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MEDC offers financial support for new hotel
State gives Third Coast Development a loan for Mid Towne Village hotel.
(As seen on WZZM TV 13) Apparently the state has no reservations about a new hotel being built at Mid Towne Village.
The Michigan Economic Development Corp. recently awarded Third Coast Development Partners, which consists of Dave Levitt and Brad Rosely, a $3 million loan for a new five-story, 149-room hotel it will build.
The hotel is one of two planned projects that will complete the village.
Third Coast will use the loan to demolish a surface parking lot that will become the hotel’s site.
The state considers the loan an incentive intended to assist the development. It will come from the Michigan Community Revitalization Program, which is overseen by the Michigan Strategic Fund.
“The construction of this hotel and mixed-use development will further revitalize the city of Grand Rapids and act as a catalyst for additional positive activity in the area,” said MEDC President and CEO Michael A. Finney.
The hotel is expected to total 94,000 square feet over its five levels. Construction also will include a parking ramp. Forty new jobs are projected to be created from the project, which is expected to take two years to complete. Third Coast is investing about $27 million into it.
Levitt told the Business Journal ground will be broken in October; the hotel’s operator is Lodgco Hospitality Management of Mt. Pleasant. Lodgco manages multiple brands that include Hampton Inns, Courtyards by Marriott, Holiday Inn Expresses and SpringHill Suites.
The hotel isn’t the only project Third Coast has planned for the village. A 30,000-square-foot office building with underground parking will be built for roughly $6 million on another surface lot not far from the hotel site. Work on the office structure should begin in 2015 and take a year to complete.
The city’s Brownfield Redevelopment Authority awarded Third Coast a brownfield designation for the hotel and office structure last spring. City Economic Development Director Kara Wood said the project has an eligible and reimbursable brownfield cost of $7.5 million, primarily because of the parking ramp and underground parking that are part of the project. Reimbursements should be made through 2028.
The city will exempt Third Coast from half of its property taxes as its part of the reimbursement, but will still collect $127,500 annually from the project.
Mid Towne Village is situated along the Medical Mile, near the intersection of Michigan Street and College Avenue NE. The Village already has 100,000 square feet of medical office space, 60,000 square feet of professional office space, 40,000 square feet of residential space and a 15,000-square-foot urban park.
It is home to West Michigan Women’s Health Center, Park Row Condominiums and the mixed-use building at 545 Michigan St. NE, the location of The Omelette Shoppe and Bakery.
Third Coast is investing about $33 million into this second phase of construction. The first phase was completed in 2008 and cost about $37 million to build.
The Commercial Alliance of Realtors chose Mid Towne Village for its project-of-the-year award in 2004, the year Levitt and Rosely began construction.
The state’s revitalization program provides grants, loans, or other economic assistance of up to $10 million to projects that will revitalize urban areas, act as a catalyst for additional investment in a city, reuse vacant or historic building, and promote mixed use and sustainable development.
The MEDC is the state’s marketing arm and lead advocate for business growth and jobs.