Third Coast In The News

Ready for a Renaissance, Grand Rapids firm seeks tax-free zone to develop Hart & Cooley site, Editorial, The Grand Rapids Press, Grand Rapids, Michigan, May 1, 2007

HOLLAND TOWNSHIP -- Redeveloping obsolete factories into new uses isn't new in Ottawa County.

But tackling such a project as part of a Renaissance Zone has yet to happen.

The Grand Rapids-based Third Coast Development Partners LLC. could be the first to use a tax-free zone in the county to redevelop the Hart & Cooley complex at 500 E. Eighth St.

Located within walking distance of downtown Holland, the 45-acre site has the right conditions to warrant the effort required to get the designation, its new owners say.

"It's a poster child for a Renaissance Zone. (The site) has so many challenges," said David Levitt, principal with Third Coast Development Partners. "There is a lot of things that need to be done to the site to make it reusable."

In addition to the obsolete buildings, there are pollution issues and as much as a 30-foot grade difference on the site, creating other environmental concerns, he said.

His firm plans to spend about $40 million to redevelop the site into a mix of residential, office, retail, restaurant and light industrial.

Half of the 627,000-square-foot building would be demolished, including a section fronting Eighth Street.
The most high-profile tenant could be SunCoast Baseball, a minor- league baseball team that would have offices and stadium on the site, if the project comes together on schedule, Levitt said.

His firm, which acquired the property as part of its deal, is building a new Hart & Cooley headquarters in Cascade Township.

The company, which manufacturers registers, grilles, flexible ducts and other products for heating, ventilation and air conditioning, is schedule to move out by the end of the year.

For now, the company is a tenant of the new owners.

A Reniassance Zone, which eliminates state or local taxes for 12 years for the property owner and tenants, makes the project financially viable, Levitt said.

"There is enough mass to make (a Renaissance Zone) worthwhile. The state isn't going to do it for little pockets here and there because it takes legislation," he said.

The first step is getting support of the Holland Township Board, which has scheduled a 7 p.m. May 17 hearing on the request.

"Anytime you got somebody who is going to invest $40 million into the community, that is good. I think you have to make sure the investment is going to create jobs and not just move development down the street," Holland Township Treasurer Vince Bush said.

The potential tax loss is offset by the possibility the building could sit empty for years or even decades, such as the former General Electric Corp. plant, he said.

State Rep. Bill Huizenga, R-Zeeland, is intrigued with the firm's plans for the site.

"In theory, I'm supportive of it. Obviously, the township has to be convinced it's a good idea," said Huizenga, who has met with Levitt and partner Brad Rosely.

Bush is impressed by Third Coast Development's track record. Its projects include the $50 million MidTowne Village, a mixed-used development on Grand Rapids' Medical Mile and the $5 million Old North Boundary, a former plating company at Leonard Street NWand Monroe Avenue.

Levitt and Rosely were attracted to the Holland Township site because of its location between U.S. 31 and downtown Holland.

The county has agriculture-processing and tool-and-die Renaissance Zones but not an area targeted to rezoning obsolete industrial sites.

Holland and other municipalities have made use of Brownfield designations to provide tax increment financing as a tool for redeveloping contaminated or obsolete industrial sites.

Finding a new use for an 80-year-old factory makes sense for the surrounding area, said Randy Thelen, president of Lakeshore Advantage, the Zeeland-based economic development organization.

"There is no question we have a glut of industrial space on the market. Here, we have 600,000 square feet of largely obsolete industrial space," he said.

"Can we redevelop it in a way that has a positive impact for the community? The mixed plan they've presented makes a lot of sense."