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County OKs hotel for old jail site

ESCANABA — The Delta County Board of Commissioners unanimously approved a revised 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 other nearby parcels. The vote took place during the board’s meeting Tuesday.

Interim Delta County Administrator Tom Sabor spoke briefly about changes to Proxima’s development proposal before the board’s vote was taken. The proposal was approved on a conceptual level during a joint meeting between the county board and the Escanaba City Council last month; however, some concerns with the project were discussed during the meeting and an Escanaba Planning Commission meeting held earlier on the same day.

“There have been a couple revisions as a result of the planning commission meeting and the joint meeting,” he said.

Among these changes were revisions to a contract clause that previously called for the prevention of the development of new, competing hotels or motels within an eight-mile radius of the project for a period of three years — with some exemptions, including currently-operating hotels and motels; the House of Ludington; lodging business projects currently in negotiations for development, construction or operation; and expansions to current hotels and motels — after Proxima is issued a Phase I Certificate of Completion.

Under the revised version of the clause, the city and county will have the option of introducing a resolution to prevent other hotel developments. The minimum length of the potential moratorium was also changed.

“It basically gives the municipality an option to enact that moratorium for six months only, if they so desire,” Sabor said of the change.

A section dealing with Proxima’s purchase and development of the county and city’s right, title and fee simple interest in properties adjacent to the municipally-owned property between Lake Michigan’s edge and Ludington Street and between the water’s edge and 3rd Street was also simplified. Previously, Sabor said this section consisted of about six paragraphs.

“The new, revised contract basically puts it down to one paragraph and is for a land contract,” he said.

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