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Massive Grand Rapids Factory Yards Project gets state tax incentive approval, eyes 2024 for construction

The Factory Yards Project hopes to restore and rebuild a historic site that's sitting abandoned. Affordable housing, shops and entertainment are all planned for it.

GRAND RAPIDS, Mich. — A big project is coming to Grand Rapids, state leaders announced. It's expected to bring with it hundreds of apartments and over $146 million in investments. 

Tuesday, the Michigan Economic Development Corporation and Gov. Gretchen Whitmer approved a budget for the Transformational Brownfield Plan. The plan would include redeveloping historic buildings in the Roosevelt Park area, as well as new construction.

The plan, called the Factory Yards Project, was approved with a tax incentive award of $102.98 million.

It will feature spaces for apartments, retail, commercial and entertainment all within a 15-acre site at 655 Godfrey Avenue SW. The three buildings, which are just south of downtown, are expected to total 650,000 square feet. 

The selected site is near the Roosevelt Park Soccer Field, Oxford Trail, Founders Brewery and the newly unveiled amphitheater project.  

Factory Yards was announced amidst an overhaul of the riverfront, attempting to draw more people to Grand Rapids' downtown and its waterways. 

Redevelopments are planned for 10 lots in the area, according to Gov. Whitmer's office. All in the area of 655 Godfrey Avenue, the updated spaces will include:

  • The redevelopment of an existing three-story building and five-story building to create approximately 382 total residential and multifamily units. This component of the project will also include a public plaza, parking deck, food hall, event space, and additional space for restaurant or commercial use 
  • The redevelopment of an existing, single-story warehouse to include commercial climate-controlled self-storage units and fitness/recreational space 
  • The new construction of two, single-story commercial use buildings 
  • The new construction of a four-story, multi-family building containing approximately 85 units 

You can see all those existing buildings in the map below.

Credit: Factory Yards

The set of buildings was constructed in the late 1800s for the Luce Furniture Co., which crafted dining rooms and bedroom sets. After they closed their doors during the Great Depression, the property was purchased by the McInerny Spring & Wire Co. They operated there until the 1980s.

The property was made famous during its time as a supplier of materials during World War II. It gained notoriety for being one of the first factories nationwide to hire women. 

Now a vacant, blighted set of buildings, the project is expected to bring more than $146 million and 226 jobs. The name Factory Yards is paying homage to the historic site.

Whitmer says it will help a critical housing shortage in the city. It's expected to include 94 affordable housing and 373 market-rate units, with loft-style studios, one-, two- and three-bedroom apartments. 

“The Factory Yards project is another step forward in our strategy to grow Michigan’s economy by helping communities in West Michigan and across the state ‘make it’ in Michigan,” said Whitmer. 

“Thanks to legislation passed earlier this year, tools like the Transformational Brownfield Fund will ensure that we can continue to transform and revitalize communities like Grand Rapids. Let’s continue moving forward and working together to ensure anyone can make it in Michigan."

The Transformational Brownfield Plan authorizes multiple sources of tax capture for the project, including: 

  • A maximum of $1,679,672 in construction period tax capture. 
  • A maximum of $4,105,917 in construction period sales and use tax exemptions. 
  • A maximum of $62,608,721 in income tax capture revenues and withholding tax capture revenues (post-construction) to be reimbursed over 20 years. 
  • Local and school property tax capture in the amount of $34,594,809, with state capture limited to $18,619,897. 

The City of Grand Rapids is also supporting the project with a tax abatement valued at $10,155,093 over 12 years, as well as the local portion of the property tax capture valued at $15,974,912. 

“This pocket of southwest Grand Rapids has long deserved some more attention, and an investment of this magnitude will be a game-changer,” said Senate Majority Leader Winnie Brinks (D-Grand Rapids). “When finished, this area will have quality housing and business spaces designed to meet the needs of residents and their families. What was once a possibility is now becoming reality, and I cannot wait to see this vision brought to life.”  

Construction is slated to begin early next year and is expected to take 30 months. Apartments should be available for leasing in early 2026.

Concept Design Studio in Norton Shores was selected as the project’s lead architect and Wolverine Building Group in Grand Rapids as its general contractor.

“Today’s approval is a significant step forward for the City of Grand Rapids and the Factory Yards project, and we’re grateful to the MSF for their ongoing partnership,” said Grand Rapids Mayor Rosalynn Bliss. “Factory Yards has the potential for many positive impacts and the chance to revitalize this important space in the City. This project will bring a whole new level of activity and vibrancy... We are looking forward to seeing this area of our community come back to life.” 

 

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