A Hancock childcare center that opened in the old Hancock High School building has met its job-creation commitment, and Houghton County is now wrapping up the federal paperwork behind the loan that helped launch it.
The Houghton County Board of Commissioners held a public hearing Wednesday, Aug. 5, on the closeout of a $60,000 Community Development Block Grant revolving loan fund loan to Gabby's Guppies LLC. The business created 10 jobs as required under the loan terms, and all monthly payments of $696.65 remain current, according to a memo from Jeff Ratcliffe, the county's revolving loan fund manager, included in the board's meeting packet.
The loan was issued in April 2025 at 7% interest over 10 years. As of August, the outstanding balance is $54,945.67. The Michigan Economic Development Corporation determined the loan can be closed out for CDBG compliance reporting even though the balance remains outstanding. The county will continue providing overall loan portfolio reporting to the MEDC.
Gabby's Guppies offers 46 childcare slots. The Houghton County RLF review committee recommended the loan on Jan. 29, 2025, and the full board approved it 5-0 on Feb. 11, 2025, as Resolution #25-02. Sam Stonelake, a business retention specialist with the Keweenaw Economic Development Alliance, wrote in a February 2025 loan recommendation memo that the project would fill a desperate need for childcare capacity in the area. The $60,000 loan was part of a larger $79,971.71 startup project that also included a $19,971 grant from the SmartZone small business support hub.
Commissioners weigh data center moratorium
Separately, commissioners are weighing whether to pause data center development countywide.
At a Monday, Aug. 3 work session, Chairman Tom Tikkanen recommended referring a proposed 12-month data center moratorium to the Houghton County Planning Commission for closer review. The draft resolution, numbered 26-14, would halt all permitting, construction and installation of data centers in the county, with possible six-month extensions.
The resolution cites concerns about water and energy consumption, noise and the risk that data centers could land in inappropriate locations without proper regulations.
"Delta County had passed an Ordinance and Houghton County does not do zoning," Commissioner Gretchen Janssen said at the work session, raising concerns that townships with weak zoning protections could face lawsuits from large tech companies.
Alex Radke, the county's IT staff member, echoed those concerns. Lexi Tater, a member of the public, urged the board to draft moratorium language at its next work session and update the county's Master Plan to specifically address data centers.
The City of Houghton already approved its own data center moratorium ordinance, as Commissioner Janssen reported at the board's July 14 meeting.
The moratorium resolution's formal consideration has not yet been scheduled for a vote. The Planning Commission review is the next step.
