By Steve Stiffler
The Sault Ste. Marie City Commission received a strong assessment of the city’s finances, advanced a major hotel development and moved forward on zoning updates during its recent commission meeting.
Commissioners unanimously accepted the city’s fiscal year 2025 audit, which received an unmodified, or unqualified, opinion — the highest level of assurance an independent auditor can provide. The overall financial condition of the city was described as a “B-plus, if not an A-minus.”
The audit showed the General Fund ended the year with a $2.3 million balance, despite a net decrease of about $3 million largely tied to interfund transfers. Pension funding levels stood at 60% for the Municipal Employees’ Retirement System and 65% for the Fire and Police pension plan. The audit also reflected implementation of a new governmental accounting standard affecting how compensated absences are calculated.
The commission also set January 5, 2026, public hearings for incentives tied to a proposed $30 million, dual-hotel development on West Portage Avenue. Northern Hotels is seeking approval of a Brownfield Tax Increment Financing plan and a Commercial Redevelopment Act tax abatement for the redevelopment of the former Karl’s Cuisine site. The project includes a 120-room TownPlace/Fairfield Inn, proposed to begin construction in spring 2026, followed by an 82-room Home2 Suites in 2029.
Two zoning ordinance changes advanced with first-reading approval. One amendment would reduce minimum parking requirements for multi-family, retail and grocery developments to lower costs and encourage redevelopment. The second, initiated by a resident, would raise the maximum height of residential accessory buildings from 15 feet to 20 feet, a standard unchanged since 1965. Final consideration for both is scheduled for January 5.
Acting City Manager Robin Troyer presented a “Year of Impact” report highlighting 2025 accomplishments, including the $38 million Carbide Dock reopening, securing $26 million in grant funding, bringing airport operations in-house and expanded public safety training.
Additional discussion included plans to resume the city manager search early next year and a community-led fundraising effort to replace aging downtown holiday decorations. A resident also raised concerns about winter plowing on Arlington Street, which city staff said will be reviewed.
