616 project gets loan from state
The Lofts on Michigan, a 616 Development project on Michigan Street NE in Grand Rapids, has been awarded a $2.45 million Michigan Community Revitalization Program loan from the Michigan Strategic Fund.
616 plans to demolish a vacant and obsolete building located at 740 and 756 Michigan St. NE in Grand Rapids. The project includes the construction of a new four-story building that will include commercial/retail space on the first floor and 54 apartments on the upper three floors.
The project will generate a total capital investment of approximately $15.2 million and 15 permanent jobs, according to the Michigan Economic Development Corp.
In addition, the Michigan Strategic Fund approved an Act 381 Brownfield work plan submitted by the Grand Rapids Brownfield Redevelopment Authority for school and local tax capture valued at $3,151,225 to assist with demolition, site preparation and infrastructure improvements for the Lofts on Michigan project.
The development firm said it plans to begin the demolition and construction in early June but it declined to be interviewed about the project. However, 616 did provide the following statement via its PR firm:
“We are very grateful to receive this loan through Michigan Strategic Fund’s Community Revitalization Program, which was critical toward moving the project forward and bringing the vision of the Lofts on Michigan to a reality,” said Derek Coppess, founder of 616 Development.
The Michigan Community Revitalization Program provides incentives to promote community revitalization that will accelerate private investment in areas of historical “disinvestment,” according to the MEDC. Any loan or grant under the program is performance based. The loan terms may include below-market interest rates, extended grace and repayment provisions, forgivable terms and no security or some security, which may be subordinated.