Mark Wilcox/Daily Mining Gazette The Downtowner Motel is seen in this Wednesday photograph. At its meeting Wednesday, the Houghton City Council approved a request by the owners of the motel to create a commercial rehabilitation district which would lock in the current taxable value of the motel while the transition to a 21-unit housing complex is under way. The value would be locked in for 10 years and then be adjusted to reflect the value at the end of the 10-year period.

HOUGHTON — The Houghton City Council met in regular session Wednesday and gave boost to project that would convert an iconic downtown motel into 21-unit residential housing structure. Prior to the meeting, the council held two public hearings regarding the project involving the Downtowner Motel.

The first public hearing called was regarding the establishment of a Commercial Rehabilitation District at

110 Shelden Ave, the current location of the Downtowner Motel. Houghton City Manager Eric Waara told the council pursuant to Public Act 210 of 2005, the City has the authority to establish “Commercial Rehabilitation Districts” within the city at the request of a commercial business enterprise. Waara said the request was made by Bridgeview Partners LLC, owners of the Downtowner Motel.

Waara explained the purpose of the Commercial Rehabilitation District is to allow a business to “lock in” its current taxable value for a ten-year period. “The state makes these tools available for situations like this,” Waara said. He explained that while the rehabilitation project is under way, the value at which the property is taxed is locked in. After the rehabilitation is done, following the ten-year window, the property will then be taxed on its true value at that time.

Waara explained to the council that it is the procedure currently being followed regarding the rehabilitation of the former Kirkish Furniture building located across the street from the Downtowner.

There was no public comment during the public hearing. Up next, Mayor Pro-tem Philip Buck Foltz, filling in for Mayor Robert Bacon, opened a public hearing regarding an application by Bridgeview Partners LLC for a Commercial Rehabilitation Exemption for the 110 Shelden property.

Waara explained the first public hearing was to establish the Commercial Rehabilitation District as allowed by state law, while the second public hearing was to rule on the property owner’s application for a Commercial Rehabilitation exemption. Again, there was no public comment.

During the meeting, the resolutions regarding the establishment of the Commercial Rehabilitation District and the application by Bridgeview Partners LLC, were both passed unanimously. Waara said with the passage of both resolutions, the next step involves the state acting on the application for the Commercial Rehabilitation Exemption Certificate. According to the application, the rehabilitation project will begin after the first of the year with completion expected by May 31 and occupancy expected by the end of June, 2026. The project is expected to create 14 construction jobs and two permanent jobs once the rehabilitation is completed. The estimated cost of the project is just shy of three million dollars.

According to application documents, the rehabilitation project “will create 21 new units of middle market housing that has been in short supply in the area, increase the tax and economic value of a building that has been deteriorating and increase the number of residents in the City of Houghton by 21-40 people.”

In his report to the Council, Waara said much of the Department of Public Works time recently has been snow related with significant last-minute road patching taking place. Waara reminded residents to not push snow onto streets and roads as it can make snow removal more difficult and potentially dangerous.

Police Chief John Donnelly, in his report, said there had been nearly 200 calls and five arrests over the past months. “We’ve had 19 accidents so far which is not too bad for this time of the year.”

The Council discussed terms on various city commissions and also approved the application of Ryan Williams to be a member of the Houghton Fire Department.