Big developments in three rural Michigan towns receive state grants

Big downtown projects in three rural Michigan communities are moving forward, thanks to significant state grants.

In southwestern Michigan, the largest historic property still standing in Dowagiac’s main downtown corridor will once again be filled to the brim with tenants, its upper floors vacant no more.

In the Upper Peninsula, a new 17-bed boutique hotel and restaurant will emerge in Calumet from the renovation of two historic buildings. And in Manistique, a former funeral home will be transformed into much-need housing units and commercial space. 

The communities have received either Revitalization and Placemaking (RAP) or Michigan Community Revitalization Program grants from the Michigan Economic Development Corporation. 

What’s happening: Three rural Michigan communities have significant grants from the Michigan Economic Development Corporation for important downtown redevelopment projects. A project in Detroit also was awarded a grant. 

The projects: 

In Dowagiac, The Wounded Minnow Building is set to be repurposed as a mixed-use development with the still active Wounded Minnow Saloon remaining open at street level and 10 new apartments planned in the vacant two stories above. Built by the Elks in 1912, the Wounded Minnow Building houses the Wounded Minnow Saloon on its ground floor and two empty floors above. The developers at The Rienks Group plan a $3.5 million redevelopment, integrating historic preservation into its plans for 10 new apartments above the bar and restaurant that remains on site.

The project was awarded a $1,431,574 grant by the MEDC by way of its Revitalization and Placemaking (RAP) program. Previously, the developers leveraged RAP funding to rehabilitate a blighted building downtown in nearby Niles.

 “We are thrilled to revitalize this iconic property in historic downtown Dowagiac, transforming the long-vacant floors into attainable housing and reinforcing the city’s vision for a thriving community,” says Peter Rienks, president of The Rienks Group. “This project not only preserves the character of Dowagiac’s downtown but also adds 10 new housing units, fostering increased foot traffic and economic vitality while supporting the Wounded Minnow Saloon, a cherished community anchor.”

In Calumet: Two historic buildings will be transformed into a new 17-bed boutique hotel and an upscale project, representing the largest investment in downtown Calumet in decades. The project has received a $1.5 million Revitalization and Placemaking grant from the Michigan Economic Development Corporation (MEDC). The project will create a dozen jobs, preserve Calumet’s historic character, drive tourism to the Keweenaw and support small downtown businesses. Total investment is $5.6 million.

The project developer is Rhonda Maas, who has extensive experience with historic building restorations in Denver. She recently relocated to the Keweenaw Peninsula, where she has already invested in restoring a historic home in Calumet into a short-term rental. 

“Years ago, when I would visit family in the Keweenaw, I would think – wouldn’t it be great to restore one of these beautiful old buildings?” said Maas, owner and president of Building Restoration Specialties. “When this project started, I wanted to select a neglected building in Calumet to save and rebuild. My goal was to create an anchor project that would showcase the ability to revive a neglected structure using the skills of the craftsmen of that era.” 

In Manistique: A $995,000 Michigan Community Revitalization Program (MCRP) grant will help create a housing hub in Manistique to meet critical housing needs. A former funeral home will be redeveloped into five new housing units, including ADA-accessible options and three new commercial spaces. The project will help address the region’s housing shortage, retain and attract residents and strengthen the community center. The total investment is $2.2 million.

The project developers are Cathy and Mark Rohde, who have longstanding family ties to the Manistique community. They are committed to helping further develop the city’s downtown.

“I am so thankful to MEDC for the grant award to convert the old funeral home into five apartments, which will help alleviate some of the housing shortage in Manistique,” Cathy Rohde said.

The impact: The projects embody the “Make It in Michigan” economic development strategy: making sure smaller, rural communities have the housing, commercial space and opportunities needed to thrive. By turning underused properties into places where people can live, work, and visit, these investments create ripple effects that will benefit local economies across the U.P. for years to come, officials said.

About the programs: The RAP and MCRP programs through the Michigan Economic Development Corporation provide access to financing to support place-based projects throughout Michigan. Since its launch in 2022, the Revitalization and Placemaking program has supported 238 total projects in communities across the state.