Battle Creek Unlimited Secures Critical Financing for McCamly Hotel Renovation
The MEDC will provide a $7.5 million loan from the Michigan Community Revitalization Program
BATTLE CREEK, Mich.—Battle Creek Unlimited (BCU) has secured a critical piece of financing for its renovation of the former McCamly Plaza Hotel. On Tuesday, the Michigan Economic Development Corporation (MEDC) announced that the Michigan Strategic Fund has approved $7.5 million in assistance from the Michigan Community Revitalization Program (MCRP).
The program promotes community revitalization and provides gap funding for projects that are either contaminated (facility), 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 percent interest.
The property originally opened in 1982 as the Stouffer Hotel. The hotel is in the heart of downtown Battle Creek, one block from the global headquarters of the Kellogg Company. It is adjacent to the Kellogg Arena, a 6,200-seat multi-purpose venue.
The facility is being converted into a DoubleTree by Hilton. When complete, it will feature 239 guest rooms; a new restaurant, beer garden, and kitchen; and a new ballroom and conference facilities. The exterior of the building is being refreshed and will have a new entrance, new windows, and an updated façade. 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.
Along with the MCRP award, local partners have pledged nearly $30 million to the hotel project and adjacent development. Commitments include:
|· Battle Creek Unlimited Cash & Other Grants||$1,000,000+|
|· Bronson Battle Creek Hospital||$200,000|
|· Calhoun County (American Rescue Plan Act funds)||$2,000,000|
|· Calhoun County Visitor Bureau||$400,000|
|· City of Battle Creek (American Rescue Plan Act funds)||$2,500,000|
|· Consumers Energy Foundation||$250,000|
|· Kellogg Company||$300,000|
|· Miller Foundation||$1,000,000|
|· State of Michigan (General Fund Appropriation)||$2,000,000|
|· W.K. Kellogg Foundation||$20,000,000|
In addition, the Battle Creek City Commission approved an Obsolete Property Rehabilitation Act tax abatement valued at $3.23 million.
As a part of the project, 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.
Erick Stewart, Chair of BCU’s Board of Directors, said, “The McCamly Hotel has played a vital role in Battle Creek for 40 years. The facility has hosted countless weddings, proms, conferences, and business meetings. 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.”
BCU President & CEO Joe Sobieralski said, “This is the latest piece in BCU’s ongoing effort to revitalize downtown. 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.”
To see a video of the plan for the hotel, visit https://streamable.com/ndijyi.
ABOUT BATTLE CREEK UNLIMITED
Established in 1972, Battle Creek Unlimited (BCU) is a private, non-profit corporation which serves as the economic development arm for the City of Battle Creek and manages the Fort Custer Industrial Park. The Fort Custer Industrial Park is home to over 80 businesses, including 25 international companies, and employs over 13,000 people. BCU’s mission is to build a strong community by driving strategic investment and job creation.
President & CEO
Battle Creek Unlimited