Architectural rendering of the proposed apartment complex and restaurant that is being planned for construction on the former Chassell Mercantile site on U.S. 41 in Chassell. (Courtesy of Northern Lights Architecture and Marusich Architecture)

HOUGHTON — The Houghton County Board of Commissioners on Tuesday approved resolution of support of the redevelopment of the Chassell Merchantile site located on Wilson Memorial Drive, in Chassell.

The redevelopment $4.5 million project, led by T&J Properties, of Chassell, calls for the construction of a 22-unit housing project that will include a 2,000 square-foot restaurant on the ground floor. The plan includes a single parking space for each one-bedroom apartment, and two spaces for each two-bedroom apartment, with more being provided within walking distance as needed.

James Marusich, of Northern Lights Architecture, said in March that the planning of the preliminary design began in May, 2023.

The property is currently owned by the Houghton County Land Bank Authority, which has been working with the developers and Chassell Township.

At a public hearing that occurred before the County Board meeting, Jeff Ratcliffe, executive director of the Keweenaw Economic Development Alliance, said additional funding sources for the project include a Michigan Economic Development Corporation’s Revitalization and Placemaking Grant program worth 1.5 million dollars.

“There is about 42,000 of local support for infrastructure as well infrastructure as well as the value of the site,” Ratcliffe said. “We’re looking at an $850,000 Brownfield Tax Increment Finance (TIF) plan. So again, this will be tax increment finance… paid, the taxes paid, the money paid back over time. And then there’s owner equity and bank financing. Bank financing is in place, and owner equity that is guaranteed, is committed.”

In the past, the Brownfield program allows the use of tax increment financing sites capturing the taxes above the current taxable value of a property for X number of years, Ratcliffe said. Additionally, subsequent amendments allowed the use of brownfield tax capture for the redevelopment of what they need properties, especially in core communities where the county seats are or land bank property. So again, you could use the capture of tax increment finance or revenues on those properties to defray the eligible cost to redevelop those properties. 

Keith Meyers, vice chairman of the Chassell Township Planning Commission, who was present at the hearing, said he wanted to offered the County Board the support of the Planning Commission. The project he said, was unanimously supported by the Planning Commission, with the exception of one member, who abstained as he was involved in the project.

“But again, this is very meaningful to our community, particularly from the standpoint of our schools,” Meyers said. “In terms of building school age population for our community, we feel that for two reasons: One, there’s going to be an opportunity for new residents to move into the community, into these or into this location, but we’ve also had a number of older residents in the community. We’ve expressed a strong interest in being able to move into this project and remain in the community without having to leave Chassell.”