City-owned property along the Grand River could be sold and become the site of a 14-thousand seat amphitheater under an agreement passed unanimously by Grand Rapids commissioners Tuesday.
The Grand Rapids-Kent County Convention/Arena Authority (CAA), the board that oversees Van Andel Arena and DeVos Place, will spend the months ahead looking into the development at 201 Market Avenue SW further before officially closing on the estimated $24.5 million sale.
Before any development can take place, city offices and a sewer will have to be relocated. The sewer construction is expected to begin this spring and take a year to complete, and the city is looking at purchasing the Kent County Road Commission building to relocate the city offices.
"So, there are several contingencies that have to happen before we can all move forward," Deputy City Manager Eric DeLong said in an interview Tuesday. "But it's all doable, and we all see the path. So, while it's complicated, it's eminently doable."
In November, city commissioners approved a memorandum of understanding related to the sewer project. The costs of the $18.6 million construction are being paid for by the city, the CAA, Amway Hotel Corporation and 63 Market Ave. Holdings LLC, a company tied to the DeVos family.
Cost breakdown:
- Private Entities: $7,383,942
- CAA: $5,000,000
- City of Grand Rapids: $6,252,643
Amway Hotel Corporation and 63 Market Ave. Holdings LLC both own property nearby, but are not part of the sale agreement. Richard MacKeigan, regional general manager of Van Andel Arena and DeVos Place, has been involved in the planning and said it's possible the CAA would have a private partner.
The CAA would only be purchasing 11.6 acres of the city-owned property, the remaining roughly six acres "could be and will be" used for development, as well, DeLong said.
DeLong said the CAA will now spend the months ahead doing "due diligence" on the project.
"They have until June 30, or a date that we mutually agree upon to decide to exercise the option. And then they have from that period of time until December 31, or a date that we agree upon to actually close on the property, but they may decide to assign their interest to someone else with our approval," DeLong said. "So, there's several ways that this transaction could proceed from this point."
If the sale goes through, the city says it will use the estimated over $24.5 million to cover its share of the sewer project costs and relocation. The city says the remaining funds would go toward affordable housing and "other community benefit purposes." The CAA would pay $10 million up front, if it goes through with the purchase.
DeLong said the amphitheater fits in with a plan to develop the Market Avenue corridor, from Fulton Street to Wealthy Street.
Grand Action 2.0, a nonprofit group originally founded by Dick DeVos in the 1990s, released its future plans late last year, which included both the amphitheater development and also a soccer stadium.
A spokesperson for the Devos family did not immediately return a request for comment Tuesday regarding plans for development at 63 Market Ave. SW, formerly Charley's Crab.
City Manager Mark Washington and Mayor Rosalynn Bliss, who serves on the CAA, both praised the plan during the Tuesday committee of the whole meeting.
"But, I'm cautiously optimistic," Bliss said. "I also recognize there's a lot of work to be done to make this move forward and get all the logistics really worked out."
When asked about the timing of the project, during the ongoing COVID-19 pandemic, DeLong said it was the "perfect timing." Though the amphitheater timeline is not set, nor is the sale final, DeLong said that it could be part of the city's "overall recovery."
"We're doing this the way we've done major important things in the past with public-private partnerships," he said. "It's an exciting time for us, and it's good to have something like this to look forward to."
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