Battle Creek Unlimited secures $7.5M in state funds for McCamly Plaza Hotel renovation

Greyson Steele, Battle Creek Enquirer

June 29, 2022 at 8:44 AM·3 min read

Excavators clear rubble and dirt at the site of the former McCamly Plaza atrium in front of the former McCamly Hotel on Thursday, June 16, 2022, in Battle Creek. The work is part of a $59 million renovation of the property.

The revitalization of Battle Creek's McCamly Plaza Hotel is receiving a boost of state funding.

Tuesday, the Michigan Strategic Fund unanimously approved a $7.5 million community revitalization loan in support of the project.

The 239-room hotel, built in 1981, will operate as a DoubleTree by Hilton, managed by Zeeland-based 6PM Hospitality Partners, once renovations are complete.

The $59-million rebrand and renovation is expected to be wrapped up by the third quarter of 2023.

"This is the latest piece in BCU's ongoing effort to revitalize downtown," Battle Creek Unlimited President and CEO Joe Sobieralski said in a press release. "This project will have a transformative impact on Battle Creek and will bring new opportunities to our community. We are grateful to our community partners, the State of Michigan, and the MEDC for supporting our vision for Battle Creek."

50 Capital Ave. Development Corp. — an affiliate of Battle Creek Unlimited, the nonprofit economic development arm for the city of Battle Creek — gained ownership of the property in November 2020 following a lawsuit against its previous owners for failure to meet deadlines in rebranding the hotel into a DoubleTree by Hilton. The hotel has been not been open since November 2019.

MORE: Battle Creek high-rise gets new paint, windows as part of $59M renovation

Demolition begins at former McCamly Place atrium

Plans unveiled for former McCamly Plaza Hotel; McCamly Place to be demolished

Once renovations are complete, the hotel will feature 239 guest rooms, a new restaurant, beer garden and kitchen, and a new ball room and conference facilities.

The exterior of the building is being refreshed as well with a new entrance, new windows, and an updated façade, according to the release. All the hotel mechanical systems are being replaced, including the HVAC, boilers, and elevators.

The project is expected to cost $59 million and will create 165 new jobs.

Crews install new windows on the upper floors of the 16-story former McCamly Plaza Hotel on Thursday, June 16, 2022, in Battle Creek.

“I was more than happy to write a letter in support of this economic and property development project. I’m even happier that efforts have come to fruition and this project is moving forward in Battle Creek," state Rep. Jim Haadsma, D-Battle Creek, said in a statement. "This is hugely exciting news for our community. It will add to the continued transformation of our downtown area, helping to bring in more visitors.

"There is no doubt that this development points to an invigorating upswing happening in our growing city.”

The Michigan Community Revitalization Program provides gap funding for projects that are that are either contaminated, blighted, functionally obsolete or historic resources. The MCRP award for the McCamly Hotel renovation is in the form of a performance-based loan, to be repaid at 1% interest, according to the release.

In addition to the MCRP award, local agencies have pledged nearly $30 million to the hotel project and adjacent development. Commitments include:

Battle Creek Unlimited cash and other grants — $1 million
Bronson Battle Creek Hospital — $200,000
Calhoun County American Rescue Plan Act funds — $2 million
Calhoun County Visitor Bureau — $400,000
City of Battle Creek American Rescue Plan Act funds — $2.5 million
Consumers Energy Foundation — $250,000
Kellogg Company — $300,000
Miller Foundation — $1 million
State of Michigan (general fund appropriation) — $2 million
W.K. Kellogg Foundation — $20 million

The Battle Creek City Commission also approved an Obsolete Property Rehabilitation Act (OPRA) tax abatement valued at approximately $3.23 million.

As part of the revitalization, BCU is working with Grand Valley State University and Kellogg Community College to create a restaurant and hospitality career program. The program will provide on-the-job training and "enable students to build meaningful careers in the hospitality sector," according to the release.

“The McCamly Hotel has played a vital role in Battle Creek for forty years. The facility has hosted countless weddings, proms, conferences, and business meetings," Erick Stewart, chair of BCU’s Board of Directors, said in the release. "With these sweeping renovations, it will once again be the premiere hotel and conference facility in the region. When the hotel reopens next year, it will be something that everyone in Battle Creek will be proud of.”

Contact reporter Greyson Steele at gsteele@battlecreekenquirer.com or 269-501-5661. Follow him on Twitter: G_SteeleBC

This article originally appeared on Battle Creek Enquirer: BCU secures $7.5M in state funds for McCamly Plaza Hotel renovation

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