GRAND RAPIDS, Mich. (WOOD) — A Transformational Brownfield Plan has been approved for Factory Yards, a 15-acre development coming to the Godfrey Corridor in Grand Rapids.
The Michigan Strategic Fund on Tuesday approved the $102.9 million plan. The incentive package includes a local and school property tax capture of $34.5 million and up to $62.6 million in income tax capture revenues and withholding tax capture revenues, which will be reimbursed over 20 years.
It also includes up to $1.6 million in withholding tax capture revenues and up to $4.1 million in sales and use tax exemptions during the construction period.
Jono Klooster, Grand Rapids’ interim economic development director, told the MSF board the city believes Factory Yards will be “transformational” for the area and for the city.
“What we’re working towards here is the revitalization of this more than 15 acres of obsolete and unproductive land, and … creation of a vibrant and active space that’ll provide opportunity for existing and new residents and businesses and really be a magnet for Grand Rapids, West Michigan and the state as a whole,” he said.
Klooster said the city has made investments in infrastructure and public amenities in the area.
“We’re really looking forward to a promising future for the corridor,” he said.
The $150 million project will bring hundreds of apartments, a restaurant space, a fitness space and more to the site along Godfrey Avenue near Market Avenue. The first phase will include renovating a vacant building originally built in the 1890s by Luce Furniture Co.
“We are honored to receive this award from the Michigan Strategic Fund, which will pave the way for a development that will have a truly transformative impact on Southwest Grand Rapids,” one of the developers, Ben Smith, said in a statement. “Rising construction costs and interest rates, in combination with the added expenses inherent in adaptive reuse project like this, would have made the project nearly impossible without the tax credits.”
Work is expected to start early next year on the project.