Third Coast adds financing piece
Neighborhood Enterprise Zone is created to support Diamond Place.
Diamond Place LLC, an established entity by the principals of Third Coast Development, has added another piece to its financing package for the $42 million, mixed-use, multi-income Diamond Place redevelopment project in Midtown in northeast Grand Rapids.
With the recent approval by the city’s Committee of the Whole, the project planned for 412 Diamond Ave. NE, 1005 Proos Court NE, and 1003, 1015 and 1037 Michigan Street NE has been established as a Neighborhood Enterprise Zone.
The tax incentive program is intended for development and rehabilitation of residential housing and will allow the developers to submit an application for an NEZ exemption for the market-rate residential portion of the project.
Mayor Rosalynn Bliss said the project has “full support from the neighborhood,” and there has been a lot of discussion there.
“I’m excited about seeing this project come forward,” said Bliss.
Diamond Place LLC currently has an option to purchase the 2.8-acre site for the project, which would require demolition of the existing Proos Manufacturing Inc. and site improvement.
Earlier this month, the developers received approval for a $10.7 million Brownfield Redevelopment Plan to offset some of the costs of environmental assessment, demolition, site preparation and public infrastructure improvements.
The proposed project in the Midtown neighborhood would include three new multi-story, mixed-use buildings with about 23,000 square feet of commercial space on the first floor and 270 parking spaces. Out of 160 residential one- and two-bedroom units, about 35 are expected to be market-rate, while 125 units will be dedicated to income-restricted tenants.
Diamond Place project also has received approximately $1.48 million through the Low-Income Housing Tax Credit program administered by the Michigan State Housing Development Authority. The federal tax credit program provides local and state agencies an annual budget to support the acquisition, rehabilitation or construction of rental housing for lower-income households.
Site work is expected to begin this summer, with construction beginning in the fall.
The Diamond Place completion date is anticipated for early fourth quarter of 2017.