LANSING, Mich. – A significant boost to West Michigan’s economy is underway as the Michigan Strategic Fund (MSF) Board has greenlit two Transformational Brownfield Plan (TBP) initiatives. These projects, located in Grand Rapids and Kalamazoo, are set to generate over 2,000 jobs and introduce 780 housing units, backed by a substantial private investment of $892.3 million.
“These projects on the Westside will create more than 2,000 good-paying jobs and add 780 units of housing,” said Governor Gretchen Whitmer. “Transforming brownfields into new homes, businesses, and parks offers us a huge, job-creating opportunity that grows our economy and improves quality of life for Michiganders. We will continue to move forward with similar brownfield projects across the state and pursue our comprehensive economic development strategy to win projects, invest in people, and redevelop places to make sure everyone can ‘make it’ in Michigan.”
The approval of these projects underscores the impact of the “Make it in Michigan” strategy, according to Quentin L. Messer, Jr., CEO of the Michigan Economic Development Corporation (MEDC) and MSF Chair. He emphasized the role of the Transformational Brownfield Program in attracting talent and business investments statewide.
Grand Rapids Riverfront Revitalization
The Grand Rapids initiative, led by Fulmar Development Partners, LLC, is set to transform nearly 7 acres at Fulton and Market streets. With an estimated investment of $795.8 million, the project will see the creation of three mixed-use towers, resulting in over 1,900 jobs and 670 new housing units. The comprehensive development will also include a luxury hotel, retail spaces, and significant public amenities such as over 68,000 square feet of green space.
- Local and school property tax capture: $245.67 million
- Construction period tax capture revenues: Maximum of $12.9 million
- Construction period sales and use tax exemptions: Maximum of $21.14 million
- Post-construction income tax capture revenues: Maximum of $281.1 million
Each tower will serve distinct purposes, from the 21-story office tower with retail spaces to the 43-story residential tower comprising 595 units. Additionally, a new hotel will contribute to the hospitality landscape, targeting both local and visiting patrons.
The development aims to address the housing shortage while revitalizing underutilized spaces. As noted by Sarah L. Rainero, Economic Development Director for the City of Grand Rapids, this $795 million investment aligns with the community’s vision for a vibrant riverfront. Grand Rapids Mayor David LaGrand highlighted the project’s contribution to affordable housing and connectivity within the city.
Kalamazoo’s Downtown Transformation
In Kalamazoo, PlazaCorp Realty Advisors, Inc. is spearheading a project that promises to inject $96.5 million into the local economy. This initiative will convert three properties into vibrant hubs featuring 115 housing units and creating up to 93 new jobs. The TBP incentive package amounts to approximately $54.6 million.
- Local and school property tax capture: $16.1 million
- Construction period tax capture revenues: Maximum of $1.6 million
- Construction period sales and use tax exemptions: Maximum of $1.5 million
- Post-construction income tax capture revenues: Maximum of $35.3 million
The redevelopment includes transforming a courthouse into a boutique hotel and constructing a mixed-use building on Porter Street, alongside the rehabilitation of the Speareflex Building on Kalamazoo Avenue.
Trisha Kidd, Director of Project Management for PlazaCorp Realty Advisors, Inc, expressed gratitude for the support from local and state partners. This project is poised to enhance Kalamazoo’s economic vitality by repurposing historic buildings and addressing environmental concerns.
Both projects reflect a strategic effort to leverage brownfield redevelopment as a tool for economic and community growth in Michigan.
NOTE FROM THE MEDC:
Investment and job numbers represent the commitment made by the business to the state of Michigan. Terms will be formalized in a performance-based project agreement, with funds disbursed as reimbursement based on eligible expenditures, and are subject to amendment or cancellation if the commitments are not met due to risks or uncertainties. The Michigan Economic Development Corporation provides a public annual report on agreements and their status to the state legislature.
About Michigan Economic Development Corporation (MEDC)
Read More Here
