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Cost overruns push Land Bank toward demolition option for 7780 Lake Street
Summary
Manistee County Land Bank staff reported rehabilitation cost estimates for 7780 Lake Street far exceed available grant funds; the Land Bank has spent about $31,600 on the project so far and listed four potential paths, with demolition emerging as the most viable under current constraints. A Feb. 2 special meeting will decide the next step.
Project Manager Katie Gruenberg told the board that Phase 1 planning and engineering for 7780 Lake Street, performed under contract with Fleis & Vandenbrink, is complete but that rehabilitation cost estimates "came in significantly higher than anticipated," driven by required electrical, plumbing and HVAC work needed for a certificate of occupancy. "The projected costs far exceed available grant funds," Gruenberg said, and staff reported the Land Bank has already invested approximately $31,600 in hazardous materials inspections, administrative costs and engineering services.
Gruenberg listed four possible paths forward: proceed with full rehabilitation (high financial and timing risk), convert to limited stabilization, transition to full demolition so the Village has a clean development site, or accept approximately $31,600 in losses and end the project. She said State Land Bank staff confirmed no additional funding is available and emphasized strict timelines for reimbursement eligibility. Board members and Village representatives discussed risks, permit issues (including grandfathered restroom facilities), opportunities for value engineering, and interim solutions such as portable restroom facilities if demolition is pursued. The board agreed to refine cost estimates and scope reductions and scheduled a special meeting for Feb. 2, 2026 to review updated information and make a definitive decision.
