Escanaba Council Greenlights Condo Rezoning Plan

TL/DR –

The Escanaba City Council has approved a rezoning ordinance for a property near Willow Creek Road and Third Avenue South, where a proposed condominium project is set to be built. The 5.17-acre parcel, formerly owned by the city, will be rezoned from an Open Space “O” district to a Residential “C” district, after the council accepted Old State Development LLC’s $75,000 bid for the land. Over a 30-year period, the condominium project is estimated to generate nearly $5.2 million in city property taxes, approximately $2.5 million in city utilities, and about $7.2 million in other property taxes.


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Joey Walker, Escanaba Planning & Zoning Administrator, supports property rezoning during a city council meeting for a proposed condominium project near Willow Creek Road and Third Avenue South.

The city council of Escanaba gave its approval for the rezoning of a property close to Willow Creek Road and Third Avenue South on Thursday. The change in zoning paves the way for a proposed condominium project on the property.

The approval was granted following a second reading and a public hearing where Joey Walker, the Planning & Zoning Administrator, made a case for the rezoning.

Walker stated that the feedback from numerous surveys and charrettes leading to the new master plan indicated a clear need for more and diverse housing. He said this opportunity caters to both those needs.

Authorized by Ordinance 1315, the Residential “C” district will replace the Open Space “O” district on the 5.17-acre parcel. The parcel was previously city-owned but was sold to Old State Development LLC for $75,000 last October. Mike Segorski made the single other bid, offering $55,000 to maintain the land as a green space. The property was appraised at a fair market value of $35,000 by Appraisal Services.

The plan of Old State Development LLC is to develop 25 condominiums on the site. City Manager James McNeil anticipates that over the course of 30 years, these condos could raise almost $5.2 million in city property taxes, approximately $2.5 million in city utilities and around $7.2 million in other property taxes.

Old State Development LLC aims to attract buyers aged 50 and above with middle to upper income and an interest in energy efficiency, convenience, and community. They also plan to market the condos to Upper Peninsula residents looking to move back to the area.

The decision to rezone the parcel has not been without criticism. The city council had to reverse a 1977 resolution designating the parcel for public and recreational use after a developer showed interest in the property. It was originally earmarked for park use under the Open Space “O” zoning. The rezoning is set to take effect 10 days from the council’s decision on Thursday.

In other city council matters, James McNeil announced plans to step down as city manager in May. He didn’t divulge many details but said he plans to start a new business in Escanaba.

The council also approved the acquisition of Solar PV Modules for Whitetail Solar Farm. These will be installed at Whitetail Industrial Park on 19th Avenue North. The council contracted Peninsula Solar, a project bidder, for a total of $1,052,082. Gerald Pirkola, Electric Utility Director, addressed the board on the details of the modules. McNeil pointed out that demand for modules is high due to the Inflation Reduction Act 2022 that provides a direct pay tax incentive for renewable energy projects.

Furthermore, the city’s Electric Rate Ordinance had its first reading. The ordinance will amend city electrical rates, demand and availability of service. The second reading, public hearing and adoption of Ordinance No. 1316 will take place during the council meeting on Thursday, Dec. 18.

Lastly, the council approved the regular annual council meeting schedule for 2026.


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