New Homes and Commercial Space Coming to Port Huron, Battle Creek, and Owosso

LANSING, Mich. - Today, Governor Gretchen Whitmer announced three redevelopment projects receiving support from the bipartisan Revitalization and Placemaking (RAP) program, creating new opportunities for housing and commercial space across the state. Mixed-use redevelopments will contribute housing and commercial space to the downtown areas of Port Huron, Battle Creek, and Owosso, together generating a total capital investment of over $21.1 million in the state while activating vacant properties and increasing community vibrancy.

"Today's announcement is more proof that Michigan is open for business and on the move. Our population is growing, and we've been ranked a top state for opportunity and doing business," said Governor Whitmer. "These projects will bring more homes and small businesses to Michigan downtowns. Programs like RAP help us build on this progress, attract and retain talented workers, lower costs, build housing, and enrich our communities. Let's keep working together to get things done for our state."

The RAP program provides access to gap financing for place-based infrastructure development and real estate rehabilitation and development.

"The MEDC supports the vibrancy of communities across our two peninsulas as part of the state's 'Make It in Michigan' economic development strategy," said the MEDC's SVP of Community Planning and Development Readiness Michele Wildman. "These projects across Michigan's lower peninsula will add housing, commercial space, and residential amenities, increasing economic activity in their communities."

In the City of Port Huron, the vacant, historic Fead Building at 1635 Poplar Street in the Optimist Park neighborhood will be rehabilitated into a mixed-use development featuring 26 apartments and a commercial space. To address the need for affordable workforce housing in Port Huron, the project is anticipated to list the apartments between 55-80% Area Median Income, $1,000-$1,350 for one-bedroom units and $1,300-$2,000 for two-bedroom units.

The project will be supported by a $2 million RAP grant to assist with the historic rehabilitation of the long-blighted building and bring a total anticipated capital investment of $7,058,742. The City of Port Huron is contributing to this project through the approval of a Housing TIF with estimated local capture of approximately $888,896 over 20 years. The project is also leveraging Federal Historic Tax Credits (HTC) with HTC equity valued at approximately $1,000,000.

"The Fead Building redevelopment shows the potential of Housing TIF to turn possibility into progress," said Amy Hovey, MSHDA CEO and Executive Director. "By combining this tool with historic preservation incentives and strong local partnership, MSHDA is helping breathe new life into a longvacant building and creating highquality, affordable workforce homes."

The K.C. Management, LLC development team consists of Kyle Schiewick and Craig Baxter, who own and operate several local businesses and have managed several construction and revitalization projects. This includes a redevelopment of a former funeral home into approximately nine apartments in downtown Port Huron, a project which is utilizing funding from MSHDA.

"We are very excited to start the transformation of the historic Fead building in Port Huron," said developer Baxter. "Our hope is it will bring new life to an obsolete building, adding additional housing, and a commercial space, for the people that we serve every day in Port Huron," developer Schiewick added.

"The FEAD Project reflects the City of Port Huron's commitment to moving forward through thoughtful growth, economic opportunity, and strategic investment in our community," said Port Huron Mayor Anita Ashford. "This project represents more than development - it represents confidence in Port Huron's future. It is a testament to what can be accomplished when elected officials, community stakeholders, and development partners work together toward a common vision. As we continue building a stronger, more vibrant Port Huron, we remain committed to fostering opportunities that enhance quality of life, strengthen our local economy. and creates lasting positive impact for future generations. Our thanks to the vision of KC Management."

"I'm pleased to see this investment in the Port Huron community to help address affordable housing and preserve a historic building," said State Sen. Dan Lauwers (R-Brockway). "I look forward to its positive impact for residents and the surrounding community."

"Affordability and accessibility to housing have become increasingly difficult challenges in modern society, particularly over the past decade. Efforts to address this housing crisis are being advanced through initiatives such as the Revitalization and Placemaking (RAP) awards, including the project in the City of Port Huron that will create both residential apartments and commercial workspace within the historic Fead Building," said State Rep. Joseph Pavlov (R-Kimball). "Through this grant funding, these investments will promote economic growth, expand workforce opportunities, and provide affordable housing options for residents throughout the Blue Water Area. Programs supported by the Michigan Economic Development Corporation (MEDC) not only help sustain local populations but also strengthen communities through strategic investments."

The City of Port Huron is engaged with the MEDC's Redevelopment Ready Communities program, which supports communities to drive economic growth and create more vibrant districts.

In the City of Battle Creek, an existing single-story building at 99 West Michigan Avenue will be converted into a three-story development featuring 10 residential units, a main floor commercial space, and rooftop event venue. When complete, the project will contribute to housing needs in Battle Creek, heightened by the demand to support the nearby BlueOval Battery Park in Marshall .

The project is being supported by a $2.9 million RAP grant and will bring a total anticipated capital investment of $12,652,109. Battle Creek Unlimited purchased the property and invested more than $800,000 in stabilization costs before selling it to the developer for $1.00. The local Brownfield Redevelopment Authority is supporting the project through a $1,000,000 low-interest loan. The City of Battle Creek is supporting the project through local portion of Tax Increment Financing capture valued at approximately $516,673 and an Obsolete Property Rehabilitation Act abatement valued at approximately $735,000 over 12 years.

The Bean Property Group, LLC development team of Percy and Carla Bean has over 30 years of experience in real estate development, including ground-up construction and renovation in the Southwest Michigan region.

"We have deep roots in Battle Creek and have dreamed of contributing to its revitalization for years," said Percy and Carla Bean, co-owners of Bean Tower. "With the support of Michigan Economic Development Corporation and our incredible partners, we are turning that dream into a reality-bringing quality housing, a restaurant with great food, a Game Room for entertainment, and a rooftop Event Center to the gateway of our hometown."

"We are beyond excited to see this project come to fruition and contribute to the momentum that is happening in real time in Battle Creek," said Joe Sobieralski, president and CEO of Battle Creek Unlimited. "Projects like this would not be possible without the multi-layered and creative approach to financing, tools provided by the MEDC, and dedicated and patient ownership willingness to take the journey. We congratulate the Beans and all parties involved making this project a reality."

"I want to congratulate Joe and everyone else at Battle Creek Unlimited for their tireless work for our city," said State Rep. Steve Frisbie (R-Battle Creek). "This project will be a great example of how strategic investment can address real needs. Converting this vacant building into new housing and commercial space will strengthen our local economy and help address increased housing demand in our city."

This project builds on other recent MEDC assistance for housing developments in Downtown Battle Creek, including the RAP-supported redevelopment of the former K-Mart retail store site , adding 80 apartments, and the redevelopment of the Anson Hotel that received support from the Michigan Community Revitalization Program, adding eight units. These developments and others will help with the local housing shortage and provide more options for the Battle Creek community.

Finally, in the City of Owosso, a two-story building at 207 N. Washington will be rehabilitated, with first-floor commercial space and three ADA-compliant two-bedroom apartments on the second floor. The redevelopment will add critical housing and increase retail activity in Downtown Owosso.

The project is being awarded a $680,000 RAP grant to support the cost of redeveloping the long-vacant sites and is expected to generate a total capital investment of $1,439,074. The City of Owosso has also supported the project through a 10-year OPRA tax abatement, valued at approximately $119,513.

Sanders Housing Project, LLC is led by developer Tammie Sanders, who has 18 years of experience in real estate development, including three condominium projects.

"I am incredibly grateful to the MEDC and RAP program for believing in this project and helping make the vision a reality," said developer Tammie Sanders. "I especially want to thank Charles Donaldson, Joshua Prusik, and the entire behind-the-scenes staff of the MEDC. I also want to thank the City of Owosso and City Manager Nathan Henne for his partnership and dedication to the growth and revitalization of our community. Finally, I want to thank Reece Burton and especially Bruce Johnston of Revitalize LLC. They stood by me every step of the way, providing guidance, expertise, and encouragement as we work towards bringing this Sanders housing project from idea to destination that will benefit our community. The new apartments will be located above one of downtown Owosso's most popular local businesses, MI Favorite Store. It will create an opportunity to bring even more activity in connection to the area. The project represents renewed energy and opportunities to the historic heart of our community."

"The renovation of 207 N. Washington in downtown Owosso sets an example that restoring aging downtown infrastructure can be done by utilizing resources like MEDC and the Placemaking program. It's a steppingstone and example to encourage continuing investment in the aging infrastructures of our downtown and all downtowns," said Mayor Rob Teich. "The renovation not only creates needed housing in the downtown area, it also strengthens our commercial community."

"Revitalization and placemaking grants have proven to be a vital tool for communities across the state to transform local eyesores into spaces for residents to use, enjoy, and be proud of," said State Sen. Sam Singh (D-East Lansing). "I'm thrilled that the Owosso community will soon benefit from this investment, seeing a long-vacant site turn into vibrant spaces for people to live and develop their next creative venture."

The City of Owosso is deeply committed to strategic economic revitalization and holds the following designations: Certified RRC, a Master-level Michigan Main Street community, with a Downtown Development Authority (DDA), and is a Certified Local Government through the State Historic Preservation Office.

About Michigan Economic Development Corporation (MEDC)

The Michigan Economic Development Corporation is the state's marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan's economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: FacebookInstagramLinkedIn, and Twitter.