HANCOCK - The Scott Building, which opened more than a year ago, is about half filled with tenants, and the owner is confident the remainder will be filled eventually.
Mike Lahti said said 15 of the 17 two-bedroom and 11 one-bedroom units are occupied, and people are showing interest in the still empty units.
"We're working on filling them," he said.
Lahti began the $4.2 million renovation of the former Scott Hotel in 2006. The building was 80 percent empty for about 40 years before construction work began, with a combination of private financing and loans and grants from the Michigan State Housing Development Authority. Construction was completed and apartments became available in December 2007.
One of the requirements of the MSHDA financing is that renters be at least 55 years old and have a minimum income, and Lahti said many people who expressed interest in renting in the building had incomes too high.
"If there weren't income requirements, it would have been filled many times over," he said. "We can't change (the income requirements)."
There are also four commercial spaces on the ground floor of the building, and Lahti said those are all filled.
A 2004 study of how to improve downtown done for the city by the planning group Gove Associates Inc. of Kalamazoo recommended renovating and putting to use the Scott Hotel building. The city council took part in the renovation by applying for and receiving a $155,000 grant from the Michigan Economic Development Commission for installation of a handicapped-accessible elevator in the building and repair of sidewalks next to the building.
City Manager Glenn Anderson said he's not concerned that all the units in the Scott Building aren't filled yet, but he is surprised it's taken as long as it has.
"Everyone knew it would be harder to be eligible (to rent)," Anderson said. "We didn't know it would be this difficult."
Kurt Hauglie can be reached at khauglie@mininggazette.com.
