$5.9M housing project planned for downtown Battle Creek

Greyson Steele
Battle Creek Enquirer

A new housing development aims to breathe new life into a long vacant building in downtown Battle Creek.

Developer Bijou Lofts LLC is proposing a $5.9 million project to redevelop the former Hamblin Opera House into a mixed-use space with housing and a restaurant or retail space along Michigan Avenue.

The project would rehabilitate the four-story, 55,000-square-foot building at 17 W. Michigan Ave. into 31 new apartments with a 6,000-square-foot commercial space on the ground floor.

"Housing is perhaps the most pressing issue facing our community today," Battle Creek Unlimited Vice President of Attraction Robert Corder said. "This project will return a historic, yet dilapidated building to productive use while also providing new housing opportunities in downtown. It will significantly add to the economic revitalization efforts currently underway."

The new development would lie in the shadow The Milton, which opened in January 2020 with 85 market-rate apartments at 25 W. Michigan Ave.

"Battle Creek Unlimited, they have shown us multiple housing studies that were very interesting, but our biggest study is the Milton next door," Martin Herz of Bijou Lofts LLC said, acknowledging the apartment building rented in less than 60 days in the midst of the COVID-19 pandemic. "For us, that was the case we really needed to see, that there is a demand for housing downtown."

The Hamblin Opera House development would restore the building's 1948 facade and adapt the upper floors of the building into a mix of studio and one-bedroom apartments ranging from 600 to 750 square feet.

The units would be loft-style with open floor plans featuring granite countertops, stainless steel appliances and a washer and dryer in each unit. Lease rates are expected to range from $960 to $1,200 per month.

Additional units would be included on the ground floor, with 6,000 square feet available for a restaurant or retail space along Michigan Avenue.

"We've already had several conversations with prospective users interested in Battle Creek and I'm confident that we'll be able to find a first-rate tenant for the ground floor," Corder said. "Once done, the building, dubbed 'The Bijou Lofts,' will be an ideal complement to other projects underway in downtown, including The Milton and the forthcoming DoubleTree Hotel."

The proposed project is expected to create 50 construction jobs and bring 30 to 40 new residents downtown, generating as much as $20,000 in new income tax for the city of Battle Creek, Corder estimated.

The Hamblin Opera House was constructed in 1869 and was the first entertainment venue in the city. Later, it was converted into a department store, but the structure has been vacant for about 20 years. Battle Creek Unlimited acquired the property from the Calhoun County Land Bank in 2019.

"(The building) is in desperate need of a complete renovation," Corder said. "All of the building’s mechanical systems need to be replaced, as well as the elevators and exterior windows."

Bijou Lofts LLC recently received a tax break from the Battle Creek City Commission in the form of an obsolete property rehabilitation exemption certificate. The city will continue to receive the property tax income the building currently generates for the next 12 years, Assistant City Manager Ted Dearing explained Wednesday. That's about $129,650 a year through 2035. As the building is improved and its taxable value rises because of the improvements, any value above the base or "frozen" value will be taxed at a lower millage rate.

The tax break will assist Bijou Lofts LLC as it works to secure additional funding from the Michigan Economic Development Corporation. Battle Creek Unlimited has a letter of intent to sell the property to Bijou Lofts LLC once project financing is in place.

Renovations would take about 18 months to complete.

"It is becoming increasingly more important to build a strong residential base in the downtown to offset the changes in foot traffic driven by remote work," Dearing said. " We have had success with residential units in the downtown and we believe this development will help fill a market demand that that is growing locally."

Contact reporter Greyson Steele at gsteele@battlecreekenquirer.com or 269-501-5661. Follow him on Twitter: G_SteeleBC