Grayling, riding wave of rebirth, sets goals to ‘stay unique’ yet thrive

A five-story building with 40 apartments is expected to usher in the next wave of revitalization in Grayling when it opens next year
The $18 million project, planned for several years, used $11 million in public funding
The city is setting its next priorities to attract both visitors and jobs without becoming too big

GRAYLING — This traditional downtown in northern Michigan is getting a new look on the western end of its main street: A five-story building that will add both new housing and retail space in the city.

Sawmill Lofts, under construction and preparing to open in early 2026, represents years of local and state efforts to bolster the small downtown’s revival.

Now, city officials hear from residents that “downtown is looking more like we’re a player,” Erich Podjaske, city manager, told Bridge.

As Crawford County looks to job growth from the new Saab factory under construction in Grayling Township, and some wonder if it will spur additional military-related deals that could be controversial, the city of Grayling is continuing with its own decade-long comeback plan.

City officials and downtown business owners join state economic developers in hoping that the Sawmill Lofts project will initiate another round of improvements that boost the vitality of the county seat.

Growth isn’t the goal, said the city manager.

Instead, the city is focused on what it will take to more fully restore the vibrancy Grayling once knew as a full-year economy augmented by tourism, versus one that shifts to the lower-paying industry.

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“I love it,” Podjaske said of the town where he’s lived since elementary school. “We’re not overly populated in the sense of so much traffic going through town. Obviously on the weekends, it gets busier and everything, but we’re still that quaint, fun community where people enjoy to come and hang out.”

“We’re trying to stay unique,” he added, “because that’s what draws people in.”

Grayling now is trying to figure out what’s next.

While many communities in northern Michigan are leaning into tourism — one of the key state industries, generating an estimated $55 billion in 2024 — this community is looking to retain visitors but also seek for more stable employment that pays more without seasonal fluctuations.

Another goal is to moderate the impact on the Au Sable River and other natural features that dominate Crawford County.

Over several years, the city received technical support from the state to set an economic development plan and downtown strategy. Eventually it made changes to downtown zoning to encourage more retail and restaurants with fewer professional offices. Making downtown more compact was a goal too, including allowing up to five-story buildings that could add residences.

Then, Podjaske said, “it was up to us to attract businesses and people.”

Recent additions downtown include a new Italian restaurant, a new Mexican restaurant and the Paddle Hard Yard, an outdoor venue associated with the Paddle Hard Brewery, which helped to start downtown’s revival.

The city’s newest wish list:

Completion of Sawmill Lofts, complete with filling the ground-floor retail. The 40 new apartments, ranging from studios to two-bedroom units, will become available as Saab likely ramps up hiring. Rent will start at under $900, developers Michigan Community Capital said at groundbreaking.

Sawmill Lofts will have 40 apartments and two ground-floor retail spaces when it’s completed. (Courtesy of the City of Grayling)

The project, about eight years in the making, was possible with state support: $1 million for environmental cleanup, $3.5 million from statewide housing funds and a $6.5 million revitalization and placemaking grant from the Michigan Economic Development Corporation.

Michelle Grinnell, chief communications & attraction officer for the MEDC, said the development project will make a difference to the city. Officials already see changes from earlier efforts to strengthen the city’s economy.

“Grayling is a great example of how we work to take a holistic approach to growing economic opportunity here in Michigan,” Grinnell said. “If you look at economic development efforts in the community supported over the years it demonstrates a commitment to… creating opportunities for people that goes far beyond a specific business development project.”

Another hotel: Plans for one were announced in 2019, but without proceeding. Gaining more lodging in the city is a goal so that visitors don’t choose to stay out of the area. Nearby Gaylord, for example, has had several hotel projects near I-75 over recent years.

Redevelopment of the long-closed Fred Bear Archery Factory: Michigan’s legendary sportsman moved his factory to Grayling after World War II. The operation thrived for years, until subsequent owners moved it to Gainesville, Florida, before closing it.

The former Fred Bear Archery factory would extend downtown if Grayling can get a mixed-use redevelopment on the property, the city manager said. (Paula Gardner/Bridge Michigan)

The site north of the Crawford County Administration Building is near the river and also downtown Grayling.

“Developing that property and into some kind of mixed use, with some townhomes, condos and maybe some commercial (space) along the river would stretch out downtown,” Podjaske said.

Redevelopment of Chief Shoppenagon’s Hotel: The building remains on the edge of downtown, across from Sawmill Lofts at Michigan Avenue and Norway.

For decades, the hotel was a destination in Grayling for both tourists and residents, who visited the restaurant and danced to bands there. Now it’s one of just a couple of vacant buildings downtown.

“Structurally, it’s very sound,” Podjaske said, “but it would take a lot of money to bring it back to life.”

Kate Devries-McIsaac, who owns nearby shop Tip’n the Mitten with her wife, Stacy McIsaac, said she originally was against the five-story Sawmill Lofts. She said she doesn’t think Grayling should strive to be like other tourist towns, particularly those that are overpopulated in summer.

Downtown business owner Kate DeVries-McIsaac, co-owner of Tip’n the Mitten store, is a part of the city’s resurgence over the past few years. Focusing on downtown for growth will retain the city’s character, she says.

But the long-time resident who moved back to town when she opened her store several years ago is seeing a business rebirth in Grayling that mostly respects its place as a quiet river community instead of seeking quick growth. Adding housing to downtown — which she describes as the heart of the community — will support year-round jobs and customers.

“The moment you let the heart of your community die,” she said, “your community suffers.”