Manistee County Land Bank withdraws from Blight Elimination grant for former Bear Lake DPW building

The Manistee County Land Bank Authority voted unanimously to withdraw from the Michigan State Land Bank Blight Elimination Program grant funds associated with the former Bear Lake DPW building at 7780 Lake Street. The motion, made by Mitch Deisch and supported by Duane Jones, passed 4–0 with one member absent.

Project Manager Katie Gruenberg told the Authority that rehabilitation remained the Village of Bear Lake's preferred outcome but that the project had a significant funding shortfall. "Only about $150,000 would remain for construction activities after incurred costs," Gruenberg said, and she warned that the remaining amount would not be sufficient to complete rehabilitation within the program's requirements. Gruenberg also said the project must be completed and reimbursement documentation submitted by Sept. 1, 2026, with the grant closing Sept. 30, 2026.

Village President Shelly Lynnes confirmed the Village had revised the scope to reduce projected expenses but described additional costs as prohibitive. She told the Authority the Village could contribute up to an additional $50,000 from the parks fund if needed. Despite that offer, Board members concluded the combination of the funding gap and the tight timeline made continuing under the grant too risky for successful rehabilitation.

The motion to withdraw was recorded as: Yeas 4 (Nelson, Buren, Deisch, Jones); Nays 0; Absent 1 (Gustad). The Land Bank said it will explore other uses for the property and potential future grant opportunities with the Village.