Governor Whitmer Announces New Housing and Commercial Space Coming to Historic Downtowns Across Michigan
Funding will redevelop vacant spaces in Cheboygan, Ionia, Marshall, Morenci, and Port Sanilac
LANSING, Mich. – Today, Governor Gretchen Whitmer announced five redevelopment projects receiving support from the bipartisan Revitalization and Placemaking (RAP) program, creating housing and commercial space in Cheboygan, Ionia, Marshall, Morenci, and Port Sanilac. Together, the projects will generate a total capital investment of over $8.7 million in the state while activating vacant properties and increasing community vibrancy.
The RAP program provides access to gap financing for place-based infrastructure development and real estate rehabilitation and development.
“Michigan is on the move and open for business, and these new placemaking projects will create vibrant commercial space and housing across our state,” said Governor Whitmer. “Programs like RAP help to create vibrant places that attract and retain talented workers, add new housing options, enable business creation and attraction, and more. Let’s keep working together to get things done for our state.”
“The MEDC is grateful to work with communities like Cheboygan, Ionia, Marshall, Morenci, and Port Sanilac and invest in their resilience through the RAP program as part of our placemaking efforts in support of the state’s ‘Make It in Michigan’ economic development strategy,” said the MEDC’s SVP of Community Planning and Development Readiness Michele Wildman. “We look forward to seeing how these projects uplift the downtowns of these various communities throughout the state, generating new commercial activity, creating residential density, and giving vacant property a new life.”
In the City of Cheboygan, a long-vacant downtown building will be revitalized into a mixed-use development, featuring two upper-floor apartments and 1,589 square feet of commercial space on the ground floor. The redevelopment will add housing to the downtown corridor while eliminating blight and preserving the historic character of the building.
The project is being awarded a $335,000 RAP grant to support the cost of redeveloping the vacant property and is expected to bring a total capital investment of $863,383. The City of Cheboygan is anticipated to provide support in the form of an OPRA tax abatement and a Brownfield Plan.
Developer Susan Blum is from Cheboygan and brings over 50 years of real estate development experience to the project alongside a team of consultants with MEDC-supported projects statewide, including Bruce Johnston of Revitalize, LLC, Dave Van Haaren of Triterra, and Brian Fleming of First Contracting.
“I am so pleased and grateful to receive this award from MEDC to make a positive difference in our little town of Cheboygan, Michigan,” said developer Susan Blum.
“This development builds on the momentum underway in downtown Cheboygan, adding housing and revitalized commercial space that will support a more dynamic and resilient downtown for years to come,” said City Manager Daniel Sabolsky.
“This project represents exactly the kind of smart, incremental development that strengthens downtown Cheboygan,” said Polly Schneider, executive director of the Cheboygan Main Street DDA. “Adding new housing while revitalizing commercial space helps create a more active, vibrant downtown that supports local businesses and long-term economic vitality.”
In the City of Ionia, a functionally obsolete property will be redeveloped to create four second-floor apartments and 3,400 square feet of commercial space on the ground floor, including a micro-grocery store and white box space. With a central downtown location, the project will address housing gaps in the community and add retail opportunities.
The project is being supported by a $580,000 RAP grant to assist with redevelopment costs and is expected to bring a total capital investment of $1,240,275. Developer Stephanie Hoffer of Artichoke Investment, LLC, the prior owner of the Ionia City Market, is working with Revitalize, LLC and Triterra Environmental Consultants on the project.
“What is currently a derelict building – with holes in the roof and missing numerous windows – will be high quality, affordable housing within a year, along with two reasonably-sized commercial spaces that will support budding small business owners in the heart of Ionia on Main Street,” said developer Stephanie Hoffer. “We are honored to be part of enhancing Ionia’s downtown and encouraging entrepreneurs and residents to add to the vibrancy of Main Street. We are grateful to the MEDC for the work they do and providing the necessary funding for this project!”
“The City of Ionia is pleased to join the public/private partnership with Stephanie Hoffer of Artichoke Investment, LLC to facilitate redevelopment of her mixed-use building, located in downtown Ionia’s nationally recognized historic business district,” said Precia Garland, Ionia city manager. “In addition to the State’s RAP grant, the City approved an obsolete property rehabilitation exemption certificate, which will further assist Ms. Hoffer in securing the resources necessary to make this exciting redevelopment project a reality.”
In the City of Marshall, a three-story, Italianate style building located at 117 E. Michigan Avenue will be updated to include two two-bed, two-bath residential units on the upper floors and a new commercial space in the basement. The main floor, which is currently occupied by staffing agency Xcel Staff, is already fully activated and will remain unchanged.
The project is supported by a $500,000 RAP grant to assist with redevelopment costs of the former mixed-use building on the site and is expected to bring a total capital investment of $1,327,252. This project is also receiving local support through an approved Obsolete Property Rehabilitation Act tax abatement valued at $20,118.
Developer John Gutsue of 117 W. Michigan Ave, LLC also owns Gutsue Construction, which has completed several residential and commercial projects as the lead contractor. This will be the first mixed-use property development for John and his wife Jessica, who are being supported in the predevelopment and design process by Cody Newman of Driven Design.
“New investment in Marshall’s historic downtown has been a priority for our city for many years,” said Mayor Scott Wolfersberger. “My thanks go out to John and Jessica Gutsue for their dedication to Marshall and to the MEDC for supporting our community goals.”
In the City of Morenci, a former downtown hardware store will be converted into first floor commercial space for a local CPA office and two apartments on the second floor. The project is anticipated to be a catalyst for future redevelopment and growth in the Morenci community.
The project is supported by a $464,100 RAP grant to assist with redevelopment costs of the site and is expected to bring a total capital investment of $1,306,236. The City of Morenci, which is engaged with the MEDC’s Redevelopment Ready Communities program, awarded a $5,000 façade grant for the project.
Brent Shea of S&A Real Estate Holdings and Shea & Associates Advisory and Accounting has owned commercial and residential spaces in the past; this will be their first completed rehabilitation project to this degree.
“I’m incredibly grateful to the State of Michigan for this investment in downtown Morenci. This grant will allow us to preserve a key piece of our downtown corridor while creating new opportunities for job growth and adding a couple more affordable housing units,” said developer Brent Shea. “This building has sat vacant for several years and the plywood windows have been an eyesore for the community at a key intersection in town. I’m thankful for all their help to get this project approved and look forward to welcoming everyone to visit when it’s complete.”
“MEDC’s investment through the Revitalization and Placemaking program helped fill a critical financing gap, making this project possible,” said Morenci City Administrator/Clerk Jeff Bell. “This redevelopment supports the expansion of a long-standing Morenci business, helping retain and grow jobs while bringing new life to a prominent downtown building. Transforming a long-vacant property at a key intersection strengthens our downtown core and shows how targeted state investment can make a meaningful difference in small, rural communities.”
In the Village of Port Sanilac, a blighted vacant lot in the heart of the community’s downtown will be transformed into a two-story, 17,560-square-foot building featuring a commercial space and seven apartments. Featuring a mix of one- and two-bedroom ADA-compliant units listed between 80% and 120% AMI, the development will add housing in a walkable area of Port Sanilac.
The project is being supported by a $1.5 million RAP grant to assist with redevelopment costs of the former mixed-use building on the site and is expected to bring a total capital investment of $3,979,684. The Village of Port Sanilac is engaged in the MEDC’s Redevelopment Ready Communities program and is supporting this project through the approval of a MSHDA Housing TIF of 20 years in the estimated amount of $675,000.
Developer Julie Fagan of Fagan Investment, LLC has a 30-year history of real estate acquisition, development, and management, including a MSHDA-supported MI Neighborhood Project in Port Sanilac. Fagan Investment, LLC has partnered with Revitalize, LLC as their consultant on this project.
“The Port Sanilac Wellness and Lofts project will transform a long-underutilized property into a vibrant, mixed-use destination that supports both community health and economic vitality,” said developer Julie Fagan. “By combining wellness services with high-quality residential lofts, the project will activate the downtown, attract year-round residents and visitors, and contribute to the long-term resilience and placemaking efforts of Port Sanilac. This project would not be possible without the guidance and assistance of the MEDC, and their knowledgeable and committed leadership and staff and especially the dedication of Mr. Charles Donaldson, who helped us nurture the ‘idea’ from our very first meeting in 2019. Even after our Covid delay, Chuck stuck with us and our team which includes the essential Counsel of Revitalize, LLC (Bruce Johnston and Reece Burton) that helped us bring this project to the finish line. We are so grateful to you all.”
“This $1.5 million MEDC Revitalization and Placemaking grant is a major win for Port Sanilac and for Sanilac County, helping turn a long-vacant, blighted property into a new downtown anchor with housing and commercial space,” said Samantha Schnettler, executive director of Sanilac County Economic Development. “It’s exactly the kind of project that supports full-time residents, builds local momentum, and expands opportunities in our communities. We are thankful to both the MEDC and Fagan Investments, LLC, for their forward-thinking investment and the powerful step forward it means for downtown revitalization in Sanilac County.”
Since its launch in 2022, the Revitalization and Placemaking program has supported 256 total projects in communities across the state.
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