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CityFlatsHotel | Due Diligence for Acquisition & Redevelopment

CityFlatsHotel

THE PROJECT

This redevelopment project converted a historic Michigan National Bank building located on the Black River in downtown Port Huron into an upscale hotel. As part of this project, the developer purchased three adjacent parcels that contained the former bank building, an office building, and a parking garage. It was the developer’s intent to lease the office space in the second building and continue to use the third parcel as a parking lot. The CityFlatsHotel plans included hotel rooms, a ballroom event space, and both indoor and outdoor restaurants. The Kitchen restaurant opened in 2018 and the Ballroom in 2019. In June of 2022, it was announced that their 18 boutique hotel rooms were open for booking.

Before the developer purchased the property, it was necessary to perform due diligence activities as previous environmental investigations had identified contamination on site at levels exceeding state cleanup criteria. Additionally, the two buildings on site were of older construction, and it was unknown if any asbestos-containing materials were present. Because the developer planned to extensively renovate the buildings, it was necessary to complete an asbestos survey.

PROJECT SOLUTION

Envirologic initially conducted a Phase I Environmental Site Assessment, Baseline Environmental Assessment, and Due Care Plan to provide the developer with liability protection from pre-existing contamination and outline their due care obligations for the site going forward. The St. Clair County Brownfield Redevelopment Authority (SCCBRA) used their U.S. EPA Assessment Grant to fund the assessment activities.

Envirologic subsequently conducted an asbestos survey of the two multistory buildings and the parking deck present on site. Some of the survey work was initially completed using the SCCBRA’s U.S. EPA Assessment Grant. Extensive and detailed assessment work was needed to delineate an area of the original building that had been repaired and contained an asbestos-containing skim coat of plaster. The detailed evaluation to delineate this area saved the client thousands of dollars in unnecessary asbestos removal costs. Envirologic also conducted a lead and cadmium paint survey for all structures at the site. Following the surveys, Envirologic staff provided oversight and air monitoring for the removal of asbestos. This was an approximately 45-day removal project. The turnkey services provided by Envirologic allowed the developer to move forward quickly and efficiently as the project progressed, as it was unnecessary to engage new firms and bring new project partners up to speed. These efficiencies helped to keep the project on time and on budget.

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