Public gets look at old jail site plans

ESCANABA -- Four groups seeking to redevelop the former sites of the Delta County Jail and Chamber of Commerce building shared their plans with residents during a special meeting of the Escanaba City Council Tuesday.

The meeting attracted so much public interest that the Escanaba City Hall council chambers were unable to accommodate all of the Delta County residents attending, forcing some to watch the proceedings on a television in the lobby. Despite the interest, few community members who were not affiliated with public or private entities that promote tourism -- such as Visit Escanaba and the Escanaba Downtown Development Authority -- spoke during the meeting's two public comment sessions.

The developers themselves, however, largely represented a who's who of Delta County business people and developers. Included on the list were Jarred Drown and Rick Elrod of the Terrace Bay Hotel; Matt and Beth Sviland of Swanee, Inc., which developed The Lofts on Ludington; and Aaron Kadish, project manager for North Shore Marine Terminal & Logistics.

Only one project, a hotel project known as the "Red Deer Lodge," was presented by developers from outside Delta County. That project's developers hailed from the Lower Peninsula.

Tuesday's meeting was part of a process developed by a jail redevelopment committee featuring county, city and community representatives. It kicked off with the drawing of projects from a hard hat.

"I just want to thank everyone who put the work and the time into these proposals. They were excellent," said City Manager Patrick Jordan prior to drawing the projects.

HAMPTON INN

First to present was Terrace Bay Hotel, LLC, which aims to create a Hampton Inn hotel on the old jail site. The $12 million project includes a 49,000 square-foot, 80-room, four-story hotel constructed in a contemporary design. The hotel would include an indoor swimming pool and meeting space.

"This proposal is trigger ready, and every penny of that $12 million is going to be invested locally," said Drown.

The project is expected to create 25 to 30 new jobs. Demolition of the jail building would begin this summer with the groundbreaking set for the spring of 2023. The hotel would be completed and have a grand opening sometime in the summer of 2024.

"There is a shortage of lodging in Delta County, and this has also created a ripple affect, which is a housing shortage. The way to fix this housing and lodging shortage is clearly more lodging," said Drown. "AirBnBs and VRBOs have proliferated in Delta County due to a shortage of hotel rooms. An investment in hotels will decrease the need for additional AirBnBs, VRBOs and short term rentals, which will then reduce the strain on housing supply."

Because the jail property is also being packaged with the former Delta County Chamber of Commerce building, many of the projects presented Tuesday included second phase projects for the Chamber of Commerce site. While Terrace Bay Hotel, LLC, did not have cost estimates or a timeline for the second property, Drown suggested the property would be developed into an additional hotel facility and possibly offices for a dinner cruise operation.

Terrace Bay Hotel, LLC, is working with Embers Credit Union, formerly Delta County Credit Union, and the Small Business Administration for financing the project.

NORTH SHORE MARINE

The second developer to present was North Shore Marine Terminal and Logistics. Unlike the other developers, Kadish did not present a slide show to showcase plans for the site.

"We don't have a big, fancy presentation. Our presentation is down there on the water," said Kadish.

The jail site sits between two properties currently owned by North Shore Marine, and acquiring the property would allow the ship repair portion of the business' operations to expand to either include an additional ship or to allow for larger ships to be worked on at the facility.

Kadish was not sure how many jobs the expansion would create, but, based on the 700 people who are currently registered as secured personnel for the business' military contracts, it could be 100 or more. Between 10 and 15 jobs would be created in the construction phase.

"Putting those two properties together to us just makes the most sense for the community because it brings that work, it brings those jobs in there so other professionals can come to the area. Not just come here to visit on a weekend, eat at a restaurant, and stay in a hotel -- Live here. Stay here," said Kadish.

If North Shore Marine is awarded the project, construction of the seawall would take place this summer and the demolition of the jail would follow its completion.

North Shore Marine does not intend to develop the former Chamber of Commerce building area, potentially allowing one of the other three developers to move forward with their secondary projects.

"Our current interest is primarily the jail property. We would be open to splitting it or working with somebody else on the other property for the type of development that was presented and will be presented as we go forward in the meeting today," said Kadish.

The project, which North Shore Marine Terminal and Logistics would entirely self-fund, also includes dock space to house a museum ship as a local attraction, greenspace, and visitor parking.

RED DEER LODGE

The third project presented Tuesday was from the Red Deer Lodge Development Team, which aims to put a upper-midscale, extended-stay hotel on the site. The hotel would have more than 80 rooms and be a Home2 hotel by Hilton.

Development of the hotel would begin next year with the hotel open and operational in the second half of 2024.

The project is expected to create roughly 100 jobs during the construction phase. Roughly 30 additional full- and part-time jobs would be created once the hotel was operational.

Red Deer Lodge Development Team's plan for the Chamber building site is a mixed-use development composed of condos and retail spaces. Plans for the site are currently more fluid than the jail site, with multiple styles of buildings being considered.

Over the course of the project, the team anticipates a $36 million to $40 million investment across both sites.

"We would love to become a part of your community. We would love to put capital into it. And we don't just see three phases. We see the fourth phase and the fifth phase. We have ideas to help the city achieve whatever goals they have," said Michael Pollakowski, general manager for the Red Deer Lodge Development Team.

NORTHSHORE FLATS

The final presentation Tuesday was from Swanee, Inc. The group aims to put a minimum of 27 condominiums across three buildings on the jail site and a mixed-use building on the Chamber of Commerce site, which would include 44 apartments as well as retail spaces. The condos would retail between $475,000 and $600,000, and rent in the apartments would range between $700 and $1,600 a month.

"Last week alone we had nine calls from people moving to the area looking for an apartment. We average at least two requests per week year-round for apartments and we haven't had a vacancy in the last two years," said Beth Sviland, referencing Swanee's existing rentals.

If selected as the developer for the site, Swanee would demolish the jail and begin brownfield mitigation this summer. Ground would be broken on the condominiums in April of 2023, with construction completing in December of 2025. The redevelopment of the Chamber site would start with the demolition and mitigation of the Chamber of Commerce site in 2025, with the apartment and mixed-use complex being constructed between September of 2025 and December of 2027.

Both the condo buildings and the apartment complex would be four stories tall, with indoor and outdoor parking. The retail spaces attached to the apartment complex would include an event space, a fitness center and a restaurant.

In total, the project is anticipated to cost $36.9 million. While Swanee does intend to access tax incremental financing assistance from the city -- something all of the other developers with the exception of North Shore Marine also indicated they would pursue -- Swanee believes it has a pathway to state funding that will reduce the payback period, ultimately reducing the impact of the jail's brownfield status on the city's tax base. In addition, Swanee has secured financing from BayBank for the project.

"Our team has the extensive experience and the technical know-how to utilize the governmental initiatives that are necessary -- that are necessary, to transform these brownfield sites into beautiful and useful properties," said Matt Sviland.

No decisions were made Tuesday on which developer would be offered the two sites. A survey for residents to weigh in on the future of the jail and Chamber building sites is available online at www.escanaba.org.