Parcel 2 at Founders Landing in Marquette is pictured. Marquette Opportunity recently closed on parcels 2B and 2C of parcel 2, allowing the developer to begin construction on a three-story chain hotel. (Journal photo by Corey Kelly)

MARQUETTE — Construction can now begin on a three-story chain hotel to be located at a property adjacent to the Landing Condominiums along Lakeshore Boulevard in Marquette.

The Marquette City Commission on June 10 unanimously approved an assignment of interests in a purchase agreement between the city, Founders Landing Joint Venture LLC — a partnership between HRS Founders Landing LLC and Marquette Opportunity LLC — and Marquette Opportunity LLC.

This allows Marquette Opportunity to close on parcels 2B and 2C of Founders Landing, separate from any future closing on parcel 2A by Founders Landing Joint Venture LLC, according to city officials.

With the closing of the sale on parcels 2B and 2C, Marquette Opportunity can begin construction of the Marriott International-franchised Fairfield Inn on parcel 2B, located at 808 S. Lakeshore Blvd.

The hotel is estimated to be a $9.5 million project and anticipated to be over 16,600 square feet, containing around 90 rooms and providing 25 to 35 jobs, officials said previously.

A purchase agreement for the entirety of parcel 2, which is located near the northeast corner of Lakeshore Boulevard and South Front Street/U.S. 41 in Marquette, was initially authorized by the commission in October, with the developers agreeing to pay a total of $1.1 million, 100 percent of the property’s value. With the approved assignment of interests, parcels 2B and 2C will be purchased by Marquette Opportunity for around $473,000 and $194,000, respectively.

The reason for the commission’s decision is that Founders Landing Joint Venture LLC — which has previously said it plans to build townhomes in the $300,000 to $350,000 price range on parcel 2A — requested an extension of due diligence, while Marquette Opportunity “wanted to begin their construction immediately” as its due diligence had been completed, City Manager Mike Angeli said.

“This action will allow them to close on that parcel of the property and begin the construction,” Angeli told the commission.

Through the due diligence period for Marquette Opportunity, the plan for the hotel was approved under administrative site plan review and “was completely in compliance with the form-based code,” Marquette Director of Community Development Dennis Stachewicz said.

With the approval of the assignment of interests, Founders Landing Joint Venture LLC “shall be entitled to continue its due diligence investigations until the expiration” of the due diligence period at 5 p.m. July 8, according to city documents.

The commission also unanimously approved a local development agreement with Marquette Opportunity LLC for parcels 2B and 2C of Founders Landing, which is the last obligation for both parties and “outlines responsibilities for each party with regards to the development of the property,” the agreement states.

According to the agreement, Marquette Opportunity is required to commence construction within three years after the effective date of the contract and complete the construction within five years, with a maximum of two one-year extensions allowed.

Cecilia Brown can be reached at 906-228-2500, ext. 248. Her email address is cbrown@miningjournal.net.