GRAND RAPIDS, Mich. — The next step in securing a 12,000-person capacity amphitheater in downtown Grand Rapids was made on Valentine's Day, with the Grand Rapids Downtown Development Authority agreeing to kick in funds for the amphitheater.
"As part of the capital stack, the DDA is being asked to contribute tax increment revenues to cover debt service payments amounting to $20,500,000 plus interest. Over 20 years, payments are estimated to amount to $1.5 million annually," Tim Kelly, AICP and CEO of the Downtown Development Authority, said in a memorandum dated Feb. 14, 2024.
The DDA's memorandum explained their part in the amphitheater and highlighted how much other government and private agencies have contributed to the construction of the amphitheater. The project in total is expected to cost $184 million, an increase from $116 million estimates stated in mid-2023. The project is a public-private partnership.The state of Michigan kicked in $30 million, the Kent County Convention and Arena Authority provided $22 million for land acquisition, and Kent County agreed to chip in $15 million, the memorandum explained.
Private funding totals $70 million, including $30 million from Acrisure through a naming rights deal.
READ MORE:
Design for amphitheater unveiled
How developers are addressing parking and noise concerns
"While several projects have been proposed at 201 Market over the years, it is clear redevelopment of the site will take a public-private partnership to successfully deliver the transformative development that is desired," Kelly said in the memorandum.
The memorandum also contained project details, including plans for housing development as part of the project.
"$10 million of the land sale proceeds will go into the city of Grand Rapids’ affordable housing fund. Additionally, the conceptual plans for the additional development on the site identify the potential to add more than 1,000 additional units of housing," the memorandum said.
The city sold the property for $24.3 million.
The memorandum highlighted the potential economic impact of the amphitheater, saying the venue is "projected to generate over $7 million in annual wage earnings in the city and $474 million in new net economic impact in Kent County over the next 30 years."
Four hundred eighty jobs are expected to be created for the construction of the amphitheater.
The amphitheater was expected to host its first event in 2025, but the complicated funding and approval process delayed the schedule laid out in 2023. Now the amphitheater isn't expected to open until 2026.
Making way for a soccer stadium
Immediately following the DDA granting a memorandum of understanding for the amphitheater project, the DDA voted to accept the donation of the land located at the Big Boy on Pearl Street. Grand Action 2.0, the same group creating the amphitheater, is eyeing the location on Pearl for as a potential site for a proposed soccer stadium.
The restaurant abruptly closed its doors in December 2023, with speculation the property would be used for a bigger development.
The proposed location includes existing city-owned "DASH" parking lots, adjacent to the David D. Hunting YMCA. The potential site is bound by Mt. Vernon to the east, Winter on the west, Blue Ridge to the north and Lake Michigan to the south.
Grand Action 2.0 also owns the former Charley's Crab location on Market Avenue. It's not clear what plans the group has for that property.
The project would cost roughly $408 million and is expected to bring roughly $408 million to the Grand Rapids economy over the course of 30 years.
Grand Action 2.0 still has to submit a special land use request to the city of Grand Rapids. The proposed site on the west side of the city has the support of various community organizations.
