GRAND RAPIDS — The developer of a proposed downtown hotel tower received approval today for state cleanup funding.
The Michigan Strategic Fund board voted to approve more than $2.1 million to support the preparation of property at 10 Ionia Ave. in downtown Grand Rapids for a 13-story mixed-use building on an existing surface parking lot. The wedge-shaped site bordered by Fulton Street, Louis Street and Ionia Avenue has served as a surface lot for decades.
“We’re always happy to help support the cost of brownfield cleanup across the state, especially this one right in the center of downtown Grand Rapids,” said Jeff Mason, CEO of the Michigan Economic Development Corp., which administers the funding.
10 Ionia LLC, a related entity of The Hinman Co., an investor and developer of commercial real estate based in Portage, is developing the site.
The developer anticipates the project will result in a total capital investment of more than $37 million and create 51 full-time jobs with an average wage of $12.52. The building will offer ground-floor retail space and a 146-room Marriott Residence Inn extended-stay hotel on the upper levels, as MiBiz previously reported.
Hinman Co. two years ago proposed a 42-story tower for the site, but issued scaled back plans this summer. The current design retained the building’s “flatiron” style, but removed a proposed apartment component.
Along with the funds awarded Tuesday, the project also is supported with $451,716 of tax increment financing and reimbursement of up to $1.2 million from the Grand Rapids Downtown Development Authority, which voted on the project in September.
The development is expected to break ground in early 2019 and work on an anticipated 18-month construction timeline, MiBiz previously reported.
Hinman Co. partnered with Fargo, N.D.-based hospitality development firm Dakota Legacy Group to build and operate the hotel, the company said in September.