The UP Health System-Marquette Hospital, which officially opened in June along West Baraga Avenue in Marquette, is pictured. The Beacon House, a hospitality house that gives patients and families a place to stay during times of medical crisis, has been in the long process of constructing a new Beacon House near the new hospital. A decision made by the Marquette Brownfield Redevelopment Authority Thursday brings the nonprofit closer to constructing its new home. (Journal file photo)

MARQUETTE — The Beacon House, a Marquette-based hospitality house that provides patients and families with a place to stay during periods of medical crisis, is getting closer to constructing its new home near the recently opened UP Health System-Marquette hospital campus.

The Marquette Brownfield Redevelopment Authority at a special meeting Thursday morning unanimously approved amendments to the post-closing and reimbursement agreement between Duke LifePoint, the city of Marquette and the brownfield authority regarding the 37-acre property the hospital sits on, which the city sold to DLP for around $4 million.

These amendments essentially allow the nonprofit Beacon House to purchase around 1.8 acres of the east portion of the hospital property and ensure ownership will return to Duke LifePoint in the event the Beacon House ever ceases to operate on the parcel.

“You should start to see the Beacon House construction happening shortly, and that the families who use that very important service will be able to then have a building to use again,” said Kellie Holmstrom, chairwoman of the MBRA.

The matter will go before the Marquette City Commission on Monday for final approval.

This step was needed, city officials said, as the Beacon House had originally intended to do a long-term lease on the land from the hospital, with the hospital paying property taxes, but could not do so.

“The Beacon House is a nonprofit organization. They needed to be sold that property in order to have the construction occur,” Holmstrom said.

Due to this, Duke LifePoint and Beacon House have executed a purchase agreement for the Beacon House to purchase the parcel, city officials said.

“The current arrangement is a fee simple transfer of the property to Beacon House, which is a tax-exempt entity and not subject to property taxes,” information provided to the MBRA states. “This arrangement is not anticipated to (have) a significant impact on overall taxable value and the brownfield plan, because of the relatively small parcel in relation to the full property, and the hospital’s actual taxable value is about twice the estimate used in the brownfield (plan), based on a minimum investment of $170 million. The actual investment was approximately $350 million.”

However, there were provisions in the original post-closing and reimbursement agreements that would require DLP to repay any remaining unpaid debt service obligations — up to $20 million for city bonds related to the brownfield and tax increment finance plans for the new hospital and relocation of Marquette’s Municipal Service Center — if any of the lands ended up in the hands of a tax-exempt entity.

“The primary purpose of this amendment is (to waive) the provision in both the post-closing and reimbursement agreements that says if they sell to a tax-exempt entity, then DLP has to pay off all of those bonds immediately. That was intended in case if the whole hospital went, not a small portion of property sold,” said Mac McClelland, a consultant on the project hired by the MBRA.

While the matter still needs to come before the Marquette City Commission, it is a move in the right direction, Beacon House officials said.

“We are so grateful and energized by this step that was just achieved with the Brownfield Redevelopment Authority approving the amendments. This is a very important step toward the new Beacon House development,” said Mary Taverini Dowling, CEO of the Beacon House. “Now, we are focused on the next step which is to receive City Commission approval of their amendments at the Commission meeting next Monday night. We are hoping for a positive outcome, and will then be able to move forward with our plans.”

The Beacon House has been working to raise funds for its new home, as it needs around $3 million to break ground on the site. Taverini Dowling previously said the nonprofit is around $700,000 away from its goal.

Because the original Beacon House building along Third Street in Marquette was sold over the summer and the new Beacon House has yet to be constructed, the Beacon House is currently assisting those in need through its Operation Overnight program, officials said previously.

Those who need assistance with lodging can call 906-225-7100.

To make a donation to the Beacon House, visit www.upbeaconhouse.org/capital-campaign.

UP Health System-Marquette officials did not respond to a request for comment before press time.

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