First Steps For The New Sugar Loaf?

By Emily Tyra | April 23, 2020

Members of the Leelanau County Brownfield Redevelopment Authority (LCBRA) on Tuesday unanimously accepted Part I of the brownfield application from Sweet Bread LLC, a special purpose entity formed to redevelop the shuttered Sugar Loaf Mountain Resort in Cleveland Township.

Sweet Bread LLC is one of several hospitality business entities in Michigan managed by Jeff Katofsky and owned by Katofsky and Rick Barreca, of Sherman Oaks, California. They have requested an estimated $6.5 million of brownfield tax increment financing in their Part I application. The actual amount will not be determined until Part II is submitted and a final brownfield plan is prepared and approved. Katofsky and Barreca have listed the value after project completion at $175 million.

This is a first step, as brownfield plans are subject to a public hearing and must be approved by the local municipality, the LCBRA, and the County Board of Commissioners.

Right now it is open-ended as to when Part II of the application will come. “We have not talked about a date,” says Trudy Galla, LCBRA Director.

Sweet Bread LLC’s application stated the intent to demolish the existing resort building and construct all new facilities. Plans entail a 250-room hotel, meeting space, residences and townhomes, fitness center and spa, casual and fine dining. Additional amenities would include “limited” downhill skiing plus sports and equestrian facilities. Also planned is dormitory-style staff housing with retail, childcare and support services.

Demolition is to start June 1, 2020, according to the timeline in Sweet Bread LLC's application. Tony Mattar, who is a member and director of the nearby Sugarloaf Townhouses, voiced his concern about delays in demolition in awaiting Part II of the application, and with the unknowns surrounding permitting, availability and eligibility of crews to work during the coronavirus pandemic. “My goal is to expedite the demolition of that property as it stands now, and I want to be sure we are making good progress in that regard,” he said.

Though it comes with risk on the developers’ part, Sweet Bread LLC can, in fact, start demolition before the Part II application is received and approved and still receive brownfield funding. Says Galla: “They can start demolition at any time, once the applicant obtains the proper permits and our current situation with Covid-19 is lifted to allow demolition work. It could be considered an eligible expense in a brownfield plan for future reimbursement.”

Leelanau County Commissioner Patricia Soutas-Little, who is also a member of the LCBRA, believes that the developers are planning to proceed with the project, adding that “it would be a major asset here in our county.”

She continued, “Rick [Barreca] was very definite about his plans to begin this summer and have it finished in terms of demolition by the fall. There is no way that can be guaranteed now that we [are dealing with] coronavirus, but we remain very optimistic that this will be done this summer; I think they feel it is in their best interest not just from a safety standpoint for the community but also so they have options in terms of where they place structures and in terms of the value of the property itself.”

LCBRA member Rick Foster added: “With what we are going to be facing, not just locally but nationally and internationally, I question if anyone is going to put multiple million dollars into a luxury resort in the next couple of years. However, it may become a good time to work on it if labor costs go down."

Here is the development's proposed timeline with project milestones, as proposed in the brownfield Part I application from Sweet Bread LLC:

4/1/2020 Apply for Required Demolition Permits

6/1/2020 Demolition Commences

11/1/2020 Demolition Complete

11/15/2020 Begin Construction Drawings for Project

4/1/2021 Construction of On and Off-site Improvements Commences

3/1/2022 Construction of Hotel Commences

6/1/2022 Construction of Commons Commences

7/1/2022 Construction of Workforce Housing Commences

10/1/2022 Construction of Gas Station and C-Store Commences

12/31/2022 Power and Wastewater Plants Completed

4/1/2023 Construction Commences at Summit