GRAND RAPIDS — A planned mixed-use development calls for demolishing a former YMCA building on Grand Rapids’ West Side and replacing it with four stories of retail and 119 apartment units.
900 W Leonard LLC, which is registered to Compass Insurance Agency CEO Jack Hoedeman, purchased the building at 900 Leonard St. NW from The Geek Group for $580,000 on Oct. 15, 2020, according to property records.
The city of Grand Rapids’ Westside Corridor Improvement Authority will consider a request during its Friday meeting for the reimbursement of $914,207 in eligible brownfield activities on the site, which include infrastructure improvements, demolition and site preparation.
Hoedeman’s plans include a 1,500-square-foot, four-story building that would contain 119 market-rate residential units and ground floor retail space. Ten new jobs are planned to be created by the tenant of the commercial space.
The estimated $14.6 million project includes $12.8 million in hard construction costs, according to city planning documents. Hoedmeman could not immediately be reached for comment.
Hoedeman told WOOD-TV8 in October that the project developers hoped to renovate the existing building, though necessary repairs and accessibility issues made renovation cost prohibitive.
Recent development projects on the city’s West Side played a role in making plans for the 900 Leonard site, Hoedman said at the time.
“(We) saw the need for housing and thought that would be a great site,” Hoedeman told WOOD-TV8 after the property sale closed. “I couldn’t be happier the way it’s all coming together.”
The brownfield reimbursement would occur over a 10-year period with an additional five years of capture for the local brownfield revolving fund. Hoedeman is also seeking approval of a 15-year Neighborhood Enterprise Zone tax exemption.
City staff estimate that residents of the apartments could generate approximately $29,119 a year in new city income taxes. Apartment units are planned to include 40 studio, 59 single-bedroom, and 20 two-bedroom units. Studio units would be 338 square feet with an estimated monthly rent of $930; single bedroom units are planned to be 528 square feet for an estimated monthly rent of $1,170; and two-bedroom units are planned to be 792 square feet for $1,500 in monthly rent.
Approval from the Grand Rapids City Planning Commission is not required for the project. The Brownfield Redevelopment Authority is set to review the project at its March 24 meeting before the City Commission schedules public hearings on the project.
News coverage in the real estate and development section of MiBiz is made possible by advertising support from The Michigan Economic Development Corporation. MEDC markets Michigan as the place to do business, assists businesses in their growth strategies and fosters the growth of vibrant communities across the state. This advertisement has no effect on editorial consideration in MiBiz.