GRAND RAPIDS, Mich. — A group gathered outside Grand Rapids City Hall on Tuesday protesting a $565 million incentive plan that, if approved, would fund a majority of the $797 million Three Towers project proposed for downtown.
Together West Michigan, a nonprofit, held a press conference that called on the Grand Rapids City Commission for "greater equity and transparency" in regard to the riverfront redevelopment.
"That is not a good deal for Grand Rapids. It is not a good deal for Grand Rapids families living in a housing crisis," Rev. Lynette Sparks said.
Last month, a city board approved a Transformational Brownfield Plan Incentive for Fulmar Property Holdings, a development firm tied to the DeVos and Van Andel families.
The firm plans to build three high-rises — a hotel and condos, an apartment tower and an office tower — on the former Charley's Crab site in Grand Rapids.
READ MORE: Firm proposes trio of riverfront towers for Grand Rapids' skyline
A Transformational Brownfield Plan Incentive is a state tool designed for large-scale developments of $100 million or more. It allows developers to receive a portion of the tax revenue their development generates over a period of time.
If approved by the city commission, Fulmar Property Holdings — for a 30-year period — would receive the Three Towers' state and local property taxes, income taxes from the people who live and work at the development, taxes related to construction and more.
"The economics of projects like this, truly, are not feasible without the incentives of a TBP program," said Joe Agostinelli, founder of Michigan Growth Advisors.
If the development is not built, though, these taxes — "state-centric" in nature, according to the city — would not be paid to the developer.
As part of the plan's requirements, Fulmar Property Holdings also proposed an $8.5 million payment to the Grand Rapids Affordable Housing Fund, payable over a 20-year period.
On Tuesday, the city commission received 89 communications protesting the incentive package. Others spoke at the afternoon meeting as well.
Together West Michigan called the $8.5 million contribution an "anthill" in comparison to the $565 million incentive package and $797 million project, proposing developers instead donate $113 million to the affordable housing fund (20% of $565 million).
"Let me be clear, Together West Michigan does not oppose private development," Reverend Sparks said. "We do oppose the unacceptably small affordable housing contribution being proposed."
"This is your chance to show that you put the people, the families and communities, first," added another member of the nonprofit.
Together West Michigan also called for increased transparency and a delayed vote from the city commission on approval for the incentive plan, which is currently scheduled for Dec. 3.
Prior to the public comment section of the commission meeting, Agostinelli addressed those protesting the proposed deal.
"These comments, while I truly believe they’re well-intended comments," he said, "I don’t believe they’re based in the economic reality of the project."
