CDA begins to restructure Lakeview debt and continues to entertain offers from developers

Members of the Rogers City Community Development Authority met last week to discuss the future direction of the Lakeview Development project and ways to reduce the debt. City manager John Bruning told the board there have been some inquiries, and a site visit by one potential developer, but nothing looks like it could work into a definitive deal. Bruning said the developer visited the site October 11, but there are no “hot prospects.” “I passed along some information on the project history. He’s (developer) taking a look at that and we’ll see what happens there,” said Bruning. The board also briefly discussed the possibility of working with Northeast Michigan Affordable Housing Inc., but that wasn’t looked upon very favorably by the CDA.

“THE SCOPE of the project might be too big and things might have to be changed,” said Bruning told The Advance. “We haven’t changed direction as far as deciding that it’s going to be a different type of development. We are continuing to be hopeful that one of these developers will pan out.”

Bruning was going to meet with another party Tuesday to discuss the potential of the site. The parcel is locat

ed along the Huron Sunrise Trail, near the Driftwood Motel. A developer signed a purchase agreement earlier this year and had plans to build a model home by Memorial Day, but the Grand Rapids area firm never followed through.

UNTIL THE time arrives that a new developer has agreed to pursue a housing project on the land; the CDA has decided to restructure the debt. The matter was discussed at last month’s CDA meeting. Board members continued in that direction and decided to apply $50,000 from the CDA budget to the principal, which will reduce the amount of interest as well. The principal is now $200,000.

“They are also going to look into discussing with the financial institution that holds the mortgage on that property,” said Bruning, “and perhaps other local institutions as well, to see if they might be able to reduce the interest rate now that the principal is lower.” The next meeting of the CDA will be November 10.

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