The city of Negaunee (Michigan) is seeking a $3.683-million grant from the U.S. Economic Development Administration to build a campground and an ORV/snowmobile trailhead.
According to a release, a new program under the American Rescue Plan Act provides communities like Negaunee opportunities to obtain grants through the Competitive Outdoor Recreation Tourism Grant program.
The grant will help communities and regions develop and implement strategies for sustainable economic recovery with a range of construction and non-construction projects that respond to the destruction of the tourism, travel, and outdoor recreation industries due to the coronavirus pandemic and promote the economic resilience of regions dependent on those industries.
“As stated during the dedication of the Jim Thomas Pavilion last year. Negaunee will begin to mark a new and aggressive era of investment in the public parks. Negaunee stands at the crossroads of all modes of recreation; from hiking to biking, snowmobiling, and ORVing,” City Manager Nate Heffron said.
The grant is divided into two components that work in tandem: the campground and the second is a snowmobile/ORV trailhead.
The campground will be located near County Road 480, within the city boundaries of Negaunee. It will be situated on 12.1 acres of land and is planned to house 71 campsites equipped with electricity and water hookups. A campground office, restrooms, showers, and a sewer dump site will also be built.
The campground location will be right off the Iron Ore Heritage Trail and Michigan DNR snowmobile route #8. These access nodes make it a great location for tourists to be accommodated for an array of trail uses,” Heffron said.
As per Mona Lang, Negaunee‘s DDA consultant, both the campground and trailhead will have a significant economic impact on Negaunee and the surrounding area.
The Lake Superior Community Partnership (LSCP) performed an economic impact study in preparation for the grant. The study found that an estimated 58.65 jobs are expected to be created by developing and opening a campground with 100% capacity from May through October.
The study also revealed that the campground could generate annual sales of $653,200 per year at total capacity for the 71 modern campsites at a rate of $50 per night. Even at 50% capacity, the camp could make $326,600 a year.
Once the campground is constructed, the funds can be utilized to run and invest in the camp. It is expected that the campground would cost anywhere from $50,000 to $60,000 per year to run.
If the city successfully gets the grant, the city would need to contribute 20% of the project’s costs, which amounts to $920,800. The city is hoping to start the construction in 2023.