KALAMAZOO, MI (WKZO AM/FM) – A Brownfield Plan program grant from the State of Michigan will be leveraged for the redevelopment of property in downtown Kalamazoo to add 115 new housing units.
The Michigan Strategic Fund Board announced the award Monday, which will amount to roughly $54.6 million over 30 years, to support the redevelopment of three properties totaling 3.4 acres in downtown Kalamazoo.
The first property, the Michigan Avenue Courthouse, will be redeveloped into a boutique hotel with 127 rooms and amenities such as a lobby bar, restaurant, fitness center, and more.
The second project at 619 Porter Street includes the demolition of a vacant industrial building to construct a five-story, mixed-use building that will include 5,000 square feet of commercial property, as well as 58 residential units.
The final property, The Speareflex Building on Kalamazoo Avenue, will be rehabilitated to create 57 residential units.
The total investment for the projects is expected to be $96.5 million.
State officials say the Brownfield Plan includes local and school property tax capture of $16.1 million, with state capture limited to $5.78 million, a maximum of $1.6 million in construction period tax capture revenues, a maximum of $1.5 million in construction period sales and use tax exemptions, and a maximum of $35.3 million in income tax capture revenues, withholding tax capture revenues, and sales and use tax revenues (post-construction) to be reimbursed over 20 years.
“We are grateful to the Michigan Strategic Fund, MEDC staff, and our local partners, including the City of Kalamazoo, Brownfield Redevelopment Authority, NCBDA and DEGA, for their confidence in this Transformational Brownfield Plan. This approval allows PlazaCorp to advance a coordinated redevelopment that brings new housing, hospitality, tourism, and commercial activity, while repurposing and revitalizing Kalamazoo’s historic buildings and cleaning up brownfield sites,” said Trisha Kidd, Director of Project Management for PlazaCorp Realty Advisors, Inc. “Through this plan, we are transforming previously underutilized and contaminated properties into vibrant destinations that strengthen downtown, stimulate economic activity, and create lasting benefits for the community.”
“This plan reflects years of collaboration and a shared commitment to reinvesting in Kalamazoo’s core,” said Jamie McCarthy, Development Manager for the City of Kalamazoo. “We are enthusiastic about the opportunity to leverage brownfield tools to support redevelopment that delivers new housing, addresses environmental challenges, and strengthens our downtown and surrounding neighborhoods.”
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