With the passage of time, the buff sandstone structure turned a dingy black from the coal-fired boiler and from manufacturing, traffic dirt, and grime. A 1969 study suggested that the City Hall be demolished in favor of a bright, new, modern structure. Fortunately, the idea was set aside because of a lack of finances.

By 1975 attitudes toward older buildings had begun to change in the Bay City area. The City manager and several of the commissioners encouraged restoration of the City Hall. The building needed to both pass stringent new safety requirements established for public buildings and become more energy efficient. The firm of Wigen, Ticknell, Meyer & Associates completed a study and concluded that it would be less expensive to restore the building than to demolish it and build a new structure.

About the time the report was completed news arrived from Washington, D.C. that City Hall had been placed on the National Register of Historic Places.

In 1976, the Michigan History Division gave the restoration project its start by providing a preservation grant for $20,000. This grant, along with $23,000 in local funds, was used to clean and tuckpoint the exterior of the building. This work was completed in time for the 1976 bicentennial celebration.

A drive was then started to restore the clock in the tower, including replacement of the original water powered clock with an electronic one. The one-inch thick milk glass face was replaced with an acrylic face, as replacement glass was not available. $18,000 was raised to restore and convert the clock. The clock tower chimed the hours for the first time in many years. A brass bell, which weighed approximately 6,000 lbs., was removed in 1952.

In 1979, the City obtained an Economic Development Administration grant and the City contributed funds toward a $3.1 million renovation project. The philosophy developed for the restoration was that public spaces be restored as close to the original as possible while workspaces would be adapted to current needs. Some of the renovations included:

• The sandstone steps at the front and south entrances were replaced with granite.
• The height of the steps was changed to comply with codes.
• The front retaining wall was replaced with one that was reinforced with concrete covered with granite.
• The front revolving doors were installed.
• The original 254 double hung windows were replaced with energy efficient windows.
• The stair treads on the interior staircase were repaired with black slate to match the existing treads.
• The marble atrium floors were repaired with matching marble.
• Woodwork was repaired throughout the building.
• The wrought iron railings and stringers had originally been covered in copper. Unfortunately, this finish was lost and a "used penny" finish now graces several portions of the stairway. It was too expensive to redo all the copper so the rest is now covered in a dark bronze paint.
• The guardrails, which were a foot too short for today’s codes, were brought up to the current height by fabricating metal extensions.
• The leaking glass in the skylight was replaced with reflective glass to both seal out moisture and reduce the summer heat.
• The ceilings of the council chambers, which had been lowered in the 1950’s totally cutting off the balcony and top 39 feet of the room, were removed.
• Craftsmen were employed to repair/replace ornate plaster in the commission chambers.
• Installed two additional interior stairways, an automatic fire alarm system, an elevator, new restroom facilities, and a new heating/cooling system.

City Hall was completely restored in 1980 at a cost of $3,320,000. Listed in the National Archives of the Smithsonian as one of ten most outstanding buildings in the United States known for its historic restoration

Some of the interesting features and stories of the site and building include:

• Originally the site was considered too far from town to conduct business.
• The original tower clock, which was water operated, made Ripley’s "Believe It Or Not" many years ago. It was claimed that fish from the river were sucked into the clock’s gears and made it inoperative. For decades the clock’s hands stood at 9:02.
• Above the front arches, the leading industries of the city at the turn of the century are featured. Two female portraits representing commerce and industry accent a floral background. Between the front arches, above the center column, a fierce lion’s head draws attention to an ornamental relief composed of a salt block drill house – illustrative of the salt industry, a ship’s anchor – representing the shipbuilding industry, a string of fish – illustrative of our fisheries, and a saw blade – representing the lumber industry. There are numerous other faces on the column capitals above the main entrance. Legend has it that they were modeled after the faces of the city aldermen.
• Reportedly, City Hall is located on what was once an Ojibawa meeting site where tribal business was conducted.
• Tours of the building are available and sponsored by the Bay County Historical Museum.
• Today, City Hall is on the State and National Register of Historical Sites and has been judged as one of the 50 most significant architectural structures in the state.