More Michigan Street Medical

August 29, 2005
Text Size:

GRAND RAPIDS — 1234 Michigan LLC just began demolition of the old U.S. Army Armory on Michigan Street near Fuller Avenue to make way for construction of a multi-tenant medical office building there.

The developer intends to invest $6.6 million to raze the Armory and another long-vacant building on the site and replace it with a two-story medical office building with both underground parking and a surface lot.

“We’re hoping to get started on construction yet this year,” said Glenn Turek, resident agent for the project and president of Silveri Co. “We’re securing leases with tenants.

“We’re talking with three medical groups and, basically, as soon as we get enough of a lease commitment we will proceed with construction. We’d like to get at least half of the building committed before we start construction.”

Turek said the underground garage will have 48 parking spaces and the surface lot 174 spaces.

The development will add 40,350 square feet of Class A medical office space to the downtown market and the stretch of

Michigan Street
that’s come to be referred to as the “Medical Mile.”

Turek said the 1234 Michigan LLC development group is comprised of several local private investors.

The city has designated the location as a brownfield site. Grand Rapids and 88 other Michigan municipalities are authorized to offer a specific tax increment financing to help developers pay for cleanup of a brownfield, which is a vacant or underutilized industrial or commercial property that has environmental contamination, or functionally obsolete or blighted buildings.

The Michigan Economic Development Corp. has estimated the tax capture value on the property at $592,000 and expects the project will create up to 80 jobs.

With brownfield designation, the business also can claim credit against its Single Business Tax for 10 percent of the cost of eligible investment made.

The 1234 Michigan LLC project was one of six new developments announced by Gov. Jennifer Granholm last month that collectively will create and retain up to 2,939 new jobs and amount to more than $158 million in private investment.    

Recent Articles by Anne Bond Emrich

Editor's Picks

Comments powered by Disqus