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Tuesday, 19 December 2017 11:33

Third Coast Development gets additional $1 million for Michigan Street project

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Third Coast Development gets additional $1 million for Michigan Street project Photo by Nick Manes.

GRAND RAPIDS –– The developers of a mixed-use project on Michigan Street have received an added $1 million in state incentives to offset unforeseen costs and finish the project.
A subsidiary of Third Coast Development LLC is building the mixed-use Diamond Place project along the north side of Michigan Street between Fuller and Diamond Avenues, and received the additional $1 million in Michigan Community Revitalization Program (CRP) on Tuesday, Dec. 19.
Board members of the Michigan Strategic Fund –– which grants incentives in the state –– had previously given the project a $2.8 million performance-based loan at two-percent interest in September 2016, according to a memo from the Michigan Economic Development Corp.
The developer cited unforeseen environmental issues on the 2.8-acre site –– formerly home to Proos Manufacturing –– as well as difficulty in securing a grocery tenant for the 16,000-square-foot ground floor space.
A grocery tenant is a requirement of the project due to the use of New Market Tax Credits, according to the memo.
“This work also caused a delay in the timing of foundations and concrete,” the MEDC memo stated. “In all, these unforeseen costs increased the budget by ($1.6 million) and left the developer unable to complete the buildout without additional support.”
As for the $1 million CRP grant, $750,000 will be used to offset costs from the environmental site work, while the remainder will go toward helping a potential, unnamed grocery tenant with its capital and build-out costs, according to the MEDC memo.
As part of Third Coast’s deal with the state for added incentive funds, the company is contributing another $650,000 in equity beyond the original $1.8 million.
Executives with Third Coast Development did not immediately respond to a request for comment on Tuesday morning.

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