GRAND RAPIDS, Mich. (WOOD) — An incentives plan for Spectrum Health’s expansion near Grand Rapids’ Medical Mile has earned state approval.
On Tuesday, the Michigan Economic Development Corporation’s Strategic Fund Board approved a Brownfield Act work plan that is expected to generate up to $14 million in state tax incentives to support Spectrum Health’s Center for Transformation and Innovation campus. The updated brownfield plan also extends state tax increment capture to the maximum of 30 years.
Site work is already underway on the $97.8 million project, which is happening along Monroe Avenue just south of the Sixth Street bridge. Spectrum plans to add an eight-story, 157,000-square-foot building and a parking ramp and lot totaling 730 spots on the 4-acre Monroe North property.
“This location will be pivotal in the company’s ability to recruit and retain talent,” MEDC CEO Quentin Messer said before Tuesday’s vote.
The new campus consolidates more than a dozen Spectrum Health offices and is expected to support up to 1,800 employees including 600 new hires.
The Right Place CEO Randy Thelen said the project will “energize a greater expansion of the Medical Mile” and serve as a catalyst for development across a wide swath of the downtown corridor. Democratic state Sen. Winnie Brinks of Grand Rapids also sent in a letter of support for the project.
Spectrum Health’s CTI campus will be tax exempt and not generate tax increment revenue. The brownfield plan will allow the developer to capture the remaining tax increment revenue from four existing developments on the property. The approximately $14 million in state tax capture will go toward site cleanup and remediation, in addition to approximately $12.5 million in local incentives.
The Grand Rapids Brownfield Redevelopment Authority approved the local brownfield work plan late last year before sending it to the MEDC for consideration.
On the project site, the former Gill Industries manufacturing facility has been leveled and “selective demolition” started late last year inside the Brassworks building, which Spectrum Health bought earlier. An MEDC employee familiar with the project says construction on Spectrum Health’s new campus is now expected to wrap up in the fall of 2023.