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MARQUETTE -- The Marquette City Commission unanimously approved an easement for the Founders Landing Development Group II, LLC, to construct building footings on city-owned property on Lakeshore Boulevard as part of their One Marquette Place development, which broke ground this fall.
The commission approved the agreement in a unanimous vote, with Commissioner Sara Cambensy absent.
The developer will pay a one-time $5,000 fee. According to commission materials, a license request was considered, but an easement was required due to the financing structure of the development.
The easement -- defined as a right to cross or otherwise use someone else's land for a specified purpose -- was granted for construction, maintenance, replacement and alteration of structural footings beneath and adjacent to the Marquette Place parking structure and One Marquette Place building, according to the contract.
Rebecca Lloyd, owner of Mi Acupuncture in downtown Marquette, said in an interview she thought the one-time easement fee was too little in light of recent parking fee increases and budget troubles -- calling it "the most asinine thing I've ever seen in my life."
"I was disgusted at that $5,000 easement," Lloyd said. "It costs you $2,500 to put in a freaking driveway in Trowbridge."
Lloyd said the city could've charged the development group and its managing member Barry Polzin $25,000.
"The millionaire can afford it, first of all, and he wants it," Lloyd said.
The $5,000 fee was calculated using the life expectancy of the building times the annual cost of a license, according to supplemental commission materials.
City staff said the annual fee for use of city property or right-of-way is $100, an amount that is approved by the commission in its budget, and the life expectancy of the building is 50 years.
Commissioner Mike Conley said the easement would not create any restriction of public access.
Polzin, architect of the project, gave a commission presentation Dec. 19 describing the Marquette Place project, the first phase of which is slated to be complete in April 2018.
The project got underway in October with a large hole to remove timbers and other debris that had been dumped there in the latter half of the 1800s. They will then pack it with stone to fortify the area, a process that will continue in the spring once the ground thaws. There, a two-story, underground concrete parking ramp will be built, and above that, four buildings comprising Marquette Place, Polzin said.
Plans are for two long parallel structures running perpendicular to the shoreline immediately north of the Hampton Inn, south of the Lower Harbor Ore Dock and behind the existing boardwalk.
One Marquette Place, the first phase of the project, will be a five-story timber-frame building containing a cafe, office suite and 64 high-end rental apartments with balconies and views of the lake, Polzin said.
Two Marquette Place is still somewhat undefined, Polzin said, but will likely contain commercial and residential space. Polzin said Three Marquette Place will contain more commercial space, cafe, office space and possibly a brew pub.
The buildings are intended to capture the era and feel of the harbor's industrial past using colors reminiscent of iron and rust, Polzin said, adding that getting a critical mass of people downtown will support more restaurants, entertainment and other businesses.
"Certainly this is the trend across the country, particularly with the over 55 age, of selling the house and moving downtown. You see it in the big cities, you see it in the small communities, so we've studied this. There's a great demand for higher-end housing, along with affordable (housing) -- we're doing that at the orphanage," Polzin said. "And the way this building is positioned as I mentioned we're (going to) preserve the views that you have as you come down Baraga Street (sic). You'll be able to see the lake."
The development group in 2009 bought two parcels on the lakeshore, proposed its plan for Founders Landing to the state and were awarded mega tax credits, Polzin said. The city was also awarded 100 percent tax capture on all the increased tax value the development is expected to create.
Marquette Place follows the lakeshore condominiums and the Hampton Inn as part of the development plan.
"So we're taking it from $0 to over $50 million (in taxable value). We're halfway through that process right now. We have $25 million in place and being taxed," Polzin said. "We've completed five of the six condominium buildings -- we have 33 units completed, 32 of those are sold. We'll be starting that last building next spring, and of course the Hampton Inn. It's one of the leading Hampton Inn performers in their entire Hilton system and it worked out nicely there."
As part of the Brownfield plan through tax increment financing, the city can spend $22 million on public improvements, including the existing boardwalk, Polzin said. Other proposals include deep water boat slips, public access, public parking, a public fishing pier and development to connect Father Marquette Park to the lakeshore and link all the trails together, Polzin said.
Plans show space for a possible marina between rebuilt north and south piers just south of the ore dock by Ripley's Rock, but City Manager Mike Angeli clarified that isn't happening, saying the drawings were conceptual. He said the Michigan Department of Natural Resources is requiring the city to pull up the old dock pilings or reuse them.
"Those wooden pilings are solid, I mean they're gold," Angeli said. "We've opted for the reuse concept. … Originally, that area had been considered for a full marina, but we have since decided that we're going to fulfill our obligation to the DNR by reusing those pilings for a minimal docking system or a fish dock or some type of public access out on the water."
Angeli said he hopes there may be slip space there for boaters displaced by the reconstruction of the Presque Isle Marina.
Commissioners all expressed their support at both meetings, but some residents have been critical.
Frank Jeff Verito, who speaks at nearly every opportunity to harshly criticize commissioners, said the Founders Landing Development is not wise use of the lakeshore.
"Problem is, you're giving our lakeshore to the rich," Verito said. "We just opened a wine bar for the rich one block away. Tonight, you approved another drug license (sic) for a restaurant/entertainment venue nearby that also favors the rich. … You've stuffed our lakeshore full of obnoxious condos for the rich. How could we see this coming for 18 years, yet take no measures to stop the big-money interests from inundating our city?"
Matt Luttenberger, also a regular public commenter, said the plan doesn't look different from one put forward by a development group from Minnesota that the commission rejected in 2008.
"I'm not saying anything are wrong (sic), I'm just saying you pushed out a group of developers who were willing to work with you in favor of a group of developers who are now telling you the exact same thing, and that strikes a nerve with me as to why him (Polzin)? Why this group?" Luttenberger said.
Commissioner Sara Cambensy, who was absent at Monday's meeting, praised Polzin after his December presentation.
"I'm glad to see you up here and the project moving forward, I know there were some ups and downs on the way, but I'm glad to see it come to fruition," Cambensy said.
Though the plan has changed over the last decade, she said she thinks what people want is also changing.
"I think right now you have a plan that really fits what the majority of people are looking for and I think you'll have no problem marketing it, and I think it's (going to) be a success. Thank you for doing it. … It's (going to) capture a lot of taxes for the city, it makes sense. Thank you for doing that and investing in it."
Mary Wardell can be reached at 906-228-2500, ext. 248. Her email address is mwardell@miningjournal.net.