Dozens of residents called on the Grand Rapids city commission to slow down its approval for tax subsidies for a massive proposed development along the city’s riverfront.
A group called Fulmar Property Holdings, LLC wants to build three high-rise towers across several lots along the river downtown. The lots include the site of the former Charley’s Crab restaurant. To finance the nearly $800 million dollar project, Fulmar is asking the city to designate it as a “Transformational Brownfield Plan.” That designation could make the development eligible for about $565 million in tax breaks, the equivalent of 70% of the project’s total cost.
To be eligible for the Transformational Brownfield Plan designation, the developers must also reach an affordable housing agreement with the city. The plan itself calls for no affordable housing units, but Fulmar says it will pay $8.5 million to the city for its affordable housing fund.
Dozens of residents spoke out Tuesday, saying the affordable housing commitment was much too small.
“That is not a good deal for Grand Rapids,” said Lynette Sparks, a leader with the group Together West Michigan. “It is not a good deal for Grand Rapids families living in a housing crisis.”
Sparks spoke outside of city hall along with dozens of others who gathered before the city commission meeting where a public hearing on the development plan happened.
After the gathering outside, people filled the city commission chambers, with dozens left downstairs unable to attend in person.
Together West Michigan asked for city commissioners to slow down the process for designating the development as a Transformational Brownfield Plan, and proposed that the project instead contribute 20% of its public subsidy to the affordable housing fund.
That would amount to more than $100 million.
At the city commission meeting, Joe Agostinelli, who worked on the project proposal, said the 20% contribution would be too much.
"[I]f it really is true the project can’t go forward with more than eight and a half million dollars, perhaps the project itself needs to be reworked."Peter TeWinkle, Together West Michigan
“Those comments, while I truly believe are well intended comments, they’re not based in an understanding of the economic realities of this project,” Agostinelli told commissioners.
Peter TeWinkle, another leader of Together West Michigan, said commissioners should be able to see the financial details of the plan to determine whether Agostinelli’s comments were true.
“And if it really is true the project can’t go forward with more than eight and a half million dollars, perhaps the project itself needs to be reworked,” TeWinkle said.
Commissioners took no action on the plan at Tuesday’s meeting. City staff suggested at the meeting that commissioners could vote on the Transformational Brownfield Plan designation at a meeting next month.
