Marquette-based real estate developer Veridea Group LLC recently presented the City Manager Mike Angeli with a letter of intent to purchase about a half acre of the city-owned property for $221,000, which equals the property’s appraised price.

The letter expresses the developer’s wish to establish a multi-use facility with underground parking, with development anticipated to cost around $10 million of private investments. The development would result in the placement of permanent jobs in downtown Marquette, according to a November letter to Angeli from Veridea Group President Robert Mahaney.

“Veridea’s vision for the property is for the development and construction of a multi-use story mixed use building above a public underground parking structure,” Mahaney’s letter reads. “The potential mix of use groups includes retail, dining, office, and residential components. We envision a vibrant, dynamic mix of businesses and amenities that will invite both building tenants and the public to the Third and Main area.”

The two parcels proposed with the sale are currently zoned as central business district.

Currently used as surface parking, the property on the corner of Main and Third streets in Marquette, could be turned into a multi-use facility with underground parking if the Marquette City Commission approves a resolution that would allow real estate developers Veridea Group LLC to move forward with its proposal. (Journal photo by Jaymie Depew)

The city commission adopted an intent to sell resolution at a November meeting which directed the city manager to negotiate a sale of the property. Negotiations are authorized after a majority vote is met during a city commission meeting, which are open to the public.

Approving the intent to sell resolution gave interested firms or parties a chance to present a plan to city officials within 60 days. Whether the city received any other offers during that time could not be confirmed.

According to the contract, the developer will build at the developer’s expense, making improvements on the site totaling no less than $5 million. The underground parking lot should provide at least 50 parking spots, and other permitted uses of the property shall be used for office, restaurant, retail, residential, institutional or educational purposes.

The agreement states that construction of the project should be completed within three years after the effective date of agreement; otherwise the city can terminate the agreement.

According to tonight’s city commission meeting notes, the city manager, community development director and city attorney are “confident that, after several negotiation sessions with Veridea Group,” the terms presented in the “Purchase and Development Agreements will provide for sale and development of the property in agreeable terms to protect the city of Marquette while fostering development that will significantly increase the tax base of the downtown without seeking any public funding or commitment.”

Veridea Group has completed a variety of projects in the Marquette area such as mBank, Staybridge Suites and Upper Peninsula Health Plan, all along Washington Street, as well as The Residences at Harbor Vista, a 31-unit high end apartment building off U.S. 41 that started accepting applications earlier this year.

The Marquette City Commission will hold its regular meeting at 6 tonight in Commission Chambers at city hall, 300 W. Baraga Ave.

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