St. Ignace residents may get a new grocery store downtown if developers follow through on plans presented to the Downtown Development Authority (DDA) at its Friday, October 30, meeting. The project would put to use a vacant store building and create at least 20 year-around jobs, developers Mark Sposito of St. Ignace and Andrew Doud of Mackinac Island say.

About one acre of waterfront property across the street from St. Ignace City Hall is under consideration and includes three buildings, 398 feet of Lake Huron waterfront, and 437 feet of frontage on State Street. The DDA agreed to support the plan and appointed Director Deb Evashevski as the local government representative to pursue $270,000 in funding from the Michigan Economic Development Corporation (MEDC) to help developers minimize the cost of the property purchase.

If approved, the grant would fund a significant portion of the purchase price, which Mr. Sposito and Mr. Doud said could allow them to make much-needed renovations to the facility, previously the site of Rehn's grocery store. Mr. Sposito is a restaurant owner in St. Ignace and Mr. Doud owns a grocery store on Mackinac Island.

The largest of the three buildings is about 12,000 square feet. The two smaller buildings are about 1,250 square feet and 840 square feet. The larger building was built in 1950 as a grocery store and was operated as a grocery under different names until it closed in the fall of 2004. The two smaller, adjacent buildings have been operated as various businesses over the years, and both are vacant.

"They presented the idea to their staff, and they loved the project," Mrs. Evashevski said of the response from representatives at the MEDC.

"It's a great project," Mrs. Evashevski said. "It certainly fills a building that has been empty since 2004."

The proposed renovations would include replacing refrigeration and lighting equipment, resulting in an estimated one-third energy savings, Mr. Sposito said. Other costs of the renovation would include replacing siding, replacing parking lot pavement, painting the exterior of the two smaller buildings, removing garbage currently on the site, adding landscaping to the property, and other improvements.

The $270,000 MEDC grant would hold the developers to certain restrictions to make sure the project meets the agency's goals of job creation and economic development.

"What the EDC is interested in is job creation and economic development," Mrs. Evashevski said, "and this project is both."

In a development agreement required by the grant, the purchasers of the property must agree to retain the property for at least five years after the purchase, create at least 14 jobs for a period of two years, and go through with the initial development plans of the property. If any of the contract terms are not fulfilled, the city would assume ownership of the property.

After talking with grocery consultants, Mr. Sposito determined the proposed store would create between 20 and 24 year-around jobs, with up to 32 jobs available during peak seasons, which would more than fulfill grant requirements.

Fifty-one percent of these new employees need to be low to moderate income workers, according to the grant. Mr. Sposito said he does not anticipate a problem reaching this percentage.

Mr. Sposito and Mr. Doud already have had businesses express interest in renting the two smaller buildings on the property. These two buildings most recently housed a motorcycle parts store and a restaurant.

The grant process must be completed before the purchase of the property can be made, Mrs. Evashevski said. This process includes turning in a letter of intent to the MEDC, getting City Council support for the project, completing historic preservation and environmental impact reviews, and finally applying for the funding.

A public hearing will be held Monday, November 16, to receive comments from citizens.

Mrs. Evashevski said this process is very similar to the one she went through with a grant for renovation of the building that is now The Pavillion in downtown St. Ignace.

"It is really important that we get all this paperwork done in a timely manner," she said. "This will be heading to City Council quickly."

City Council approved the project Monday, November 3.

The next steps will be submitting a letter of intent to the MEDC and bringing the issue in front of City Council to request a resolution of approval.

"The EDC expects the city to be behind it, not just the DDA, but the city and the city council," Mrs. Evashevski said.

DDA To Enhance Boardwalk

Area Near Proposed Store

The City of St. Ignace is expected to pitch in and help develop the area, Mrs. Evashevski said, and DDA board members approved enhancing the boardwalk area surrounding the property in question.

An addition of boardwalk, picnic tables, and planters is estimated to cost about $5,000, Mrs. Evashevski said, although this could be a little higher or lower depending on what sort of assistance they get from the city's public works department and prison workers from Kinross.

"People could sit out there and eat their lunches, and watch the fireworks on Saturday nights," she said. "It would be a great area and would complement this project."