GRAND RAPIDS, Mich. — The city of Grand Rapids has approved a more than half-billion-dollar tax break for a massive project that would reshape the downtown skyline.
The “Three Towers” development is set to bring more than 600 housing units, hotel space, and 420,000 square feet of office space. The incentives are getting pushback from many in the community.
In a 6-1 vote at Tuesday's Grand Rapids City Commission meeting, many left disappointed but not surprised.
“Our point remains that public dollars require a significant public benefit, and for a project that is largely private, it deserves a much greater contribution toward affordable housing,” Westminster Presbyterian Church Rev. Lynette Sparks said.
The developer is set to save $565 million in taxes on this almost $800 million project. Fulmar Property Holdings is promising an $8.5 million contribution to the Grand Rapids Affordable Housing Fund, but people question how those two numbers line up.
“I would have loved to have seen a greater affordable housing contribution,” Sparks said.
The “Three Towers” is set to go on the vacant property at Fulton and Market, where the old Charley’s Crab restaurant was.
“Excited to see, and appreciative of the City Commission's support this evening and the very thoughtful deliberation that they have taken over the last couple of months on this,” Michigan Growth Advisors Founder Joe Agostinelli said.
This first approval by the City Commission means the developer will save $129 million in what would have been 30 years of property taxes. The rest would be from the state.
“I [do] not feel comfortable or confident that the public benefit was significant enough to match the significant public financing associated with this project, and therefore I cannot support it today,” Grand Rapids Third Ward City Commissioner Kelsey Perdue said.
The Third Ward commissioner was the only no vote but looks forward to this opportunity moving forward.
“I think there are still some major opportunities ahead, both for this project, its completion, what it will add,” Perdue said.
In addition to the $8.5 million contribution to affordable housing in Grand Rapids, the builder also plans to contribute to minority-owned businesses.
“While the move overall might seem like a drop in a bucket, a move, a negotiation to the tune of $20 million, is a major win that this community should be really proud of,” Perdue added.
This project isn’t entirely signed off on. The state also needs to approve it. The developers explain the hope of shovels in the ground in the next year to a year and a half.
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