EGLE grant will help make waterfront property safe for new development in Saugatuck
The Michigan Department of Environment, Great Lakes, and Energy (EGLE) is awarding a $1 million Brownfield Redevelopment Grant to a project that will turn contaminated waterfront property into a new business and new jobs in Saugatuck. The site at 640 Water Street sits on the Kalamazoo River and was home to a bait shop and boat chartering company for more than 50 years. It had a fueling station from 1970-1997. The building has been vacant for the last four years.
A gasoline release was confirmed in 2018 during the process of closing the underground storage tank system. The EGLE grant will be used to excavate, transport, and dispose of contaminated soil and to treat and discharge contaminated groundwater during construction. Grant funding will also pay for:
- Asbestos survey and other environmental investigations.
- Building demolition and abatement.
- The removal of two underground storage tanks.
- The design, installation, and commissioning of a vapor mitigation system for the new building.
Redevelopment plans call for a new 2.5-story, 4,229 square-foot building with commercial space on the ground floor and three apartments for rent on the second floor. The $1.5 million River Market project is expected to create 3.5 full-time equivalent jobs. The city says it will improve public health and safety in a high-traffic tourist area and make the downtown area more walkable. Construction is scheduled to be finished in mid-2027.
More than half of EGLE’s annual budget supports local projects, protects public health and the environment, and helps create economic growth and jobs for Michigan workers. Redevelopment increases the value of brownfield sites and other nearby properties. In 2025, the EGLE Brownfield program provided more than $23 million in brownfield incentives to 76 projects in 52 Michigan communities. These projects are projected to create more than 440 housing units, 600 jobs, and result in more than $675 million in capital investment.
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