A project that would’ve brought a new hotel and other businesses to downtown Manistee has hit another speed bump.
The Manistee Gateway Project originally was supposed to feature a 100-room hotel and other businesses, but due to a number of factors Little River Holdings was forced to re-think the project.
Little River Holdings General Manager Eugene Magnuson says they were forced to ‘reinvent’ the project after a jump in interest rates and concerns about a labor shortage. He also pointed out a competing hotel that’s opening up and a rise in construction costs.
“They’ve increased by about 30% when we first looked at this project,” Magnuson reports.
Magnuson says they now have a new plan in mind for the project. He says the new project is going to be a condo hotel with a restaurant on the bottom and a roof top bar. Early plans for the project also show apartments as well.
“We were able to reassess the project and I think the project is a better project for the community and also Little River Holdings,” Magnuson states.
The City Manager of Manistee, William Gambill, says the project is very important and is excited to see how it turns out.
“[It] is important because we need housing in this community,” Gambill admits. “In general, the city wants to be a supportive partner, and we’re looking forward to the development.”
Little River Holdings is currently conducting surveys and plans to have construction renderings out by this summer.
“It gives us a great opportunity to look at the project as a whole and continue with construction,” Magnuson says.
He says they don’t have a timeline for construction quite yet, but hope to begin by the end of 2024.