ESCANABA — It may not seem like much has happened at the sites of the former Delta County Jail and Chamber of Commerce buildings, but there has been progress behind the scenes that could soon make the planned hotel and condo developments a reality.

“I’m hopeful that they’ll take the jail down this year,” said Escanaba City Manager Jim McNeil.

Currently, the developers — Terrace Bay Hotel and Swanee, Inc. — are working to get a brownfield redevelopment plan finalized that would reduce the overall costs of the projects.

Properties that are designated as brownfields under Public Act 381 are typically sites that have some sort of contamination. However, Escanaba is considered a disadvantaged community under the law, which means blighted properties are also eligible for brownfield designation as a special incentive for potential developers to locate in the area.

Even though the developments can move forward as brownfields due to blight, the properties must undergo an environmental inspection, searching for things like contaminants in the soil or groundwater. According to McNeil, those inspections are wrapping up.

“I’d say the findings have been favorable, at least that what they’re finding in the soils is going to make it easier to build,” said McNeil. “There definitely could have been outcomes that would have made it expensive.”

Being a brownfield site opens developers up to a variety of grants and other funding sources, but the greatest benefit is the ability of the developer to access tax incremental financing (TIF) reimbursements for certain developmental expenses. Essentially, the difference between the property’s taxable value at the date it was designated a brownfield site and the value of the improved property is captured for a set period of time and paid back to the developer to cover specific expenses. Those expenses must meet state requirements and the city must agree to reimburse for those costs in what is known as a 381 Plan before work can begin.

McNeil said that the two developers, the city, and Delta County are all parties to a brownfield plan that is currently being finalized. That plan should go before the city’s Brownfield Redevelopment Authority Board soon for review and possible revisions before being sent to the city council for final approval.

“I think for both developments, I think we’ll see some activity, you know, physical activity this year,” said McNeil.

Both projects are expected to begin in earnest once the brownfield plan is approved, but when the projects are completed could hinge on a few outside factors. For example, the 80-room hotel project will likely be completed on a timeline that coincides with the start of the tourist season.

The city is also taking the projects into account when scheduling water and road projects related to a Drinking Water State Revolving Fund (DWSRF) grant. This means the city can make sure appropriately sized water mains are available for the developments while still staying on track to meet state-mandated lead service line and main replacements.

Even if the developments were delayed — the DWSRF projects, which also includes a new lift station on Ludington Street — is part of the American Rescue Plan Act (ARPA) federal funding approved in response to the COVID-19 pandemic. To ensure the funds remain available, that work must be completed before 2026.

A planned streetscaping project is also slated to take place in conjunction with the DWSRF work. The plan includes beautification, parallel parking, bike lanes, and sidewalk “bump out” — areas where curbing juts into the street at intersections to make pedestrians more visible to motorists and shorten the distance they have to travel when crossing the street.

Ultimately, the streetscaping project will extend along Ludington Street to 9th Street, but because the street will already be torn up for the water main replacements necessary for the developments, it makes sense for the city to start any changes to the road at the eastern end.

“We have to build the lift station first, just for a sequence of the construction, but I think we’ll see potentially some work on Ludington in 2025 on the east end, but more than likely (the streetscaping) will finish up during 2026,” said McNeil.