The Grand Rapids Downtown Development Authority (DDA) Board of Directors today approved several measures that will leverage more than $60 million in public and private investment to rebuild complete streets, construct new high rise office and residential towers, and significantly expand entertainment options in the urban core.
Taken together, the DDA-supported projects will add to downtown 150,000 square feet of office space, a projected 120 entertainment shows per year, and 90 new apartments, several of which will be dedicated to maintain affordable housing options in the central city. The residential and entertainment projects together will add an estimated $5.2 million annually in consumer spending to the downtown economy.
“Achieving a critical mass of people to support the continued growth of downtown’s retail economy is a central theme emerging from the ongoing community-driven process to define the GR Forward strategy,” said DDA Executive Director Kristopher Larson. “Today we made incremental progress toward that widely supported goal. The measures approved by the Board strengthen downtown’s ability to attract new residents, grow the economy, and deliver a more authentic urban experience.”
“We especially thank our partners at the Michigan Department of Transportation and the City of Grand Rapids for working with us to find innovative design solutions that ensure the reconstruction of key downtown streets deliver high-quality public facilities and transportation options for people who walk, bicycle, take transit, or drive a car.”
Specifically, the Board took the following action:
Authorized Matching Funds for Street Reconstruction
The Board authorized $936,000 to support reconstruction of State Street and Bostwick Avenue. State Street will be reconstructed from Jefferson to Lafayette Avenues and feature, among other things, historically appropriate brick travel lanes for automobiles, concrete bicycle lanes on both sides of the street, and porous pavement in the parking lane to improve storm water management. Bostwick Avenue will be rebuilt from Lyon Street to Crescent Street. The total cost for both projects is estimated not to exceed $2.1 million financed by a combination of funds from Michigan Department of Transportation, the DDA, and the City’s Water, Sewer and Vital Streets Funds. The streets likely will be rebuilt by 2016.
Authorized Development Support for The Venue Entertainment Project
The Board agreed to provide up to $650,000 to reimburse development costs of the proposed Venue Entertainment project located at 26 Monroe Avenue NW. The funds will be paid over a 15-year period from future tax revenues generated by the $10.7 million development. The two-story facility will serve as a flexible entertainment venue hosting a variety of concerts, festivals, trade shows, comedy acts, movies, corporate events, and other activities. The development team has secured an international entertainment partner who projects 120 shows per year with an average paid attendance of 1,544 customers per show – approximately one third of the average annual attendance at the Van Andel Arena, according to the 2012 Economic Impact Analysis (EIA) prepared by the CAA (CAA). Based on the CAA’s EIA methodology The Venue is estimated to generate an estimated $3 million annually in additional downtown consumer spending.
Authorized Development Support for The Venue Tower Residential Project
The Board agreed to provide up to approximately $1.1 million to reimburse development costs of the proposed 14-story Venue Tower project located at 33 Ottawa Avenue NW. The funds will be paid over a 10-year period from future tax revenues generated by the $22 million project. The Venue Tower, built in conjunction with The Venue entertainment project on the same site, will include 90 market-rate apartments, which will house residents that drive an estimated $2.25 million annually in additional retail spending downtown. The development team also pledges to set aside three units to help maintain access to affordable housing in the central city.
Authorized Development Support for 12 Weston
The Board agreed to provide up to nearly $2.1 million to reimburse development costs of the proposed 13-story office tower located at 12 Weston Street NW. The incentives include $70,000 to remove an existing areaway and improve the sidewalk with a snow melt system and other streetscape amenities. The DDA will reimburse those costs upon completion of the work. The DDA also will reimburse the costs associated with providing barrier-free access to the building up to $2 million, which will paid over a 15-year period from future tax revenues generated by the $23 million project. When finished, the project will deliver 150,000 square feet of new Class A office space with a first-floor restaurant or retail space and on-site parking.
Amended Option Agreement for Proposed Theater in Heartside
The Board approved an amendment to an existing agreement with Jackson Entertainment, LLC (JE LLC), an offshoot of the Celebration Cinema group, extending a development option on a DDA-owned parking lot commonly known as “Area 5” located at the northwest corner of Ionia Ave and Cherry Street. The six-month extension allows time for JE LLC to finalize project plans.
