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I wonder what is making them lean towards razing this part of the building?

I would think this is possible if they really wanted. Google streetview isn't up to date, but here is a newish roundabout in Zeeland with a town sign and landscaping in the center. It's tall enough that you cannot see over it.

Sligh Furniture in Zeeland.

Downtown Holland progress.

Lakefront hotel project in Manistee. Appears even the east facing rooms will have slight lake views of Lake Michigan, which is cool.

Update on Zeeland’s Sligh Furniture Building redevelopment.

Meanwhile, the fencing just went up this week for the redevelopment of the Sligh Furniture building downtown Zeeland. Will also be apartments. City is vacating the street next to the project as it's not needed and very close to the building. (sadly, the long time restaurant in the background burned to the ground this week...) https://goo.gl/maps/tgRtJArh3teWH8jY6

Nevermind. Looks like the idea was just shelved a couple weeks ago https://www.record-eagle.com/news/local_news/elberta-development-shelved/article_ace18ce6-af97-11ec-a59b-5f83d84a1a71.html

Way up the Lakeshore... In Frankfort. Still in the I'll believe when I see it stages. https://www.record-eagle.com/news/local_news/developer-says-elberta-plans-hold-promise/article_9d010d24-90d4-11ec-82a7-139b2d6dcbbe.html

Here’s a couple crude progress pics of Holland projects. At River & 7th and River & 9th.

I agree that these look out of place. I would go with more of a wharf warehouse look with a slight nod to Dutch architecture. Similar to the market buildings in Boston.

Another rendering of the Holland waterfront proposal. https://mibiz.com/sections/real-estate-development/holland-reviewing-single-proposal-to-redevelop-downtown-waterfront-property

My guess is that this portion of the building is going to be demo'd. If you look at the East view it stops at this point.

Since they're looking for crazy ideas: Holland is looking for a use for the old waterfront powerplant site. Then you could justify a frequent rail service between the lakeshore and downtown GR as the rail line goes right to the waterfront at Padnos. ***I do not think this is an actual solution and would prefer downtown GR as well...

Looks like maybe this beam was headed to Manistee for the new M55 bridge? https://www.manisteenews.com/local-news/article/M-55-bridge-construction-causing-traffic-backups-16333406.php#photo-21267490