UPDATE 8/12/24 12:30 p.m.
CHEBOYGAN — Developers looking to turn the destroyed Cheboygan Tissue Depot into a multi-use facility now say there are serious red flags with the plan.
They’re concerned about the condition of a hydroelectric generator on the property, an issue we first told you about in June.
An inspection of the generator after the paper plant burned down found it was not well maintained by the Great Lakes Tissue Company. Developers said it could cost millions of dollars to bring the unit up to standards, with the redevelopment already projected to cost at least $50 million.
6/24/24 8:15 p.m.
CHEBOYGAN — Developers are looking to repurpose an old paper mill in Cheboygan.
Local real estate developer with RP Investments, LLC, Bob Pulte said they are still working out the fine details.
“This site is a great site. for the development, it could be a nice entrance into the city. It’s on the water. It has some great views. great location to downtown. It’d be a great complement to downtown,” said Pulte.
Pulte said the project could grow in size but the bigger picture is there.
“You can count on a hotel. You can count on a restaurant. You can count on condominiums. You can count on the live workspaces. You can count on the duplexes across the street. Just how many of them is yet to be determined,” said Pulte.
Pulte said what they do know is that the property has a lot of potential. The current owner, Tom Homco of Hom Paper 11 LLC, who bought the property in 2022 and was leasing it to The Tissue Depot said this is great news for the community and for the future of the property
“The former tenants left in such disarray? It just require so much capital? I think many potential buyers were shied away just because of the amount of money and upgrades needed to the building. so the logical thing was to look for the highest and best use. And I believe that this is it,” said Homco.
Cheboygan County’s economic development coordinator, Sharen Lange said Homco has been helpful and has been working with the county to get the hydroelectric facility back up and running.
“The hydro has been shut down since the warehouse fire last September. It has managed to impact the DNR ability to manage the levels by up to 30%. Our emergency management team is very much looking forward to that hydro functioning correctly and properly again,” said Lange.
Lange said this proposed project would definitely help with jobs and much needed housing.
“There aren’t houses available for them. So that’s another area where this project will directly impact job growth, bringing in housing inventory on a variety of levels. So not only some higher end waterfront living, but also workforce housing, that starter home, that step down retirement home,” said Lange.
Lange said her phone has been ringing off the hook with prospective investors, developer and renters alike.
“We have already had multiple developers who have inquired who work in different spaces. So we have had an inquiry from a workforce housing developer. We have had outreach from a senior, assisted living facility. We have had inquiries from local stores and providers of goods and services who if there’s an opportunity for a micro suite on this new site,” said Lange.
Negotiations to buy the building are still ongoing but Pulte said they felt the timing was right
He said it’s the people, the location, and that the city is ready to grow right now and this will help that growth even more.