Local brownfield authority approves multiple project agreements and grants aimed at housing and redevelopment

The Grand Rapids brownfield authority approved a series of project agreements and grant changes at its March meeting, voting to finalize a development and reimbursement agreement for the Adobe Fulton LLC project and to award or increase multiple brownfield and emerging‑developer grants to advance housing and redevelopment in the city.

The actions Tuesday included final approval of the Adobe Fulton work plan and a local development and reimbursement agreement for a four‑story mixed‑use building at 617 Fulton Street West and 17 Seward Avenue NW, an amended environmental site assessment (ESA) grant that raised funding for 443 Sheldon Avenue SE from $18,800 to $20,000 to cover supplemental vapor testing, a $50,000 local brownfield revolving fund (LBRF) grant to Habitat for Humanity Kent County for an infill home at 48 Home Street SW, an emerging‑developer predevelopment grant request for a mixed‑use project at 1356 Kalamazoo Avenue SE, and approval of invoices documenting eligible brownfield activities for W and S Development Partners LLC at 415 Sheldon Avenue SE.

Why it matters: the items advance multiple small and mid‑sized housing projects while using brownfield financing tools that can pair environmental assessment and cleanup with development incentives. Several presenters said the approvals are intended to speed construction and preserve affordability for buyers or tenants while addressing site conditions where required.

Most important actions

- Adobe Fulton LLC: The authority approved the final Act 381 work plan and authorized execution of a development and reimbursement agreement for a new four‑story mixed‑use building that the presentation lists as a $25,000,000 total project with $3,009,576 in eligible reimbursable activities. Staff said the developer anticipates starting construction in spring 2025 pending state approval and completing the project in spring or summer 2026. Mackenzie, the staff presenter, described the item as “really the final step for this project” and said the package will be forwarded to the Michigan Economic Development Corporation (MEDC) for state review.

- 443 Sheldon Avenue SE ESA grant increase: Staff recommended increasing an existing ESA grant from $18,800 to $20,000 to cover additional vapor‑mitigation testing and costs caused by frozen ground in February. The board approved the increase. The staff presenter explained the supplemental work was a response to required vapor investigation materials and timing that raised costs about $1,200.

- Habitat for Humanity Kent County (48 Home Street SW): The authority approved a $50,000 LBRF grant to support construction of a single‑family infill home to be sold to a buyer at or below 80% of area median income for Kent County. Habitat representatives described the request as a capacity‑building use of LBRF funds for a small single‑home project where a full Tax Increment Financing (TIF) plan would not be practical.

- Emerging developer grant (1356 Kalamazoo Ave SE): The board approved support for a proposed four‑story, all‑electric mixed‑use building with ground‑floor commercial space and 27 apartments. Staff said the total project cost is about $7.9 million with roughly $6.2 million in hard construction and an inclusion plan that targets more than 50% MLBE participation (presenters cited about 58%). Developer representatives said the funds will be used for schematic design, environmental and geotechnical work, surveys, site plans and preconstruction consulting; they aim to begin construction in July–August 2025 and complete within about a year.

- W and S Development Partners LLC (415 Sheldon Ave SE): The authority voted to approve invoices documenting eligible brownfield activities on this redevelopment, including environmental work, demolition, site preparation and infrastructure improvements. Staff said the project created two new buildings and roughly 43,000 square feet of apartments; a presenter noted lease‑up is progressing slowly through winter and is about 30% occupied on the residential side as of the meeting.

Board discussion and administrative items

Board members also discussed delegating limited administrative authority to staff for small post‑award adjustments (for example, modest increases to ESA grants). A member suggested setting a monetary threshold to allow staff to approve minor contract amendments and then report those changes to the authority, rather than routing every small amendment back to the board. Staff described the mechanics: a formal board resolution would be required to delegate authority and would include parameters such as a dollar threshold.

Quotes from presenters

“We are in a good cash position even this far into the year, holding just over $17,000,000 in cash,” Trisha, the finance presenter, said during the interim financial statements review. Mackenzie, the project presenter for Adobe Fulton, described the approval as “the final step for this project” locally before state review. Andrew Clarity from Habitat for Humanity said the single‑home pilot is “a capacity opportunity” that allows the organization to build without the administrative burden of a TIF plan for one unit. Developer Ben Koei said of the Kalamazoo project: “It is our goal to have this building named after an African American woman leader in the Third Ward or in the city of Grand Rapids.”

What the board approved: Each motion on the consent and action agenda passed (minutes, interim financial statements, the Adobe Fulton work plan and contract authorization, the Sheldon ESA grant increase, the Habitat LBRF grant, the emerging developer grant for Kalamazoo Ave and approval of W and S Development Partners invoices). The meeting record shows votes taken by voice with motions carrying; the transcript does not list a roll‑call vote for these items.

Next steps: Staff said the Adobe Fulton package will be sent to the MEDC for state approval. For grant amendments and smaller project adjustments, staff and the board discussed drafting language for a future delegation resolution specifying thresholds and reporting requirements.