HOLLAND, Mich. (WOOD) — A nearly $27 million redevelopment project in Holland cleared a key financial hurdle Tuesday.
The Michigan Strategic Fund Board approved a Brownfield tax capture to reimburse Towers on River, according to the Michigan Economic Development Corporation. The five-story development will replace a vacant building from 1883 and a parking lot at the corner of S. River Avenue and West 7th Street.
The first floor contains nearly 31,000 square feet for retailers. Developers are aiming to add a coffee shop to that mix.
An expanding dental practice plans to move into the second-floor commercial space. The top three floors will house 27 condominiums that will be listed for $400,000 to $1 million each.
Underground parking is also included in the plans.
With site cleanup and preparation expected to cost roughly $5 million, developers say the Brownfield reimbursement is crucial in making the project profitable. The city will begin tax capture in January 2022, according to the MEDC.
Supporters expect the project to support city planning goals by triggering redevelopment of former industrial property nearby, which will help connect the core of downtown Holland to the city’s waterfront.
Demolition at 159 S. River Ave. is already underway. Construction is expected to start this spring.