2010-01-21 / News

St. Ignace Grocery Store Applies for Grant

Downtown Project Moving Forward
By Mark Tower

After asking for public comment, the St. Ignace City Council approved a community development plan and authorized Downtown Development Authority (DDA) Director Deb Evashevski to submit all grant application materials for the proposed Doud's Market grocery store and development project at 399 North State Street.

Developers Mark Sposito of St. Ignace and Andrew Doud of Mackinac Island plan to develop the site of a former grocery store with help from the Michigan Economic Development Corporation, which has offered a $270,000 grant to minimize the cost of purchasing the property.

Only one community member, Frank Sorrels, made a comment during the public hearing at 8:15 p.m. Monday, January 18, saying the city should consider a reduced tax rate for the developers to encourage the project.

City Manager Eric Dodson said the city has not considered such an idea because the developers have not asked for it.

The community development plan is a requirement for the grant process, for which the DDA has assisted the developers, and it outlines elements of the city's master and DDA plans, lists things the city has done and is doing to support low-income housing and low to moderate income job creation, and explains the scope of the plans for a new grocery store and two other rental businesses on the property, which is across from City Hall.

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 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.

Mr. Doud said the main intent of the project is to provide a fullservice grocery store and build up businesses in the St. Ignace downtown that will last for a long time.

"It's really going to be great for the downtown area," he said. "We are taking a run-down building and creating a really nice store with great atmosphere right on the water. I just see a huge hole over there where we can make a great thing."

Both the resolution allowing Mrs. Evashevksi to submit grant materials as a representative of the city and the community development plan were approved unanimously by Council.

Mrs. Evashevski submitted the grant application Tuesday, January 19, and said the MEDC has said they hope to have an answer within a few weeks, though they cannot guarantee it. Once the application is approved, the MEDC will draft an agreement that needs to be signed by both the MEDC and the City of St. Ignace. After this contract is in place, developers can go ahead with the purchase of the property, for which they would be reimbursed for the grant amount.

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