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Escanaba council approves rezoning land for condos

Escanaba Planning & Zoning Administrator Joey Walker addressed the city council at its meeting Thursday to advocated for rezoning property near Willow Creek Road and Third Avenue South.

ESCANABA – Escanaba City Council on Thursday voted to adopt an ordinance to rezone property near Willow Creek Road and Third Avenue South for a proposed condominium project.

The vote came after a second reading and public hearing on the topic, during which Planning & Zoning Administrator Joey Walker addressed the council.

“From all of our surveys and charrettes leading up to our new master plan process, we’ve heard again and again and again that we need more housing, we need more types of housing and I think this presents a great opportunity for both of those things,” Walker said.

Ordinance 1315 will modify the 5.17-acre parcel, formerly owned by the city, from Open Space “O” district to the Residential “C” district. In October, the council accepted Old State Development LLC’s $75,000 bid for the land while rejecting the only other bid, submitted by Mike Segorski, treasurer of the Delta Conservation District, for $55,000 to keep it as “green space.” Appraisal Services appraised the property at a fair market value of $35,000.

Old State Development plans to build 25 condominiums in the space. Over a 30-year period, the condos are estimated to draw almost $5.2 million in city property taxes, about $2.5 million in city utilities and about $7.2 million in other property taxes, City Manager James McNeil said.

Old State Development’s bid on the property notes their target consumers for the condominiums are “Age 50+, middle-to-upper income, with an interest in energy efficiency, convenience, and community.” The marketing plan also outlines the possibility of Upper Peninsula residents “who have lived elsewhere and are ready to move back to the area.”

The plans and rezoning sparked some criticism in the community after city council in September reversed a 1977 decision to designate the parcel for public and recreational use, after a developer made an offer on the land. The property was initially designated for park use under the Open Space “O” zoning.

The rezoning will take effect 10 days from its passage Thursday.

In other business, the council:

– Heard City Manager James McNeil’s announcement to step down from his role in May. Asked by the Daily Press for further details, McNeil stated, “I am unable to say too much at this point, but I hope to be able to provide details in the new year. I can say that I will be forming a new business in Escanaba.”

– Approved the purchase of Solar PV Modules for the Whitetail Solar Farm to be placed at Whitetail Industrial Park on 19th Avenue North in Escanaba. The council approved Peninsula Solar, a bidder for the project, for a total of $1,052,082. Electric Utility Director Gerald Pirkola addressed the board to discuss details of the modules. McNeil noted that because of the direct pay tax incentive for renewable energy projects, which is part of the Inflation Reduction Act of 2022, demand is high to procure the modules before the end of the year.

– Held the first reading of the city’s Electric Rate Ordinance, which will amend city electrical rates, demand and availability of service. Energy rate classifications include residential, $0.10927 net per KWH used per meter per month; commercial, $0.10223; and water heating, $0.10436. The second reading, public hearing and adoption of Ordinance No. 1316 is set for the Thursday, Dec. 18, council meeting.

– Approved the regular annual council meeting schedule for 2026.

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