GRAND RAPIDS, Mich. — Retail powerhouse Amazon carried out “massive demolition work’’ at a Grand Rapids warehouse it wanted to make into a regional distribution center, but walked away because of costs, according to a federal lawsuit.
Owners of the nearly 909,000-square-foot facility say they are left with a two-story building that is heavily damaged and unusable. The building is in “deplorable condition,’’ the lawsuit says.
“This demolition work did not improve the building,’’ the lawsuit claims. “Rather, it stripped away much of the basic infrastructure of the building as part of Amazon’s plan to reconfigure the building to suit its unique needs.’’
The building is on Trade Drive SE near 36th Street and Eastern Avenue SE and is owned by New West Michigan III Industrial Investors.
New West Michigan and its affiliated entities are collectively the largest owner of warehouse facilities in West Michigan, according to the lawsuit.
NWM says Amazon was allowed access to the Southeast Side building during lease negotiations, which got underway in October of 2019.
"Massive demolition work'' began prior to Amazon entering into a lease. Amazon then walked away from lease negotiations because the renovation work was more than twice what Amazon had budgeted, according to the lawsuit.
“The project was no longer economically viable to Amazon,’’ the suit claims.
Work crews “demolished as much as 45 percent of the property’s infrastructure’’ before pulling out in late April, according to the lawsuit.
Preliminary estimates indicate it may cost upwards of $10 million "to restore the building after Amazon's demolition efforts,'' according to the lawsuit.
NWM notified Amazon that Amazon had 15 days to restore the property “to a condition no worse than its condition as of the effective date of the agreement,’’ according to the lawsuit.
“The 15-day cure period has come and gone with no action whatsoever by Amazon, thus necessitating the lawsuit,’’ the 23-page lawsuit states.
Amazon, the suit claims, “failed to fulfill its obligation under the agreement.’’
A message was left with Amazon Monday afternoon seeking comment.
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