City of Grand Rapids issued the following announcement on Nov. 12.
City of Grand Rapids is teaming with community partners to remove a critical barrier to the future redevelopment of the Market Avenue corridor – including the City’s 201 Market Ave. SW and 509 Wealthy St. SW properties. The collaborative partnership has crafted a proposed innovative public/private agreement to relocate the City’s eastside trunk sewer. The sewer line has been a long-standing hurdle for development of the properties south of Fulton Street and along Market Avenue to Wealthy Street. The utility relocation project would resolve that issue and clear the way for future economic growth in this important corridor.
The City, Grand Rapids-Kent County Convention/Arena Authority (CAA), AHC Hospitality (Amway Hotel Corp.) and 63 Market Avenue Holdings, LLC are the principals behind this unique redevelopment approach.
Today, The Grand Rapids City Commission approved a memorandum of understanding (MOU) for construction and cost sharing of the trunk sewer relocation from a public easement located in river-edge properties from Fulton to Wealthy Street SW. The Convention/Arena Authority will consider the MOU on Friday, November 13.
“This partnership will facilitate redevelopment of the Market Avenue corridor at a shared cost that is less than any one of us would have incurred if we had undertaken the project individually or had attempted the project in phases,” Deputy City Manager Eric DeLong said. “Under the proposed agreement, the parties will share the estimated $18.6 million cost of the relocation – together clearing the way for the future redevelopment of several prime waterfront properties along the river.”
The shared cost breakdown includes:
Private Entities $7,383,942
CAA $5,000,000
City of Grand Rapids $6,252,643
Total $18,636,585
The City will manage the construction project. The private entities and the City will share equally in contingency costs. The City will fund its portion of the project costs using Sewer System Fund cash, project substitutions or through the issuance of bonds.
The agreement also outlines a process for the City to enter into an option agreement with the CAA for acquisition of the northern portion of the 201 Market Ave. property for potential development of a proposed 14,000-seat amphitheater development and related features, including parking. The City would retain the waterfront frontage for equitable recreation purposes, aligning with the River for All strategy consistent with GR Forward. The CAA and City also would collaborate on use of portions of the amphitheater property for passive recreation when not in use for events. The balance of the 201 Market Ave. property would be reserved for future private development. The City would use sale proceeds, in part, for relocation of City facilities from 201 Market Avenue, development of the recreational river’s edge along the riverfront property and other potential investments in service of the City’s strategic plan.
“We’re excited to see the creation of this public/private partnership,” City Manager Mark Washington said. “This is a significant recovery project for our community that will save money now and pay dividends for years to come. By working together, we’re able to achieve several critical community objectives in a way no one of us could otherwise imagine.”
The agreement clears an obstacle in the feasibility of constructing an amphitheater, a project that the CAA has been exploring.
“We’re pleased to collaborate with our partners to make this important riverfront corridor more attractive and more ready for redevelopment. It’s the kind of public/private partnership that Grand Rapids is known for,” said Steve Heacock, Grand Rapids-Kent County Convention/Arena Authority chairperson. “This work will build on the planning and investment that has come before us to envision a lively place and connected space that will entertain Grand Rapidians, attract visitors and serve our community well into the future.”
Original source can be found here.
Source: City of Grand Rapids
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