Parking Deck and Lakeshore Drive Contract Bids Come in $1.1Million Over Budget

Houghton received two bids for the Lakeshore Drive redevelopment and parking deck demolition project, each exceeding 3.2 million dollars. MJO Contracting of Hancock had the lower of the two bids. Inner City Contracting LLC,. of Detroit exceeded 3.7 million dollars.

City Manager Eric Waara was able to present to council some figures on what in the project can be reworked, identifying nearly a 441,000 dollars reduction in construction costs. Waara added that the reductions will not affect the overall goal of the project or main elements.

The city intended to fund the project using a 1.5 million dollar bond, and another million dollars from the MEDC in grant funding. City Manager Eric Waara was able to present to council some figures on what in the project can be reworked, identifying nearly a half million dollars in reductions.

The remaining 719,000 dollars will come from six city department budgets, using already allocated unreserved funds from projects that are related to the Lakeshore Drive redevelopment, and can be completed in the future. The first 150,000 dollars will come from the water and sewer departments. Parking will contribute 150,000 dollars as well. And a final 80,000 dollars from the Downtown Development Authority. The final 340,000 dollars will come from Major Streets. Moving the West Lakeshore Drive repaving project funds to the Lakeshore Drive redevelopment, and put off the repaving project off until next year.

The city council moved forward with the proposed change orders to the project and awarded the bid to MJO contracting of Hancock for the Lakeshore Drive project. With the identified reductions, and money found in other areas of the city budget, the project will cost Houghton an additional 1.1 million. Bringing the total demolition and redevelopment cost to 3.2 million dollars.

Additionally the city will apply for water and sewer project grants with EGLE. If the city is awarded the grant, Houghton will proceed with water and sewer improvements for Houghton and South Avenues between Bridge street and Franklin street. Work would then begin sometime in June 2024 and finish in 2025.

The council also approved a community event request to use the East Houghton Waterfront Park’s electricity for music during Houghton LGBTQ+ Pride on June 3^rd. a tentative music line up for the event includes Bees! Bees! Bees! Bees!, Daarling, and Lena Maud.

The Council has set a public hearing for the proposed animal and insect ordinance for May 10^th.

Houghton leadership from the city council, downtown development authority and planning  commission will hold the annual joint city meeting on May 31^st at the Bonfire.