Third Coast In The News

City supports three projects seeking 'brownfield' tax credit from state If approved by the state, the projects could get nearly $10 million in tax credits. Jim Harger, The Grand Rapids Press - Grand Rapids, Mich. C.2, Jun 30, 2004

Three "brownfield" projects that will change the face of their Grand Rapids neighborhoods Tuesday got the green light to apply for nearly $10 million worth of state tax credits.

Grand Rapids city commissioners approved brownfield status for Alticor Inc.'s proposed $60 million downtown convention hotel; the $30 million Mid Towne Village medical office complex project and a $5 million plan to convert the former Monroe Avenue Water Filtration Plant into an office, retail and residential development.

With the approval, the project's developers can apply to the Michigan Economic Development Commission for state Single Business Tax credits equal to 10 percent of the project's value. If all are approved, they could generate $9.5 million worth of state tax credits.

Brownfield tax credits are available to projects that build on contaminated sites or replace obsolete buildings or blighted areas.

Alticor's plan to build a 300- to 400-room hotel across Pearl Street NW from its Amway Grand Plaza Hotel qualifies as a brownfield because the soils on the site are contaminated from industries that once operated along the river, city officials said.

Alticor hotel project director Bert Crandell said the hotel will include 500 parking spaces, meeting rooms and at least one restaurant and lounge. "It will be complementary to the Amway Grand Hotel, but it will not upstage the Amway Grand," he said.

Crandell said they will hire a project designer by January and begin construction next summer. They hope to complete the hotel in fall 2007, he said.

The Mid Towne Village project qualifies for its brownfield status because 33 of the 43 homes the developers intend to replace are in a blighted condition. The project will employ 350 permanent employees and about 125 additional employees during the construction phase, developer Brad Rosely told commissioners.

Mid Towne Village will replace the 6-acre area north of Michigan Street NE, near Union Avenue, with five new buildings that will house medical offices, retail and residential uses. The project also will include two parking decks and a "town square."

Almost all of the 43 homes in the neighborhood are vacant, said Rosely, who received city Planning Commission approval to begin demolishing some homes last week. Demolition will cost more than $900,000 while it will cost another $1.7 million to install new utilities, streets and sidewalks.

The former Water Filtration Plant at 1340 Monroe Ave. NW also qualifies for brownfield status. The distinctive red brick building was built as a water treatment plant in 1912 and operated until 1992. City officials included it in a tax-free Renaissance Zone in hopes of finding a developer.

DeVries Properties plans to invest $5 million and convert the facility into offices, restaurants and apartments. The project is expected to create at least 15 to 20 jobs, city officials said.

Rick Chapla, who heads the city's Brownfield Redevelopment Authority, said he believes each project has a good chance of winning the tax credits.

City commissioners suspended their rules and approved the applications immediately after conducting three public hearings in which no one objected to the projects.

Chapla said he wanted to rush the applications to the MEDC's July 13 meeting so the projects would not be delayed.