Factory Yards Development

[joeDowntown]

I thought I'd split this off into it's own topic as it's a big development:

The overall project involves both renovation of existing buildings and construction of new buildings over approximately 15.5 acres included in the Factory Yards project. Information on the project has been shared as the development team has worked with the City’s Planning Department on the rezoning of various parcels to facilitate the proposed project. The Developer refers to and has branded the project as Factory Yards. The property currently contains four buildings including a 5-story warehouse, a 3-story warehouse, a single-story warehouse, and a 2-story commercial building, totaling approximately 550,000 existing square feet. The Factory Yards project would include the rehabilitation of the five, three and one-story buildings, partial demolition and rehabilitation of the two-story commercial building, and construction of a new residential apartment building on the south end of the property. Current estimates for the proposed uses include a total of 467 apartments, ground floor commercial space, a food hall and event space, commercial offices, a fitness/recreation use and self-storage over approximately 500,000 square feet. Additional planned components of the project include an outdoor greenspace plaza courtyard along Godfrey Avenue, connectivity to the existing Oxford Trail, site improvements and both surface and ramped parking (700+ parking spaces). A significant amount of the project is consistent with the current zoning; however, additional approvals will be required for the overall project to be completed with all of 1.C.1 Packet Pg. 3 the uses currently contemplated (ex. self-storage), and the development team remains in contact with the Planning Department and other City departments. The total development costs for the project are approximately $150 million, and given the size and scale of the project, a significant increase in density and use of the site will result. A food hall operator is tentatively secured for approximately 23,000 square feet and additional tenants that would provide employment opportunities.

 

[Pattmost20]

With the potential amphitheater going in nearby, I think this is the prefect time to start this project. I've thought for the last 10 years that something big would eventually happen on Godfrey Ave.

[MJLO]

This is epic.  That part of Godfrey has the perfect bones to be one of the coolest neighborhoods in the city.   Has the city rebuilt Godfrey between Market and the Wyoming border yet?  That had to be a street in some of the worst conditions in town. 

[Jonesey]

I believe this is the same developer that was proposing the other factory projects, correct?  If so, I'm a little skeptical.   Don't get me wrong, I really hope it gets developed as promised.  Obviously it will be in phases, but are they planning to have all of their projects going on simultaneously? 

[GR_Urbanist]

This would serve as an amazing "3rd place" for Grandville Ave and the Black Hills neighborhood. And the bump in population and entertainment amenities may make it a viable location for a soccer club to locate there.

 

I'm honestly floored by the ambitiousness of this, and hope for even more towards the river, up the hill and to the south. This part of town has just always just existed almost with no attention for at least back when my family lived there back in the late-70s. About time!

[joeDowntown]

3 hours ago, Jonesey said:

I believe this is the same developer that was proposing the other factory projects, correct?  If so, I'm a little skeptical.   Don't get me wrong, I really hope it gets developed as promised.  Obviously it will be in phases, but are they planning to have all of their projects going on simultaneously? 

Hmm. Not the same developers as the Sligh building. Both are from the east side of the state, but AFAIK, not affiliated. 

Joe

[HomePortSupplyCo]

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

 

[Prankster]

https://mibiz.com/sections/real-estate-development/factory-yards-developer-to-seek-up-to-103m-in-transformational-brownfield-funding-for-grand-rapids-project

Asking for $103m funding for a $150m project?  Ballsy of them. 

[joeDowntown]

Operation of a food market goes in front of the Planning Commission this week. Looks like the company looking to operate the Food Hall is Reno Public Market:

https://www.renopublicmarket.com/

Layout:

 

[Zads]

We have approval by the Planning Commission for this project. Up next is Brownfield. They expect a groundbreaking date end of this year.'

"The project would renovate a vacant, historic warehouse into approximately 382 apartments. The project would also include a food hall, event space, ½-acre public plaza, and commercial space for office and retail tenants.

In addition, a 3,269 square foot building would house a brewery or distillery, and an existing industrial building would be redeveloped to include an indoor, climate-controlled self-storage facility with a gym. A future multifamily and commercial building would include an additional 85 apartments."

"If all goes according to plan, the goal is to break ground on the project in the fourth quarter of this year, Magaluk said. The first apartments would be complete in the third quarter of 2025."

https://www.mlive.com/news/grand-rapids/2023/05/outdoor-dining-alcohol-service-okd-for-proposed-467-unit-housing-commercial-development.html

[Cluso67]

The timeline works out that this will be mid renovation when the City will do full reconstruct on Godfrey from Oxford to Market. Possibly another 2 year project.

[Zads]

A detailed article from WOOD TV on the project.

It has interior photos of the building now as well as more renderings.

https://www.woodtv.com/news/grand-rapids/155m-project-turning-historical-plant-into-multiuse-factory-yards/

[RiversideGR]

2 hours ago, Zads said:

A detailed article from WOOD TV on the project.

It has interior photos of the building now as well as more renderings.

https://www.woodtv.com/news/grand-rapids/155m-project-turning-historical-plant-into-multiuse-factory-yards/

how do we get news stations to do more content like that?

[Zads]

News on the development of Factory Yards about affordable housing

https://www.woodtv.com/news/grand-rapids/150m-factory-yards-could-include-affordable-housing/

[Zads]

An update on the Factory Yards Development. Looks to continue moving forward.

https://www.crainsgrandrapids.com/news/real-estate/grand-rapids-advances-103m-incentives-plan-for-factory-yards-project/

[joeDowntown]

A public hearing is scheduled for tonight to discuss a $103M tax credit for Factory Yards:
 

Quote

The incentive, which must be approved by the Grand Rapids City Commission, is known as Transformational Brownfield funding. It would reimburse the developer with $103 million in state and local tax revenue, generated as a result of the development, over a 27-year period.

It's quite an eye popping number. I think the amphitheater will also try to get transformational brownfield funding. It'll be interesting to see how it goes. We desperately need additional housing, and I think the city/state needs to get creative to help make it happen. I'm not familiar with this sort of tax credit. Good policy, bad policy?

https://www.mlive.com/news/grand-rapids/2023/09/a-103m-tax-credit-could-transform-a-sprawling-empty-grand-rapids-factory-into-housing.html?outputType=amp

Joe

 

[Prankster]

Just on the surface, a $103 million credit for a $147 million project seems like an unreasonably large ask. 

[Jonesey]

7 hours ago, Prankster said:

Just on the surface, a $103 million credit for a $147 million project seems like an unreasonably large ask. 

Isn't this amount spread over decades and the money is already there for the taking?  If so, I'm all for it.  This would be a massive catalyst for the area

[Khorasaurus1]

It's collecting its own tax revenue, so it's forgone additional revenue for the city/state, not a payment. But it is a large amount.

This program has been used to support Dan Gilbert's Hudson's Tower in Detroit, but I don't think the subsidy amount was that high of a percentage of the development cost.

[MJLO]

I think it would be a good investment by the city state.  If that development goes through it will undoubtedly spur other investment, jobs, and infill in that neighborhood.  It's not as if the developer gets the incentive and the city/state doesn't see any sort of benefit from it.   The other revenue it generates between new income taxes/jobs/ and periphery development makes up for it over time. 

[joeDowntown]

Factory yards received funding. Sounds like the first phase of construction will start in January:

https://www.woodtv.com/news/grand-rapids/transformational-factory-yards-receives-103m-incentive-plan/