Northern Mich~Mash Preserve
"THE HOLE" ~ "THE PIT"
PDP ~ Petoskey DISappointe Pit
(sometimes referred to now as "Vacant Block")
200 East Lake Street, Petoskey, Michigan
The design and compilation of the text and photos on this site are copyrighted 2017.
Most posted items will enlarge by "clicking" on them.
"Clicking" on some color highlighted words may access additional information.
Most posted items will enlarge by "clicking" on them.
"Clicking" on some color highlighted words may access additional information.
Please do not copy the photos on this site, many of which have been submitted by private individuals...
just come back and visit the site often to view the photos.
just come back and visit the site often to view the photos.
Transformational Brownfields (2017 Michigan Law) are addressed toward the bottom of this web page.
It is documented that a Brownfield Plan, with the TIF, will be in the works for the HOLE...
Costing, significantly, every Emmet County taxpayer, not just City of Petoskey taxpayers.
It is documented that a Brownfield Plan, with the TIF, will be in the works for the HOLE...
Costing, significantly, every Emmet County taxpayer, not just City of Petoskey taxpayers.
While the Public has referred to this 200 East Lake Street location as: The Pit, The Hole, and Petoskey DISappointe Pit, the multiple developers have given the following...
EVOLUTION of Preferred Names for 200 East Lake Street, Petoskey, Michigan
1983 ~ The 200 Centre (DeGaynor)
1986 ~ The Second 200 Centre Project
2002 ~ Lake Street Petoskey Associates
2005 ~ Petoskey Pointe
2013 ~ Petoskey Center
2014 ~ Sunset Square AND New Arlington Place
2018 ~ Petoskey Gateway
2018 ~ Petoskey Grand LLC (Company LLC Name)
EVOLUTION of Preferred Names for 200 East Lake Street, Petoskey, Michigan
1983 ~ The 200 Centre (DeGaynor)
1986 ~ The Second 200 Centre Project
2002 ~ Lake Street Petoskey Associates
2005 ~ Petoskey Pointe
2013 ~ Petoskey Center
2014 ~ Sunset Square AND New Arlington Place
2018 ~ Petoskey Gateway
2018 ~ Petoskey Grand LLC (Company LLC Name)
~ Chronological DISorder of Petoskey DISappointe, The Pit, The Hole ~
(per a Petoskey News Review article consolidation)
PLUS... other sources
(per a Petoskey News Review article consolidation)
PLUS... other sources
ORIGINALLY part of Ignatius and Lewis Petoskey addition... downtown Petoskey
1947 Edmund Dean was sole owner of Northern Auto Company on The Hole property
1983 Jeffrey DeGayner [200 Centre] partially remodeled the Ford Building... defaulted on option to buy in February 1984
1986 Lester N. and Sandra B. Turner (NOT related to Richard Turner whose estate owned part of The Hole property) made an unsuccessful attempt to develop the Ford Property [200 Centre]. DeGayner and Richard Turner were both killed in an airplane crash 26 March 1986 in Boyne Valley Township.
1987 Petoskey City Manager Korthauer led site exploration for recommended new Petoskey City Hall
1991 Ford Garage Demolished
1994 Site was cleaned of SMALL amount of toxic waste, except one little area supposedly
1996 Northwestern Bank Traverse City acquired the Richard H. Turner Estate properties
2001 City using some of the property for parking
2002 Lake Street Petoskey Associates (LSPA formed in 2003) assessed block development
2003 Petoskey Planning Commission discussed Lake Street Petoskey Associates' ideas, and possible zoning changes
2004 Petoskey City Council discussed proposals with Public... City Council approved Petoskey Pointe plan
2005 Zoning changes proposed to disallow the project
2005 Voters kept zoning and thus project moved forward... named Petoskey Pointe
2006 Block of buildings demolished after city's mayor Meyer and manager Korthauer transferred city land (no performance bonds)
2006 Citizens paid for upgrading of infrastructure near the block
2006 Opponents brought to light that false data had been submitted in Brownfield application for Brownfield money
2007 Block site excavated and readied for foundation
2007 Financing troubles stalled project with hole dug, but no foundation
2008 Lake Street Petoskey Associates reneged on deadline with city for parking agreement
2008 City Council backed off on time frame to give time for new financing
2009 Developers went into default with National City Bank
2009 Council terminated the parking purchase as foreclosure began; city demanded 1.1 million payment from LSPA
2010 PNC Bank bid to buy site at foreclosure auction
2010 Lake Street Petoskey Associates filed bankruptcy protection
2010 PNC Bank took over the property to sell to Lake Street Holdings LLC
2011 Northwestern Bank was the owner of Lake Street Holding LLC, but was then called Downtown Petoskey LLC
2012 City Council's independent engineer stated the retaining wall lining was unstable
2012 Different engineering firm recommended action be taken to prevent additional instability of the walls
2013 Northwestern Bank proposed partial filling to maintain stability of the wall.
2013 Robert "Bob" Mossberg's The Cottage Company of Harbor Springs, Michigan, and Landmark Development Corporation [Principal Tom Johnson], initiated, then stopped its pursuit of the site. Quickly, Elias Amash purchased the property in late December 2013.
2014 Amash's team revealed his vision for mixed-use development, called New Arlington Place [Sunset Square?]
2015 Amash, a Grand Rapids, Michigan, businessman, put the project on hold.
2015 Socks Construction of Traverse City made a proposal to buy the site, and proceed with Amash's plans. City did not act on the grant funding.
2015 Socks Construction quit purchase of property from Amash.
2017 No movement or changes made by Amash.
2018 (July) Proposed plans from Tom McIntyre (Traverse City Developer) ~ Petoskey Gateway
2018 (30 October 2018) Petoskey News Review reported on 26 October 2018 the Pit (Vacant Block) had been purchased by Robert Berg's company called Petoskey Grand LLC.
2019 (January) Petoskey City Council voted unanimously to restore The Pit to the original pre-2006 zoning, eliminating the existing PUD.
2019 (March) Brownfield, TIF, and "corporate welfare" being considered for development of the PIT. Entities to consider proposal will include voting entities locally: Emmet County Brownfield Authority, City of Petoskey, Petoskey's Downtown Development Authority, Emmet County Board of Commissioners. Following local consideration, state level groups will have final approval.
2019 (21 March 2019) Bob Berg and his business partner/daughter Katie made a presentation to the Petoskey Planning Commission for future plans of The Hole/Vacant Block.
2019 (25 July 2019) The Petoskey Planning Commission vote could not support the proposed PUD after the developer's outburst demanding "an all-or-nothing, no negotiating, no options, decision."
2019 (October) Mr. Berg gives Mayor Murphy an ultimatum of not moving forward with the developer's Hole plan as long as the mayor is in office AND Mr. Berg made a "defamation" lawsuit threat against Councilwoman Marshall.
2021 (April) Judge Charles W. Johnson ruled "Defendant's (Petoskey's) park resolution is illegal and void" because the resolution exceeded the scope of Defendant's (Mr. Berg's) rights under a street right-of-way.
2022/23 NOTHING has happened.
1947 Edmund Dean was sole owner of Northern Auto Company on The Hole property
1983 Jeffrey DeGayner [200 Centre] partially remodeled the Ford Building... defaulted on option to buy in February 1984
1986 Lester N. and Sandra B. Turner (NOT related to Richard Turner whose estate owned part of The Hole property) made an unsuccessful attempt to develop the Ford Property [200 Centre]. DeGayner and Richard Turner were both killed in an airplane crash 26 March 1986 in Boyne Valley Township.
1987 Petoskey City Manager Korthauer led site exploration for recommended new Petoskey City Hall
1991 Ford Garage Demolished
1994 Site was cleaned of SMALL amount of toxic waste, except one little area supposedly
1996 Northwestern Bank Traverse City acquired the Richard H. Turner Estate properties
2001 City using some of the property for parking
2002 Lake Street Petoskey Associates (LSPA formed in 2003) assessed block development
2003 Petoskey Planning Commission discussed Lake Street Petoskey Associates' ideas, and possible zoning changes
2004 Petoskey City Council discussed proposals with Public... City Council approved Petoskey Pointe plan
2005 Zoning changes proposed to disallow the project
2005 Voters kept zoning and thus project moved forward... named Petoskey Pointe
2006 Block of buildings demolished after city's mayor Meyer and manager Korthauer transferred city land (no performance bonds)
2006 Citizens paid for upgrading of infrastructure near the block
2006 Opponents brought to light that false data had been submitted in Brownfield application for Brownfield money
2007 Block site excavated and readied for foundation
2007 Financing troubles stalled project with hole dug, but no foundation
2008 Lake Street Petoskey Associates reneged on deadline with city for parking agreement
2008 City Council backed off on time frame to give time for new financing
2009 Developers went into default with National City Bank
2009 Council terminated the parking purchase as foreclosure began; city demanded 1.1 million payment from LSPA
2010 PNC Bank bid to buy site at foreclosure auction
2010 Lake Street Petoskey Associates filed bankruptcy protection
2010 PNC Bank took over the property to sell to Lake Street Holdings LLC
2011 Northwestern Bank was the owner of Lake Street Holding LLC, but was then called Downtown Petoskey LLC
2012 City Council's independent engineer stated the retaining wall lining was unstable
2012 Different engineering firm recommended action be taken to prevent additional instability of the walls
2013 Northwestern Bank proposed partial filling to maintain stability of the wall.
2013 Robert "Bob" Mossberg's The Cottage Company of Harbor Springs, Michigan, and Landmark Development Corporation [Principal Tom Johnson], initiated, then stopped its pursuit of the site. Quickly, Elias Amash purchased the property in late December 2013.
2014 Amash's team revealed his vision for mixed-use development, called New Arlington Place [Sunset Square?]
2015 Amash, a Grand Rapids, Michigan, businessman, put the project on hold.
2015 Socks Construction of Traverse City made a proposal to buy the site, and proceed with Amash's plans. City did not act on the grant funding.
2015 Socks Construction quit purchase of property from Amash.
2017 No movement or changes made by Amash.
2018 (July) Proposed plans from Tom McIntyre (Traverse City Developer) ~ Petoskey Gateway
2018 (30 October 2018) Petoskey News Review reported on 26 October 2018 the Pit (Vacant Block) had been purchased by Robert Berg's company called Petoskey Grand LLC.
2019 (January) Petoskey City Council voted unanimously to restore The Pit to the original pre-2006 zoning, eliminating the existing PUD.
2019 (March) Brownfield, TIF, and "corporate welfare" being considered for development of the PIT. Entities to consider proposal will include voting entities locally: Emmet County Brownfield Authority, City of Petoskey, Petoskey's Downtown Development Authority, Emmet County Board of Commissioners. Following local consideration, state level groups will have final approval.
2019 (21 March 2019) Bob Berg and his business partner/daughter Katie made a presentation to the Petoskey Planning Commission for future plans of The Hole/Vacant Block.
2019 (25 July 2019) The Petoskey Planning Commission vote could not support the proposed PUD after the developer's outburst demanding "an all-or-nothing, no negotiating, no options, decision."
2019 (October) Mr. Berg gives Mayor Murphy an ultimatum of not moving forward with the developer's Hole plan as long as the mayor is in office AND Mr. Berg made a "defamation" lawsuit threat against Councilwoman Marshall.
2021 (April) Judge Charles W. Johnson ruled "Defendant's (Petoskey's) park resolution is illegal and void" because the resolution exceeded the scope of Defendant's (Mr. Berg's) rights under a street right-of-way.
2022/23 NOTHING has happened.
A Petoskey Pointe Timeline ~ 2002 > 2013
Presented by Petoskey News Review
Presented by Petoskey News Review
A Petoskey Pointe Timeline ~ 2013 > 2016
Presented by Petoskey News Review
Presented by Petoskey News Review
Two Photos Below: Compare the two photos below to note the MANY changes which have occurred to Downtown Petoskey from October 1936 until March 2019, including "The Hole."
Videographer and photographer Charles Dawley in 2019 masterfully recreated,
almost identically, the same area and vantage as in the 1936 photo.
Videographer and photographer Charles Dawley in 2019 masterfully recreated,
almost identically, the same area and vantage as in the 1936 photo.
1936 ~ PRE Hole
(No Bypass)
Note how Emmet Street extended to Lake and Bay streets.
(No Bypass)
Note how Emmet Street extended to Lake and Bay streets.
2019 ~ PRESENT Hole
(PLUS US-31 Bypass Road Construction)
Note how Emmet Street no longer extends to Lake and Bay streets.
The city, however, owns the Emmet Street Right of way.
(PLUS US-31 Bypass Road Construction)
Note how Emmet Street no longer extends to Lake and Bay streets.
The city, however, owns the Emmet Street Right of way.
Above Photo Credit Permission from
remarkable UpNorth Imaging videographer and photographer Charles Dawley
remarkable UpNorth Imaging videographer and photographer Charles Dawley
PRE Petoskey Pit Proposal
Pennsylvania Park Plaza
1959 PRECURSOR of possible similar development type as for...
The Hole!
Pennsylvania Park Plaza
1959 PRECURSOR of possible similar development type as for...
The Hole!
The two photos below both feature the Petoskey Downtown Park System which exists still in 2023. The parks, and several of the buildings, like in the Flatiron Block next to Pennsylvania Park, are uniquely shaped because of their location next to the original railroad tracks which went through Petoskey. It was first called Railroad Park, and later, Cushman House Park because this park was located right in front of the Cushman Hotel which had been located in the 2023 area of Meyer Hardware and the hardware's parking lot (between Mitchell and Lake streets). The Cushman Hotel, like many of the wood built hotels of that time, burned. Later the park name was changed to Pennsylvania Park when the rail line that ran through on the tracks was changed from Grand Rapids and Indiana to the Pennsylvania railroad. The fact that this precious park area has been preserved as much as it has been, is amazing, after reading the 1959 promotion by private entrepreneurs for Pennsylvania Park to become a Shopping Plaza as written in the articles above. The city has taken a portion of this park property, however, which had been railroad tracks at one time between Lake and Bay streets, to use for public parking.
The governmental people making decisions regarding The Hole also should pay heed to history, relative to the future, in making the important decisions regarding The Hole... just like was done in preserving the Park System for Petoskey back in 1959. The city, up until 2006, owned a large piece of property located in The Hole block. The then mayor signed that property away, so now in 2023, the city no longer owns a large portion of The Hole. The city does have ordinances, and a master plan, which have been crafted to protect multiple assets such as height restrictions and requiring businesses be located on ground levels, for the public's general welfare regarding The Hole. Those ordinances should be upheld, and not negotiated away. The Hole is a prime piece of property, owned privately now, and should be funded privately, not promoted and given away using public funds through Brownfields, TIFS, or tax abatements. Taxpayer subsidized, "Corporate Welfare" should not play a part of future development of The Hole.
Already, in 2006, the "city fathers" gave away a city-owned piece of property included in the 200 East Lake street block, valued then at $970,000.00 for the ground level; given freely for "the option" to have public parking within that project at that time. That developer wanted to go up about seven stories so the piece of the "hole" actually was worth almost $7 million... that property simply is gone from city ownership now, because that developer went into default, and the city had required NO "performance bond." With no property left as a bartering tool with a developer, the governmental entities still should demand voiced-input as necessary (height, density, businesses on the ground level as stated in the city's Master plan, etc.), but need not financially burden the taxpayers for years to come, expecting subsidizing of The Hole development. Learn lessons from the past... Northern Mich~Mash Preserve... Lest We Forget.
The governmental people making decisions regarding The Hole also should pay heed to history, relative to the future, in making the important decisions regarding The Hole... just like was done in preserving the Park System for Petoskey back in 1959. The city, up until 2006, owned a large piece of property located in The Hole block. The then mayor signed that property away, so now in 2023, the city no longer owns a large portion of The Hole. The city does have ordinances, and a master plan, which have been crafted to protect multiple assets such as height restrictions and requiring businesses be located on ground levels, for the public's general welfare regarding The Hole. Those ordinances should be upheld, and not negotiated away. The Hole is a prime piece of property, owned privately now, and should be funded privately, not promoted and given away using public funds through Brownfields, TIFS, or tax abatements. Taxpayer subsidized, "Corporate Welfare" should not play a part of future development of The Hole.
Already, in 2006, the "city fathers" gave away a city-owned piece of property included in the 200 East Lake street block, valued then at $970,000.00 for the ground level; given freely for "the option" to have public parking within that project at that time. That developer wanted to go up about seven stories so the piece of the "hole" actually was worth almost $7 million... that property simply is gone from city ownership now, because that developer went into default, and the city had required NO "performance bond." With no property left as a bartering tool with a developer, the governmental entities still should demand voiced-input as necessary (height, density, businesses on the ground level as stated in the city's Master plan, etc.), but need not financially burden the taxpayers for years to come, expecting subsidizing of The Hole development. Learn lessons from the past... Northern Mich~Mash Preserve... Lest We Forget.
Photo Below: The Pennsylvania Park area, mentioned in the news clippings farther above, is clearly visible in 1936, and can be compared to the two 2019 photos just below this 1936 photo, showing what has been preserved of the park system, and NOT turned into a shopping plaza as proposed in 1959. The photo below also shows the block of 200 East Lake Street PRE-HOLE in 1936.
TWO Photos Below: Pennsylvania Park was preserved for posterity...
"Illustration of a History Lesson"
"Illustration of a History Lesson"
TWO Photos Above: Alex Childress' additional work also may be viewed at Alex Childress Photo.
The HOLE Story Begins...
~ About 1894 ~
The Dean's Blacksmith Shop, very near the location of The Hole...
The Dean's Blacksmith Shop, very near the location of The Hole...
Photo Below: About ONE HUNDRED YEARS LATER than the clipping/photo above,
the Dean's Blacksmith Shop location had evolved into a vacant space... not yet a HOLE.
the Dean's Blacksmith Shop location had evolved into a vacant space... not yet a HOLE.
~ 1910-1911 ~
Articles Below: HISTORY of an Occupant (Northern Auto Company) of The Hole Location
~ 1924 ~
Workers and Rafters on the Roof of Northern Auto
Workers and Rafters on the Roof of Northern Auto
~ 1936 ~
PRE PDP and PRE BYPASS
PRE PDP and PRE BYPASS
Photo Below: Emmet Street extended all the way to Lake Street, so that is why presently (2023), no buildings are built on that portion of the city's street right of way. The Reid Alley also extends completely across the 200 East Lake Street block from Petoskey Street to Emmet Street. This Lake and Emmet streets intersection does not exist in 2023. To learn the history of this now non-existent intersection, access the Bypasses and Roads web page on this same site by clicking HERE.
Photo Above: In 1958 the State Highway Department did remove houses/homes, and buildings (viewed in this photo) to make room for the Bypass (Sunset Boulevard). Allan McCune, an early area businessman preserved the images of those homes which may be accessed in a slideshow by "clicking" HERE. By September 2020 the city of Petoskey was participating in a People's Park Dedication with Ribbon Cutting Ceremony. People's Park was preserved from when Emmet Street was dead-ended and the Emmet Street Right-of-Way property was created when Sunset Boulevard "Bypass" was constructed. More information about the creation of People's Park, and its elimination, is included toward the bottom of this same web page.
Photo Above Line Descriptions:
Orange = Elizabeth Street (Now a dead end... No longer connects to East Mitchell Street)
Blue = East Mitchell Street
Purple = Emmet Street connecting to Lake and Bay streets
Green = Inside the green block is "The Hole"
Red/Blue/Purple Triangle = ALL houses that were razed for the By-Pass and can be viewed in the slideshow HERE.
Photo Above Colored DOTS Gas Station Descriptions:
Blue = ? Maybe Sunoco
Purple = Standard
Red = Pure (The Pure Station was totally razed for the Bypass)
Green = Sinclair
Orange = Elizabeth Street (Now a dead end... No longer connects to East Mitchell Street)
Blue = East Mitchell Street
Purple = Emmet Street connecting to Lake and Bay streets
Green = Inside the green block is "The Hole"
Red/Blue/Purple Triangle = ALL houses that were razed for the By-Pass and can be viewed in the slideshow HERE.
Photo Above Colored DOTS Gas Station Descriptions:
Blue = ? Maybe Sunoco
Purple = Standard
Red = Pure (The Pure Station was totally razed for the Bypass)
Green = Sinclair
~ PRE 1963 ~
PRE PDP and PRE BYPASS
(Two Photos Below)
PRE PDP and PRE BYPASS
(Two Photos Below)
~ 1962/63 ~
(POST BYPASS) and still PRE HOLE!
(Three Photos Below)
(POST BYPASS) and still PRE HOLE!
(Three Photos Below)
Photo Above: This Petoskey News-Review aerial photo was on both the front and back inside covers of the 1963 Petoskey High School yearbook, the Petosegan. The "bypass" was new and being featured. The Northern Auto building circled in red above, and also shown in the photos below, still stood in 1963 in the location of Petoskey DISappointe Pit (PDP). The Emmet Street right-of-way, where it had extended north PRE-bypass, is clearly visible beside Northern Auto's building even POST-bypass.
Photo Below: POST-bypass and PRE-Hole
Two Photos Below: Northern Auto Company was founded in 1911 by John L.A. Galster, Owen McMahon and Alva C. Lovelace, from which Mr. Galster and Mr. Lovelace shortly withdrew. Mr. McMahon continued as President of the company until his death in 1946.
Photo Below: The color red outlines the PRE-PDP property when the block's buildings still were standing and parking lots were available. At the time of the last phases of buildings being razed (in 2006) for PDP, the property and buildings included: Northern Auto Company, a house on Lake Street (possibly gone by razing time?), the Gaslight Theatre (previously called Temple Theatre), Graham's Northern Office Suppliers with apartments above, on the corner of Petoskey and Mitchell streets, parking lot areas, an alley, Emmet Street city-right-of-way, William King Insurance office, and Great Turtle Toys and Kites.
The block in 1888 included the Lawton Hotel. The hotel name was changed to Oriental Hotel in 1893. Its large lawn was a croquet court. In 1899, the Oriental was donated for a new Petoskey hospital. In 1909 General Isaac Toll donated land for a hospital on the corner of Lindell and Elm (Lockwood in 2023) streets. The hotel/hospital on 210 East Lake Street had been replaced by Clark's Tavern.
On the 1901 Sanborn insurance map the physical size of The Hole Block was larger than in 2019. In the 1960s part of that block was taken to construct the US 31 Bypass. Businesses on the block in 1901 included: Harnesses and Carriage store; Farm Implements; Oriental Hotel with its connected Heat Stoves, Lighting Electric, Kitchen, and Laundry; Hand Laundry; Whole Paper; Fruit; Sewing Machines; Grocery; Cigar Factory; and Livery.
On the 1919 Sanborn insurance map The Hole Block had lost the Oriental Hotel, but businesses included: Clark's Tavern which was closed in winter; Croquet Shed; Temple Theatre; Box Ball Bowling; Electric Fixtures; Cobbler; Meat; Salvation Army; (second store) Cobbler; Auto Accessories; Storage; Garage Occupancy about 50 Cars; and Harness.
On the 1929 Sanborn insurance map The Hole Block did not show many changes from the 1919 map. The block had added a Monument Yard and it appears more land was used for auto repairing, and auto related activity.
The block in 1888 included the Lawton Hotel. The hotel name was changed to Oriental Hotel in 1893. Its large lawn was a croquet court. In 1899, the Oriental was donated for a new Petoskey hospital. In 1909 General Isaac Toll donated land for a hospital on the corner of Lindell and Elm (Lockwood in 2023) streets. The hotel/hospital on 210 East Lake Street had been replaced by Clark's Tavern.
On the 1901 Sanborn insurance map the physical size of The Hole Block was larger than in 2019. In the 1960s part of that block was taken to construct the US 31 Bypass. Businesses on the block in 1901 included: Harnesses and Carriage store; Farm Implements; Oriental Hotel with its connected Heat Stoves, Lighting Electric, Kitchen, and Laundry; Hand Laundry; Whole Paper; Fruit; Sewing Machines; Grocery; Cigar Factory; and Livery.
On the 1919 Sanborn insurance map The Hole Block had lost the Oriental Hotel, but businesses included: Clark's Tavern which was closed in winter; Croquet Shed; Temple Theatre; Box Ball Bowling; Electric Fixtures; Cobbler; Meat; Salvation Army; (second store) Cobbler; Auto Accessories; Storage; Garage Occupancy about 50 Cars; and Harness.
On the 1929 Sanborn insurance map The Hole Block did not show many changes from the 1919 map. The block had added a Monument Yard and it appears more land was used for auto repairing, and auto related activity.
Compare the two same vantage view photos below... PRE-HOLE to 2018. Petoskey proper remains a beautiful originally quaint, and historical city, now that The Hole is a fenced-in green area, with views of the bay still accessible. Great care needs to prevail with any development of The Hole so that the development becomes a PART of the existing city... not just an entity on to itself, not taking advantage of, nor overpowering, all that the present city has preserved and has to offer. For perspective of building heights, the St. Francis Xavier Church steeple is said to be 183 feet tall, although an article below states 170 feet from the cross to the ground.
Photo Above: Alex Childress' additional work also may be viewed at Alex Childress Photo.
Article and Photo Below: In the location of "The Pit," in 1912, Northern Auto Company had added a wing to house the "Tin Lizzies." In 1961 Northern Auto company building particularly housed the A&P store merchandise, ready for a Grand Opening, because the A&P grocery store, farther east on MItchell Street, just had burned days prior on 19 October 1961. The burned A&P store had been located next to the Montgomery Ward store located next to the Carnegie Library building in 2019. Following the burning of the A&P, the Montgomery Ward store held a huge "smoke and water damage" fire sale which cleared their racks of merchandise.
Edmund Dean FIRST worked for Northern Auto Company in 1919, then became general manager in 1927, and purchased the business as sole owner in 1947, following Mr. McMahon's death.
This Northern Auto Company business was located on property later called The Hole.
(Edmond Dean as a child with his father Edward Dean in the Blacksmith barn photo toward the top of this web page)
This Northern Auto Company business was located on property later called The Hole.
(Edmond Dean as a child with his father Edward Dean in the Blacksmith barn photo toward the top of this web page)
The Dean name was not only associated with The Hole property, but also, across the street where the 7/11 once was located, previously had been a Dean's Restaurant and a Dean's Gas Station. When Edmund Dean passed in 1974, the business was sold to a Detroit dealership with Wayne Rose as part owner/manager, with it becoming Petoskey Ford. Rose left that business, however, when he purchased Kilwin's downtown Petoskey store. Click HERE to access more KIlwin's information on this same web site. This Detroit owner vacated the HOLE site by 1980, leaving the building vacant because of supposed environmental contamination. The provenance of this property continues below on this same web page.
~ Northern Office Suppliers on Southeast Corner of "The Pit" Block ~
(Crago's Grocery previously had been in this same location)
1965
~ City Mulls Over Ford Property ~
4 September 1987
4 September 1987
~ Petoskey Project Revived ~
22 September 1987
22 September 1987
~ "The Centre" Developer Offers Parking for ??? ~
26 September 1986
26 September 1986
~ Interests of Both Les Turner and City Hall ~
19 August 1987
Photo Below and mentioned in the news article above: Petoskey's City Hall and Fire Department when located closer to the corner of Lake and Division Streets where the present (2023) county building is located... This City Hall building was razed when the renovated electric/power plant became the city building which is in use in 2019 at 101 East Lake Street, Petoskey, Michigan. The fire station in 2023 is located at 100 West Lake Street, beside the present location of the city hall, on the west side of the Bear River.
~ Ford Garage Goes Way of Model T ~
29 April 1991
29 April 1991
Article Above: Jeffrey DeGayner and Richard Turner were once co-owners of this Ford property. After filing for bankruptcy in 1983, Jeffrey, about two and a half years later in 1986, was killed in a small plane crash near Boyne Falls, Michigan, along with pilot Richard Turner. Information about that plane crash can be accessed on this web site on the "Airports" web page (scroll about 3/4 way down on the Airports web page).
November 1989 Ford Garage
29 April 1991 Petoskey News Review Full Page Article Chronicled from 1947 below to the
Demolition of the Petoskey Eyesore
~ Petoskey Eyesore Demolished ~
29 April 1991 ~ Petoskey News Review
(Photos by PNR Photographer... G. Randall Goss)
29 April 1991 ~ Petoskey News Review
(Photos by PNR Photographer... G. Randall Goss)
Clipping Below: At one point in time all four corners of Emmet and Mitchell streets had gas stations on them which was convenient to drivers because US 31 went right up the main street (Mitchell), turning left on Howard Street, proceeding right on Bay Street, on past the Perry Hotel, to head farther north; before the bypass was constructed in the early 1960s. Then, all of the main traffic passed the Emmet and Mitchell streets intersection. In the 1936 photo toward the TOP of this same web page, photos of the four gas stations (Sinclair, Pure, Standard, and maybe Sunoco?) are visible.
~ Unknown Substance Slated For Testing ~
5 June 1991
Note: John Turner, in the article below, was not related to previous owner Les Turner.
5 June 1991
Note: John Turner, in the article below, was not related to previous owner Les Turner.
The Farnsworth Family had a home at 214 East Lake Street in the 1930s. In 1938 Smith's gift shop was located there.
It was also a shoe repair shop, next owned by Troy Henry,
before being razed in 1962 to be used as city public parking.
Two Photos Below: 29 July 2001 ~ PRE PDP when it was still being used for public parking,
although not a paved parking area...
The city gave up the parking area and gave the developers that very property worth $970,000.00.
Of course the developers wanted to go up 7 or 8 stories high,
so the property was worth closer to 7 or 8 million dollars at the time...
POOF, just given away for the OPTION to have public parking (and with NO PERFORMANCE AND SURETY BONDS)
in the proposed development.
That property was never regained by the city... just gone with that "stroke of the pen".
It was also a shoe repair shop, next owned by Troy Henry,
before being razed in 1962 to be used as city public parking.
Two Photos Below: 29 July 2001 ~ PRE PDP when it was still being used for public parking,
although not a paved parking area...
The city gave up the parking area and gave the developers that very property worth $970,000.00.
Of course the developers wanted to go up 7 or 8 stories high,
so the property was worth closer to 7 or 8 million dollars at the time...
POOF, just given away for the OPTION to have public parking (and with NO PERFORMANCE AND SURETY BONDS)
in the proposed development.
That property was never regained by the city... just gone with that "stroke of the pen".
The 218 East Lake Street lot, located directly behind the Temple Theatre, was vacant until becoming the Mercer Resident in 1930, followed by the Roy Weaver Family in 1941, through 1982. Next, Attorneys Murphy and Earhart based their office in the house until the house was demolished. Then, again the city used the vacant space for city parking during the day, and theatre parking in the evening. Access additional information about the Temple Theatre on this same site by clicking HERE.
PRE HOLE AND PRE ISLANDS
~ 2000 & 2001~
~ 2000 & 2001~
~ 2002 ~
~ 2003 ~
Lake Street Petoskey Associates, actually formed in 2003, was in the area in 2002, assessing possible empty block development... mostly behind-closed-doors meetings with city manager George Korthauer, and Chamber of Commerce Carlin Smith, who were promoting SOMETHING/ANYTHING happening with the vacant property; the entire block, even though it was being used for parking for the public, and private stores still were operating, mostly along Petoskey Street. The Temple/Gaslight Theatre already had closed in 2021, having moved to a new 5-screen cinema in Bear Creek Plaza.
A 30 May 2006 Petoskey News Review article told of 2002 PRE-visionary dreams: "'Now, five years later, we stand here at the threshold of a development almost exactly as we imagined,' Smith said. 'We are very fortunate that (ColdwellBanker Schmidt Realtors representative) Bill Takalo was a good enough salesman to know that the guy asking about this property needed to see it all. And he took him to the roof of the theater building to soak in the view of the bay... and then our vision became someone else's vision.'"
A 30 May 2006 Petoskey News Review article told of 2002 PRE-visionary dreams: "'Now, five years later, we stand here at the threshold of a development almost exactly as we imagined,' Smith said. 'We are very fortunate that (ColdwellBanker Schmidt Realtors representative) Bill Takalo was a good enough salesman to know that the guy asking about this property needed to see it all. And he took him to the roof of the theater building to soak in the view of the bay... and then our vision became someone else's vision.'"
The 17 July 2003 Petoskey News Review article below revealed the "very ambitious plan" presented to Petoskey Planning commissioners by Farmington Hills based Lake Street Petoskey Associates [LSPA]. Petoskey was being sold a "dream plan", but costs were not all firm then. Mike Uzelac a partner (and cousin) to David Jankowski in LSPA, "declined to discuss the amount LSPA would ultimately invest in redeveloping the block."
The public was given opportunity for input at a city planning commission. LSPA indicated the possibility for purchase of needed/wanted parcels would be lost if they could not move quickly. Then the 30 September 2003 Petoskey News Review announced "A downstate firm's proposal for a zoning change to allow for redevelopment of a downtown Petoskey block got preliminary approval from city planning commissioners." The two photos below were included with the announcement.
Ken Winter, Petoskey News Review editor wrote, regarding proposed changes in the local surrounding communities, the following editorial 6 October 2003, expressing, " I would favor keeping the quaintness of the small towns over changing what has made them unique."
By October 2003 nothing yet had been changed in Downtown Petoskey, but plans caledl for leveling an entire block.
City had not yet agreed to sell its property to Lake Street Petoskey Associates!
City had not yet agreed to sell its property to Lake Street Petoskey Associates!
Article/Photo Below on 17 December 2003: Many residents already were concerned with the size of the proposed project, but were again concerned when discovering the size error in the model of the project to the existing buildings; concerned over how the project's proposed scale seemed excessive for the business district, with a faulty model appearing to minimize the height variance.
December 2003 Article Below: The Petoskey Planning Commissioners approved the "Massive Project"
with the commissioners recommended revisions; then the project must be approved by the Petoskey City Council.
with the commissioners recommended revisions; then the project must be approved by the Petoskey City Council.
~ 2004 ~
2004 began with the public having input regarding the massive project.
Then, in March 2004, a digital model was presented to the community.
Then, in March 2004, a digital model was presented to the community.
An important step for the project proceeding was the Lake Street Petoskey Associates gaining ownership of the city's then existing parking property, and "a request the block be placed in a planned unit development" on the proposed project area. The 26 March 2004 Petoskey News Review reported: "Lake Street Petoskey Associates asked city officials to explore some development-related issues, like whether control of city-owned costs and rights of way could be obtained by the developers. Also, developers have asked whether the city could help operate and maintain parking facilities and take ownership of open areas within the development. After researching such topics, Korthauer (City Manager) would report on his findings to the council." The redevelopment project involved the block bounded by Lake, Mitchell, and Petoskey streets an U.S. 31.
The 26 October 2004 Petoskey News Review reported the city council meeting had much mixed discussion of forwarding the issues for the project. The LSPA also "would like the city to take ownership of the parking facilities proposed for the project once it's contructed."
17 November 2004 Article Below: Korthauer explained how to finance the ownership of the parking facilities of the project, using tax-increment financing. "With estimated construction costs of $22,000 to $29,000 per parking space, the city's commitment for the 193-space parking floor could range from $4.2 to $5.6 million. After selling bonds to finance the parking purchase Korthauer said the new taxable value of the block – likely in the $30 million range – would generate about $600,000 in capturable property taxes annually, providing the funds for repayment of the bonds – which likely would be arranged over 30 years." The city council would continue its discussion of the proposal during a special meeting at 7:30p.m. on 22 November 2004 at North Central Michigan College.
The 26 October 2004 Petoskey News Review reported the city council meeting had much mixed discussion of forwarding the issues for the project. The LSPA also "would like the city to take ownership of the parking facilities proposed for the project once it's contructed."
17 November 2004 Article Below: Korthauer explained how to finance the ownership of the parking facilities of the project, using tax-increment financing. "With estimated construction costs of $22,000 to $29,000 per parking space, the city's commitment for the 193-space parking floor could range from $4.2 to $5.6 million. After selling bonds to finance the parking purchase Korthauer said the new taxable value of the block – likely in the $30 million range – would generate about $600,000 in capturable property taxes annually, providing the funds for repayment of the bonds – which likely would be arranged over 30 years." The city council would continue its discussion of the proposal during a special meeting at 7:30p.m. on 22 November 2004 at North Central Michigan College.
The 3 December 2004 Petoskey News Review reported about the Petoskey's Downtown Development Authority Board meeting: "Board members also discussed the possibilities of financial risks which the city might incur if the parking garage weren't developed as planned... DDA chairman Bill Hofmann concluded that having the floor of parking at the project site completed before the city's purchase would reduce the city's potential for adversity."
14 December 2004 Petoskey News Review reported: "When Consultant Hyett spoke he recognized that so many differing views about the project had emerged, he said, 'I just don't see how you're going to see it resolved short of asking the community for an initiative. What I see right now is a quandary. What I see is something that needs to be resolved right away. Otherwise, you guys are going to be sitting here in two years in a quandary... need a petition effort by residents to arrange a public vote challenging any decision the council makes on the proposal.' Uzelac saw that petition option weighing against LSPA because of its contracts which his firm faced – like purchase options on downtown properties which would expire at the end of 2004. Also, the consultant had a reservation about the building's taller than 70 feet in one part of the block."
17 December 2004 Below: Beth Ann Piehl, in her twice monthly column with the Petoskey News Review,
expressed her opinion of the proposed project.
expressed her opinion of the proposed project.
~ Project Gets the OK ~
The Petoskey City Council members, during a special meeting in December 2004, approved the zoning change that would allow a downstate firm to thoroughly rework a block in the central business district.
The Petoskey City Council members, during a special meeting in December 2004, approved the zoning change that would allow a downstate firm to thoroughly rework a block in the central business district.
Petoskey Pointe Advertising Sign Led to Petoskey DISappointe...
(DISappointment to Follow)
TOP
~ 2005 ~
The 22 February 2005 Petoskey News Review reported that a Lake Street referendum vote was set for 3 May 2005.
29 April 2005
Four Photos Below were included with an article preparing voters for the upcoming referendum election.
Two Advertisements Below were in the Petoskey News Review explaining information for the referendum election.
29 April 2005
Four Photos Below were included with an article preparing voters for the upcoming referendum election.
Two Advertisements Below were in the Petoskey News Review explaining information for the referendum election.
Photos/Text Below: A boom to illustrate the approximate 7 story vertical height of the proposed building,
and protesters with signs both for, and against, the vote in the upcoming referendum election.
and protesters with signs both for, and against, the vote in the upcoming referendum election.
4 May 2005 ~ Article Below AND a published Thank You to Voters from Bay Street Associates, LLC
After the 3 May 2005 referendum vote, the Project Backers expressed their pleasure with the winning vote.
After the 3 May 2005 referendum vote, the Project Backers expressed their pleasure with the winning vote.
The 29 August 2005 Petoskey News Review article told: "Developers have finalized their purchase of one of the seven properties that make up the future project site. Options are in place for LSPA to buy the six other sites, Wilson said adding that he expects to close on the purchases of the parcels in the next 30 to 45 days. 'We've had our financing in place for a long time,' Wilson said." He also said that 60 of the project's residential condominiums have been pre-sold, and that most commercial space has been pre-leased.
A 17 December 2005 Petoskey News Review article contradicting the pre-leased statement above; "Wilson said LSPA has not yet entered lease agreements for commercial space on the block, though 'we probably could lease those sites three times over right now.' Birchwood Construction of Harbor Springs will serve as a contractor for pre-construction demolition tasks, Wilson said, with a general contractor yet to be chosen for the project."
A 17 December 2005 Petoskey News Review article contradicting the pre-leased statement above; "Wilson said LSPA has not yet entered lease agreements for commercial space on the block, though 'we probably could lease those sites three times over right now.' Birchwood Construction of Harbor Springs will serve as a contractor for pre-construction demolition tasks, Wilson said, with a general contractor yet to be chosen for the project."
~ 2006 ~
(BLUE FENCE)
(BLUE FENCE)
March 2006 Article Below: Petoskey Planning Commission voted to accept a facade plan for the Lake Street project.
April 2006 Article Below: Announcement was made to begin demolition of the block's existing buildings by late May.
April 2006 Petoskey News Review article below reported that "Once the block is closed for demolition, the parking now available to the public and downtown business employees on the block–35 paved and metered spaces, along with an unpaved lot that can accommodate 20-30 more vehicles–will be closed. [That was parking the city eventually lost FOREVER!]
The 16 May 2006 Petoskey News Review article that included the photo/text below stated: "Though developers have acquired the existing buildings on the block where Petoskey Pointe is slated to be built–and intend to start taking down those buildings the last week in May–they have yet to obtain the deeds to vacant properties elsewhere on the block where some of the new construction would occur. Project partner David Jankowski said project financing was a detail that needed to be resolved in order to move forward with closings. With financing recently put in place, he expects to start closing work in the next month or so... Moffat [consultant] said the work would be delayed until the week prior to Memorial Day in order to provide continuity between the demolition and utility upgrades that will follow. Because the Memorial Day weekend presents a convenient time for the groundbreaking, Jankowski said work to demolish the block's buildings has been pushed back until after the holiday. Assuming a May 30 start on demolition, Moffat said it likely can be completed by mid-June. Moffat expects utility work related to the project would start soon after the buildings are demolished. Moffat expects fencing of the block for the demolition work could start by next week.... Developers have yet to finalize the acquisitions of vacant property owned by Northwestern Bank and the city of Petoskey on the block. [City Planner] Tweeten said LSPA will need to close transaction for the last of the privately owned parcels on the block before the city can finalize its sale of property with the developers".... Jankowski said that the agreement with the National City bank which is providing developers with the financing, requires his firm to have pre-sold at least half of the condominiums in order for the bank to make funds available. Though developers haven't yet reached that presale mark–only 50 or so presales have been made–the project partner added that the sales momentum of the past few weeks prompted National City to move forward with the financing in recent days. Clark Construction would handle pre-construction and demolition tasks related to Petoskey Pointe, and possibly could be tapped to handle new construction of the block as well. [By 19 June 2006, Clark Construction, with offices in Petoskey and Lansing, no longer was in the running for the project work. Moffat said, "They (Clark) were uncertain whether they could meet the budget for the job."]
Compare the photo below taken 21 June 2006, over a month later than the photo above...
Below H&M Demolition were pulling apart the blue wooden overhang from the former Northern Office store... Demolition was is in progress.
Below H&M Demolition were pulling apart the blue wooden overhang from the former Northern Office store... Demolition was is in progress.
Groundbreaking Cememony for Petoskey Pointe
Late May 2006
Projected to be complete by late 2008...
Late May 2006
Projected to be complete by late 2008...
A [BLUE] fence was installed earlier in this June 2006, along the block’s perimeter in preparation for the demolition. A city parking lot at the north end of the block has been closed off, as have parallel parking spaces fronting the block along Lake and Petoskey streets."
The 19 June 2006 Petoskey News Review's headline read
"Demolition Starting Tuesday [20 June 2006]
Old Gaslight Cinema (Photo/Text Above) probably the first to meet wrecking ball."
Click HERE to access more information about the Temple Theatre on this same web site.
Photo Below: The Gaslight Cinema had been the previous Temple Theater.
"Demolition Starting Tuesday [20 June 2006]
Old Gaslight Cinema (Photo/Text Above) probably the first to meet wrecking ball."
Click HERE to access more information about the Temple Theatre on this same web site.
Photo Below: The Gaslight Cinema had been the previous Temple Theater.
Ryan Bentley of the PNR Staff wrote in the 2006 article below: "Lake Street Petoskey Associates plans to rework the block bounded by Lake, Mitchell and Petoskey streets into the mixed use Petoskey Pointe project. The $60 million-plus redevelopment effort will include a hotel with condominium ownership, residential condominiums, parking garage, conference center, retail and commercial space and a new Northwestern Bank office."
Many buyers took advantage of PRE Construction Pricing from the $200,000.00's
Advertisements even BEFORE excavation...
[It was not quick nor easy, however, to be reimbursed for a refund when disappointment time came!]
Advertisements even BEFORE excavation...
[It was not quick nor easy, however, to be reimbursed for a refund when disappointment time came!]
24 June 2006
(Slideshow Below by Karla Howard Buckmaster ~ Click PLAY in upper left corner of main photo)
(Slideshow Below by Karla Howard Buckmaster ~ Click PLAY in upper left corner of main photo)
The 24 July 2006 Petoskey News Review announced: "Several weeks ago, H&M Demolition of Holland knocked down the row of buildings along the east side of the block to make way for Petoskey Pointe."
The 2 August 2006 article below: Partner Jim Wilson tried to dispel rumors about a project backer backing out. The project still did not own the city property. "Developers recently picked John M. Olson Company of St. Clair Shores to handle construction management for Petoskey and expect new construction to start later this season."
Article Below: The DEQ only approved a tax capture of about $25,300 for the contaminated cleanup,
rather than the $961,000 previously proposed for the block.
rather than the $961,000 previously proposed for the block.
The rest of the extensive informative article above may be accessed on the
Greenwood Cemetery web site under Research > Newspaper Research.
Greenwood Cemetery web site under Research > Newspaper Research.
Read the rest of the above article to learn that the project managers had been counting on the contamination calling for the removal of 10,000 cubic yards of soil from the block as part of the cleanup, but more recent review established that a far smaller volume of soil was affected by contamination. Less than 200 cubic yards were determined for removal which would create a difference in amount of revenue to pay off those removing the necessary soil removal for the project to begin.
Below: "Petoskey Pointe Tax Credit Application Process Tainted" ~ Petoskey News Review Editorial
1 October 2006
The following is a MUST READ to understand the caliber/level of bad actors associated with this project!
Read about "Developer, frontman Uzelac sever ties"
(mentioned above with his cousin David Jankowski in the above article) by clicking HERE.
(mentioned above with his cousin David Jankowski in the above article) by clicking HERE.
Article Section Below: Still in this 27 September 2008 timeframe, the city's conditions with the project managers
were not satisfied for the city to sign off on its property on the block.
were not satisfied for the city to sign off on its property on the block.
The citizens paid for the upgrading of utilities near the project... INFRASTRUCTURE.
The HUGE foundations are exposed in some of these slideshow photos below in this slideshow...
perhaps the foundation of the old Crago store/Office Supplies.
perhaps the foundation of the old Crago store/Office Supplies.
26 October 2006
(Slideshow Below showing the Big Dig ~ Click PLAY in upper left corner of main photo)
(Slideshow Below showing the Big Dig ~ Click PLAY in upper left corner of main photo)
14 December 2006
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
~ 2007 ~
??? 2007
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
11 January 2007
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
28 January 2007
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
2 March 2007
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
3 April 2007
Water Seepage Showing
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
Water Seepage Showing
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
14 September 2007
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
Published 26 September 2007: Northern Express featured a thorough history of The Hole titled
"Can Petoskey Pointe Dig Out Of Its Hole?" Click HERE to read it.
Seems this actually captures some of the beginning of the city manager
"Digging the City Deeper into The Hole."
"Digging the City Deeper into The Hole."
October and November Photos Below:
It appears the Hole was not being dug deeper, nor was the Hole being filled.
The Hole seemed to be a staging area for other activities... no HOLE progress!
It appears the Hole was not being dug deeper, nor was the Hole being filled.
The Hole seemed to be a staging area for other activities... no HOLE progress!
TOP
~ 2008 ~
(FENCE PARTIALLY DOWN)
(FENCE PARTIALLY DOWN)
23 April 2008
Islands on Mitchell Street happening at same time as PDP...
Another Season of Disruption for the Downtown Businesses!
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
Islands on Mitchell Street happening at same time as PDP...
Another Season of Disruption for the Downtown Businesses!
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
11 May 2008
14 July 2008
Three Photos Below: View of PDP from the By-Pass near Lake Street...
Three Photos Below: View of PDP from the By-Pass near Lake Street...
As noted in the article clipping below referencing "The Hole,"
the City Fathers had given away land worth $970,000.00 for the
OPTION of purchasing one floor of Petoskey Pointe's parking garage for about $6 million.
Petoskey Pointe never materialized, and Petoskey City Fathers LOST the taxpayers' land.
the City Fathers had given away land worth $970,000.00 for the
OPTION of purchasing one floor of Petoskey Pointe's parking garage for about $6 million.
Petoskey Pointe never materialized, and Petoskey City Fathers LOST the taxpayers' land.
This article is very REVEALING of what happened to throw this WHOLE project into the HOLE!
Access the 26 October 2008 Northern Express article titled "Petoskey; Big Hole/Petoskey Pointe"
by clicking HERE.
Below is a quote from the above article spelling out the "closed-door dealings":
"Then in 2006, the performance bond requirement was weakened once again in the developer’s favor. That change came in a “Tri-Party Agreement signed by only one council member—Mayor Dale Meyer."
Access the 26 October 2008 Northern Express article titled "Petoskey; Big Hole/Petoskey Pointe"
by clicking HERE.
Below is a quote from the above article spelling out the "closed-door dealings":
"Then in 2006, the performance bond requirement was weakened once again in the developer’s favor. That change came in a “Tri-Party Agreement signed by only one council member—Mayor Dale Meyer."
~ 2009 ~
Court Happenings Proceedings
Court Happenings Proceedings
21 January 2009 Petoskey News Review Article Below: "Developers missed a November 2008 deadline in the contract to have the project substantially finished. But in December, last year's council membership agreed to give developers until Feb. 1, 2011 to fulfill that obligation provided that several benchmarks are met in the coming months." Many on that previous council, and the previous mayor, were no longer in office. "LSPA had agreed to provide the city with an additional $100,000 to address needs such as legal fees." It was noted, however that the city already had "burned through" that amount–which developers had not yet paid to the city.
February 2009 Petoskey News Review Article Below: The council needed evidence of LSPA having an $8 million loan. Emmet County Treasurer noted that past-due property taxes for the Petoskey Pointe site stood at about $137,000. as of late 2008 had not been paid. Multiple construction liens on the Petoskey Pointe site remained on file at the Emmet County Register of Deeds office.
16 February 2009 Petoskey News Review Article Below: Jankoski looking for another extension! Mayor Pall said council members could consider a declaration of default, which would be a statement that developers did not meet the conditions. After this declaration, the mayor added that steps such as a cancellation of the agreement or an additional time extension for developers could be considered.
Article Below: More than only the city waiting for money from the developers to SETTLE UP
22 May 2009 article below: City Turned to the Court!
16 July 2009 Petoskey News Review Article Below: "If the site of a stalled downtown Petoskey construction project is to go up for foreclosure sale, the value that claimants could recover might depend on the sale's timing... In the event of a sale, a $2.2 million share of the funds owed to National City would get first priority when the proceeds are allotted, base on settlement terms."
21 September 2009 Petoskey News Review article below reported that Judge Charles Johnson concluded that the stalled Petoskey Pointe project's developers are responsible for paying Petoskey city officials more that $1 million in connection with a breach-of-contract lawsuit.
By the time of Petoskey News Review's 23 December 2009 article
one of the LSPA partners Jim Wilson had filed bankruptcy.
By 31 December 2009, the Petoskey News Review wrote:
"As of last week, city officials still were awaiting payment. The future of the project site itself is somewhat unclear."
one of the LSPA partners Jim Wilson had filed bankruptcy.
By 31 December 2009, the Petoskey News Review wrote:
"As of last week, city officials still were awaiting payment. The future of the project site itself is somewhat unclear."
~ 2010 ~
(GREEN FENCE)
(GREEN FENCE)
8 November 2010
The 3 March 2010 Petoskey News Review article below reported "PNC Bank, holder of a mortgage on the downtown Petoskey site, recently placed a notice of the pending sale in Harbor Springs' Harbor Light newspaper. It indicated that the Petoskey Pointe site is to be sold at auction at 11 a.m., Thursday, March 25, at the Emmet County Building... It indicated the the amount due on the mortgage–including principal, interest, fees, expenses and late charges–stood at about $5.7 million... A potential acquisition of the site's mortgage by a Chinesse purchaser is another possibility he [Jankowski] said developers are looking into."
The 2 April 2010 Petoskey News Review told that PNC Bank, holder of a mortgage on the site of the stalled Petoskey Pointe project, submitted the only bid Thursday when the property went up for foreclosure sale. PNC bid about $1.3 million for the site. A six-month redemption period follows the bank's bid for the property. National City bank would get FIRST priority when foreclosure proceeds are allotted. The sale did not generate sufficient proceeds, so contractors with liens do not appear to have options remaining to recover their losses.
The 10 August 2010 Petoskey News Review article below reported about the Petoskey Pointe retaining wall being stable so far. The article also told that because Jankowski's partner James Lee Wilson filed for Chapter 7 bankruptcy in 2009, it does not appear that money owed to the city can be collected from Wilson.
The photo and article below were from the 5 October 2010 Petoskey News Review with the headline...
"Bank Takes Ownership of Petoskey Pointe Site"
A Friday deadline passed without action by Petoskey Pointe developers to correct a mortgage default involving the stalled project's downtown site.
As a result, Emmet County Register of Deeds Michele Stine said today, Monday, that the deed for the property has been updated to show the bank as owner.
Work on the Petoskey Pointe hotel/condominium project came to a halt amid developers' financing difficulties in mid-2007. The block-sized hole at U.S. 31 and Mitchell Street which was excavated for the complex's foundation remains dormant today.
PNC arranged for a foreclosure sale of the site last April. In a legal notice published in early 2010, the bank indicated that Petoskey Pointe development firm Lake Street Petoskey Associates was in default on a mortgage and owed about $5.7 million.
PNC's $1.3 million bid to acquire the property was the only one received at the sheriff's sale.
Following that sale, developers had a six-month redemption period in which they could avert the foreclosure proceedings by correcting their mortgage default. But the default was not resolved by the time the redemption period expired Friday.
"That property was not redeemed," Stine said.
A PNC spokeswoman said Friday that the bank does not comment on matters such as the Petoskey Pointe foreclosure. The bank previously has not offered details on its plans for the property.
Lake Street Petoskey Associates partner David Jankowski did not respond to a telephone message seeking comment on the redemption period's end.
Numerous contractors placed liens on the Petoskey Pointe property after bills for their contributions went unpaid. The bank and several contractors reached a legal settlement in 2009 which ranked priorities for their claims on the site.
Based on those terms, a $2.2 million share of the funds owed to National City Bank (now PNC) would get first priority when foreclosure-sale proceeds were allotted. The claims of contractors with liens would get consideration next, with National City back in line after them for the remaining $3 million or so owed to the bank.
Because the sheriff's sale didn't bring a sufficient purchase price, contractors weren't able to receive shares of its proceeds.
~ Ryan Bentley
As a result, Emmet County Register of Deeds Michele Stine said today, Monday, that the deed for the property has been updated to show the bank as owner.
Work on the Petoskey Pointe hotel/condominium project came to a halt amid developers' financing difficulties in mid-2007. The block-sized hole at U.S. 31 and Mitchell Street which was excavated for the complex's foundation remains dormant today.
PNC arranged for a foreclosure sale of the site last April. In a legal notice published in early 2010, the bank indicated that Petoskey Pointe development firm Lake Street Petoskey Associates was in default on a mortgage and owed about $5.7 million.
PNC's $1.3 million bid to acquire the property was the only one received at the sheriff's sale.
Following that sale, developers had a six-month redemption period in which they could avert the foreclosure proceedings by correcting their mortgage default. But the default was not resolved by the time the redemption period expired Friday.
"That property was not redeemed," Stine said.
A PNC spokeswoman said Friday that the bank does not comment on matters such as the Petoskey Pointe foreclosure. The bank previously has not offered details on its plans for the property.
Lake Street Petoskey Associates partner David Jankowski did not respond to a telephone message seeking comment on the redemption period's end.
Numerous contractors placed liens on the Petoskey Pointe property after bills for their contributions went unpaid. The bank and several contractors reached a legal settlement in 2009 which ranked priorities for their claims on the site.
Based on those terms, a $2.2 million share of the funds owed to National City Bank (now PNC) would get first priority when foreclosure-sale proceeds were allotted. The claims of contractors with liens would get consideration next, with National City back in line after them for the remaining $3 million or so owed to the bank.
Because the sheriff's sale didn't bring a sufficient purchase price, contractors weren't able to receive shares of its proceeds.
~ Ryan Bentley
3 December 2010 Petoskey News Review Article Below: Following foreclosure, new ownership took some convoluted turns to become the property of Lake Street Petoskey Holdings LLC with a Troy-based attorney James Adams representing the purchaser.
~ 2011 ~
27 July 2011
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
24 November 2011
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
The green fence was only part of the grand entrance to Petoskey...
the Mitchell Street Bridge was in a state of decay at the same time.
Additional information/photos of the Mitchell Street Bridge can be found
on this same website on the Bridges & Dams web page and Mitchell Street Bridge web page.
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
The green fence was only part of the grand entrance to Petoskey...
the Mitchell Street Bridge was in a state of decay at the same time.
Additional information/photos of the Mitchell Street Bridge can be found
on this same website on the Bridges & Dams web page and Mitchell Street Bridge web page.
20 December 2011
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
~ 2012 ~
2 April 2012
"Petoskey Pointe Wall Back on Council's Agenda"
17 August 2012
17 August 2012
The Petoskey News Review's reporter Ryan Bentley reported: "Council members will consider authorizing city manager Dan Ralley to enter a professional services agreement with a qualified engineering firm. The agreement's purpose would be to obtain an independent review of the retaining wall's structural integrity." Harry "Scrub" Calcutt was the president and chief executive officer of the current Petoskey Pointe site owner Northwestern Bank which had purchased the PDP foreclosure property from Lake Street Petoskey Associates in late 2010.
"City Seeking Petoskey Pointe Wall Safety Study"
21 August 2012
21 August 2012
The Petoskey News Review's reporter Ryan Bentley reported: "The wall runs along three sides of the hole that was dug for the Petoskey Pointe hotel/condominium complex's never-installed foundation. Work stalled on the Petoskey Pointe project amid financial difficulties in 2007.... The retaining wall wasn't meant to remain in place for the long term without a foundation installed. Because of this... and because city streets, sidewalks and underground utilities lie near the wall--- city officials have noted the importance of the wall's structural integrity." Petoskey City Council members gave the manager support for going ahead to have an engineering firm evaluate the retaining wall.
~ 2013 ~
16 June 2013
27 June 2013 ~ Attempting to Bury the Elephant
and Stabilize the Walls
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
and Stabilize the Walls
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
30 July 2013
Top Soil for Refill
~ 2013 ~
(FENCE DOWN)
(FENCE DOWN)
15 August 2013
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
25 August 2013
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
1 September 2013 (about 6:30PM) ~ New Sidewalks
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
~ 2013 ~
(METAL FENCE)
(METAL FENCE)
9 September 2013 (about 5PM)
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
Surrounding Fence Installed
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
Surrounding Fence Installed
13 November 2013
(Gateway to Petoskey)
(Gateway to Petoskey)
By December 2013 the Cottage Company of Harbor Springs (Rob Mossburg) and Landmark Development Corporation of Boyne City (Tom Johnson) were presenting the Petoskey City Council with their plan promotions for "Petoskey Center." The 13 December 2013 Petoskey News Review reported: "Officials raise concerns about height for Petoskey Center project." [UPDATE BY 2019 for possible alternate connections: The Hole owner Bob Berg had hired Tom Johnson (from Landmark Development Corporation above) as construction manager for some of Berg's various renovations in Downtown Petoskey previous to The Hole proposed plans. Johnson had used Shoreline Architects for 2013 "Petoskey Center" promotion plans. In 2019 Berg used Shoreline Architects to promote his plans for "The Hole." Bob Berg also connected with Brownfield consultant Mac McClelland, who had been the consultant in 2013 for "Petoskey Center" McClelland profiting, as well AGAIN, on this same piece of property another time.]
Then, 30 December 2013, the Petoskey News Review reported: "Grand Rapids businessman purchases former Petoskey Pointe property." Elias Amash had purchased The Hole from Northwestern Bank after a potential developer [Mossberg of Cottage Company of Harbor Springs, Michigan] backed away.
Then, 30 December 2013, the Petoskey News Review reported: "Grand Rapids businessman purchases former Petoskey Pointe property." Elias Amash had purchased The Hole from Northwestern Bank after a potential developer [Mossberg of Cottage Company of Harbor Springs, Michigan] backed away.
~ 2014 ~
Access Northern Express 9 February 2014 article titled "Experts Weigh in on Petoskey's Big Hole"
by clicking HERE.
by clicking HERE.
26 February 2014
"It's All in the Name"
31 March 2014
31 March 2014
The Block Owner Elias Amash, a Grand Rapids businessman,
has picked the name of "SUNSET SQUARE" for the future development of "The Hole".
has picked the name of "SUNSET SQUARE" for the future development of "The Hole".
If proof is desired for the sequential developers' requests for "corporate welfare" for constructing their dream projects at the expense of the taxpayers, note the report in the 28 October 2014 Petoskey News Review article titled: "Downtown block owner [Elias Amash–LCA Enterprises] announces project team." Amash's marketing role was filled by Marie Law, while Eric Helzer was to be "focusing on downtown economic viability matters." Helzer's role encompassed: "Helzer’s policy and procedural experience material to the Petoskey site includes a multitude of incentive programs, project incentive packaging, strategic planning & policy structuring/facilitation, grantsmanship & grant writing (including U.S. Environmental Protection Agency, Michigan Department of Environmental Quality and Michigan Economic Development Corp.), community outreach, tax increment financing (TIF) assistance for all types of authorities (such as brownfield redevelopment authorities, downtown development authorities and land banks), brownfield plans & Act 381 Work Plans (Michigan Strategic Fund/Michigan Department of Environmental Quality), municipal bonds, brownfield credits and amendments relating to the state's Single Business Tax and Michigan Business Tax, gap financing programs, public infrastructure financial planning, due care planning and risk management."
Obviously, NO taxpayer funded incentive program was to be overlooked...
"CORPORATE WELFARE" visions were alive!
"CORPORATE WELFARE" visions were alive!
The 4 August 2014 Petoskey News Review in an article titled "Petoskey Council OKs Application for Sunset Square Study Grant" reported: "The city is seeking $12,500 in federal Community Development Block Grant proceeds available through the state economic development agency, which would be used to reimburse Amash's company for slightly less than half of the projected feasibility study cost. The study would consider whether a hotel/conference center would be a viable use on the downtown property, and could look at feasibility of other potential uses, such as commercial space."
UPDATE 22 March 2020 after above Hole plans: This same Barry Polzin architect promoted his plans for a development on the corner of Howard and Bay streets, Petoskey, Michigan, in March 2020. The "city fathers" will see the "Coming of the Second Hole," IF they do not heed the lessons from this ORIGINAL HOLE, and not allow the city to be sucked into a position where they are sucked down a second hole!
By 10 December 2014, The Hole had been renamed "New Arlington Place."
History Aside: Petoskey's ORIGINAL Arlington hotel (1882)
and its successor "New Arlington" (1897/8) both burned.
View history of the Arlington hotel and the New Arlington hotel on "Petoskey Hotels". Click HERE.
This "New Arlington Place" idea figuratively "crashed and burned" too,
and thankfully, with no real structure raised or razed.
~ 2015 ~
The 15 January 2015 Petoskey News Review continued to tell that "Elias Amash, owner of the block bounded by Mitchell, Lake and Petoskey streets and U.S. 31 stated, 'As you know, this is a very complex project.' He noted that he would share more details as they become available. Al Terry, Petoskey's acting city manager, said Amash recently made contact with the city about the new project's hold status. The correspondence also referenced Petoskey Downtown Management Board members' recent decision to hold off on a study of downtown parking needs and expansion possibilities so that parking plans for the vacant block would be taken into consideration. Terry said that Amash 'indicated he does not have a current timeline for the development and suggested the city proceed as if it may be a while.'"
At some point during 2015 Amash did receive an offer for purchase of The Hole...
from Socks Construction in Traverse City.
Then, the withdrawal of an offer was announced 12 June 2015 in the Petoskey News Review.
from Socks Construction in Traverse City.
Then, the withdrawal of an offer was announced 12 June 2015 in the Petoskey News Review.
~ 9 September 2015 ~
21 October 2015 ~ Into the Pit Abyss...
Somehow a woman backed her vehicle through the metal fence and part way down the hillside...
Leaving another scar on the face of the Pit!
Somehow a woman backed her vehicle through the metal fence and part way down the hillside...
Leaving another scar on the face of the Pit!
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
~ 2016 ~
7 January 2016 Petoskey News Review
The public has often wondered why the city of Petoskey has not just turned the PDP property into a park or various other civic endeavors. In the 7 January 2016 Petoskey News Review, Ryan Bentley reported: "The mayor noted that about 30 percent of the city's territory is currently off the property tax roll ---- occupied by existing parks, public institutions and nonprofit operations such as churches and health care facilities, and that putting the downtown block into non-taxed status and obtaining it for a park wouldn't be feasible in today's economic climate."
TOP
~ 2018 ~
The grass is unkempt on the sloped areas of the Pit,
but the area still looks better than in the beginning of 2013.
~~~~~~~~~~~~~~~~~~~~~~
but the area still looks better than in the beginning of 2013.
~~~~~~~~~~~~~~~~~~~~~~
The 17 July 2018 Petoskey News Review announced "New Plans for the 'Hole.'" Petoskey Gateway LLC may purchase the property from Elias Amash for a four building complex with the usual mix of retail, apartments, hotel, conference center, and parking as envisioned with past ineffectual developers (Design draft plan above from same news article). The Gibbs Planning Group is drafting designs and plans. A conceptual master plan for 200 East Lake Street by developer Petoskey Gateway, LLC and Planner Gibbs Planning Group with Bogaerts Architects (11 July 2018). The parking always attracts attention of the city officials and would offer 600 total parking spots with only 100 of them being public spots.
Those 100 spots, however, could save the city and the county from spending $4.2 million (upfront spending, that is, for the city and county, but still eventually paid by the taxpayers) for a proposed parking structure on the corner of Lake and Division streets which is being discussed at this same time. The county is battling a limited budget, and the city taxpayers would end up funding both the city AND the county figures for the parking structure so some reprieve for both entities might be had with this new vision for the 'Hole'. The other usual concern with this project, as in the past designs, is with the heights of the buildings. This project has the 85 foot hotel to be located on the southwest section of the block right at the main entryway to the City of Petoskey... the corner of US 31 and East Mitchell.
A Petoskey city meeting was held on 18 July 2018 seeking public input regarding future plans for the Hole. The major concern stated was the height of the building project. The possible added traffic was another concern, although positive comments were made as well, from people who are ready to have the Hole suitably filled and developed.
Petoskey's downtown zoning has a maximum height of 40 feet, but Traverse City's developer McIntyre is proposing an 85 foot building height for his project. McIntyre indicated he would offer the city 100 public parking places if the city would allow him an extra 5 feet of variance. He is counting on the variance being from the 80 feet that the previous Petoskey Pointe [DISappointe] had qualified through a 2005 PUD with the city. (UPDATE: The Hole sold without McIntyre's input.)
UPDATE: By 27 June 2019, Traverse City developer McIntyre was still fighting for wanting to construct a 100-foot building in Traverse City with the city's allowable height being 60 feet. A Traverse City news article reports about McIntyre's court case regarding going above the allowable height... "Judge Upholds Proposal 3" may be accessed HERE.
Those 100 spots, however, could save the city and the county from spending $4.2 million (upfront spending, that is, for the city and county, but still eventually paid by the taxpayers) for a proposed parking structure on the corner of Lake and Division streets which is being discussed at this same time. The county is battling a limited budget, and the city taxpayers would end up funding both the city AND the county figures for the parking structure so some reprieve for both entities might be had with this new vision for the 'Hole'. The other usual concern with this project, as in the past designs, is with the heights of the buildings. This project has the 85 foot hotel to be located on the southwest section of the block right at the main entryway to the City of Petoskey... the corner of US 31 and East Mitchell.
A Petoskey city meeting was held on 18 July 2018 seeking public input regarding future plans for the Hole. The major concern stated was the height of the building project. The possible added traffic was another concern, although positive comments were made as well, from people who are ready to have the Hole suitably filled and developed.
Petoskey's downtown zoning has a maximum height of 40 feet, but Traverse City's developer McIntyre is proposing an 85 foot building height for his project. McIntyre indicated he would offer the city 100 public parking places if the city would allow him an extra 5 feet of variance. He is counting on the variance being from the 80 feet that the previous Petoskey Pointe [DISappointe] had qualified through a 2005 PUD with the city. (UPDATE: The Hole sold without McIntyre's input.)
UPDATE: By 27 June 2019, Traverse City developer McIntyre was still fighting for wanting to construct a 100-foot building in Traverse City with the city's allowable height being 60 feet. A Traverse City news article reports about McIntyre's court case regarding going above the allowable height... "Judge Upholds Proposal 3" may be accessed HERE.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
WHAT will be missing after development of The Pit????
View of the Bay!!!
HALF (or more) of the pay of many underpaid area workers...
View of the Bay!!!
HALF (or more) of the pay of many underpaid area workers...
~ Close-Up of The View over The Hole from Petoskey Street ~
(Only to fade into the sunset)
(Only to fade into the sunset)
30 October 2018
REAL New Venture for the Pit
(referred to now as "Vacant Block")
Petoskey News Review reported that on 26 October 2018 the Pit (Vacant Block)
had been purchased by Robert "Bob" Berg's company called Petoskey Grand LLC.
Above Photo and Below Slideshow depict the property
on the date of announcement of Berg's recent purchase from Elias Amash.
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
had been purchased by Robert "Bob" Berg's company called Petoskey Grand LLC.
Above Photo and Below Slideshow depict the property
on the date of announcement of Berg's recent purchase from Elias Amash.
(Slideshow Below ~ Click PLAY in upper left corner of main photo)
During the last week of October 2018 the City of Petoskey's legal counsel along with the former owner of "The Pit" settled a lawsuit. The previous 2005 "planned unit development," PUD, would be erased, so the height would no longer vary from the 40-foot height limit in that location without future agreement. All parties will go into any new venture with a clean slate with new decisions to be made.
The 9 November 2018 Petoskey News Review reported that Robert Berg, the owner of 200 East Lake Street, "The Pit," through Petoskey Grand LLC (company based in Key Largo, Florida), has a history in Petoskey. The newspaper listed other properties owned by Berg; some in the name of his company Howard Property Partners. On East Mitchell Street, Berg presently owns: 300, 311, 319, 408, and 416. On Howard Street, Berg owns: 209, 210, 308, and 310. He also owns #1 and # 3, at 400 Bay Street. These properties include the former Northern Michigan Review property that had been housed by Phone Guide offices, as well as JCPenney's location on the corner of Mitchell and Howard streets. The renovations made on Berg's properties to date (2018) have been impressive and mindful of ordinances (See Below for LIST of properties owned by Berg).
Berg also has had discussions with Petoskey officials about the development of the Darling Parking Lot on Michigan Street... with a possibility of a grocery store in that present parking lot location.
Robert Berg continues to purchase property pieces in Petoskey. On 6 December 2018, he has added #2 on 400 Bay Street. He owns 316 and 320 East Lake Street.
On 19 October 2020, Mr. Berg has added 112, 116, and 118 East Mitchell Street properties.
In November 2021, Mr. Berg has added 406 East Lake Street and 303 Howard Street properties.
Berg also has had discussions with Petoskey officials about the development of the Darling Parking Lot on Michigan Street... with a possibility of a grocery store in that present parking lot location.
Robert Berg continues to purchase property pieces in Petoskey. On 6 December 2018, he has added #2 on 400 Bay Street. He owns 316 and 320 East Lake Street.
On 19 October 2020, Mr. Berg has added 112, 116, and 118 East Mitchell Street properties.
In November 2021, Mr. Berg has added 406 East Lake Street and 303 Howard Street properties.
SUMMARY OF BERG PROPERTIES in Petoskey, Michigan, as of November 2021:
400 Bay Street: #1, #2, #3
Howard Street: 209, 210, 303, 308, 310
East Lake Street: 200 [The HOLE], 316, 320, 406
East Mitchell Street: 112, 116, 118, 124, 300, 311, 316, 319, 408, 416
Petoskey Street: 302, 312
Emmet Street: 400
400 Bay Street: #1, #2, #3
Howard Street: 209, 210, 303, 308, 310
East Lake Street: 200 [The HOLE], 316, 320, 406
East Mitchell Street: 112, 116, 118, 124, 300, 311, 316, 319, 408, 416
Petoskey Street: 302, 312
Emmet Street: 400
SUMMARY OF BERG PROPERTIES in Bear Creek Township, Michigan, as of January 2020:
1581, 1597 and adjacent 1663 North US 31 HWY, Petoskey, Michigan
1781 and adjacent 1801 Shaw Road, Petoskey, Michigan
Northmen Drive (address unknown) located beside property of Petoskey Public Schools
1581, 1597 and adjacent 1663 North US 31 HWY, Petoskey, Michigan
1781 and adjacent 1801 Shaw Road, Petoskey, Michigan
Northmen Drive (address unknown) located beside property of Petoskey Public Schools
NAME LISTINGS:
Howard Property Partners LLC
Petoskey Grand LLC
Howard Property Partners LLC
Petoskey Grand LLC
~ 2019 ~
Petoskey's Snow Bowl
Above Photo Credit Permission from
remarkable UpNorth Imaging videographer and photographer Charles Dawley
remarkable UpNorth Imaging videographer and photographer Charles Dawley
At the 7 January 2019 Petoskey City Council meeting, council members unanimously voted to restore "The Pit" property to the original pre-2006 zoning, eliminating any previous binding PUD. Mr. Berg, the present owner, will still have the option to negotiate for a new PUD with the city.
Thus, as of 4 March 2019 Mac McClelland, through his company Otwell Mawby of Traverse City, Michigan, consultant at $110. per hour (In January of 2020 the consultant's hourly rate is $125.00) for the Emmet County Brownfield Redevelopment Authority (BRA), pitched a plan to the Petoskey City Council for The Hole becoming a Brownfield project. Up front, the developer will pay the consultant, but the consultant's fee is considered an "eligible expense" for Brownfield tax recovery, so the taxpayers would have to cover the consultant's fee eventually. Brownfields no longer have to be involved only with blighted or toxic properties, and just because Petoskey is now a "Core Community" The Michigan Economic Development Corporation (MEDC) states: "Core communities have the ability to use brownfield tools not only on contaminated property, but blighted and functionally obsolete sites as well. In addition, the tax increment financing component can pay for demolition, site preparation, public infrastructure and lead and asbestos abatement, as well as environmental remediation."
IF The Hole qualifies for BRA funding, the "Core Community" category evidently allows for ignoring of:
1) * The Hole already was deemed in 2006 that the toxic waste had been cleaned from the site for $7500.00 (not blighted nor obsolete).
2) No old structures exist to be torn down (demolished) or renovated in site preparation, or relocation of residents. It is just blank land/property.
3) Infrastructure was already installed for one of the previous planned developments.
4) One of the best views of the bay exists from this property.
5) No place for lead or asbestos even to be, for needing environmental remediation
* Not to worry, however, about The Hole qualifying for environmental remediation funding in 2019 with the toxic waste already removed. Julie Lowe, of the Michigan Department of Environmental Quality (BEA–Brownfield Environmental Authority) talked to the Emmet County Brownfield Redevelopment Authority on 11 April 2019. She quickly shared that the latest "buzz word" (her term) for Environmental Quality is "Vapor Intrusion," a new kind of addressed toxicity for the taxpayers to fund the investigation for the EPA–Environmental Protection Agency for qualifying Brownfield sites. PLUS, on the BEA map, 200 East Lake Street already/still is labeled as a Brownfield site. The 29 June 2019 Petoskey News Review (below) explains particulars of "Vapor Intrusion" in an article titled: "EPA Gives Updates on Petoskey Manufacturing Contamination" on page A6, continued from page 1.
See Petoskey Manufacturing on this same web site on the Waterfront web page by clicking HERE. On 5 November 2022 it was announced that the EPA would be spending up to $5.5 million to address "Vapor Intrusion" in a more advanced model. Taxpayer money will cover it through the EPA, of course.
IF The Hole qualifies for BRA funding, the "Core Community" category evidently allows for ignoring of:
1) * The Hole already was deemed in 2006 that the toxic waste had been cleaned from the site for $7500.00 (not blighted nor obsolete).
2) No old structures exist to be torn down (demolished) or renovated in site preparation, or relocation of residents. It is just blank land/property.
3) Infrastructure was already installed for one of the previous planned developments.
4) One of the best views of the bay exists from this property.
5) No place for lead or asbestos even to be, for needing environmental remediation
* Not to worry, however, about The Hole qualifying for environmental remediation funding in 2019 with the toxic waste already removed. Julie Lowe, of the Michigan Department of Environmental Quality (BEA–Brownfield Environmental Authority) talked to the Emmet County Brownfield Redevelopment Authority on 11 April 2019. She quickly shared that the latest "buzz word" (her term) for Environmental Quality is "Vapor Intrusion," a new kind of addressed toxicity for the taxpayers to fund the investigation for the EPA–Environmental Protection Agency for qualifying Brownfield sites. PLUS, on the BEA map, 200 East Lake Street already/still is labeled as a Brownfield site. The 29 June 2019 Petoskey News Review (below) explains particulars of "Vapor Intrusion" in an article titled: "EPA Gives Updates on Petoskey Manufacturing Contamination" on page A6, continued from page 1.
See Petoskey Manufacturing on this same web site on the Waterfront web page by clicking HERE. On 5 November 2022 it was announced that the EPA would be spending up to $5.5 million to address "Vapor Intrusion" in a more advanced model. Taxpayer money will cover it through the EPA, of course.
Brownfield Associated Governing Entities ~
The associated governing local voting entities; Petoskey City Council, Emmet County Brownfield Redevelopment Authority, and Emmet County Board of Commissioners, must pass a resolution qualifying the proposed plan. Then, the plan may move on for state level approval.
Consultant and Brownfield PLANS ~
The consultant aims for the previous 200 East Lake Street Brownfield 2004 plan to be suspended, because the consultant is paid PER plan. This proposed (2019) Hole Project would be considered a NEW project plan, and mean more consultant fee money for him. In about 2013, the same consultant already was paid at least $15,000 by the city for "consulting" regarding this same piece of property when The Center development was being promoted by Tom Johnson and Rob Mossburg. Also, a new proposed plan would give "The Hole" new additional years to capture taxes. Projects usually range from 20 to 30 years... and if the 2004 project plan were to be continued, the Brownfield would have fewer years to "capture" tax funding than if a new plan were approved.
Captured Tax Base ~
Emmet County "property search" shows that developer Mr. Berg's 200 East Lake Street Petoskey Grand LLC has/had over 100 inactive parcels (condominium plats changed into a single parcel as of January 2019) with each parcel assessed for about $300.00 in taxes per year... thus, "about $58,000.00" as of 27 June 2019 of taxes is all that is paid on that prime city block of property presently. Consider that in 2018, the 5/3 Bank property (catty-corner at Petoskey and Mitchell streets) owned by the same developer yielded $70,000. per year in property taxes for that comparatively smaller piece of property, albeit with building improvements. What that means, at the present time, with a Brownfield is that the baseline for 200 East Lake Street block would be about $58,000.00 so any new property taxes, above and beyond that $58,000.00 assessed on that property, as the property develops, would be paid to (captured by) the Emmet County Brownfield Redevelopment Authority to be returned to the developer for any eligible expenses. A straight answer is not forthcoming about this Brownfield arrangement capturing the educational taxes, but it seems that the North Central Michigan College taxes certainly can be captured, without special consideration. It is not clear how this affects the Petoskey Public School millage voted funds and cemetery funds. It has been stated that TIFs, separate from Brownfields, with a project plan, still are applicable for this project... TIFs, for sure, may be allowed to capture school funding. The present DDA TIF includes captured taxes from the city, the county, the college, and the cemetery. For 2018 the city captured total TIF funds of $407,311.76 which go into a fund to be spent for city projects only. IF contamination can be identified on the HOLE site, THEN, for sure, school taxes can be used for "response activities" from the Brownfield funds.
Beneficiaries of Captured Taxes ~
It will be lauded that the developer does pay the increased taxes up front, BUT do note that:
1) the increase in property tax amounts funnels into the Emmet County Brownfield Redevelopment Authority (ECBRA) Funds used to pay back money to the developer for "eligible expenses."
2) and the increase in some sales tax, and income tax, funnels into the State Brownfield Redevelopment Fund (SBRF) used to pay back money to the developer for "eligible expenses.".
Those qualifying taxes are not necessarily put into, or are for, the general public welfare's general budget, locally or at the state level. The ECBRA and the SBRF disperse the captured taxes amounts to the developer for the developer's submitted invoiced qualifying expenses. IF at the end of the particular Brownfield Plan any money remains after the developer has collected all reimbursable expenses, then the ECBRA gets to keep that money, and use it toward any other future projects that the ECBRA becomes involved. Thus, the name "CAPTURED TAXES." The taxpayers are NOT the beneficiaries. The taxpayers' already voted millage/money for specific purposes gets siphoned off for some other purpose that perhaps the developer for his project, or city (in the case of a parking structure) should be providing themselves. Brownfields and TIF plans tend to redirect, and redistribute, taxpayers' money toward a select development or project, and away from voted and intended interests. Developers are reimbursed for MUCH of their investment so the taxpayers fund the particular project. Once the development is formed, or the project completed, however, the developers continue to reap the harvest from the taxpayer funded project...
Behind the Scenes Brownfield Preparation ~
During an Emmet County Brownfield Redevelopment Authority meeting on 14 February 2019, Brownfield consultant Mac McClelland told that he already had met with Mr. Berg and with the City Manager. Those BRA minutes stated: "McClelland met with the new owner and provided options to the owner and to the City Manager. The site and development, if it includes BRA, is complex and would require approval by the City. The site is currently in a DDA/TIF area. A Brownfield Plan is in place on the site and could need to be terminated or amended if BRA funding is utilized. The DDA can capture local taxes; the BRA can capture state and school taxes. Joe Baird [BRA member] recalled that site work was started in 2005 and it was a Brownfield site. McClelland confirmed and explained that the plan created then was in place. A Brownfield Plan can be a complicated document and public parking can be a complicated arrangement. Any involvement by the BRA would need to be coordinated with the City, BRA, and County. Baird suggested that any proposed plans should be approved by the City before being considered by the BRA [Actually, that is what Michigan law states]. McClelland stated that this site will likely be a future BRA project." So, BEHIND THE SCENES preparation was underway for getting into the taxpayers' pockets through a Brownfield for 200 East Lake Street. Also it was reported in the 4 March 2019 Petoskey News Review: "But Berg has told city officials that he plans to use a Brownfield Redevelopment tax increment financing (TIF) structure for the site, so council members will be sitting through an informational presentation about how such financing models work."
The 19 March 2019 Downtown Management Board minutes recorded the following behind the scenes Brownfield Preparation:
"In Economic Enhancement, the Downtown Director reported that representatives of the Petoskey Grand project, 200 East Lake Street, will present at the Planning Commission meeting this Thursday; that staff met with Bob Berg, owner of 200 East Lake Street property, on the movie theatre component and also discussed the need for heated sidewalks throughout all of downtown: that Mr. Berg believes there is a possibility that the costs for heated sidewalks could be tied into Brownfield TIF and that the first step is to obtain a price and there could be a price tag attached to receiving that information."
Once Brownfields are involved/accepted, ALL of the county residents would be paying for heated sidewalks in downtown Petoskey, plus paying for the study and plan for receiving the heated sidewalk information.
[UPDATE regarding heated sidewalk costs: The following is from 30 August 2019 Petoskey News Review article about the possibility of heated sidewalks in Petoskey regarding input from Tim Knutsen (representative for local engineering firm Beckett and Raeder) who appeared at the city's July 2019 planning commission meeting: "Assuming our system would be similar to (a system being installed in) Grand Rapids, cost would be around $376,000 for the snowmelt system alone for the block contained by Petoskey Street/Lake Street/Howard Street/Mitchell," Knutsen said in a memo to the board. "This cost would be separate from insulation, curb and gutter if needed, and concrete sidewalks themselves. Our office (Beckett and Raeder) would estimate removal and replacement of concrete sidewalks for street side sidewalks at an additional $105,000."]
Transformational Brownfield Plans (TBP) ~
The City Council, the Emmet County Board of Commissioners, the Emmet County Brownfield Redevelopment Authority, and the (state level) Michigan Strategic Fund will be the decision-makers for authorizing, or not, a Brownfield/TIF plan for 200 East Lake Street. Those entities are not obligated to approve a Brownfield Tax Capture plan. They can vote "no." The decision-makers, as well as the public, need to understand Brownfields, to make a wise decision about whether a Brownfield is necessary for The Hole, for a Brownfield plan to be imposed upon taxpayers. When Brownfields were FIRST adopted by law, toxic properties, especially in areas such as Detroit and Flint, needed stimulus and public funding to be addressed. Brownfield sites no longer have to have toxic waste contamination to qualify for Brownfield Funding, but rather may qualify for the 2017 Act 46 which incorporates the "Transformational Brownfield Plan (TBP)" into the Brownfield Redevelopment Financing Act, 1996 Public Act (PA) 381, as amended (Act 381).
With a TBP, three kinds of revenue (noted below) may be captured IN ADDITION to local property tax captures, and these three revenue sources go to the State's Brownfield Fund (not the State's General Fund) to pay back the developer:
(1) Construction Period Tax Capture Revenues (Portion of the sales tax on construction supplies for the project)
(2) Income Tax Capture Revenues (Up to 50% of the income tax paid by the construction employees during the construction)
(3) Withholding Tax Capture Revenues (Up to 50% of the income withholding tax of the employees of the created businesses even AFTER the development is completed for several years)
The captured taxes that go to the STATE Brownfield Redevelopment Fund are paid back to the Brownfield qualified developer, rather than making it into the state's general fund where that new tax money would have been directed to roads, education, health care, safety or a myriad of other necessities. Thus, the taxpayer has to pay even more taxes to fund the roads, etc. to cover for the redirected captured taxes.
When the Transformational Brownfield Plan legislation was being created, the summary of public input included the following: "Opponents came to the legislation with multiple perspectives. Community activists viewed the program as nothing more than another tax 'giveaway' to the rich. They wondered whether real estate developers (the bill specifically requires 'mixed-use' development)–whose balance sheets appeared to be doing well–truly needed the added incentives or whether the development would occur anyway. Regardless of motive, they felt the legislation was simply selling out cities, whose residents often face difficult living conditions, to wealthy developers with political connections. It would do nothing for residents living in the affected communities and areas. Worse, others posited, the sales and use tax exemptions could reduce revenues that support vital government functions, like education and public safety."
Brownfield Eligible Expenditure Tax Losses Are Minimized for the City by NEW Utility Fees ~
These captured tax increment revenues can be used for multiple "eligible activities," including “any demolition, construction, restoration, alteration, renovation, or improvement of buildings or site improvements on eligible property, including infrastructure improvements that directly benefit eligible property. Capture of the three new sources of revenue is limited to up to 20 years. Capture of incremental property tax revenue is limited to the cost of approved eligible activities up to 30 years. Unlike the other entities (county, school, cemetery, college, state general fund) that will have their various taxes CAPTURED for several years, the city need not be as concerned about putting off collecting the increased assessed taxes for several years from The HOLE. Once the development is completed, and functioning, the city will collect NEW money for utilities which is increased and plentiful and not captured. Utility fees are not an option from which the other entities can collect any increased funds created from the developer's project or a new parking structure while waiting for the Brownfield Plan years to pass.
Brownfield Funds to:
1) Address City Parking
AND/OR
2) Pay for a Multi Milion Dollar Development from which the Developer will Benefit...
are NOT Needs of County Taxpayers ~
It appears the city council might consider a Brownfield in order to accomplish "wished-for" city public parking, to be placed in the lower level of The Hole structure. Required parking spaces in the development possibly would suffice the number necessary for the particular development... paid for by the developer. Other Public Parking already should have been accomplished by this time, or planned, by the Petoskey Downtown Parking Services through the Petoskey Downtown Management Board, and the city council. In about 2015 or 2016, it was asked at a city meeting if a "line item" existed for a city parking structure. No, was the answer with the explanation that regarding the approximately $400,000. that is collected annually from the parking meters, much of those funds are spent on city events, new bathrooms in the Chamber facility, and connected trolley expenses. "Whatever" money is left at the end of each year is "rolled over" into the same account the next year, still with no specific line item for a parking structure. The city could/should address its own parking situation, and not expect the taxpayers of the entire county to take on the city's desires. The city should not allow itself to be pushed against the wall with any threat from a developer that the only way the project can move forward is for taxpayers to subsidize the development through a Brownfield Plan and other public sources.
The city manager has already approached (in 2017-18) Emmet County commissioners and administration trying to coordinate funding for developing a parking structure on the corner of Lake and Division streets for about $4 million. In 2019, the county budget has already been stretched so far that this is not a feasible option. Plus, consider further that with a city/county collaboration, city taxpayers would be paying TWICE for the same structure... city and county taxes. Furthermore, people living in rural northern Emmet County, probably never would take advantage of that proposed parking structure. The other option suggested, for a city/county parking structure, has been to bond for the structure and then expect the parking fees to cover the bond costs. Right now, county employees can park in that location for free, but when the structure is built, the employees would be expected to pay to park to pay to cover the bond. Then, would county employees expect the county taxpayers to cover their share of costs of what previously had been free parking? So, would the taxpayers be expected to pay an increase in county employee wages to cover the parking fees, and thus fund the parking structure in a "round about way?" If the city needs, and truly wants, a parking structure, it seems that could be attainable by designating a certain amount of the parking meter money for an actual parking location and/or structure for city users in need of parking. In fact, that should have happened a LONG time ago in their parking structure desires and planning; and parking meter fee structure budgeting.
IF/when a Brownfield plan funds Petoskey's Public Parking situation with a parking area built within the developer's structure... keep in mind the hours of use the PUBLIC actually may be allowed to utilize the spaces. The developer might "say" a specified number of spaces are for PUBLIC parking, but are those spaces set aside for the PUBLIC, and what hours does the public have use of those spaces? What will the parking fee be? Who has to maintain the parking facility and accept any liability? It would seem that the city could figure out a way to fund and develop its own parking structure on the Darling lot, and be in control. The city should not burden city taxpayers, NOR county taxpayers, with funding a parking structure through taxes, or within a Brownfield plan for years and years.
No one questions the community benefits of a "proper development" in The Hole... the questionable aspect is determining WHOSE money gets SUNK into The Hole; the developer's money or the taxpayers' money.
Mr. Berg is obviously an excellent business person, and realizes that public funding can subsidize The Hole project. Certainly then, he also must realize that if he were to fund his own project, that after he makes the original investment in The Hole facilities, it will not take very long into the future to earn revenue to turn a profit (certainly not take as long as a 30 year Brownfield Plan would burden the taxpayers). At least to quickly gain a "return on investment" is the objective of most business plans. Let the developer who is "sick and tired of being sick and tired" of The Hole, while being mindful of city ordinances, be in control of his project himself, and get his project moving; without waiting for taxpayers to be coerced into paying for most of The Hole development and its parking structure. The taxpayers have already LIVED the History of The Hole, as witnessed on this very web page. Furthermore, taxpayers may not be as sick and tired of The Hole any more as one might think; and taxpayers do not want to be participants in a Brownfield plan for The Hole. Now that The Hole is filled in and is a green space, with a nice fence surrounding it, it is rather pleasant to still have a view of the bay, although it certainly is within the owner's right to block that view. The Hole situation is not so tiring any more to many in the public... Taxpayers are "more tired of more taxes." Taxpayers are more tired of having the thought of their money being "sucked down a Hole," than they are tired of The Hole!
The associated governing local voting entities; Petoskey City Council, Emmet County Brownfield Redevelopment Authority, and Emmet County Board of Commissioners, must pass a resolution qualifying the proposed plan. Then, the plan may move on for state level approval.
Consultant and Brownfield PLANS ~
The consultant aims for the previous 200 East Lake Street Brownfield 2004 plan to be suspended, because the consultant is paid PER plan. This proposed (2019) Hole Project would be considered a NEW project plan, and mean more consultant fee money for him. In about 2013, the same consultant already was paid at least $15,000 by the city for "consulting" regarding this same piece of property when The Center development was being promoted by Tom Johnson and Rob Mossburg. Also, a new proposed plan would give "The Hole" new additional years to capture taxes. Projects usually range from 20 to 30 years... and if the 2004 project plan were to be continued, the Brownfield would have fewer years to "capture" tax funding than if a new plan were approved.
Captured Tax Base ~
Emmet County "property search" shows that developer Mr. Berg's 200 East Lake Street Petoskey Grand LLC has/had over 100 inactive parcels (condominium plats changed into a single parcel as of January 2019) with each parcel assessed for about $300.00 in taxes per year... thus, "about $58,000.00" as of 27 June 2019 of taxes is all that is paid on that prime city block of property presently. Consider that in 2018, the 5/3 Bank property (catty-corner at Petoskey and Mitchell streets) owned by the same developer yielded $70,000. per year in property taxes for that comparatively smaller piece of property, albeit with building improvements. What that means, at the present time, with a Brownfield is that the baseline for 200 East Lake Street block would be about $58,000.00 so any new property taxes, above and beyond that $58,000.00 assessed on that property, as the property develops, would be paid to (captured by) the Emmet County Brownfield Redevelopment Authority to be returned to the developer for any eligible expenses. A straight answer is not forthcoming about this Brownfield arrangement capturing the educational taxes, but it seems that the North Central Michigan College taxes certainly can be captured, without special consideration. It is not clear how this affects the Petoskey Public School millage voted funds and cemetery funds. It has been stated that TIFs, separate from Brownfields, with a project plan, still are applicable for this project... TIFs, for sure, may be allowed to capture school funding. The present DDA TIF includes captured taxes from the city, the county, the college, and the cemetery. For 2018 the city captured total TIF funds of $407,311.76 which go into a fund to be spent for city projects only. IF contamination can be identified on the HOLE site, THEN, for sure, school taxes can be used for "response activities" from the Brownfield funds.
Beneficiaries of Captured Taxes ~
It will be lauded that the developer does pay the increased taxes up front, BUT do note that:
1) the increase in property tax amounts funnels into the Emmet County Brownfield Redevelopment Authority (ECBRA) Funds used to pay back money to the developer for "eligible expenses."
2) and the increase in some sales tax, and income tax, funnels into the State Brownfield Redevelopment Fund (SBRF) used to pay back money to the developer for "eligible expenses.".
Those qualifying taxes are not necessarily put into, or are for, the general public welfare's general budget, locally or at the state level. The ECBRA and the SBRF disperse the captured taxes amounts to the developer for the developer's submitted invoiced qualifying expenses. IF at the end of the particular Brownfield Plan any money remains after the developer has collected all reimbursable expenses, then the ECBRA gets to keep that money, and use it toward any other future projects that the ECBRA becomes involved. Thus, the name "CAPTURED TAXES." The taxpayers are NOT the beneficiaries. The taxpayers' already voted millage/money for specific purposes gets siphoned off for some other purpose that perhaps the developer for his project, or city (in the case of a parking structure) should be providing themselves. Brownfields and TIF plans tend to redirect, and redistribute, taxpayers' money toward a select development or project, and away from voted and intended interests. Developers are reimbursed for MUCH of their investment so the taxpayers fund the particular project. Once the development is formed, or the project completed, however, the developers continue to reap the harvest from the taxpayer funded project...
Behind the Scenes Brownfield Preparation ~
During an Emmet County Brownfield Redevelopment Authority meeting on 14 February 2019, Brownfield consultant Mac McClelland told that he already had met with Mr. Berg and with the City Manager. Those BRA minutes stated: "McClelland met with the new owner and provided options to the owner and to the City Manager. The site and development, if it includes BRA, is complex and would require approval by the City. The site is currently in a DDA/TIF area. A Brownfield Plan is in place on the site and could need to be terminated or amended if BRA funding is utilized. The DDA can capture local taxes; the BRA can capture state and school taxes. Joe Baird [BRA member] recalled that site work was started in 2005 and it was a Brownfield site. McClelland confirmed and explained that the plan created then was in place. A Brownfield Plan can be a complicated document and public parking can be a complicated arrangement. Any involvement by the BRA would need to be coordinated with the City, BRA, and County. Baird suggested that any proposed plans should be approved by the City before being considered by the BRA [Actually, that is what Michigan law states]. McClelland stated that this site will likely be a future BRA project." So, BEHIND THE SCENES preparation was underway for getting into the taxpayers' pockets through a Brownfield for 200 East Lake Street. Also it was reported in the 4 March 2019 Petoskey News Review: "But Berg has told city officials that he plans to use a Brownfield Redevelopment tax increment financing (TIF) structure for the site, so council members will be sitting through an informational presentation about how such financing models work."
The 19 March 2019 Downtown Management Board minutes recorded the following behind the scenes Brownfield Preparation:
"In Economic Enhancement, the Downtown Director reported that representatives of the Petoskey Grand project, 200 East Lake Street, will present at the Planning Commission meeting this Thursday; that staff met with Bob Berg, owner of 200 East Lake Street property, on the movie theatre component and also discussed the need for heated sidewalks throughout all of downtown: that Mr. Berg believes there is a possibility that the costs for heated sidewalks could be tied into Brownfield TIF and that the first step is to obtain a price and there could be a price tag attached to receiving that information."
Once Brownfields are involved/accepted, ALL of the county residents would be paying for heated sidewalks in downtown Petoskey, plus paying for the study and plan for receiving the heated sidewalk information.
[UPDATE regarding heated sidewalk costs: The following is from 30 August 2019 Petoskey News Review article about the possibility of heated sidewalks in Petoskey regarding input from Tim Knutsen (representative for local engineering firm Beckett and Raeder) who appeared at the city's July 2019 planning commission meeting: "Assuming our system would be similar to (a system being installed in) Grand Rapids, cost would be around $376,000 for the snowmelt system alone for the block contained by Petoskey Street/Lake Street/Howard Street/Mitchell," Knutsen said in a memo to the board. "This cost would be separate from insulation, curb and gutter if needed, and concrete sidewalks themselves. Our office (Beckett and Raeder) would estimate removal and replacement of concrete sidewalks for street side sidewalks at an additional $105,000."]
Transformational Brownfield Plans (TBP) ~
The City Council, the Emmet County Board of Commissioners, the Emmet County Brownfield Redevelopment Authority, and the (state level) Michigan Strategic Fund will be the decision-makers for authorizing, or not, a Brownfield/TIF plan for 200 East Lake Street. Those entities are not obligated to approve a Brownfield Tax Capture plan. They can vote "no." The decision-makers, as well as the public, need to understand Brownfields, to make a wise decision about whether a Brownfield is necessary for The Hole, for a Brownfield plan to be imposed upon taxpayers. When Brownfields were FIRST adopted by law, toxic properties, especially in areas such as Detroit and Flint, needed stimulus and public funding to be addressed. Brownfield sites no longer have to have toxic waste contamination to qualify for Brownfield Funding, but rather may qualify for the 2017 Act 46 which incorporates the "Transformational Brownfield Plan (TBP)" into the Brownfield Redevelopment Financing Act, 1996 Public Act (PA) 381, as amended (Act 381).
With a TBP, three kinds of revenue (noted below) may be captured IN ADDITION to local property tax captures, and these three revenue sources go to the State's Brownfield Fund (not the State's General Fund) to pay back the developer:
(1) Construction Period Tax Capture Revenues (Portion of the sales tax on construction supplies for the project)
(2) Income Tax Capture Revenues (Up to 50% of the income tax paid by the construction employees during the construction)
(3) Withholding Tax Capture Revenues (Up to 50% of the income withholding tax of the employees of the created businesses even AFTER the development is completed for several years)
The captured taxes that go to the STATE Brownfield Redevelopment Fund are paid back to the Brownfield qualified developer, rather than making it into the state's general fund where that new tax money would have been directed to roads, education, health care, safety or a myriad of other necessities. Thus, the taxpayer has to pay even more taxes to fund the roads, etc. to cover for the redirected captured taxes.
When the Transformational Brownfield Plan legislation was being created, the summary of public input included the following: "Opponents came to the legislation with multiple perspectives. Community activists viewed the program as nothing more than another tax 'giveaway' to the rich. They wondered whether real estate developers (the bill specifically requires 'mixed-use' development)–whose balance sheets appeared to be doing well–truly needed the added incentives or whether the development would occur anyway. Regardless of motive, they felt the legislation was simply selling out cities, whose residents often face difficult living conditions, to wealthy developers with political connections. It would do nothing for residents living in the affected communities and areas. Worse, others posited, the sales and use tax exemptions could reduce revenues that support vital government functions, like education and public safety."
Brownfield Eligible Expenditure Tax Losses Are Minimized for the City by NEW Utility Fees ~
These captured tax increment revenues can be used for multiple "eligible activities," including “any demolition, construction, restoration, alteration, renovation, or improvement of buildings or site improvements on eligible property, including infrastructure improvements that directly benefit eligible property. Capture of the three new sources of revenue is limited to up to 20 years. Capture of incremental property tax revenue is limited to the cost of approved eligible activities up to 30 years. Unlike the other entities (county, school, cemetery, college, state general fund) that will have their various taxes CAPTURED for several years, the city need not be as concerned about putting off collecting the increased assessed taxes for several years from The HOLE. Once the development is completed, and functioning, the city will collect NEW money for utilities which is increased and plentiful and not captured. Utility fees are not an option from which the other entities can collect any increased funds created from the developer's project or a new parking structure while waiting for the Brownfield Plan years to pass.
Brownfield Funds to:
1) Address City Parking
AND/OR
2) Pay for a Multi Milion Dollar Development from which the Developer will Benefit...
are NOT Needs of County Taxpayers ~
It appears the city council might consider a Brownfield in order to accomplish "wished-for" city public parking, to be placed in the lower level of The Hole structure. Required parking spaces in the development possibly would suffice the number necessary for the particular development... paid for by the developer. Other Public Parking already should have been accomplished by this time, or planned, by the Petoskey Downtown Parking Services through the Petoskey Downtown Management Board, and the city council. In about 2015 or 2016, it was asked at a city meeting if a "line item" existed for a city parking structure. No, was the answer with the explanation that regarding the approximately $400,000. that is collected annually from the parking meters, much of those funds are spent on city events, new bathrooms in the Chamber facility, and connected trolley expenses. "Whatever" money is left at the end of each year is "rolled over" into the same account the next year, still with no specific line item for a parking structure. The city could/should address its own parking situation, and not expect the taxpayers of the entire county to take on the city's desires. The city should not allow itself to be pushed against the wall with any threat from a developer that the only way the project can move forward is for taxpayers to subsidize the development through a Brownfield Plan and other public sources.
The city manager has already approached (in 2017-18) Emmet County commissioners and administration trying to coordinate funding for developing a parking structure on the corner of Lake and Division streets for about $4 million. In 2019, the county budget has already been stretched so far that this is not a feasible option. Plus, consider further that with a city/county collaboration, city taxpayers would be paying TWICE for the same structure... city and county taxes. Furthermore, people living in rural northern Emmet County, probably never would take advantage of that proposed parking structure. The other option suggested, for a city/county parking structure, has been to bond for the structure and then expect the parking fees to cover the bond costs. Right now, county employees can park in that location for free, but when the structure is built, the employees would be expected to pay to park to pay to cover the bond. Then, would county employees expect the county taxpayers to cover their share of costs of what previously had been free parking? So, would the taxpayers be expected to pay an increase in county employee wages to cover the parking fees, and thus fund the parking structure in a "round about way?" If the city needs, and truly wants, a parking structure, it seems that could be attainable by designating a certain amount of the parking meter money for an actual parking location and/or structure for city users in need of parking. In fact, that should have happened a LONG time ago in their parking structure desires and planning; and parking meter fee structure budgeting.
IF/when a Brownfield plan funds Petoskey's Public Parking situation with a parking area built within the developer's structure... keep in mind the hours of use the PUBLIC actually may be allowed to utilize the spaces. The developer might "say" a specified number of spaces are for PUBLIC parking, but are those spaces set aside for the PUBLIC, and what hours does the public have use of those spaces? What will the parking fee be? Who has to maintain the parking facility and accept any liability? It would seem that the city could figure out a way to fund and develop its own parking structure on the Darling lot, and be in control. The city should not burden city taxpayers, NOR county taxpayers, with funding a parking structure through taxes, or within a Brownfield plan for years and years.
No one questions the community benefits of a "proper development" in The Hole... the questionable aspect is determining WHOSE money gets SUNK into The Hole; the developer's money or the taxpayers' money.
Mr. Berg is obviously an excellent business person, and realizes that public funding can subsidize The Hole project. Certainly then, he also must realize that if he were to fund his own project, that after he makes the original investment in The Hole facilities, it will not take very long into the future to earn revenue to turn a profit (certainly not take as long as a 30 year Brownfield Plan would burden the taxpayers). At least to quickly gain a "return on investment" is the objective of most business plans. Let the developer who is "sick and tired of being sick and tired" of The Hole, while being mindful of city ordinances, be in control of his project himself, and get his project moving; without waiting for taxpayers to be coerced into paying for most of The Hole development and its parking structure. The taxpayers have already LIVED the History of The Hole, as witnessed on this very web page. Furthermore, taxpayers may not be as sick and tired of The Hole any more as one might think; and taxpayers do not want to be participants in a Brownfield plan for The Hole. Now that The Hole is filled in and is a green space, with a nice fence surrounding it, it is rather pleasant to still have a view of the bay, although it certainly is within the owner's right to block that view. The Hole situation is not so tiring any more to many in the public... Taxpayers are "more tired of more taxes." Taxpayers are more tired of having the thought of their money being "sucked down a Hole," than they are tired of The Hole!
TRANSPARENCY, PARTICIPATION, AND COLLABORATION between government and public
is imperative for "how" The Hole project is to be funded.
The taxpayers need to be told how Brownfield and TIF "captured taxes"
are redirected away from the original intents, like health, education, and roads, for the taxes to fund.
The public needs information to make informed decisions to then communicate to officials
who then must be held accountable for their conduct with the people's business.
The TAX BASE will not realize an increase for YEARS into the future...
the captured taxes will be redirected back to the developer.
is imperative for "how" The Hole project is to be funded.
The taxpayers need to be told how Brownfield and TIF "captured taxes"
are redirected away from the original intents, like health, education, and roads, for the taxes to fund.
The public needs information to make informed decisions to then communicate to officials
who then must be held accountable for their conduct with the people's business.
The TAX BASE will not realize an increase for YEARS into the future...
the captured taxes will be redirected back to the developer.
NOTE:
Click HERE to access the Michigan Senate Revised SUMMARY of S.B. 1061 (S-3), 1062-1065
to form your own opinions of Michigan's Transformational Brownfield Plan.
Click HERE to access the Michigan Senate Revised SUMMARY of S.B. 1061 (S-3), 1062-1065
to form your own opinions of Michigan's Transformational Brownfield Plan.
IF the Brownfield Plan Proceeds ~
Compare the property outlines on the two top Emmet County GIS maps below with the Petoskey Grand Site Plan below the GIS maps. Notice on the architectural site plan that the Hotel Conference Center and the outside landscaped area extend outside of the property boundary lines. Perhaps the city, or the state, owns the roadway property that will be encroached; so a "deal" will need to be struck. Otherwise, where will the "corner protesters" stand (written facetiously)? This IS the People's Park!
A possible property "deal" has to do with... the alley-way entering off Petoskey Street, and Emmet Street right-of-way which used to extend straight through the Hole block area before the 1963 bypass. The city council may need to decide the particulars of those property rights and associated responsibilities.
Compare the property outlines on the two top Emmet County GIS maps below with the Petoskey Grand Site Plan below the GIS maps. Notice on the architectural site plan that the Hotel Conference Center and the outside landscaped area extend outside of the property boundary lines. Perhaps the city, or the state, owns the roadway property that will be encroached; so a "deal" will need to be struck. Otherwise, where will the "corner protesters" stand (written facetiously)? This IS the People's Park!
A possible property "deal" has to do with... the alley-way entering off Petoskey Street, and Emmet Street right-of-way which used to extend straight through the Hole block area before the 1963 bypass. The city council may need to decide the particulars of those property rights and associated responsibilities.
Both Images Above and Below: The outline of the property lines are highlighted and also shown in the Petoskey Grand LLC site plan two images down where the site plan shows the project definitely extending over the property lines, on to the unused extension of Emmet Street right of way.
March 2019: The State of Michigan (MDOT) presently is reconstructing the bypass which runs directly in front of the proposed hotel pictured below. Supposedly, MDOT will be creating the illustrated sidewalks beside US 131 in that area. Note the helicopter pad on the right hand roof top.
Rendering Above: Does the 2019 rendering above look reminiscent of the rendering below? The rendering below was presented 13 November 2013 as "Petoskey Center Project" within the Power Point "Overview For County Brownfield Authority."
Brownfield funding was being promoted back in 2013 with a very similar facility, by the exact same consultant Mac McClelland. History trying to repeat...
Brownfield funding was being promoted back in 2013 with a very similar facility, by the exact same consultant Mac McClelland. History trying to repeat...
CONCERNS Brought to Light for the Petoskey Grand Project:
- Height
- Traffic congestion
- Ingress/Egress placement
- Structure and its use, overextending property boundary lines on to city property
- Safety of pedestrians along roadways
- Parking (2 full layers... could possibly go down another layer for 3 levels)
- Parking structure monitoring and maintenance
- Overlapping guests using facilities
- 1.5 spaces for "multiple residential people"
- Water retention
- Funding dependency on public taxpayer support through Brownfields/TIFs
- Lack of retail on street level as designated for B-2 zone... mostly residential in business district
- Residential increased, rather than retail, although in a ground level business district
- Urban Planning Consultant Robert Gibbs says Petoskey does not need any more retail
- Service Staff housing
- Helicopter pad on rooftop
- "Affordable Housing" was described by Mr. Berg as $1300. to $2000. per month (This is NOT a state standard!)
- Theatre will be operated as a 501C3
- Brownstones will be sold/leased? with unknown pricing
- Snow removal (Heated sidewalks for all downtown is in discussion)
- "Fake" historical design was voiced at an open meeting
- Heavy density of mobile people for various events; conference center, restaurant, events such as weddings, theatre, pharmacy, spa, roof top view, in respect to available parking, and people moving
- Planning to pursue "Corporate Welfare" = Brownfield Plan and TIFs (Grants?)
- Lack of retail visibility from US 131
- Zoning changes probably needed
- No rough numbers for restaurant seating
- Interior not designed
- Exterior design of fire place not aesthetically pleasing
- Availability of employees
- Stress on infrastructure
- Fire protection requirements and accessibility
- Raised wall along the highway is 12 feet at corner
- Rooftop open to public? Yes.
- Trash and deliveries sites
- Landscaping
Below 19 March 2019 Downtown Development Meeting Minutes reveal that Bob Berg, owner of 200 East Lake Street property, had discussed with the staff "the need for heated sidewalks throughout ALL of downtown; that Mr. Berg believes there is a possibility that the costs for heated sidewalks could be tied into BROWNFIELD TIF and that the first step is to obtain a price and there could be a price tag attached to receiving that information."
Proposal above was presented in June 2019 to the Petoskey Downtown Management Board for consideration of doing the study for $18,850.00, of the possibility of heated sidewalks in Petoskey... Designated areas are presented in the yellow/green-lined areas in the map below. A letter stated: "We understand the City of Petoskey (City) is considering incorporating snowmelt for the right-of-way sidewalks highlighted in green on the attached map..." This type study cost often can be introduced as an "eligible expense" to be reimbursed by Brownfield funds... thus, (indirectly sometimes) paid by the local taxpayers.
The City of Petoskey "Economic Development Strategic Plan" of 20 February 2017 states that 200 East Lake Street is a "Priority Redevelopment Site." The plan also states: "The site now also qualifies for a Brownfield TIF and the City may entertain tax increment financing to fund eligible activities including an underground parking deck." AND "Michigan Economic Development Council (MEDC) representatives have stated there may be Community Revitalization Program (CRP) dollars available in the form of grants, loans, or other economic assistance. This State funding program promotes community revitalization that will accelerate private investment..." Since the 2017 plan, the city has earned certification as a "Redevelopment Ready Community" putting it on a fast-track with the MEDC funding programs.
The following State of Michigan web page tells of the law governing the Community Revitalization Program to gain additional knowledge of more public funding of developers' projects. Click HERE.
Plenty of various public funding mechanisms are available for developers to reach into the local taxpayers' pockets, as summarized by the "City of Petoskey DDA's TIF Annual Synopsis" shown below.
The following State of Michigan web page tells of the law governing the Community Revitalization Program to gain additional knowledge of more public funding of developers' projects. Click HERE.
Plenty of various public funding mechanisms are available for developers to reach into the local taxpayers' pockets, as summarized by the "City of Petoskey DDA's TIF Annual Synopsis" shown below.
~ The City's PARKING Dilemma as Related to THE HOLE and the Proposed PUD~
Access additional Petoskey Parking Information on this same web site
on the "Parking" web page by clicking HERE.
The City of Petoskey never has followed through on their own initiative, or their own funding which would have been possible with a distinctive line-item in the Downtown Management Board's budget, to solve the decades long voiced need for additional parking in the City of Petoskey. The city, consequently, is now in the position AGAIN of trying to negotiate funding for parking and/or a parking structure. That point was quite obvious at the 13 June 2019 Petoskey Planning Commission meeting when presented with a PUD plan for "The Hole". The developer wants to have buildings 90 feet tall which he sees as a scale of viable business necessity. The city's ordinance and Master Plan only allow buildings 40 feet tall, without a PUD. The city wants available parking. The city, through neglect of planning for their own parking needs, have placed the taxpayers in a weakened position for any negotiating for their ordinance restrictions, if parking needs are a necessity factor by the city.
Also, called for in Mr. Berg's proposed PUD, beside 1) the height variance is 2) the allowance for residential townhouses in the otherwise commercial space. 3) The PUD also calls for the city to relinquish their rights-of-way to Reids Alley which extends across the 200 Lake Street block, as well as the extension of Emmet Street which presently exists. In fact, the building plan which has been presented by the developer shows the ENCROACHMENT of the buildings on to the city's ROW property. That is a sizable piece of public property... perhaps facetiously known as where the protestor can legally congregate. What happens to the public's interest in the property versus the city's own interests? "The People's Park"!
While neither the developer nor his business partner attended the PUD meeting, the developers' minions did state (in answer to a commissioner's question) that the helicopter landing site at the top of the biggest building has been removed, although it still showed on the plans.
While neither the developer nor his business partner attended the PUD meeting, the developers' minions did state (in answer to a commissioner's question) that the helicopter landing site at the top of the biggest building has been removed, although it still showed on the plans.
Access the 25 July 2019 Petoskey Planning Commission meeting minutes by clicking HERE.
The Petoskey Planning Commission met 25 July 2019 to make a decision regarding the proposed PUD for 200 East Lake Street. They could conclude from three options: 1) Approve the PUD, 2) Deny the PUD, or 3) Approve the PUD with Conditions. During Planning Commission discussion of the three options, Mr. Berg blurted out from the audience that as the applicant, he was not interested in #3... he wanted no conditions to his plan, but he wanted only a "yes" or a "no" answer to the PUD proposal as it was presented to the Planning Commission. After Mr. Berg's outburst, the lengthy educated discussion by the Planning Commission then had no need for further discussion because they must follow the city's Master Plan and ordinances. Three topics relative to the plan and ordinances, the crux of the proposed PUD, were to be of concern because of Mr. Berg's special sought deviations: 1) Encroachment, 2) Building Height, and 3) Ground Floor Residential. The commission had listened to a great deal of public input, before discussing, and ultimately voting 5-3 against granting a "preliminary planned unit development" as proposed by the developer, AFTER his outburst. Perhaps Mr. Berg either is used to getting his own way (no conditions), or taking his money and leaving. Mr. Berg was quoted in the Petoskey News Review regarding what his next step will be; "The answer is none. Maybe when Katie, my daughter, is more experienced she can revisit the project in the next 10 years." During the meeting, public comment was made that "IF Transformational Brownfields were pursued then the consequences do not lead to an enhanced tax base, in addition to the siphoning off of the captured taxes, thus not going to the state’s general fund for education, heath, safety etc., but rather the captured taxes going to the Michigan Strategic Fund, NOT the state's general fund, to be dispersed back to the developer for eligible expenses of which many could exist.” While, not noted in the minutes, Mr. Berg contradicted that public comment stating he had not met anyone about Brownfields at this point in the process. Contrary to what Mr. Berg stated, he HAS met, regarding Brownfields, with Mac McClelland whose main office Otwell Mawby PC is in Traverse City. Mac McClelland attends Brownfield activities all over the state of Michigan. Mac has been hired by the Emmet County Brownfield Redevelopment Authority, as a consultant regarding Brownfields and was invited to speak at the 4 March 2019 Petoskey Council meeting with a conceptual development plan. To address and contradict that statement of Mr. Berg's denial, please note the following from actual copied minutes which are legal documents:
14 February 2019 Emmet County Brownfield Authority meeting minutes:
14 February 2019 Emmet County Brownfield Authority meeting minutes:
4 March 2019 Petoskey City Council meeting minutes:
19 March 2019 Downtown Development Meeting Minutes which also have been posted farther above on this same web page:
While this particular "Grand Plan is Disbanded" according to a Petoskey News Review 26 July 2019 headline, the idea of Transformational Brownfields for possible future plans for this same site remain concerning for all of the taxpayers of Emmet County, not just for City of Petoskey residents.
The 22 May 2019 Petoskey News Review had an article titled
"Planning Commission scans Berg's 'Grand' Plan" which my be accessed by clicking HERE.
"Planning Commission scans Berg's 'Grand' Plan" which my be accessed by clicking HERE.
The DRAFT minutes for the City of Petoskey City Council meeting on 19 August 2019 reported the City Manager Updates which included: "The City Manager reported on 200 East Lake Street and that a few days after the Planning Commission meeting the City Planner and he met with owner Bob Berg regarding the next steps and discussed alternative design options that may garner support from the Planning Commission and that Mr. Berg stated he was unwilling to revise the development plans at this time..."
316 East Lake Street
(Owned by Bob Berg ~ Owner of The Hole)
(Owned by Bob Berg ~ Owner of The Hole)
The Petoskey News Review 10 October 2019 Headline stated:
"'Grand' battle drives mayoral race"
"'Grand' battle drives mayoral race"
200 East Lake Street "HOLE" owner Bob Berg who also owns downtown 316 East Lake Street has attempted to capitalize on his vacant commercial space as a leverage tool in the current November 2019 mayoral election. Berg has been described as a "political bully" when he told Mayor Murphy, as reported in the newspaper article that Berg stated, "If he [Murphy] was being honest with everybody he would have repeated what I told him three weeks ago. Three weeks ago he and I sat down and I explained to him that as long as he's mayor... I will not submit an application to develop 200 E. Lake St. I need to have a leader in the position that can guide a project through the city." In other words, Berg is saying ignore the zoning ordinance that the city planning commission and the city council, including Mayor Murphy, which they uphold for "the people"... just do whatever Berg wants; or Berg will not go forward with developing the Hole. Berg is the "Holder of the Hole."
Within the 10 October 2019 Petoskey News Review article also, Mayor Murphy addressed a portion of Mr. Berg's problem with Berg's failure to rent his downtown commercial/residential building (photo below), saying, "I would suggest that Mr. Berg go back and get a better business plan that would possibly identify lowering the rent on any vacant buildings." As Mayor Murphy suggested, 316 East Lake Street, specifically, certainly may need for its rent structure to be addressed. From other known existing complaints, Mr. Berg also needs to figure out how to eliminate the reeking cigar smoke fumes that permeate the building, along with penetrating any merchandise or items that any possible renter might house within. These issues of Mr. Berg, are not created by "failed leadership" of any mayor as Berg would like to assign to another, but rather are issues that Mr. Berg needs to address himself.
Within the 10 October 2019 Petoskey News Review article also, Mayor Murphy addressed a portion of Mr. Berg's problem with Berg's failure to rent his downtown commercial/residential building (photo below), saying, "I would suggest that Mr. Berg go back and get a better business plan that would possibly identify lowering the rent on any vacant buildings." As Mayor Murphy suggested, 316 East Lake Street, specifically, certainly may need for its rent structure to be addressed. From other known existing complaints, Mr. Berg also needs to figure out how to eliminate the reeking cigar smoke fumes that permeate the building, along with penetrating any merchandise or items that any possible renter might house within. These issues of Mr. Berg, are not created by "failed leadership" of any mayor as Berg would like to assign to another, but rather are issues that Mr. Berg needs to address himself.
Below: The 9 October 2019 Letters to the Editor of the Petoskey News Review
succinctly address Mr. Berg's sign in the 316 East Lake Street window shown above,
giving community points of view.
succinctly address Mr. Berg's sign in the 316 East Lake Street window shown above,
giving community points of view.
By 17 July 2021 The Petoskey News Review reported that Bob Berg, owner of the HOLE, as well as the owner of above mentioned 316 and 318 East Lake Street properties (Parcel # 52-19-06-226-024) would be asking the City officials to have a discussion about "granting a six-year tax exemption to the Howard Property Partners under the "Obsolete Property Rehabilitation Act." The exemption would amount to an estimated $14,019 per year, and would supplement a $10,000.00 grant from the Downtown Management Board already approved in 2019. Over the time of the tax incentive, this amount would be $94,114.00. These funds would allow Berg to obtain another larger amount of $925,000.00 grant money from the Michigan Economic Development Corporation. Even though the window signs on the buildings "bad mouthed" the mayor during the 2019 election, Mayor John Murphy speaks favorably of Berg's new proposal saying it would help with housing (not low-income) and the city would get taxes eventually... after the six year tax abatement, if approved.
19 July 2021 Petoskey City Council Minutes reported below:
Photo Below: The vacant storefronts, especially on the east end of East Mitchell, in buildings owned by Chris Redding, speak volumes about the owner of those vacant buildings in Downtown Petoskey. His buildings have been periodically rented and/or leased over the last vast number of years, only to have the tenants move out for various reasons including, high rent, leaks, poor maintenance, and just finding it difficult to deal with the owner over various issues. Redding's years' of vacant buildings are not due to leadership with multiple Petoskey mayors, but rather with the ownership/management of the buildings.
Even the 2019 "challenger" for Petoskey's mayor stated in the 10 October 2019 Petoskey News Review article: “The city has endured 15 years and several mayors of nothing happening there [the HOLE],” Smith said. “If it has to, it will endure another 15 years. I don’t feel the city feels they are being held hostage. We vote for a mayor every year. At the very least, if they’re being held hostage, they are only held hostage for another year. That’s the reality of our charter.” The challenger also stated: "I don’t condone his [Berg's] actions in terms of the signage that’s been around (at some of Berg’s existing downtown properties, taking issue with the current mayor).”
Whether Berg, or Redding, the owners of the multiple downtown properties need to follow the ordinances, assume responsibility, and proceed on their own... do not blame others for their own decisions, and issues with their properties. Nor should the property owners expect the county taxpayers to fund their development projects, through Brownfields or other governmental give–aways. An associated web page on this same site regarding the same topics, a Redding Cattle Company property may be entering into the Coming of a Second HOLE... read about it by clicking HERE.
Even the 2019 "challenger" for Petoskey's mayor stated in the 10 October 2019 Petoskey News Review article: “The city has endured 15 years and several mayors of nothing happening there [the HOLE],” Smith said. “If it has to, it will endure another 15 years. I don’t feel the city feels they are being held hostage. We vote for a mayor every year. At the very least, if they’re being held hostage, they are only held hostage for another year. That’s the reality of our charter.” The challenger also stated: "I don’t condone his [Berg's] actions in terms of the signage that’s been around (at some of Berg’s existing downtown properties, taking issue with the current mayor).”
Whether Berg, or Redding, the owners of the multiple downtown properties need to follow the ordinances, assume responsibility, and proceed on their own... do not blame others for their own decisions, and issues with their properties. Nor should the property owners expect the county taxpayers to fund their development projects, through Brownfields or other governmental give–aways. An associated web page on this same site regarding the same topics, a Redding Cattle Company property may be entering into the Coming of a Second HOLE... read about it by clicking HERE.
In defense of present 2019 owners who have "unwelcome" vacant buildings in Downtown Petoskey, the onus of the high property taxes must be considered. The taxes as of 2018 on just one of Redding's properties, for instance, for 418 East Mitchell Street, were about $17,700.00 annually. In 2005 the property taxes on the same exact property were about $5,300.00. And, as of 2020 Redding's Petoskey Land & Cattle Company owned 15 properties in Petoskey. Consider IF the property owner also has a mortgage to pay on the building, then the lease or rent to a business owner, must cover those additional costs, not to mention any maintenance or renovations on the vacant buildings. Many businesses that have succeeded in downtown Petoskey are decades-old family names with the buildings presently already paid for, and owned, by the businesses; that property ownership making for one less expenditure for that business, so it has a higher chance of success. Also, the renters/leaser often find they must sign a "triple net" contract to receive an entry level lower cost, but the minute anything goes wrong, the renter/leaser (not the building owner) is responsible, whether for a leaky roof, a broken window, a non-running boiler... whatever. That unexpected added expense can put a new business right out of business. The businesses/buildings also, in addition to property taxes, are assessed on a specified amount per square footage on the floors of their buildings, plus probably other things they have to pay for out of any minuscule profit they might make.
Notice that as far back as 1992 in the article below, it was stated, "Business closings are causing concern in downtown Petoskey." It is interesting to note that then Director of Petoskey Regional Chamber of Commerce Andy Hayes voiced opinions about area businesses. Even then it was noted that "Leases are too high. Eventually we may see some building owners bring lease payments down." Hayes later left the chamber of commerce directorship for a few years, went to another state, only to return to the Petoskey area to be a director of Northern Lakes Economic Alliance to enhance the economy through business growth. Hayes served with the NLEA for several years, just resigning the post beginning January of 2021. In all of those years, of Hayes' oversight, Petoskey's Downtown has continued to deteriorate business-wise.
Notice that as far back as 1992 in the article below, it was stated, "Business closings are causing concern in downtown Petoskey." It is interesting to note that then Director of Petoskey Regional Chamber of Commerce Andy Hayes voiced opinions about area businesses. Even then it was noted that "Leases are too high. Eventually we may see some building owners bring lease payments down." Hayes later left the chamber of commerce directorship for a few years, went to another state, only to return to the Petoskey area to be a director of Northern Lakes Economic Alliance to enhance the economy through business growth. Hayes served with the NLEA for several years, just resigning the post beginning January of 2021. In all of those years, of Hayes' oversight, Petoskey's Downtown has continued to deteriorate business-wise.
Article Section Below: The 31 August 2017 Petoskey News Review article was titled "Who pays the most?" by Matt Mikus. Taxable Values, and amounts to pay, were listed for Petoskey for 2017:
MacLaren Northern Michigan $8,269,300 (will be more now, in 2020, with new expansion) = $388,107.88
Petoskey Mall Associates LLC (Bay Mall) $3,151,000 = $147,887 property taxes
Bay Harbor Yacht Club (two parcels) $2,873,837 = $134,879 property taxes
USPG Portfolio Two LLC (old Kmart Plaza area) $2,873,837 = $134,879 property taxes
Petoskey Land & Cattle Co LLC as shown below...
MacLaren Northern Michigan $8,269,300 (will be more now, in 2020, with new expansion) = $388,107.88
Petoskey Mall Associates LLC (Bay Mall) $3,151,000 = $147,887 property taxes
Bay Harbor Yacht Club (two parcels) $2,873,837 = $134,879 property taxes
USPG Portfolio Two LLC (old Kmart Plaza area) $2,873,837 = $134,879 property taxes
Petoskey Land & Cattle Co LLC as shown below...
Taxable values are listed also in the article above for Charlevoix, Boyne City, and East Jordan. Click on the link above or click HERE to access that same article.
The Petoskey News Review 10 October 2019 Headline stated:
"'Grand' battle drives mayoral race"
The newspaper headline above continues to say it all...
with ANOTHER Mayoral Election Sign
hanging near another Bob Berg Property... The Hole!
16 October 2019
"'Grand' battle drives mayoral race"
The newspaper headline above continues to say it all...
with ANOTHER Mayoral Election Sign
hanging near another Bob Berg Property... The Hole!
16 October 2019
"Berg makes 'defamation' lawsuit threat" toward Councilwoman Kate Marshall was a 23 October 2019 Petoskey News Review headlined article. Marshall was quoted in the article as saying, "I can't apologize for speaking the truth." AND "If Mr. Berg intended to compromise with the planning commission, one would think he would do so BEFORE the time that the planning commission was actually (scheduled) to act upon plans."
The 1 November 2019 Bridge Magazine reported... "He [Former Governor Snyder] also signed a 'transformational brownfield' incentive heavily pushed by Detroit billionaire businessman Dan Gilbert, whose redevelopment projects have since qualified for $300 million in incentives under the program." This gives an idea of the amount of money, in two short years, that has been siphoned from Michigan taxpayers and away from Michigan's schools, health, security, and roads, with this one project, and returned to the developer.
Below is the on-line result of asking Google, "Who is the richest person in Michigan?"
Below is the on-line result of asking Google, "Who is the richest person in Michigan?"
Regarding above item: Dan Gilbert must be an example of how Michigan's developers acquire their vast amount of dollars... The developers know the tricks for "incentivizing the taxpayers (not themselves)" through "corporate welfare" to pay for the developers' developments! The $300 million that Gilbert sucked away from the taxpayers dollars for education, health, roads, for instance, hardly would have been a drop in his own $5 billion bucket.
UPDATE from 30 June 2022 Petoskey News Review: Dan Gilbert's real estate firm Bedrock is requesting a $60 million tax abatement which would freeze property taxes on the project for 10 years, being necessary because of the project's high costs and low anticipated return-on-investment. Bedrock said that the project's costs have jumped to $1.4 billion, up from $909 million at the December 2017 groundbreaking. Gilbert is said to be contributing about $1 billion in equity or cash, and Bedrock intends to borrow the other $400 million. The $60 million tax abatement would ordinarily be for taxes going toward the city, Detroit school, Detroit libraries and Wayne County education entities. Right now most of the downtown locations property taxes are instead captured by the Downtown Development Authority [DDA] for various economic development purposes in and around downtown. The Bedrock tax abatement would give Bedrock a break from taxes that otherwise would go to the DDA. The Bedrock project which will include Detroit's second-tallest skyscraper, continues, and is scheduled to be completed in late 2024.
UPDATE from 30 June 2022 Petoskey News Review: Dan Gilbert's real estate firm Bedrock is requesting a $60 million tax abatement which would freeze property taxes on the project for 10 years, being necessary because of the project's high costs and low anticipated return-on-investment. Bedrock said that the project's costs have jumped to $1.4 billion, up from $909 million at the December 2017 groundbreaking. Gilbert is said to be contributing about $1 billion in equity or cash, and Bedrock intends to borrow the other $400 million. The $60 million tax abatement would ordinarily be for taxes going toward the city, Detroit school, Detroit libraries and Wayne County education entities. Right now most of the downtown locations property taxes are instead captured by the Downtown Development Authority [DDA] for various economic development purposes in and around downtown. The Bedrock tax abatement would give Bedrock a break from taxes that otherwise would go to the DDA. The Bedrock project which will include Detroit's second-tallest skyscraper, continues, and is scheduled to be completed in late 2024.
The 3 June 2020 Petoskey News Review reported that Bob Berg, property owner adjacent to what has become known as the "'People's Park' clashed with peaceful protesters." Mr. Berg began videotaping the protesters who held signs with the overall message that read "All Lives Matter." The message which has pervaded the country was all in response to the unjust killing of George Floyd in Minnesota by the police. The GIS map below shows the "People's Park" area to the west of Mr. Berg's property at 200 East Lake Street. Past plans for the Hole, show the construction encroaching on the public's property.
Agenda Memo and Enclosures Below: The Petoskey City Council member's initiation of an agenda item regarding "potentially establishing Emmet Street right-of-way property between Mitchell Street and US-31 as official 'Park Lands'" would keep the "People's Park" in the public's best interest. Any developer of 200 East Lake Street would certainly have enough property to build a sizable development without the "People's Park" space. Many past developers' plans have encroached upon the park space. Encroachment needs to end.
During the 15 June 2020 City Council meeting discussion was held regarding "Establishing an Official Park Land Designation for City-owned Property at Mitchell Street and US-31 Highway" when Council Member Marshall stated, "That piece of Emmet Street Right of Way was never 'a given' in terms of surrendering it to a developer. That has never happened… maybe a part of a discussion, but never a guarantee." A motion was made somewhat like the following: Direct staff to send to the parks and rec, and take the idea of establishing what is known as the Emmet Street Right of Way as official park land as perhaps known as People’s Park. And I hope they do discuss the First Amendment… And then to come back with a resolution that the city council can vote on.
Marshall’s motion passed 4-1 with Wagner voting against it.
Below: DRAFT minutes for the above described 15 June 2020 Petoskey City Council Meeting.
Marshall’s motion passed 4-1 with Wagner voting against it.
Below: DRAFT minutes for the above described 15 June 2020 Petoskey City Council Meeting.
It seems most of the various Hole plans have managed to include encroachment on to the City's Right-of-Way called the "People's Park." Yes, all parks are "People's Parks" including this "strategic strip of land located adjacent to the infamous 'hole' parcel.
Below Agenda Memo was prepared 16 June 2020 for City Council Meeting Date 20 July 2020.
Photo Below:
The city's right-of-way including the proposed "People's Park" area is obvious,
extending off Emmet Street...
The city's right-of-way including the proposed "People's Park" area is obvious,
extending off Emmet Street...
As of 3 August 2020 the Petoskey City Council approved the resolution:
"Designating the Emmet Street Right-of-way between Mitchell Street and US-31 Highway as Public Park Lands."
Shumway’s motion passed 4-1 with Wagner voting against it.
"Designating the Emmet Street Right-of-way between Mitchell Street and US-31 Highway as Public Park Lands."
Shumway’s motion passed 4-1 with Wagner voting against it.
The Petoskey News Review reported "City Council Approves 'People's Park' Plan, Despite Objection."
~ People's Park Dedication with Ribbon Cutting Ceremony ~
September 2020
September 2020
Articles/Text Above and Photos Below: With the city's dedication of the strip of land becoming People's Park, and open to peaceful gatherings/protest, Mr. Berg has proceeded to use his adjacent properties to express his own First Amendment Rights. The 2020 Presidential Election was highly contentious between Republican President Trump and Democratic former Vice President Biden. While the Democratic Party legally used the public's People's Park to express their views, Mr. Berg, the present owner of The Hole, legally expressed his views with multiple flags and signs on his own Hole property, as well as his other Petoskey properties, as noted in the photos below (click on photo to enlarge).
Photos Below: Mr. Berg's legal First Amendment expressions posted on his other Petoskey Properties...
The Petoskey News Review published on 19 November 2020 an article titled
"When is it time to take down Political Signs?"
quite possibly in response to those complaining about
the political signs not yet having been removed on the Berg properties.
"When is it time to take down Political Signs?"
quite possibly in response to those complaining about
the political signs not yet having been removed on the Berg properties.
The 25 March 2021 Petoskey News Review reported "City Planners may consider political sign policy changes"... again quite possibly in response to those complaining about
the political signs that had been posted on the Berg properties.
"Free speech, content neutrality remains key considerations"
the political signs that had been posted on the Berg properties.
"Free speech, content neutrality remains key considerations"
On 13 April 2021 Judge Charles W. Johnson ruled "Defendant's (Petoskey's) park resolution is illegal and void" because the resolution exceeded the scope of Defendant's (Mr. Berg's) rights under a street right-of-way.
The below judgement is important to those who wish to continue to use the ROW for peaceful protest,
as even without the park designation, protests can continue to be held there, just as in the past.
The below judgement is important to those who wish to continue to use the ROW for peaceful protest,
as even without the park designation, protests can continue to be held there, just as in the past.
No where in the ruling is the name "Peoples Park" used (or to be dismissed), so it would seem the location still could be referred to as People's Park, just as it was in the past (Note the map below giving credence to this fact). What has changed, however, is the legality of a developer using the right of way area for ingress and egress. No where was it stated, however, that a developer could encroach with the buildings on to the ROW, as many developers' plans were presented in the past. The developer does not own the ROW, just has the use of the ROW, without having to receive a vote of the people.
At the 7 June 2021 Petoskey City Council meeting a letter written by Mr. Berg's attorney Mr. Peck requested the city vacate the approximate .20 area area of the Emmet Street Right-of-Way. The Berg plan presented continued to show the development's building encroaching on to the ROW. The Council did not approve the request.
Photo Below: Bob Berg's old video store sits catty-corner from the HOLE.
Photo Below: Bob Berg's old video store no longer sits catty-corner from the HOLE.
Three Photos Below: Almost a year later, catty-corner from the Hole, not much happening; trimming a few trees...
2024
Many local Petoskey area residents have grown accustomed to the HOLE...
in fact, residents rather appreciate having the View of the Bay, across the vacant property.
in fact, residents rather appreciate having the View of the Bay, across the vacant property.
~ PRE-POST SCRIPT to the WHOLE HOLE Symbiotic relationship between the CITY and the HOLE.~
A Lesson to Learn from Cheboygan?
A Lesson to Learn from Cheboygan?
CHEBOYGAN, Michigan, in 1957, had placed itself in a "Sour Deal" with the Great Lakes Garment Company of Cheboygan by trying to induce a factory which "apparently didn't have enough capital to go into business on this kind of scale, and the city was over-zealous to get a factory–at any cost." Hoping to strike a similar style deal, the 2019 developer for Petoskey's Hole, however, appears to have enough capital to go into developing The Hole, but, along with the City of Petoskey, would rather use tax inducements through redirected taxpayers' funds; rather than use the developer's, Petoskey's Downtown Management Board's, or the city's own funds.