New mixed-use housing project coming to Marquette’s Washington Street

On Friday, Feb. 13, developers and city officials will break ground on a new mixed-use workforce housing project in downtown Marquette.

The development is set to replace the condemned former Northern Hydroponics at 401 W. Washington St. with a 16,150-square-foot building featuring two commercial suites, underground parking, and 11 residential units, including nine subsidized for households earning between 100 percent and 120 percent of the Area Median Income (AMI).

Backing was provided in part by a $1.5 million infusion from the Michigan Economic Development Corporation’s Revitalization and Placemaking (RAP) program, announced in Dec. 2025.

“With this support,” said Marquette City Manager Karen Kovacs in a corresponding press release, “a long-vacant property will become a vibrant mixed-use development that delivers workforce housing and retail space, fueling economic growth and revitalizing our community.”

What’s happening: Ground will be broken this Friday for the project at 401 W. Washington St. The site has been vacant since May 2023, when a spring snowstorm damaged the building’s roof, displacing tenants Northern Hydroponics and U.S. Muay Thai.

Background: Mitch Sharkey, a preconstruction manager for Midwest Construction Group, initially consulted with the building’s owner about repairs. “And then,” he said, “through my goals and aspirations personally, as a developer, I saw a good opportunity to tap into a market that’s underserved in Marquette, which is mixed-use developments.”

Sharkey first explored what a mixed-use development would look like at the site. Then, after discussions with property owner Stosh Wasik and fellow Midwest Construction associate Brian Vanbeveren, the trio agreed to partner on a plan that would provide maximum benefit to what has recently been an underutilized section of downtown. 

As 401 W. Washington, LLC, the partners settled on a four-level design with below-ground parking and secure storage in the basement, two commercial spaces and an ADA accessible residential unit on the ground level, and 10 more units ranging between 445 and 796 square feet split between the remaining two floors. Additional off-street parking is planned to accommodate both residential and commercial tenants.

Statewide support and funding: Since the project went public last year, it has received broad support at the local, regional, and state level. Sharkey said the development has been made possible “through strong collaboration with the city of Marquette, the Downtown Development Authority, the Marquette County Land Bank Authority, the Michigan Economic Development Corporation, MSHDA, Build UP, and UP State Bank, along with our builders and project partners.”

The group received low-interest short-term financing through InvestUP’s targeted workforce housing fund Build U.P., and the Marquette County Land Bank Authority reportedly provided a $46,000 Blight Elimination Grant for demolition.

To offset development costs and keep units affordable for working families, the group also sought Tax Increment Financing through the Marquette Brownfield Redevelopment Authority, which approved up to $1,076,825 in TIF funding, plus $55,000 for MBRA expenses.

Under the 20-year agreement, the group will rent out three units set at 100% of AMI, with an additional six units set at 120%. In return, the developers will be reimbursed for eligible redevelopment costs using the increase in property tax revenue generated by the project, offsetting the lower rental income and covering the gap between the adjusted rents and market rates. 

The most significant financial contribution to date came from the $1.5 million in RAP funding announced in December. The strategic investment was part of a larger $3.4 million funding round that supported a combined 60 new housing units in Marquette, Cadillac, and Escanaba.

According to a statement released by the office of Governor Gretchen Whitmer, funding through programs like RAP is intended to “add new housing options, enable business creation and attraction, and provide resources for our Michigan communities.”

Housing market impact: “Housing that is attainable and affordable for everybody here is a challenge, like in most every part of the state and country right now,” said Kovacs. She said that, currently, there are just under “700 units of subsidized housing,” a number inadequate despite additional low-income vouchers and other assistance programs funded by the city and state.

In a period when Michigan is facing a housing shortage of between 119,000 and 185,000 housing units, and in a market as perennially hot as Marquette County, that leaves a gap that slows economic growth and forces young professionals into an ultimatum: stay and hope for an opening, or look for more affordable options elsewhere.

Developments like 401 W. Washington, while small, provide an infusion of much-needed inventory that retains workers and breathes life into a community that can’t expand fast enough.

Groundbreaking: The groundbreaking ceremony will be held at the site at 2 p.m. Friday, Feb. 13.