New Housing and Commercial Space Coming to Petoskey and Mount Pleasant

LANSING, Mich. – Today, Governor Gretchen Whitmer announced two redevelopment projects receiving support from the bipartisan Revitalization and Placemaking (RAP) program, creating new opportunities for housing and commercial space in Petoskey and Mount Pleasant. The long-vacant Leo’s Tavern in downtown Petoskey will be rehabilitated into a mixed-use development, while an underutilized property in downtown Mount Pleasant will be converted into residential and commercial space. 

Together, the projects will generate a total capital investment of over $7.4 million in the state while activating vacant properties and increasing community vibrancy. 

“Support for these projects in Petoskey and Mount Pleasant highlights Michigan as the best place to grow and thrive,” said Governor Whitmer. “Our growing economy and ‘Make it in Michigan’ strategy that invests in people, revitalizes places, and wins projects is paying off. Our population is growing, and we’ve been ranked a top state for opportunity and doing business. Programs like RAP help us build on this progress, attract and retain talented workers, lower costs, build housing, and enrich our communities. Let’s keep working together to get things done for our state.” 

The RAP program provides access to gap financing for place-based infrastructure development and real estate rehabilitation and development. 

“Through strategic investments in Michigan’s communities, the MEDC is advancing placemaking efforts that drive growth and long-term resilience as part of the state’s ‘Make It in Michigan’ economic development strategy,” said Michele Wildman, MEDC’s SVP of Community Planning and Development Readiness. “We’re excited to see how these projects will strengthen the downtowns of Petoskey and Mount Pleasant by expanding housing opportunities and generating new economic activity.” 

In the City of Petoskey, a vacant historic property located at 434 E. Mitchell Street will be rehabilitated into a mixed-use building featuring eight residential units, a restaurant, and a speakeasy. Four of the residential units will include a shared common space, with each bedroom having a private bathroom. The project will also bring the building into full ADA compliance, as the upper floors have never previously been ADA accessible. 

The project will be supported by a $1.5 million RAP grant to assist with costs associated with the redevelopment of the 131-year-old building and bring a total anticipated capital investment of $5,335,575. The City of Petoskey has approved a 12-year Obsolete Property Rehabilitation Act tax abatement valued at approximately $330,000. The State Historic Preservation Office has reviewed the project design and determined it will have no negative impact. The rehabilitation of the historic resource will also meet the federal Secretary of the Interior's standards for rehabilitation and guidelines for rehabilitating historic buildings. 

Developer Randy Flinn has previous experience with projects in Northern Michigan, including the redevelopment of a vacant building in Gaylord into office suites and renovations in Boyne City and Petoskey. 

“The Leo’s Neighborhood Tavern building has been part of the fabric of Petoskey for more than a century, and this project represents an opportunity to honor that history while bringing new life to our downtown,” said developer Randy Flinn. “From the outset, it was clear that restoring a 130-year-old structure of this scale would require strong public-private partnership. Without the support of the Michigan Economic Development Corporation, this project simply would not have been possible. The MEDC saw not just a building, but the potential for community impact—housing, hospitality, and renewed energy in the heart of Petoskey. We are deeply grateful for MEDC’s belief in this project and in our community. Their support transformed what was once an uncertain vision into a real and achievable outcome. Thanks to this partnership, we are now just one year away from delivering eight new apartments and two vibrant hospitality spaces that will serve both residents and visitors. This investment ensures that a historic cornerstone of downtown Petoskey will not only endure but thrive for generations to come.” 

The City of Petoskey has been engaged with the MEDC on its placemaking effort, receiving certification as a Redevelopment Ready Community in 2018. The redevelopment of the long-vacant Leo’s Tavern downtown supports the economic goals for the city. 

“The City of Petoskey is appreciative of the continued MEDC investment in City of Petoskey redevelopment projects,” said City Manager Shane Horn. “The Leo’s in Downtown Petoskey project is a priority redevelopment for the Downtown Management Board and City of Petoskey and is consistent with our mission and objective of creating gathering spaces Downtown for residents and visitors to connect to further opportunities for economic impact. The addition of workforce housing units is a priority of City Council and an action item in the Livable Petoskey Master Plan. We are excited to see the revitalization of this significant historical structure in Downtown Petoskey. The redevelopment of this site will have a broad and profoundly positive impact on Downtown and our community as a whole.” 

“It is so exciting that this great project in Petoskey will receive a RAP grant from MEDC. As Northern Michigan continues to develop its year-round economy, investments like this help address the critical challenges we face in terms of housing,” said State Sen. John Damoose (R-Harbor Springs). “It is great to see a vacant building come to life once again with new residences and businesses, and hopefully we can continue to help make our region the best place to live in the entire state!” 

In the City of Mount Pleasant, long-vacant property at 115 and 117 S. University Avenue will be converted into a mixed-use development featuring three apartments and two active commercial storefronts, adding residential density and economic activity to the corridor. 

The project is being supported by a $999,000 RAP grant and will bring a total anticipated capital investment of $2,116,853. The project received $57,000 in combined fire suppression and facade grant support from the City of Mount Pleasant and the Downtown Development Authority in June 2024. In addition, a 12-year OPRA application was approved on September 10, 2025, with an estimated value of $192,732. 

HBHF5 Properties, LLC was established as developers Troy Hicks and Sara Beauchamp-Hicks expanded from operating a small business into real estate development. Since 2018, the developers have owned and operated Fab Five Design, a successful DIY arts and crafts studio. With a long-term goal of owning and redeveloping commercial properties, the developers formed HBHF5 Properties, LLC. In 2024, they relocated Fab Five Design to Mount Pleasant and acquired two historic buildings. To support project execution, the developers have partnered with Revitalize, LLC, which brings experience in grant procurement and predevelopment coordination with MSHDA, MEDC, and local incentive programs. 

“HBHF5 Properties, LLC is excited to be part of the renovation and rejuvenation of downtown Mt. Pleasant with our upcoming project at 115 and 117 S. University Avenue,” said developer Sara Beauchamp-Hicks. “We are deeply grateful to the Michigan Economic Development Corporation, the Mid Michigan Development Corporation, the City of Mount Pleasant, the Downtown Development Authority, and the Mt. Pleasant Chamber of Commerce for their unwavering support in securing the funds to make this vision a reality. We also want to extend a huge thank you to Revitalize Consulting Group, whose expertise and experience in navigating the grant process were truly instrumental, as well as our small business coach, Jeff Punches with the Michigan SBDC, for his guidance. We look forward to continuing our work with Archidea, Konwinski Construction, and other local subcontractors as we renovate these historic spaces. Upon completion, the buildings will house three residential units and two commercial spaces—one of which will be the brand-new home for Fab Five Design! We can't wait to see it all come to fruition and share this next chapter with the community.” 

“This project represents exactly the kind of investment that strengthens downtown and supports long-term economic vitality," said Kati Mora, president and CEO of Middle Michigan Development Corporation. "Transforming a long-vacant building into a mixed-use space with new housing and active commercial storefronts will bring new energy to the University Avenue corridor while creating more opportunities for residents, visitors, and entrepreneurs to connect in downtown Mount Pleasant.”   

“The proposed redevelopment of 115/117 S. University represents exactly the type of thoughtful, community-centered investment envisioned in our Master Plan,” said Manuela Powidayko, director of planning & community development for the City of Mt. Pleasant. “By converting existing structures into a vibrant mixed-use development, this project not only strengthens neighborhood-scale business opportunities but also exemplifies our commitment to adaptive reuse—preserving the character and history of our built environment while contributing to a more dynamic and active downtown.”  

“This is a great accomplishment for everyone in the city of Mt. Pleasant. Projects like these serve as great examples of supporting our local businesses and communities, as it is important to take care of our organizations already in Michigan,” said State Rep. Jerry Neyer (R-Shepherd). 

About Michigan Economic Development Corporation (MEDC)

The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.