Grand Rapids Commission Focuses On New Jobs And New Housing In New Year

Press release from the City of Grand Rapids:

GRAND RAPIDS, Mich. – On Tuesday, the Grand Rapids City Commission kicked off its new legislative year focusing on job and housing creation. It held public hearings on two proposed development projects that will result in 245 jobs coming to Grand Rapids with an estimated $142,616 in new annual income tax revenue to the City. It also supported future housing development totaling $87 million that will create 308 new housing units – 263 of which will be affordable. It also learned more about proposed zoning changes that would promote the development of new housing.

Mayor Rosalynn Bliss said the incentives provided by the Commission are an investment in our City’s future economic prosperity and housing needs.

“Generating high quality employment and housing opportunities is imperative for the future vitality of our community,” she said. “This is especially important in a tough and competitive economic climate. These are exactly the types of investments the City needs to make and I appreciate them coming to the Commission’s consideration. This is just the beginning and I’m looking forward to see what other investments we will be able to make in 2021.”

City Manager Mark Washington said these efforts represent a concerted effort to focus on economic recovery and growth following a challenging year dominated by the pandemic.

“The past year has been difficult for everyone,” Washington said. “Despite those challenges, I’m encouraged that we continue to find economic and housing opportunities to help the City recover. I am optimistic and remain committed, now more than ever, to ensuring we grow and thrive, together, as a community.”

Job Creation

The Commission’s focus on jobs Tuesday aligns with the Economic Prosperity and Affordability priority listed in the City’s strategic plan. It welcomed public comment on and learned more about two major economic development projects that will move two corporate headquarters into town and provide high-paying jobs for Grand Rapids residents – the 1601 Madison Ave. SE redevelopment project and the L. Perrigo Company project.

L. Perrigo Company North American Headquarters

The Commission held a public hearing to consider performance-based incentives for the L. Perrigo Company to establish its North American headquarters in downtown Grand Rapids.

L. Perrigo representatives provided an update on its plans to locate its North American headquarters to a new building at 430 Monroe at Michigan State University’s Grand Rapids Innovation Park. The $34.5 million investment and 15-year lease of 63,550 SF of office space is the result of a collaboration between the Michigan Economic Development Corporation, The Right Place, Inc., the City of Grand Rapids, Health Innovation Partners, L. Perrigo and its consultant, CBRE.

“The decision by the company signifies the advantage Grand Rapids offers for headquarter locations and the importance of the Medical Mile to the regional healthcare and biomedical industries,” said Jeremiah Gracia, economic development director.

The Perrigo investment adds to investment in the MSU Research Facility and the Doug Meijer Innovation Center on the Grand Rapids Innovation Park (GRIP) that in total will create 150 new jobs. Approximately 100 of the employees are existing L. Perrigo employees that will transfer to Grand Rapids, and approximately 50 will be newly created positions associated with expected company growth. The project will also generate an estimated $1.1 million of new property taxes and $1.5 million of new income taxes over the term of the agreement – resulting in an estimated $2.6 million of new tax revenue for the City of Grand Rapids ($1.1M in new property taxes and $1.5M in new city income taxes annually).

1601 Madison Ave. SE Redevelopment Project

The Commission held a public hearing to consider an application for a Brownfield Plan Amendment for the clean-up and redevelopment of a 10-acre site located at 1601 Madison Ave. SE. The first phase of the project has an estimated investment of $12.5 million.

Amplify GR and Rockford Construction is proposing to demolish an existing 250,000 square foot industrial building and construct a 60,000 square foot office/industrial building and surface parking lot on a three-acre portion of the property. The new building will be leased to a device/data management company which will relocate its headquarters to Grand Rapids. Sixty-nine jobs will be relocated to Grand Rapids, and the new tenant anticipates the creation of 26 new jobs.

Amplify GR is committed to working with the proposed tenant to recruit, hire and train employees from the 49507 zip code and has established a goal of at least 30 percent of new hires being residents of that geography.

The project will result in 95 new full-time jobs with an average salary of $21.57 per hour and generate approximately $42,600 in city income taxes per year.

The project meets multiple objectives of the City’s strategic plan and Equitable Economic Development and Mobility Strategic Plan focused on job creation in Neighborhoods of Focus (NOF) and promoting businesses that adopt inclusive hiring practices. The project also has aspirational goals for participation of minority-owned (MBE), women-owned (WBE), and 49507-based business enterprises for 30% of the construction value.

Housing Creation

The Commission’s focus on housing also aligns with the Economic Prosperity and Affordability priority listed in the City’s strategic plan to increase housing supply, variety and affordability.

A recent Housing Needs Assessment report indicated that Grand Rapids will need at least 5,340 more rental units by 2025 to satisfy demand. The Commission’s actions help resolve three problems identified in the report:

• Inadequate housing supply for a growing population
• Disparities in access to housing and homeownership
• Dramatic price increases at the neighborhood level

730 and 736 Leonard Street NW

The Commission gave the final go-ahead for a three-story, 16,133 square feet, $2.5 million renovation project that will result in a mix of 18 studio and one-bedroom apartments, first floor office and retail, and basement level storage. The building’s current retail establishment, Chaser Apparel, will move from the storefront to a newly renovated portion of the first floor. The Bazzani Building Company will relocate their offices to the property and a restaurant/coffee shop is also planned for the first floor.

The Applicant will attempt to achieve Net Carbon Zero with the project and will pursue LEED Certification. In addition to the environmental certifications, the Applicant is working to achieve 15% Micro Local Business Enterprise (MLBE), Women-owned Business Enterprise (WBE), and Minority-owned Business Enterprise (MBE) participation in the construction of the project. The project has support of the West Leonard Business Association, West Side Corridor Improvement Authority and the West Grand Neighborhood Organization.

Approval of tax exemptions and payment in lieu of taxes (PILOT)

The Commission approved a series of projects to receive tax exemption and payment in lieu of taxes (PILOT) as authorized by the State Housing Development Authority Act and City ordinance. The housing projects approved for PILOT for the rent-restricted units will pay either:

• A 4% service charge of annual shelter rent, or
• A 1 % service charge of annual shelter rent in addition to making a 2% annual contribution into the City’s Affordable Housing Fund.

The Commission approved conditional PILOTs to support application to the Michigan State Housing Development Authority (MSHDA) Low Income Housing Tax Credit (LIHTC) program for the following projects:

Bradley Commons, 3555 Lake Eastbrook Boulevard SE

This $13.8 million project involves demolition of a former furniture store near the Shops at CenterPoint mall and construction of a four-story building with elevator. This 54-unit general occupancy and permanent supportive housing development will include six barrier free units, community room, laundry room, property management and supportive services office space, 43 on-site parking spaces, bike racks and landscaped grounds.

The development anticipates 19 Michigan State Housing Development Authority (MSHDA) project-based vouchers and HUD Section 811 rental assistance for nine one-bedroom units. The 19 permanent supportive housing units will serve chronically homeless individuals, while the 811 units will serve very low and low-income adults with disabilities. All units will be available to households with income at or below 80% of Area Median Income (AMI). Units will be rented under the rent and income restrictions of the Low Income Housing Tax Credit (LIHTC) program.

Breton Grove, 2400 43rd Street SE

This $14.9 project involves construction of a four-story building with an elevator and grade-level parking. This 52-unit general occupancy and permanent supportive housing development will include six barrier free units, community room, laundry room, property management and supportive services office space, 74 on-site parking spaces, bike racks and landscaped grounds.

The development anticipates 19 MSHDA project-based vouchers for permanent supportive housing units that will serve vulnerable populations, including those with a disability and/or experiencing homelessness. All units will be available to households with income at or below 80% of AMI. Units will be rented under the rent and income restrictions of the LIHTC program.

Stockbridge Landing, 585 and 601 Stocking Avenue NW

This $16.5 million Woda Cooper Development project involves the demolition of the Arsulowicz Brothers Mortuaries building and the construction of two four-story buildings, each with elevators and grade-level parking. This 58-unit general occupancy and permanent supportive housing development will include six barrier free units, community room, laundry room, property management and supportive services office space, 46 on-site parking spaces, bike racks and landscaped grounds.

The development anticipates 21 MSHDA project-based vouchers and HUD Section 811 rental assistance for nine one-bedroom units. The 21 permanent supportive housing units will serve chronically homeless individuals, while the 9 units will serve very low and low-income adults with disabilities. All units will be available to households with income at or below 80% of AMI. Units will be rented under the rent and income restrictions of the LIHTC program.

Boston Square Together I project, 1480 Kalamazoo Avenue SE

This $15.9 Brinshore Development and Amplify GR mixed-used, mixed-income project involves construction of a three- and four-story structure containing 45 apartments. Approximately 8,350 square feet of commercial space will be located on the ground floor with residential units on the three upper floors. Condominium Unit 1 will contain the dedicated commercial space. Condominium Unit 2 will contain 36 affordable rental units and Condominium Unit 3 will contain nine market rate rental units.

Apartments will feature modern amenities and high efficiency appliances. The building will have an elevator, on-site parking, on-site management, a community room and an exercise room.

The 36 affordable rental units will be available to households with income at or below 60% of AMI and will be rented under the rent and income restrictions of the LIHTC program. The nine units in Condominium Unit 3 will be available at market rate.

This project is the first phase of a larger initiative, known as Boston Square Together, to redevelop approximately nine acres in the Boston Square neighborhood. The comprehensive redevelopment will include a community hub with early learning center, a public park, and additional retail and residential space.

Leonard Apartments, 851 Leonard Street NW

The $12.7 million Genesis Nonprofit Housing Corporation Leonard Apartments project at 851 Leonard St. involves the repurposing a former funeral home and its parking lot to create 38 affordable rental units. The development will also include card access, a secured lobby, security cameras and lighting, a community room and a conference room. There will be 33 on-site parking spaces and four accessible spaces. Thirty-two apartments will be barrier free Type B, five will be barrier free Type A and one will be visitable.

Nineteen units with project-based vouchers will be reserved for Permanent Supportive Housing for people with special needs that have income at or below 30% of AMI. The other 19 units will target households earning 40% to 60% AMI. Units will be rented under the rent and income restrictions of the LIHTC program.

Union Suites on Coit, 608, 614, 618, 622, and 626 Coit Avenue, NE

The $13.2 million Union Suites LLC and Dwelling Place Nonprofit Housing Corporation project is a new three-story, 52-unit courtyard-style apartment building with 52 below-grade parking spaces. The development will include a secure entry, leasing office, community room and native landscaping. The building will be visitable with each apartment having zero-step entries, living rooms and bathrooms. Ten percent (10%) of the units will be barrier free Type A. First floor units will have private yards with private entrances.

Zoning amendments to allow first-floor residential units

The Commission also heard a presentation and heard public comments on proposed zoning text amendments that aim to promote the development of even more housing units in the future. Planning Director Kristin Turkelson said the amendments come as the city experiences a significant shortage in affordable housing, housing supply and COVID-related impacts which have further strained an already challenging retail market.

Turkelson said the text amendments are proposed to provide greater flexibility in ground-floor use requirements within traditional business area (TBA) and commercial zone districts, allowing for ground-floor residential units in business districts. The amendments will also eliminate the bonus height structure applicable to the TBA zone district without increasing the overall allowed building height of four-stories. Due to community housing needs, current market conditions and code-related impacts, creating greater flexibility in ground-floor use requirements will provide building owners the opportunity to utilize vacant or underutilized ground floor space into residential space.

“The number of projects that have been stalled or we are losing as a result of the zoning ordinance is significant. I simply don’t think we can wait with what’s happened in the last 12 months,” she said.

This press release was produced by the City of Grand Rapids. The views expressed are the author's own.