GAYLORD — Tucked into the $76 billion state budget recently signed by Gov. Gretchen Whitmer was a $3.5 million appropriation to expand Gaylord city water and sewer service to Treetops Resort.

Earlier this year, the Gaylord City Council agreed to do a feasibility study on bringing city utilities to the resort. Treetops, home to one of the area's top ski and golf destinations, is considering expanding.

"Treetops has their own wastewater treatment plant but it is operating at near capacity and doesn't permit any expansion," said Gaylord City Manager Kim Awrey.

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She said State Rep. Ken Borton (R-Gaylord) and State Sen. Jim Stamas (R-Midland) suggested to Whitmer that the state include funds for the project in the fiscal year 2023 budget.

Awrey said the feasibility study authorized by the council will have price estimates for the project and it is expected to be completed by the fall.

Awrey said two different routes will be considered for the lines. One would be on Wilkinson Road while the other would be on M-32 East.

"Extending the lines down Wilkinson would be the shortest route (to Treetops)," Awrey said. "But there is a lot of undeveloped property along M-32 and that also means there is strong economic development potential as well."

More:Treetops to consider city water, sewer for expansion plans

The undeveloped property could be turned into apartments, housing and commercial development in the future if there is city water and sewer service available, noted Awrey.

If the developers can hook up to city utilities it could bring in much needed housing to the area, she added. Like many communities in Northern Michigan, Gaylord doesn't have an adequate supply of housing — especially affordable housing — and the May 20 tornado has exacerbated the problem.

The $3.5 million from the state is going to lower the cost of the project for Treetops, but the resort will still have to come up with funding so the project can be completed. Who will be responsible for the maintenance of the lines will also have to be worked out.

Treetops started out as Sylvan Knob Ski Area in 1954. Since then, the resort has added golf courses, lodging and dining options to become a four-season vacation and meeting destination.

The state budget was approved overwhelmingly by lawmakers from both parties and includes other Northern Michigan items such as $14 million to help purchase a passenger ferry to carry people to and from Beaver Island.