idle until the city purchased about 77 acres of the tract in 1997 for $1 and sold off parcels on the north and south ends, leaving the current 46 acres.

The Cliffs-Dow site was on the U.S. Environmental Protective Agency's superfund list from 1983 until 2000 because the contaminated property contained hazardous waste. The site's long-term remedy included excavation, treatment and disposal of contaminated fill material from the landfill, and monitored natural attenuation of the groundwater. Subsequent samples taken at the site show that remaining groundwater contamination does not pose an unacceptable risk to human health or the environment, according to the EPA.

While a project budget is not required at this stage, interested developers should provide evidence and supporting documentation of the team's financial condition, demonstrating the credit-worthiness and financial capacity of the principals, and its key partners to secure financing for the project components, according to the RFQ.

The city isn't asking for a letter of intent or commitment by financial institutions currently, however, documentation including letters of interest or intent from lending institutions or equity partners, financial statements showing sources of equity, letters of interest from key tenants, etc., would be welcomed. Hard copies of proposals should be sent to City Manager Mike Angeli.

Jaymie Depew can be reached at 906-228-2500, ext. 206. Her email address is jdepew@miningjournal.net.