Beth LeBlanc

Lansing State Journal

CityFlatsHotel has not abandoned Sperry's, said Scott Beedon, the real estate agent for the building.

But plans for the building once identified as the future location for a boutique hotel are changing, Port Huron City Manager James Freed said during a Port Huron Downtown Development Authority Meeting Tuesday.

"Don't interpret delay as a negative thing," Freed said. "I am confident that Sperry's will be developed within the next few months."

Freed said plans are afoot for two developments in downtown Port Huron that will total about $20 million in investment.

He was mum on the details of those developments.

In April, CityFlatsHotel, of Holland, Michigan, announced plans for a boutique hotel and bistro development at the Sperry's building, 301 Huron Ave.

The planned hotel would have 38 to 40 guest rooms, a ballroom and conference spaces.

Officials said the hotel — which was anticipated to open in spring 2015 — would be between $12 million and $14 million.

Chuck Reid, owner of CityFlatsHotel, declined to comment about plans for the Sperry's building at this time.

Sperry's Landmark Inc., owned by Brent Marsall, purchased the building in 2011. Officials have said CityFlatsHotel will lease the building for the hotel.

Since the announcement of the development, two blight tickets have been issued to the Sperry's building for broken or missing windows and dilapidated window frames.

Beedon said he couldn't confirm rumors about new uses for the Sperry's building, but he said developers have been looking at additional projects in the downtown.

"They are aggressively negotiating to do additional investments in the downtown," Beedon said. "They have not walked away from Sperry's."

Beedon said the possibility of other investments does not mean plans for the Sperry's building are scrapped.

He said contractors from CityFlatsHotel have been working inside the building.

"Asbestos has been abated from the building properly," Beedon said. "Demolition is ongoing throughout the building.

"They're taking it to a blank canvas. But there's elements of the historical preservation that they can't touch."

CityFlatsHotel opened its first location in Holland in 2008. That hotel has 56 rooms, a bistro, lounge, coffee spot, conference rooms and a digital theater.

A Grand Rapids location opened in 2011 in the former Fox Jewelers Building in the city's downtown with 28 rooms, a bistro, bar and a ballroom.

Contact Beth LeBlanc at (810) 989-6259 or eleblanc@gannett.com. Follow her on Twitter @THBethLeBlanc.

AT A GLANCE

SPERRY'S HISTORY

1893 — J.B. Sperry purchases a former hardware store at 242 Huron Ave. and turns it into a department store. The store later moves to the larger building at 301 Huron Ave.

1960 — Sperry's is purchased by a Chicago-based chain, ending its local ownership

1996 — The store is sold to Stage Stores Inc., a Houston-based chain

June 2000 — Stage Stores files for bankruptcy. Sperry's is one of 120 stores slated to close.

August 2000 — Sperry's is listed for $900,000. The building is 65,000 square feet and officials comment that you can't buy a pole building for less per square foot.

Sept. 29, 2000 — Sperry's closes.

February 2001 — Realtor Jerry Kramer and his partner, Walter Winkle of Phoenix Contracting in Chesterfield Township, purchase the building. Their plans include turning the first floor into retail spaces, while converting the second and third floors into office space.

March 2001 — Work begins to clean up the former department store.

September 2001 — The building still is vacant, a year after Sperry's closed its doors. Kramer asks the community for patience as it will take time to lease the building.

May 2002 — Kramer hires Kellie Zimmer to market Sperry's. She targets department stores, but said Port Huron's population presents a problem. Kramer expresses that he'd like to convert the top two floors into residential units now, but not until the first floor is leased.

June 2004 — Inter-Continental Interiors, parent company for the furniture store House of Denmark, purchases Sperry's. There are six other House of Denmark stores around the state. The purchase price is not disclosed.

Dec. 26, 2004 — House of Denmark opens.

Sept. 30, 2006 — House of Denmark closes, with Inter-Continental Interiors citing cost-saving measures. The company is down to three stores statewide, including Port Huron, at that time.

January 2007 — Sperry's is included in the "Light It Now" campaign, started by downtown business owners, to highlight downtown vacancies. Nearly 25 percent of downtown buildings are empty.

September 2009 — Officials say a sale is "near" to a developer who is not named. The new developer is looking at turning the space into mixed-use, including residential, retail and office space.

May 2010 — Landmark Development — a Boyne City partnership — begins to pursue development at the Sperry's building, announcing $12 million plans.

August 2010 — Port Huron receives $1 million from the Office of Housing and Urban Development for redevelopment. The city also receives a $1.5 million guaranteed loan to offer to a developer. Officials said the building "could be ready" for occupancy by summer 2011.

March 2011 — Landmark Development receives a $1 million tax credit enhancement from the Michigan State Housing and Development Authority.

April 2011 — Port Huron City Council signs a memorandum of understanding with Landmark Development, promising assistance — including vacating the vault at Sperry's — in exchange for development at the building.

June 2011 — Discover the Blue and the Community Foundation of St. Clair County pay $20,000 to paint an underwater mural on the windows at Sperry's, as well as install a television that will play promotional clips for the Blue Water Area.

August 2011 — Landmark Development officials said they will delay work at the facility until 70 percent of the building is leased and won't comment on its potential tenants.

October 2011 — Sperry's Landmark, another partnership founded by the people behind Landmark Development, closed on the sale of Sperry's and announced it would break ground on redevelopment within weeks.

February 2012 — Work begins at Sperry's. Sperry's Landmark rolls out www.sperrys301.com so the public can track progress at the former department store.

Feb. 11, 2013 —Port Huron City Manager Bruce Brown requested that Port Huron City Council approve a $142,000 bid to vacate the vault adjacent to the Sperry's building. Council refuses, on the basis there has not been sufficient progress at the site to warrant the investment.

Feb. 25, 2013 — Council reverses its decision on vacating Sperry's vault after hearing a presentation from the developers. The work is contingent upon drafting a new memorandum of understanding, however, as the city has no legal obligation to do the work for Sperry's Landmark, the owner.

March 11, 2013 — Council approves memorandum of understanding with Sperry's Landmark, paying to vacate the vaults with the promise the developer will invest $12 million.

April 16, 2014 — CityFlatsHotel announces plans for a boutique hotel and bistro in the building, resulting in a $12 million to $14 million investment.