Michigan Strategic Fund approves 2 brownfield projects

The Michigan Strategic Fund (MSF) approved projects in Grand Rapids and Kalamazoo under the state’s Transformational Brownfield Plan (TBP).

MSF says the projects will combine to create more than 2,000 jobs and 780 housing units while leveraging more than $892.3 million in private investment.

“The TBP is a legislatively provided tool that continues to positively impact communities and enhance Michigan’s capacity to attract and retain both talent and business investment,” says Quentin L. Messer Jr., CEO of the Michigan Economic Development Corporation (MEDC) and MSF chair.

“In addition to the volunteer members of the MSF Board, I am grateful to the respective development teams, Governor Gretchen Whitmer, bipartisan members of the legislature, our local economic development partners and my MEDC teammates for their collective efforts to bring these transformational opportunities to fruition.”

The Grand Rapids project represents a $795 million capital investment that’s projected to support more than 1,900 jobs and add 670 housing units, a luxury hotel, more than 2,500 parking spaces, 68,000 square feet of greenspace and nearly 38,000 square feet of retail space.

Fulmar Development Partners LLC, a joint venture led by members of the DeVos and Van Andel families who have partnered with Chicago’s Magellan Development Group on the project, received approval for a $560.89 million TBP incentive reimbursed over 30 years to transform nearly 7 acres at Fulton and Market streets in Grand Rapids.

Three towers are expected to be developed: An office tower, hotel tower and residential tower.

“The Grand Rapids Fulton & Market Transformational Brownfield Plan represents one of the most notable redevelopment efforts in the country,” says Sarah L. Rainero, economic development director for Grand Rapids.

“By converting more than six acres of surface parking into a mixed-use skyline and activated public riverfront space, we are continuing the city’s momentum as an economic engine that drives jobs, business growth, and tourism while expanding affordable housing opportunities. With the state’s partnership, this $795 million investment will bring to life the community’s vision for a vibrant, accessible riverfront.”

In Kalamazoo, PlazaCorp Realty Advisors Inc. and the City of Kalamazoo Brownfield Redevelopment Authority, today received approval for TBP incentive package in the aggregate amount of roughly $54.6 million over 30 years. The plan supports the redevelopment of three properties totaling 3.4 acres in the downtown area.

The combined project is projected to create up to 93 jobs, deliver 115 new housing units, and invest approximately $96.5 million.

The first property, the Michigan Avenue Courthouse, will be redeveloped into a boutique hotel with 127 rooms and amenities such as a lobby bar, restaurant, fitness center and more.

The second property, located at 619 Porter Street, will deconstruct a vacant industrial building to construct a five-story, mixed-use building that will include 5,000 square feet of commercial property as well as 58 residential units.

The final property, the Speareflex Building on Kalamazoo Avenue, will be rehabilitated to create 57 residential units.

“This plan reflects years of collaboration and a shared commitment to reinvesting in Kalamazoo’s core,” says Jamie McCarthy, development manager for Kalamazoo. “We are enthusiastic about the opportunity to leverage brownfield tools to support redevelopment that delivers new housing, addresses environmental challenges, and strengthens our downtown and surrounding neighborhoods.”