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Developers Express Concerns Over Hydro-Electric Generator at Former Paper Mill Site

by sthv

CHEBOYGAN COUNTY, Mich. — Developers spearheading the redevelopment of the former Great Lakes Tissue Company site are raising alarms about the condition of the facility’s hydro-electric generator, a key component of the site’s infrastructure.

The underground generator, which has historically harnessed the flow of the Cheboygan River to power the paper mill, has long been a fixture of the property. However, Sharen Lange, project coordinator for the Cheboygan Commons redevelopment initiative, voiced significant concerns about the generator’s “structural health” during a recent meeting.

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On August 1, a team from the Federal Energy Regulatory Commission (FERC) conducted an inspection of the generator. Lange revealed that the inspection highlighted serious issues, including a long-standing “general lack of maintenance and repair” and significant structural concerns.

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The generator has been inactive since a fire erupted in a nearby warehouse last September. Lange described the situation as increasingly troubling, with worsening conditions detected during each facility tour. Previous FERC inspections noted cavitations and restricted water flow, with only two of the four water flow gates operating at 30% capacity. Despite recommendations for a structural engineering assessment, this evaluation was never performed.

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The initial cost estimate for repairing and upgrading the generator exceeds $1 million, with additional engineering reviews suggesting that total costs could reach “millions.”

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Bob Pulte, the project leader for Cheboygan Commons, emphasized that the focus of the redevelopment is not on energy production but rather on revitalizing the site with new housing and a high-quality development that enhances downtown Cheboygan. “Our goal is to replace and remediate the dilapidated plant and burned-out warehouse, not to become energy producers,” Pulte stated.

Lange noted that developers, current site owners, Department of Natural Resources (DNR) officials, and county emergency management staff have been collaborating closely to address the situation. Their primary focus is on water level management rather than energy generation.

“Despite the challenges, the expert team assembled for Cheboygan Commons is confident in their ability to transform the outdated factory into a significant economic asset for the community,” Lange assured.

Cheboygan Commons aims to convert the former paper mill site into a multi-use development, bringing new life to the area and boosting local economic growth.

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