Sugar Loaf owners request Brownfield money: eye resort reopening in 2024
Amenities could include limited downhill skiing
Jeff Katofsky visited Sugar Loaf mountain in November 2018. Photo by Leelanau County administrator Chet Janik.
By Jacob Wheeler
Sun editor
Today at 10 a.m. the Leelanau County Brownfield Redevelopment Authority will consider part 1 of a Brownfield Project Application from Sugar Loaf owner Jeff Katofsky and partner Rick Barreca to demolish and reconstruct the derelict one-time ski resort that has sat empty for 20 years in the heart of the County. Katofsky, a real estate developer, lawyer and minor league baseball team owner, acquired Sugar Loaf in 2016.
Application approval is required to move forward on the project. Next, Katofsky and Barreca would be invited to submit part 2 of the application. If approved, they would be reimbursed for brownfield costs including for demolition of the lodge, once investments are made to increase the property values and taxes, says Brownfield Redevelopment Authority director Trudy Galla.
Leelanau County doesn’t have immediate funds to pay the developers, Galla added, but could seek other pots of money from the state or federal government.
According to their Brownfield application, Katofsky and Barreca intend to redevelop the approximately 400-acre site into a luxury year-round resort incorporating activities for all seasons. The re-developed property will include a new hotel, meeting space, fitness center, spa and related amenities common to a luxury resort. Their application claims bank financing from US Metro Bank.
Similar projects developed by Katofsky and Barreca include the Delta by Marriott at Detroit Metro Airport, St. Clair Inn to be Tribute Portfolio Hotel by Marriott in St. Clair, and the Hotel Harrington in Port Huron. It’s unclear whether Sugar Loaf would also fly a Marriott flag.
Their application requests $6.5 million in Brownfield financing. Total necessary capital investments are estimated at $135 million. The developers estimate a taxable value of $175 million after project completion. The property’s current taxable value is $1.4 million.
Katofsky and Barreca estimate that Sugar Loaf will provide 400 full-time equivalent jobs once the resort opens—making it once again one of the biggest employers in Leelanau County. Their timeline submitted to the Brownfield Redevelopment Authority lists an opening date of December 21, 2024. (See the timeline below).
Katofsky and Barreca state that the Sugar Loaf project will be designed in conjunction with all appropriate energy savings and sustainable designs. The project will be partly financed through PACE financing overseen by the state of Michigan’s Lean and Green Program created by Congressman Andy Levin.
“The Sugar Loaf ski resort has been closed and essentially abandoned since the year 2000,” states the application. “The improvements are both physically and functionally obsolescent. The cost to repair and upgrade the systems would be beyond cost prohibitive. Due to the extended length of time the property has been unused it has fallen into an extreme state of disrepair which would require the complete demolition if the site. Demolition will allow the proper mitigation of any known and unknown environmental concerns and allow the building material to be recycled in an environmentally responsible manner allowing for new construction which would be substantially more sustainable as well as better serving the community, country region and general public.”
“Plans for the redevelopment of Sugar Loaf Mountain Resort are in the very preliminary stages. The scope of the project would be to demolition the existing improvements in order to construct new facilities. Currently being planned is a hotel of approximately 250 rooms, separate residencies and townhomes, a fitness and spa facility, event space, casual and fine dining spots. Additional amenities would include season activities including limited downhill skiing, swimming pool(s), tennis, hiking and equestrian facilities. A portion of the site would include a dedicated youth sports facility including baseball, soccer, hockey and other team sports. Also planned would be dormitory style housing along with a retail component, child care, and support services required to adequately service the proposed development.”
Project milestones/proposed timeline:
April 2020, apply for required demolition permits
June 2020, demolition commences
November 2020, demolition complete
November 15, 2020, begin construction drawings for project
April 2021, construction of on- and offsite improvements commences
March 2022, construction of hotel commences
June 2022, construction of commons commences
July 2022, construction of workforce housing commences
October 2022, construction of gas station and c-store commences
December 31, 2022, power and wastewater plants complete
April 2023, construction commences at summit
September 2023, construction of daycare, community center, police and fire commences
October 2023, first phase of workforce housing complete
June 2024, main resort complete
September 2024, sports complex complete
October 2024, summit improvements complete
November 2024, daycare, community center, police and fire complete
December 21, 2024, Sugarloaf Resort re-opens
