Wolverine Construction is advancing Cadillac Lofts Phase 2 in downtown Cadillac, Michigan, while managing contaminated soil, unexpected underground structures and strict government funding requirements. The 34,000-square-foot development will provide 50 middle-income apartments and 2,000 square feet of ground-floor retail space on Mitchell Street.
The $11.85 million project is being developed for Michigan Community Capital and must meet requirements tied to multiple public funding sources. These include a Michigan Department of Environment, Great Lakes, and Energy (EGLE) brownfield grant requiring $5 million in spending by April 30, alongside a U.S. Department of Housing and Urban Development (HUD) requirement for substantial completion by the end of June.
The project site previously operated as a gas station, creating environmental remediation requirements before and during construction. Underground fuel tanks, petroleum-contaminated soil, former building foundations, underground vaults and tunnels extending beneath the sidewalk were discovered during excavation.
The volume of contaminated material also grew beyond initial estimates. The original planning allowance anticipated approximately 10,000 cubic yards of excavation, but actual site conditions required significantly more material to be removed and managed.
Wolverine worked with the local excavation subcontractor to calculate excavation volumes, depths and benching requirements before establishing remediation allowances. The approach was designed to give the owner greater cost visibility while accounting for uncertain site conditions.
The resulting remediation cost addition was $554,000. Wolverine also advised the developer to maintain additional financial reserves to reduce the risk that unexpected environmental costs would exhaust available grant funding.
The development involves reporting obligations across four government funding sources, including monthly documentation, expenditure tracking and labour reporting. HUD Section 3 requirements also call for qualifying employment and contracting opportunities to benefit low- and very-low-income individuals and eligible businesses in the project area.
Wolverine assumed responsibility for coordinating the reporting process, keeping construction records and compliance documentation aligned with project activities. The company reported that no deficiencies had been flagged by funding agencies as the project approached completion.
The construction team also coordinated its schedule with municipal street and sidewalk improvements surrounding the property. This coordination is intended to minimise disruption when residents begin moving into the completed development.
Cadillac Lofts Phase 2 is tracking towards its key funding and completion deadlines, according to Wolverine. The project has recorded no unplanned change orders, with scope additions attributed to owner requests rather than unexpected construction conditions.
The developer selected Wolverine through a sole-source award, following the contractor’s recommendations on a previous project. The project demonstrates the importance of early risk assessment, transparent cost allowances and direct management of funding compliance when construction involves environmental remediation and fixed public funding deadlines.
Source: Wolverine Construction.
