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City commission approves one-year option agreement with PS Equities for 427 Market, seeking mixed-income housing on riverfront parcel
Summary
After extended discussion, the commission approved a one‑year option with PS Equities to pursue a redevelopment of 427 Market that would include at least 75 affordable units and a mix of affordability levels; buyers plan a LIHTC application and partner with Dwelling Place.
After extended debate at the Feb. 11 commission meeting, the City Commission approved a one‑year option agreement with PS Equities to negotiate sale terms for city‑owned property at 427 Market SE, adjacent to land the developer already controls. The proposal obligates the developer to pursue a multi‑story housing project with affordability commitments and to apply for Low‑Income Housing Tax Credits (LIHTC) in the April 2025 funding round.
Mayor David LeGrand’s staff and the applicant described 427 Market as a strategic, riverfront parcel in a corridor undergoing rapid redevelopment. The option agreement requires the developer and Dwelling Place (a partner on the project) to deliver at least 75 residential units in a building of at least five stories and includes affordability minimums: a substantial share of units affordable at up to 120% AMI with a portion at or below 60% AMI. The purchase formula will be finalized with an appraiser tied to plan density and parcel size; the initial option fee is $5,000 (largely nonrefundable).
Commission debate focused on design, parking and whether the site is the most competitive for a LIHTC application. Downtown Grand Rapids Inc. submitted a letter urging consideration of alternate sites and flagged concerns about parking and ground-floor activation; PS Equities and Dwelling Place said the site is competitive for affordable housing and that they will continue refining the design through the city’s optional planning review and the planning commission process. Commissioners also discussed tradeoffs between surface parking and river activation, and asked about options to mix tax‑credit and market units or expand density vertically if incentives allow.
The commission voted to approve the option. Supporters said the project advances the commission’s River for All and affordable‑housing goals; opponents voiced concerns about parking, ground‑floor activation and whether a LIHTC award is likely. Staff said the option includes two one‑year renewals that require mutual agreement; if LIHTC funding or other incentives do not materialize, the option can be revisited by the commission.
Votes and next steps - Motion to approve one‑year option agreement with PS Equities for 427 Market (approved by a majority vote) - Developer: PS Equities; partner: Dwelling Place. Developer to pursue LIHTC and finalize purchase price with appraisal tied to density.
Ending: Staff will finalize the purchase formula with appraiser input and continue design review with the developer. The commission directed staff to maintain community engagement and return if major changes to affordability or terms are proposed.
