About Emmet County, MI

Record Breaking State Oil & Mineral Lease Auction

A potentially huge unconventional natural gas reserve has been discovered in Northern Michigan. This new natural gas play has been dubbed the "Collingwood Utica" shale play, named after Collingwood Shale, which is present in Northern Michigan at varying depths, along with Utica Shale, which is also present at shallower depths.

Prompting incredible speculation in local gas, oil and mineral rights leases are reports of a successful natural gas test well in Missaukee County owned by Petoskey Exploration, LLC, a subsidiary of Canadian based natural gas producer Encana Corporation. Oil, gas and mineral leases on land owned by the state of Michigan were auctioned off for a record $176 million in early May of 2010. The average lease price of $1507/acre was exponentially higher than the $26/acre average lease price in previous auctions.

Oil and Gas Leasing Frenzy

The huge potential of the Collingwood Utica shale play has sparked a modern day gold rush. Landmen employed by the gas companies are rushing to lease oil and mineral rights from private landowners, many of whom have received multiple offers. In addition, opportunistic middlemen are attempting to obtain oil and gas leases from property owners who may be unaware of the recent jump in prices, and turn around and sell them to the gas companies for a huge profit.

Northern Michigan property owners need to understand that the negotiation of an oil and gas lease involves complex legal issues relating to the rights, privileges and obligations of the parties throughout exploration and production. It is essential that landowners arm themselves with as much information as possible to ensure that the terms of their oil and gas lease are favorable. To protect their future interests in their land, landowners who are considering entering into an oil and gas lease should seek the professional assistance of an experienced Northern Michigan oil and gas law attorney to guide them through the process and ensure that their legal rights are protected.

Remember my last blog post, about the Palo Alto farmers' market, where I promised to speak at greater length about the amazingness that is American Spoon Foods and everything that comes out of their kitchen?

Last spring, I wrote about the beautiful plans for the "Hotel Janelle" Condominium Hotel project set to begin construction in Harbor Springs. To date, there has been no construction. In fact, the only thing that has occurred is the destruction of the former inn that sat on the site, followed by a lawsuit over the hotel's height blocking resident's views of Little Traverse bay, and now foreclosure proceedings! It is of course sad to see, especially when our small community has already seen a similar multi-million dollar project bust in Petoskey. Below you'll find the full article that was published in the Petoskey News Review on March 18, 2010 (copy & pasted for your ease:) You can also read it here: http://www.petoskeynews.com/news/article_20d96d06-3298-11df-9d8a-001cc4c002e0.html

Hotel Janelle, Petoskey Pointe foreclosure sales slated for same day

Posted: Thursday, March 18, 2010 • Updated: Thursday, March 18, 2010, 10:12 am Brandon Hubbard

COURTESY IMAGE An early architectural rendering of what would become known as Hotel Janelle in Harbor Springs. The project has not materialized.

Two stalled multi-million dollar developments in Harbor Springs and Petoskey could find their way to the foreclosure auction block on the same day next week.

The stagnant 18-unit Hotel Janelle condo project in Harbor Springs and halted Petoskey Pointe construction site in downtown Petoskey are both scheduled for foreclosure auction by the Emmet county Sheriff's Department on March 25.

Paper work was filed in September by creditor Michael Sherman, owner of North Coast Credit Company against the Hotel Janelle Development Company owned by developer Rob Mossburg to protect his $1.3 million loan for the project. Sherman and Fifth Third Bank represent the two major investors backing Rob Mossburg, owner of the Cottage Company in Harbor Springs.

Since September, Sherman has repeatedly extended his deadlines for the development project, while Mossburg works on securing an additional partner or means to forward the project.

Most recently, the foreclosure auction deadline was punted from today, March 18, to Thursday, March 25.

Sherman, who owned the Harbor Side Inn created the credit company to back the Hotel Janelle development.

On Wednesday, Sherman said he was continuing to give Mossburg the room to work a deal with other investors and Fifth Third Bank.

"We are not receiving payments but (Mossburg) has said that they are negotiating to achieve a structure for everyone to move forward," Sherman said. "We will continue to postpone our foreclosure in the spirit of allowing a constructive solution to move the project forward."

Mossburg did not immediately respond to a request for comment.

As for Petoskey Pointe, the massive site — stalled since mid-2007— also has a possible date with the auction block on March 25.

A legal notice in the Harbor Light newspaper on Feb. 24, stated Lake Street Petoskey Associates, who proposed the hotel and condominium project, is in default on a mortgage to PNC Bank. The amount listed for the mortgage is about $5.7 million.

Developers for both projects have various possibilities to delay a foreclosure proceeding, such as negotiations with the lender or a potential bankruptcy filing.

Foreclosure proceedings are held at the Emmet County Building in downtown Petoskey.

http://www.petoskeynews.com/news/article_20d96d06-3298-11df-9d8a-001cc4c002e0.html

First off, Happy fourth!!!! I am on vacation here in Northern Michigan and came across two wonderful concepts from city of Petoskey that I would just like to say, THANK YOU! The other day we were shopping and our time ran out on the parking meter. We turn the corner to see a 'ticket' on the windshield. I kept saying to my sister, "maybe it's not a ticket" knowing it probably was! Well, it wasn't. It was a warning, welcoming us to the city (Tennessee plates) and giving us 1 hour to return and fill meter. Wow. That was nice. Then today, I noticed on the meter, they have a phone number you can call and fill your meter by cell phone!!!! I love this. I could shop all day and not worry about a ticket. Just a thought. Thanks Petoskey!

The Cottage Company of Harbor Springs has begun the Hotel Janelle development project. Construction is said to begin sometime in 2009. The goal is to be one of the Midwest’s finest condominium hotels, and will be located in downtown Harbor Springs. Upon completion, the property will have 18 large luxurious suites, an indoor pool and spa, rooftop cocktail deck with views of beautiful lake Michigan, an exercise club, croquet lawn, and many more features and accommodations for guests.

Suites will feature floor plans with one, two, or three fully furnished bedrooms. Other features may include hardwood floors, fireplaces, nine to ten foot ceilings, custom cabinetry, granite counters, wireless internet, flat screen televisions, room safes, steam showers, and private label items created exclusively for the hotel.

This will be a one of a kind property, in a one of a kind location, and a one of a kind opportunity! With only 18 suites, availability is extremely limited. Work with an agent who will represent you! Please contact me for more information, or to reserve your suite!

Please note: Author is a licensed real estate agent and Realtor for Coldwell Banker of Harbor Springs. All information believed reliable, but not guaranteed. Hotel Janelle is brokered by Graham Real Estate. Author is not an agent of Graham nor affiliated with Broker, Hotel Janelle, or Cottage Company.