St. Ignace residents are one step closer to seeing a grocery store built downtown on the former site of Rehn's grocery store, owing to approval of a notice of intent to use a $270,000 grant from the Michigan Economic Development Corporation (MEDC) to minimize the cost of the property purchase for developers.

The notice of intent paves the way for a public hearing and formal application, the next steps before funds are released, said Downtown Development Authority Director Deb Evashevski.

"They give you the opportunity to pitch your project," she said of the process, "then they give you the nod to go ahead and apply for the funds."

Residents will get the chance to comment on the grant application before it is submitted to the MEDC during the city council meeting Monday, January 18, at 8 p.m. Mrs. Evashevski, who is administering the grant on behalf of the city and property developers, said she plans to submit the grant application Tuesday, January 19, including the comments made at the meeting the night before.

The funds are made available by the federal Community Development Block Grant program and are meant to stimulate local economies and create new jobs in the state.

The store in St. Ignace, being developed by Mark Sposito of St. Ignace and Andrew Doud of Mackinac Island, will cater to city residents and visitors alike.

The MEDC grant covers a significant amount of the purchase price, with strings attached. To comply with the grant agreement, developers 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 plans to develop the property. Fifty-one percent of new employees also need to be low to moderate income workers.

The store will include a bakery, deli, butcher, and produce department in about 12,000 square feet of retail space. Messrs. Sposito and Doud plan to offer a year of free rent as an incentive to tenants who agree to run businesses out of the two, smaller buildings on about one acre of property.

Mrs. Evashevski plans to submit the application to MEDC January 19 and said the city could hear back as soon as two weeks later.