Nine new apartments and two commercial spaces are coming to downtown
Houghton, thanks, in part, to help from a $1.5 million grant from Michigan’s Revitalization and Placemaking (RAP) program.
Renovating the blighted, four-story historic building will create not only much needed housing in the Keweenaw Peninsula community but also promote walkability in downtown Houghton and transform an eyesore into a community asset.
“The project will bring one of our iconic downtown buildings, which has been through a lot in the last decade, back to life,” says Eric Waara, Houghton city manager. “The addition of the residential units will further increase our downtown’s vitality with more people living there and the new commercial space will see one of our restaurants able to expand into new space.”
The community, he says, is excited about the project. "It has been great to see how so many partners can come together on a project like this for the good of the community. That collective support for the developer’s investment by UP State Bank, (Keweenaw Economic Development Alliance), the Houghton County Brownfield Authority, Invest UP, (Michigan Economic Development Corporation), and the city is what made it happen," he says.
What’s happening: A four-story building in Houghton is being transformed into much-needed housing in the community. The nine apartments will vary in size: one studio, six two-bedroom, one three-bedroom and one four-bedroom. Residents who score one of the new apartments at 109 Shelden Ave. will have panoramic views of Shelden Avenue, the Portage Lake Lift Bridge, and the Keweenaw Waterway.
“Overall, they are designed as upscale, high-quality housing – not luxury housing,” Waara says. “Based on the mix, I could see them occupied by anyone from single, younger workers to possibly a small family who may want to rent before they buy.”
The demand for housing in Houghton is high, “much like everywhere else,' he says.
“At this time, we have only four or five houses for sale within the city limits,” he notes. “More than half of those for sale are in what would be locally considered the higher-priced bracket of over $400,000. Those houses that do go on the market in the ‘affordable’ range tend to sell very quickly.”
Michigan Technological University contributes to the demand for housing to accommodate students’ housing needs. “We have a significant number of our traditional single-family homes rented to students," Waara says.
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Michigan Technological University ArchivesA postcard image of the building slated for renovation.The back story: The 12,120-square-foot building being converted for this project is “probably one of the more unique cases,” Waara says. It was built in 1910 and was originally used as a furniture store until that operation moved to a larger building in the 1980s or early 90s. Under new ownership, the building was used as a bookstore and video rental store until the early 2010s. Next, a partnership bought the building, planning to do a full renovation in 2015.
“They had started the renovation when the back part of the building over a ballroom collapsed in February of 2016,” Waara says. “The next couple of years saw cleanup and litigation and the collapsed part was eventually rebuilt, but unfortunately, the owners did not have the capital to continue the project and put the building up for sale.”
The new owner: The building now belongs to L and Z Rental Inc., a partnership between Ruixuan Zhang and Wuze Li, a married couple who co-own a popular and successful sushi restaurant in downtown Houghton. The couple worked with the city of Houghton, Keweenaw Economic Development Alliance, Houghton County, MEDC, InvestUP, and their bank to put together a comprehensive project.
“Revitalizing the historic building in Houghton has been our long-held vision, and we are thrilled to see it come to life,” said developer Ruixuan Zhang. “This project will not only provide high-quality housing downtown but also allow us to expand our restaurant, contributing to a more vibrant downtown community. We are deeply grateful for the unwavering support from all our partners. We sincerely appreciate the dedication and collaboration that have made this transformative development possible.”
About RAP: The MEDC partners with local communities to support projects that promote population and tax revenue growth. Their ideal applicant is rehabilitating vacant, underutilized, blighted and historic structures while developing place-based infrastructure associated with traditional downtowns, social zones, outdoor dining and placed-based public spaces.
“Support for these projects … will turn vacant buildings into vibrant commercial space and housing, growing our economy and helping more families ‘make it’ here in northern Michigan,” says Gov. Gretchen Whitmer. “Across Michigan, the RAP program helps us grow our economy, support people, invest in places, and win projects. Let’s keep working together to recruit top tier talent, drive down the cost of housing, and make every region of our state more vibrant.”
Rosemary Parker has worked as a writer and editor for more than 40 years. She is a regular contributor to Rural Innovation Exchange and other Issue Media Group publications.