COVID-19 is threatening the entire tourism industry in Muskegon. Nonessential businesses have been ordered to close, including restaurants and bars. Events that could have helped boost the local economy have been either postponed or canceled.
Construction projects have also come to a standstill, including work being done at the Lakeshore Convention Center. This isn't the first construction delay associated with this project.
A contaminant called PFAS was discovered in the groundwater at the site in November, and in January a capped oil well was discovered. Muskegon City Manager Frank Peterson said Lakeshore Convention Center construction delays area not a top concern for the city right now, according to MLive.
The project is not actively causing the city to lose money, and bookings at the convention center are not scheduled until late 2021 going into 2022. The city sold $20 million in bonds to fund this project, and the ten-year loan repayment program is structured so that smaller payments are made in the earlier years, according to MLive.
“It was always set up to have more wiggle room in the first few years," Peterson told MLive.
The city is currently focused on how unemployment payments will impact local income tax revenues and the economic impact of canceled events at Mercy Health Arena.
There's still some uncertainty about how long nonessential business closures are expected to last. If construction is shut down for too long, the city can deem the project as "critical infrastructure" to get it completed with the help of the building department and contractors.
The $19.5 million convention center is located between West Western Avenue and Shoreline Drive on Fourth Street. It will link the Mercy Health Arena and Delta by Marriott hotel, according to MLive.
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