A new 200-unit apartment complex in the City of Petoskey could break ground as early as August, according the company proposing to build the housing.
However, there are still several hoops the developer and city need to jump through to meet that timeline.
The total development cost for the apartment complex is over $51 million.
Jeff Smoke is a managing director for Great Lakes Capital. He says there’s still a $13 million gap to making the project financially viable.
Smoke said during a recent City of Petoskey city council meeting that he’s identified several grants to try and make up costs.
"It’s a pretty significant gap. And this is pretty typical, honestly, of all of our projects," said Smoke. "There's always this kind of incrementable gap at the beginning and through the various grants and resources we’re usually able to mitigate that."
Smoke says the company won’t purchase the land until the funding gaps are filled.
"With all the environmental issues there’s just too much liability and too big of a risk to acquire the parcel until we have all the incentives lined up," said Smoke.
The apartment units would range from 700-1100 square feet and target the middle-income workforce in the city.
The proposed location for the complex is the site of the former Michigan Maple Block Company.
