Randy Flynn seeks tax abatements for historic Leo's Tavern renovation in Lehi

The Petoskey City Council meeting on July 7, 2025, focused on a significant development project aimed at revitalizing a historic building in the downtown area. The project, led by developer Randy Flynn, seeks to transform the former Leo's Tavern into a mixed-use space that includes residential apartments and a family dining establishment.

Flynn, who has owned the building for four years, presented the council with a request to create an obsolete properties rehabilitation district. This would allow for a 12-year tax abatement, freezing current tax rates at approximately $21,000 annually. The total cost of the renovation project is estimated at $4.8 million, with the anticipated value of the improved property around $2.6 million. Flynn emphasized that without the tax abatement and additional funding from the Michigan Economic Development Corporation (MEDC) and federal historic tax credits, the project would not be feasible.

The renovation plans include restoring the main level for a dining establishment and creating four new apartments on the upper floor, designed to cater to a mix of residents, including college students. The apartments will feature suite-style layouts, with shared living spaces and individual bedrooms and bathrooms.

Flynn highlighted the challenges of financing such a project, noting the high costs of construction and the risks involved in rehabilitating historic buildings. He expressed gratitude for the council's consideration and the opportunity to present the project, which aims to breathe new life into a vacant structure while preserving its historical significance.

The council's decision on the proposed tax abatement and rehabilitation district will be crucial for moving forward with the project, which Flynn believes will contribute positively to the community's economic development and housing options.