Muskegon city commissioners have approved nearly $16.5 million in financing for a highly anticipated plan to bring 57 apartment units as part of a downtown mixed-use redevelopment.
The $28.8 million project at 880 First St. and 216 West Clay Ave. will receive $3 million from the Michigan Economic Development Corp.’s 2022 Revitalization and Placemaking (RAP) grant program. The city applied for the funds and approved the grant award and disbursement at its June 27 meeting.
The city commission also approved a brownfield plan amendment at the meeting that includes a 35-year tax capture period, with a total tax capture anticipated to be nearly $13.5 million. The project now needs state approval for the brownfield plan as well as an anticipated Michigan Community Revitalization Program (MCRP) loan and grant, which could be a three- to six-month process, said Eric Helzer, principal of Advanced Redevelopment Solutions, the owner representative for the project.
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“It’s a property (that) everybody wants to see developed,” Helzer told commissioners at the Tuesday meeting. “It’s been attempted a couple times before, but we have really advanced this project more than anybody else. We have well over $1 million into this project.”
The site includes two skeletal, abandoned steel structures. Some of the brownfield costs will cover remediating asbestos on the property, Helzer said.
Project plans call for building out the steel structures and constructing a new infill building that would be attached to the structure. The buildings will include 57 apartments with a mix of 10 studios, 42 one-bedroom units and five two-bedroom units. Price points for the apartments will range from 80% to 120% of the area median income, hitting the “sweet spot” for what’s considered “workforce housing,” Helzer said.
Site plans also call for several tenant amenities, including a fitness center, bike parking, underground storage space, co-working and event space, underground parking for 17 vehicles and private rooftop space.
Erhardt Construction Co. is the contractor, and Integrated Architecture LLC is designing the project. Developers anticipate breaking ground in spring 2024, and construction could take up to three years, Helzer said.
“A project like this usually takes less than a year,” Helzer said. “With materials and construction (delays), we’re being told it could take as long as three years.”
Project developer 880 First Street LLC is led by local attorney Brianna Scott and Lansing-based developer Joel Ferguson of Ferguson Development Group. It’s the first major downtown Muskegon development led by minority developers.
Muskegon Vice Mayor Willie German Jr. and Commissioner Eric Hood both stated the importance of Scott, a Black woman, being a developer on the project.
“People are very anxious to see this come to life,” Scott said at the meeting. “They’re sick of seeing the eyesore. This is hopefully going to be an inspiration to others that look like me as I’ve stated before and other people who are young who have these audacious dreams for what can be done if you put your mind to it. … I hope this isn’t the only project I get to bring back to this community.”
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