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Council OKs hotel property sale

ESCANABA — The Escanaba City Council unanimously approved the ratification of the purchase, sale and development agreement with Proxima Management Group for its plans to develop a hotel at the site of the former Delta County Correctional Facility and waterfront properties jointly owned by Delta County and the city. The vote took place during the council’s meeting Thursday night.

“This may be the most important thing we do during our terms,” Mayor Marc Tall said.

The approval comes after the Delta County Board of Commissioners unanimously approved the revised purchase, sale and development agreement during its board meeting earlier this month.

The $18.3 million project proposed by Proxima is a four-story, 80-90 room, upscale or upper mid-scale hotel built on the land of the old correctional facility site owned by the city and county, the old Delta County Chamber of Commerce building, and a parcel directly to the east of the building.

Council member Ralph Blasier motioned for the ratification of the agreement, noting the living, breathing nature of the contract with Proxima and that there will be amendments in the future. Council member Peggy O’Connell seconded his motion and it was unanimously approved by the council.

During the meeting the council also unanimously approved other various purchases, purchase agreements/land contracts and deeds for lands affiliated with the Proxima project.

The council unanimously approved the purchase of the .62 acre bottom-lands parcel adjacent to the chamber building for $15,900.

They also approved the purchase agreement and land contract with Proxima for the old Commerce Center building, property and the contiguous property to the east.

The purchase does not include the city’s Municipal Dock area.

City Manager Patrick Jordan noted the current agreement for the land has the purchase price listed as $300,000. He explained the price is subject to change pending the results of the appraisal of the land, which was just done Monday.

An item on the agenda that was added in the beginning of the meeting was approved, as well. It was the quick claim deed from the Michigan Department of Environment, Great Lakes and Energy (EGLE) for the bottom-lands the city had already purchased from EGLE.

“We received a quick claim deed in the mail … from the (EGLE) from Tom Graf for the bottom-lands that we’ve already purchased from the state that are under the jail. We’ve already sent out the check for $23,000 — $23,700 I think,” Jordan said.

He explained to transfer the deed over cleanly and to be able to get a fee simple interest deed on this property, the city needs to quick claim the deed.

Before and after the council approved the purchases and land contracts, various voices of the community got up and spoke on the future development of the waterfront property in Escanaba.

Ed Legault, the director of the Escanaba Downtown Development Authority and a member of the chamber of commerce board, and T.J. Thomas, the director of the Delta County Economic Development Alliance, both spoke in favor of the development of the waterfront area and the impact it will have for years to come.

“As an individual who was a part of this process for over the last year, I really want to commend the council tonight on accomplishing a vision that has been in the works for, as we know, well over two decades,” Thomas said.

Legault also commended the council in how they studied the project and thoroughly looked at everything before approving the contract.

“Mayor Tall mentioned that it’s probably one of the biggest opportunities … during your term. I would view this as almost a generational type project for our downtown,” Legault said.

A couple residents also spoke on the future project.

Mary Levesque, a resident, voiced her concern with the overall necessity of the project. She said the city of Escanaba already has hotels, motels and what the city actually should look into is a nice retirement facility for people like herself moving back to the area.

“I think it’s an income-base that this town is missing out on — guarantee income-base this town is missing out on by not having some nice retirement apartments,” she said.

Resident William Gasman said although he felt the project would be good for the economy, he also felt the city should be looking into investing in housing for retired individuals not in the low-income bracket.

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