David Nyberg, executive director of business engagement and economic development at Northern Michigan University, speaks to the Marquette Brownfield Redevelopment Authority on Thursday about the tentative agreement between the NMU Foundation and UP Health System - Marquette regarding development of the former hospital campus along College Avenue. The project is expected to involve government and private-sector partners. (Journal photo by Christie Mastric)

MARQUETTE — The Northern Michigan University Foundation is working with UP Health System – Marquette and other partners toward the development of the former hospital campus along College Avenue.

“The Northern Michigan University Foundation has entered into an agreement with UP Health System – Marquette designed to catalyze resources and additional partnerships that will advance opportunities to realize the best use of the former hospital property,” it said in a statement.

“We are collectively working with UPHSM and the city of Marquette, Marquette County and private sector partners to conduct due diligence on the viability of a partnership that would result in a transformational and mutually beneficial outcome for our community and Northern Michigan University.”

UPHS – Marquette also released a statement.

“UP Health System – Marquette is excited to have reached a tentative agreement with the Northern Michigan University Foundation to transfer the previously occupied hospital property on College Avenue,” it said. “All along, our goal has been to identify the right organization to redevelop this property in the best interest of the surrounding neighborhoods and the community we serve — and we look forward to seeing this campus revitalized.

“More work needs to be done, but we remain focused on the due diligence process and thoughtful approach to this significant project.”

David Nyberg, executive director of business engagement and economic development at NMU, spoke on behalf of the foundation at a Thursday meeting of the Marquette Brownfield Redevelopment Authority.

The authority agreed to allocate up to $52,900 from the Local Brownfield Revolving Fund to the foundation for activities such as due diligence — or evaluation — and predemolition surveys, among other actions.

The terms of the agreement, Nyberg said, are confidential.

“Our agreement contemplates what will happen next,” Nyberg said. “If we get through the due diligence period and we know that the project is financially and practically feasible, we’ve gone through all the preconstruction environmental due diligence, the NMU Foundation would take possession but would immediately, maybe even prior to, issue a solicitation for a master developer/partner in the project, and the NMU Foundation essentially would become an equity investor in the project.”

He stressed that the developer would own the property, meaning it would come back on the tax rolls.

Nyberg said it is hoped the foundation will have a better idea of its options and opportunities by the end of February.

He stressed the foundation will work “hand in glove” with the MBRA during the due diligence period.

“It’s been our objective to be as transparent as possible with local leadership, with the county and city, so we’ve had some preliminary conversations to brief them on the scope of this project,” said Nyberg, who added that he and Steve Arwood, a private consultant for the foundation, are engaged with the Michigan Economic Development Foundation as well.

There also is potential state support for the project, he said.

“We really view the foundation as an enabling entity to make this happen because of our status and our mission,” Nyberg said. “Our mission is to develop and steward resources that benefit Northern Michigan University. There’s also a community mission that’s involved in that, so consistent with the foundation’s mission, we are pushing this project forward, hopefully to catalyze what would be a broad partnership with (the) public and private sector to make this happen.”

Arwood said the only building on the former campus currently used is the Neldberg Building, although with only the limited use of about 50 to 75 people who work there.

It is expected beneficial baseline information for the property, whoever develops it, will be gathered during the due diligence period.

“The work that we’re doing is going to get done, and if this for some reason can’t happen now, the work’s done,” Arwood said.

In 2019, the Veridea Group backed out of a purchase agreement of the former hospital campus after what it called “significant issues” were discovered during due diligence that affected its ability to execute the plan, and notified the hospital’s owner, LifePoint, of the decision.

UPHS – Marquette moved from the College Avenue site to its new location along Baraga Avenue in 2019.

The Veridea Group, however, has connections with the current project.

“We’ve requested support, through a contract basis, with the Veridea Group, locally here in Marquette,” Nyberg said. “Veridea has not only agreed to provide support in that regard through the due diligence period, but they’ve also agreed to provide it pro bono.”

Arwood indicated the project probably would be finished in several phases and would take between five and seven years to complete.

The project’s objective, Nyberg said, is to have a “transformative, positive impact on this section of the city.”

“There’s a need for housing and there’s a need for other amenities, including cultural green space,” Nyberg said.

Christie Mastric can be reached at 906-228-2500, ext. 250. Her email address is cbleck@miningjournal.net.