(STURGIS) – A project to build income based apartments on vacant land in Sturgis is on hold due to a funding issue.

Wednesday night, Sturgis City Manager Andrew Kuk shared with the City Commission that he was contacted by Spire Development who did not receive funding from the State of Michigan to move forward with the St. Joseph Street Lofts project.

The proposed project would be constructed on the site of the former Paramount Furniture Company, which has been empty since the building burned down in 1996. It will be made up of 50 income based apartments, ranging from one bedroom to three bedroom units.

Spire Development attempted to do this project in 2020. At that time they were not awarded Low Income Housing Tax Credits from the Michigan State Housing Development Authority and it fell through.

In October, Shawn McMickle, Vice President of Development for Spire, spoke to the City Commission about the project. McMickle said the criteria for the funding had changed and the company felt good they would be approved for funds this time around.

Kuk says that Spire is still interested in doing this project, despite this recent news.

Kuk says he will reach out to Spire and the Michigan State Housing Development Authority to see if there is anything different the City can do for the next round of funding that would help Spire get the money for the project.