GRAND RAPIDS — The Hinman Co.’s 13-story, 140,000-square-foot hotel located at 10 Ionia Ave. NW in downtown Grand Rapids is expected to be completed two months later than anticipated because of construction delays stemming from COVID-19.
When construction began in early 2019, the Residence Inn by Marriott extended stay hotel was scheduled to be completed by Sept. 1. This date has changed to Nov. 1 because non-essential construction work, along with many other industries, was forced to temporarily shut down as part of Gov. Gretchen Whitmer’s stay-home order.
The company expects the opening delay to cause an estimated $1.6 million-$2 million in reduced revenue, which does not account for any loss that will be experienced because of reduced occupancy levels.
The Downtown Development Authority board, which administers tax increment financing for the downtown district, voted June 10 to amend its development and reimbursement agreement with The Hinman Co. to provide reimbursement of DDA eligible expenses. The funding was increased to nearly $1.7 million during a 20-year period, up from the initial more than $1.2 million over 15 years.
“We have amended agreements in the past,” said Tim Kelly, executive director Downtown Grand Rapids Inc. “In terms of the length of the capture, the DDA has gone up to 22 years for the JW Marriott as well as The Warner Building.”
The funding must be used to reimburse expenditures to improve public infrastructure, including adding an accessible overhead pedestrian walkway to connect Hinman’s nearby parking ramp to the hotel.
The Hinman Co. initially anticipated the project would result in a total capital investment of more than $37 million to construct the 147-room hotel, which also will include up to 5,000 square feet of ground-floor retail.
The mixed-use hotel building is wedge-shaped, surrounded by Fulton Street, Louis Street and Ionia Avenue. The site was previously a surface parking lot.
The project’s architect is Yamasaki Associates of Troy, with Grand Rapids-based Wolverine Building Group Inc. serving as the construction manager.
Kelly said the DDA is looking at other developments in the area for other opportunities to amend to development reimbursement agreements.
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