Estimator and Project Manager Jon Gartland of Roy Ness Contracting & Sales Inc., 1801 N. Lincoln Road, Escanaba, has budgeted labor, material, tools and equipment for the project at $343,300. This budget excludes zoning, various permits, bar equipment or furniture, and more.

The total cost overview of the rehabilitation is projected to be $761,844.45.

The two-story, 1890 building has a total of 3,945 square feet. The restaurant was on the ground floor, with the upper level utilized as office space.

“The building will be converted to a high-end martini lounge serving specialized martinis, high end cocktails and beer. It will also feature to complement the lounge, high end appetizers,” states a letter in reference to an Obsolete Properties Rehabilitation Act application written by Curt Spaulding.

Roy Ness Contracting & Sales Inc. plan to keep the bar inside the former Crispigna's Restaurant, 1213 Ludington St., as pictured in the Escanaba City Council meeting packet. Public hearings have been set for Oct. 2 on converting the space into a high-end cocktail lounge. (Photo sourced from the Escanaba City Council meeting packet)

The owner of 1213 Ludington St., Spaulding Real Estate LLC, has requested the city establish an OPRA district for the project. The Obsolete Properties Rehabilitation Act allows for partial exemption of property taxes for a specified period within a specified area for certain types of property improvements.

This legislation encourages the rehabilitation of underutilized or decaying commercial or commercial/residential properties in certain communities such as Escanaba.

City Manager James R. McNeil also noted the applicant, Spaulding Real Estate LLC, is seeking a grant from the Michigan Economic Development Corporation, based in Lansing, Mich. The applicant has received a letter of intent from the MEDC to grant funds for the project, and part of receiving that funding is proving city support. The discussion between the city and applicant led to requesting said OPRA, McNeil said.

Crystal Martin, the property assessor, evaluated the building and verified at Thursday’s council meeting that it meets the OPRA criteria.

“In the professional opinion of the assessor, the property suffers from functional obsolescence exceeding 50%,” Martin wrote in a Statement of Obsolescence from Assessor.

Water damage in the ceiling of the former Crispigna's Restaurant, 1213 Ludington St., as shown in the Escanaba City Council meeting packet. (Photo sourced from the Escanaba City Council meeting packet)

Martin also photographed the damage throughout the building, including significant ceiling damage and water damage. An assessment photograph caption states they will be keeping the bar.

The first public hearing Oct. 2 will be for consideration of the Obsolete Rehabilitation District, while the second is for public understanding of the project.

In other news, the council:

— Set a public hearing for Oct. 16 on doing a 24-foot-wide double chip seal roadway overlay treatment from 20th Avenue South to 22nd Avenue South on South 18th Street. The public hearing is required for the proposed special assessed improvement project.

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Sophie Vogelmann can be reached at 906-786-2021 or svogelmann@dailypress.net.