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Depot deal

City to begin negotiations for sale of property near Fifth Street depot building

The depot property at 200 S. Fifth St. in Marquette is pictured. The Marquette City Commission at its Monday meeting unanimously voted to allow the city manager to begin directing the sale of a portion of city-owned property adjacent to the depot. The Marquette-based Wealth Strategy Group submitted a purchase request for the city-owned property near the depot, as the group is currently in the process of purchasing the depot property and hopes to complete renovations on the building by next summer. (Journal file photo)

MARQUETTE — Renovation and reuse of the historic depot property at 200 S. Fifth St. in Marquette could be moving forward in the coming year.

After the Marquette-based financial advisory, wealth management and consulting firm Wealth Strategy Group submitted a request to purchase a portion of the city-owned parcel directly adjacent to the depot, the Marquette City Commission at its Monday meeting authorized City Manager Mike Angeli to begin directing the sale in accordance with city code.

“We are excited about the potential of restoring the depot and creating the new home for Wealth Strategy Group,” states an Aug. 14 letter from the business to Assistant City Manager Jennifer LePage.

However, due to a “property description error,” the southern property line of the site is farther north than initially believed, essentially running through the depot structure.

For Wealth Strategy Group, or WSG, to repurpose the building, it had to acquire a city-owned parcel immediately south of the depot property along Fifth Street.

WSG is also in the process of acquiring the depot property from local attorney Karl Numinen, who had attempted to buy the southern strip from the city earlier this year and convert the entire property into a jazz bar.

In April, a purchase agreement was executed between Numinen and the city that required closing on the property within 60 days, but the agreement expired per those terms. The city more recently received the purchase offer from WSG for $4,125, which is the appraised value and price previously offered.

The agreement between WSG and Numinen is contingent on WSG acquiring the southern parcel from the city, and it is WSG’s “intent to research all potential restoration grants that may be available for renovation of the depot prior to putting together a final package for financing,” a letter to the city from WSG states.

The company plans to pay off the land contract, take title and execute the agreement with the city once financing is approved, the letter states.

Due to this, WSG has asked that its agreement with the city “have a time frame for closing of up to six months to ensure enough time to complete all contingencies and receive approval for any grants available for the restoration.”

WSG officials said in the letter that “it is our hope to complete renovations by the summer of 2020.”

The commission also approved a resolution authorizing partial redemption of 2013 capital improvement and refunding bonds for Founders Landing at the meeting.

The bonds were issued in 2003 and refunded in 2013 for the public portions of Founders Landing.

However, property has been sold and the city has accumulated sufficient funds in order to pay off the remaining debt service principal of around $1.1 million, city notes state. With approval, the bonds will be redeemed on or around Monday, which is about four years earlier than the original bond maturity scheduled for 2023.

Due to this, redeeming the Founders Landing bonds will eliminate annual debt service payments in the amount of $290,000 through the year 2023, city officials said.

Cecilia Brown can be reached at 906-228-2500, ext. 248.

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