A few years ago, Marquette’s primary hospital complex relocated to a new home on Baraga Street near the city’s downtown.
Since then, the once-busy former home of the UP Health System Marquette has stood vacant, its buildings decaying and vandalized, compounding the blight that was already encroaching on the surrounding neighborhood.
The 17-acre site is located on College Avenue between 4th and 7th streets, next door to
Northern Michigan University (NMU).
As it stands, however, it’s not a welcoming sight for current or potential students, let alone businesses or people looking for a place to live. It’s also an environmental and safety hazard, with more than 25 percent of the buildings contaminated with asbestos and lead paint.
But thanks to the determination and collaborative efforts of a group of public and private partners, the old hospital grounds are about to get a radical facelift. In fact, it’s getting more than a facelift; it’s getting a whole new life.
NMU, the
NMU Foundation, the city of Marquette, the Marquette Downtown Development Authority, the city of Marquette Brownfield Authority, the Michigan Economic Development Corporation, the Michigan Strategic Fund, InvestUP — a nonprofit economic development organization — and a private local developer, the Veridea Group — have all joined hands to replace an eyesore with a vibrant, multi-use development.
![]()
Karen Kovacs, Marquette city manager“The redevelopment of the former Marquette General Hospital site was made possible through strong
collaboration, visionary leadership and critical financial support,” says Marquette City Manager Karen Kovacs.
“The transformation of this site will eliminate a long-standing eyesore and replace it with a vibrant, livable space that complements the existing neighborhood.”
The cooperation among so many public and private entities has been the engine powering the project to success.
“We all had the same goal,” explains Brad Canale, CEO of the NMU Foundation. “Get rid of that thing and replace it with something of value to Marquette.”
David Nyberg, executive director for business engagement and economic development at NMU, calls the effort “a public-private partnership focused on building our community’s future.”
Development plans
The Veridea Group is in the process of purchasing the property from the NMU Foundation.
According to Veridea CEO Bob Mahaney, current redevelopment plans call for a mix of residential, retail, restaurants, professional offices, a health and wellness facility, several acres of parks and an outdoor entertainment venue. The residential component will include townhome condominiums, apartments for a range of economic groups and a senior living community.
An economic feasibility analysis showed the viability of an approximately $166 million mixed-use development featuring a wide range of housing, retail and commercial space, as well as green space and pedestrian corridors to better connect the new construction and surrounding neighborhoods to NMU’s campus.
In meetings with community residents, housing needs came up time and again.
“We heard it loud and clear from residents and community members that a broad spectrum of housing is of high interest,” NMU’s Nyberg says.
“The project will address Marquette’s acute housing shortage by adding several hundred new housing units across a range of price points to the city’s housing stock,” Mahaney notes.
Veridea will seek approximately $166 million in capital investment to fund the project’s construction.
The first phase of construction will be townhomes. Veridea expects to break ground on them either this fall or in the spring of 2026. Construction on subsequent phases will follow as market conditions dictate, Mahaney says. He expects the entire project to take eight to 10 years to complete.
![]()
Northern Michigan UniversityBob Mahaney, CEO of Veridea GroupThe Veridea Group threw its hat in the redevelopment ring because it felt that the site was too important to the community, the city and NMU to leave in its abandoned state, Mahaney says.
“It was a multi-faceted problem that was only going to worsen over time,” he explains.
“In addition to our unspoiled wilderness and waters, our cities and towns across the U.P. are what define us and attract new investment and residents,” he adds. “We must do all we can to repurpose abandoned and obsolete sites, which in turn creates opportunities to develop the kind of housing, commercial and recreational amenities that benefit residents, strengthen our communities and attract newcomers to the U.P.”
Veridea recognized the promise the site offered.
“Its location, size and infrastructure presented a unique development opportunity that could draw upon our organization’s market knowledge and development experience to make a positive impact on our community,” he says. “It’s not often that you have an opportunity to completely redevelop a 17-acre site in the heart of your hometown.”
An engine for growth
The city of Marquette expects the Veridea development to spur private investment, pedestrian activity and community improvement of the neighborhoods around NMU. Its private ownership will also generate substantial new property tax revenue. Canale estimates it could amount to around $4 million annually for Marquette City and County.
“Transforming this vacant, blighted site will restore property values and boost tax revenue, benefiting both the city and surrounding neighborhoods,” says City Manager Kovacs. “As with any development or redevelopment, we also anticipate the local economy gaining momentum, attracting new businesses and investment opportunities. The proximity to Northern Michigan University also creates potential for economic synergy, supporting both students and local businesses.”
How did it happen?
There's been a hospital on part of the College Avenue site since 1915. Over the years, the institution – known as Marquette General Hospital before it was sold to Duke Lifepoint Healthcare in 2012 – expanded its footprint until it wound up encompassing 17 acres.
After the hospital moved to its new site – several blocks away – in 2019, its owners, Duke Lifepoint Healthcare, approached the NMU Foundation about buying the property. At that point, the foundation wasn’t interested, Canale says. Then COVID came along, and with it came new federal tax breaks for corporations: a 25 percent deduction for charitable contributions.
The foundation had been paying close attention to what was going on with its abandoned next-door neighbor.
“The neighborhood was already blighted,” Canale explains. “We couldn’t just sit there and let it get worse and worse.”
And brokers’ efforts were yielding no buyers.
So they made Lifepoint a different kind of proposal. “What if you gave the property to us, plus a certain amount of money?”
And that’s exactly what happened. Lifepoint agreed to sell the property for $1 and give the foundation a sizable charitable contribution too. The foundation ended up $4 million richer and owning the property, while the hospital walked away from about $1.5 million in annual carrying costs.
The
NMU Foundation is now in the process of selling it to the Veridea Group for its appraised price of $2.5 million.
Funding the project
Demolition of 11 old buildings is under way. It is expected to take about 18 months and cost $18 million to $20 million.
One of the biggest hurdles was the cost of demolition and environmental remediation. Then the
Michigan Strategic Fund and the
Michigan Brownfield Authority stepped in.
Last February, the Michigan Strategic Fund awarded the city of Marquette an $8.2 million community development block grant for blight elimination at the site. The city is certified with MEDC’s
Redevelopment Ready Communities (RRC) program.
The Brownfield Authority is providing $3,835,399 in state tax capture funding for the demolition work. Brownfield funding includes grants and loans to support the cleanup and redevelopment of contaminated or blighted properties, helping to revitalize communities and return properties to productive use.
The vast majority of Veridea’s construction funding will come from private capital, Mahaney says. An important source of capital support will be the Brownfield Authority funding, which is undergoing final approval by the city now.
“We will also pursue additional public funding support where it is available,” he says.
![]()
Northern Michigan University FoundationDemolition work has begun at the old hospital site and is expected to take about 18 months.
The NMU Foundation has established a
website to share information about the project, along with anticipated next steps and progress made. Information can be found on the new site about the partnership, as well as public access to reports and documents related to its efforts to align the relationships and resources needed to facilitate demolition and site preparation for redevelopment.
“The public-private partnership that is making this project possible goes well beyond making sure that the property right next to Northern is protected,” Canale says.
“Growing Marquette’s tax base, it will support more and better community services while lowering residents’ tax burden. It will also enhance the city’s ability to attract and retain businesses and residents. It will bring significant economic impact for the entire community.”
Kovacs says the hospital site effort is one of the largest community development projects in the Upper Peninsula, promising new housing options, vibrant commercial spaces, and enhanced opportunities for residents.
“Through determination, partnership and strategic investment, Marquette has set the stage for a transformative revitalization, bringing new life to a once-blighted property in the heart of the city,” she says.
Canale calls the project “a phenomenal win-win-win-win, for the university, the hospital, the city and county, and the community.”
Jennifer Donovan is a reporter with more than 40 years of experience on daily newspapers, magazines and university writing and editing. She is retired as director of news and media relations at Michigan Technological University and lives in Houghton.