Removing Barriers to Growth: LM Marine Services Expands in Charlevoix
Goal
As demand for yacht sales, management, and marine service operations continued to grow, LM Marine Services was formed by the ownership of Onekama Marine to expand its service and sales footprint in Northern Michigan. To facilitate this expansion, the company acquired a 33,000-square-foot industrial building in Charlevoix with plans to renovate the existing facility and construct a 35,000-square-foot expansion, creating a centralized hub for sales, service, warehousing, and company operations.
Challenge
While the existing property provided an ideal location for expansion, renovating an aging industrial facility proved more expensive than anticipated. Unexpected redevelopment costs threatened the financial feasibility of the project and created a barrier to moving forward with the company’s investment plans. Some of the technical development hurdles originated from aging infrastructure and commercial fire protection regulation.
NLEA’s Solution
The Northern Lakes Economic Alliance partnered closely with LM Marine Services and Charlevoix Township to identify financial tools that could help offset the project’s redevelopment costs.
NLEA successfully prepared and submitted an application on the company’s behalf for a Michigan Business Development Program (MBDP) performance-based grant through the Michigan Strategic Fund, securing a $150,000 state grant to support the expansion.
In addition, NLEA worked with Charlevoix Township to establish an Industrial Development District (IDD) and secure an Industrial Facilities Exemption (IFE) certificate for the project. These incentives helped reduce the tax burden associated with renovating the industrial property, allowing LM Marine Services to move forward despite higher-than-anticipated construction costs.
Impact
With financial incentives in place, LM Marine Services is investing $7.15 million to transform the Charlevoix property into a modern marine operations facility. The expansion will create 12 new jobs with starting wages of at least $25 per hour plus benefits.
The project revitalizes an existing industrial property, strengthens Northern Michigan’s marine industry, and supports long-term economic growth by creating family-sustaining careers and generating new investment in the community.
By helping secure state funding and local tax incentives, NLEA removed key financial barriers and helped transform a planned expansion into a successful investment in Northern Michigan.
