Economic Development Project Team - Regular Meeting

Economic Development Project Team City Hall Agenda Packet 300 Monroe Ave NW, 9th Floor Grand Rapids, MI 49503 January 10, 2023 @ 12:30 PM City Commission Chambers Members: Rosalynn Bliss, Mayor Milinda Ysasi, Commissioner Drew Robbins, Commissioner Staff Members: Mark Washington Mary Kate Berens Jeremiah Gracia Jonathan Klooster Christian Borg Jordan Turner Jessica Solis Verah Narh Kamara Connie Bohatch Kristin Turkelson Erin Banchoff Josh Naramore Chad Buczkowski Legal Counsel: Anita Hitchcock Copies To: Tim Mroz Molly Clarin Tim Kelly A. Call to Order B. Minutes C. Discussion of Strategy 1. Overview of Community Development and Economic Development Programs, and analysis of new housing legislation, Public Acts 236, 237, 238 and 239 of 2022 (Connie Bohatch) 2. Development Center Report December 2022 D. Verbal Updates E. Adjournment *MOTION REQUIRED TO APPROVE Please RSVP to Chad Buczkowski at CBuczkowski@grand-rapids.mi.us or 616-456-3431 NEXT MEETING: Tuesday, February 7, 2023 12:30 PM City Hall, 300 Monroe Ave NW, 9th Floor, City Commission Chambers Generated 12/29/2022 03:16 PM  1.B.1 Economic Development Project Team City Hall Minutes Packet 300 Monroe Ave NW, 9th Floor Grand Rapids, MI 49503 December 6, 2022 @ 1:00 PM City Commission Chambers A. Call to Order The meeting was called to order at 1:14 PM by Mayor Rosalynn Bliss PRESENT: Mayor Rosalynn Bliss, Commissioner Kurt Reppart Minutes Acceptance: Minutes of Dec 6, 2022 1:00 PM (Minutes) ABSENT: Commissioner Joseph Jones OTHERS: Mark Washington, Kate Berens, Jeremiah Gracia, Jonathan Klooster, Jordan Turner, Jessica Solis, Verah Narh Kamara, Kristin Turkelson, Josh Naramore, Chad Buczkowski, Jon Oeverman, Tricia Chapman B. Minutes 1. Minutes from March 15, 2022 No comments or corrections were noted. RESULT: RECEIVED AND FILED C. Discussion of Strategy 1. Recommendation on the disposition process for City owned excess property at 427 Market Avenue SW Jonathan Klooster went over the background of how the property was acquired. It is a surface lot that is no longer needed. MDOT recommendations are being finalized and appraisal would be the next step. RESULT: DISCUSSED 2. Recommendation on the disposition process for City owned excess property at 1350 Cesar E. Chavez Avenue SW Jeremiah Gracia says RFP is the method recommended for selling the property. The South Division/Grandville Corridor Authority and RPNA have been involved, along with City Staff, in the creation of the RFP to have a say in the development of their neighborhood. Generated 12/7/2022 11:48 AM Packet Pg. 2  1.B.1 Economic Development Project Team Meeting Full Page 2 December 6, 2022 RESULT: DISCUSSED D. Verbal Updates None. E. Adjournment The meeting was closed at 1:26 PM Minutes Acceptance: Minutes of Dec 6, 2022 1:00 PM (Minutes) Generated 12/7/2022 11:48 AM Packet Pg. 3  1.C.1 DATE: January 10, 2023 BOARD: Economic Development Project Team FROM: Jeremiah Gracia, Economic Development Director Economic Development Department SUBJECT: Overview of Community Development and Economic Development Programs, and analysis of new housing legislation, Public Acts 236, 237, 238 and 239 of 2022 At the Economic Development Project Team meeting to be held on January 10, 2023, staff will provide an overview of various programs that are administered by the Community Development and Economic Development departments. Staff will also review a summary of the recently adopted housing legislation, Public Acts 236, 237, 238 and 239 of 2022 signed by Governor Whitmer on December 13, 2022. Public Act 236 created the Attainable Housing Facilities Act and Public Act 237 created the Residential Housing Facilities Act. These two new tax abatement programs have many similarities in process, requirements, and abatement value, but have different eligibility criteria in terms of project type. Public Act 238 amends the Neighborhood Enterprise Zone Act, Public Act 147 of 1992; however, the amendments have no impact on the NEZ program administered by the City, meaning the amendments neither limit nor expand any aspect of Grand Rapids’ program. Public Act 239 amends the State Housing Development Authority Act, Public Act 346 of 1966, specifically as it relates to tax exemption and payment in lieu of tax (PILOT). A presentation has been prepared for this overview and will reviewed by staff. JG/JK Attachment cc: Connie Bohatch Erin Banchoff Paula Jastifer Lindsey Post John Globensky Roberta Cahill Packet Pg. 4  1.C.1 Anita Hitchcock Michael Hoeker Karyn Ferrick Prepared by Jonathan Klooster and Erin Banchoff Packet Pg. 5  Economic Development Project Team Incentive Programs Overview January 10, 2023 Outline Economic Development Incentives Tax Abatement vs. Tax Increment Financing Discuss the difference between the two forms of state enabled incentive program types and how they work Program Parameters and Project Types Detailed information on eligibility, requirements, applicability to various project types, and the benefits of each program Other Economic Development Tools Details on local programs that are used to assist with development projects Recently Adopted Housing Programs Initial analysis of the newly created housing programs and their applicability and relevance to Grand Rapids Questions Ec o n o m ic D e ve lo p m e n t P ro je c t Te a m 2 Equitable Economic Development and Mobility Strategic Plan 00/00/0000 00/00/0000 Economic Development Incentives How a Tax Abatement Works GR Tax Abatement Programs o O b s o le t e P ro p e rt y Re h a b ilit a t io n (O P RA) o Ne ig h b o rh o o d En t e rp ris e Zo n e (NEZ) o In d u s t ria l Fa c ilit ie s Exe m p t io n (IFT) o Co m m e rc ia l Fa c ilit ie s Exe m p t io n (CFE) o Co m m e rc ia l Re h a b ilit a t io n Exe m p t io n (CRE) Economic Development Project Team 3  Economic Development Incentives How Tax Increment Financing (TIF) Works Eligible Property - Contaminated - Functionally Obsolete Property Taxes - Historic Resource After complete - Blighted reimbursement “Tax Increment Revenues” – captured by or expiration of Brownfield Authority only from Eligible Eligible Costs the Brownfield Property to reimburse Eligible Costs - Demolition Plan, all taxes - Site Preparation go to the taxing - Environmental costs jurisdictions - Public Infrastructure “Base Taxes” – paid and distributed to taxing - Parking Ramps jurisdictions during project plan period - Stormwater | Pre-development | Brownfield Plan Duration – Not to Exceed 30 Years | Post Plan | Economic Development Project Team 4  Economic Development Incentives Programs for Different Project Types N EIGHBORHOOD O BSOLETE B ROWNFIELD I NDUSTRIAL COMMERCIAL N EW P ERSONAL ENTERPRISE P ROPERTY TAX I NCREMENT FACILITIES TAX FACILITIES TAX P ROPERTY Z ONE REHABILITATION FINANCING EXEMPTION EXEMPTION EXEMPTION New Yes No Yes (additions < 100% of gf Yes Yes Yes Construction (must have retail on gf) sf) (but not housing) Rehabilitation Yes Yes Yes Yes Yes Yes (10+ units required) No Yes Multi -family (not without retail on (5+ units required) Yes No No No gf) No Commercial No Yes Yes (except hi -tech Yes Yes companies) Mixed -Use Yes Yes Yes No No Yes (if retail on gf) (5+ units required) Industrial No No Yes Yes No No Commercial Industrial Commercial Geography City -Wide City -Wide City -Wide Zone Zone Zone Economic Development Project Team 5 EquitableEconomic Equitable EconomicDevelopment Developmentand andMobility MobilityStrategic StrategicPlan Plan 00/00/0000 00/00/0000  NEZ E XEMPTION OPRA E XEMPTION B ROWNFIELD TIF IFT E XEMPTION CFE E XEMPTION NPP E XEMPTION A CT 147 OF 1992 A CT 146 OF 2000 A CT 381 OF 1996 A CT 198 OF 1974 A CT 255 OF 1974 A CT 328 OF 1998 Mixed -use new Property must be Eligible Property is Applicant must be Property must be used for Applicant must be an construction project with functionally obsolete blighted, functionally engaged in a commercial purpose but eligible business , which retail on the ground floor (unable to be used for obsolete, contaminated or manufacturing or high - does not include housing includes office operations, and residential apartments intended purpose) a historic resource (or technology activities (but or portion used for R&D, manufacturing, above. adjacent to one of those). those activities are not housing and excludes wholesale trade, but not Proposed use must be required to be at the financial organizations. retail establishments, Rehabilitation of historic commercial , which Project must have Eligible project location). casinos or sports stadia. buildings, or buildings with includes residential if more Activities which are Must be in a Commercial Project Eligibility multiple condominium than 4 units per bldg. enviro, demo, site prep, Project must include Redevelopment District , Expected new City income units (including rental parking ramps, addition of taxable which can be established taxes must exceed condominiums). Must include proposed infrastructure personal property, or by the City Commission for expected tax savings. investment >$30/sf per improvements, investment in new or obsolete property, or Located in an area zoned City policy. stormwater mgmt. expanded real property. cleared/vacant land in the Must be creating or expect and used primarily for DDA, or cleared/vacant to create a minimum of 25 business. land that has been zoned new jobs. commercial since 1975. New Facility pays ½ the Exempts all new local Tax Increment Financing New Facility tax is 50% of New or Replacement A 100% exemption on all statewide avg millage rate taxes that would have (i.e. reimbursement from the normal tax rate with Facility tax is 50% of the personal property that is on residential portion. been created from the future new taxes) for the exception of the State normal tax rate with the placed in service after the investment. eligible activity costs Education Tax which is not exception of the State date of approval. Rehabilitated Facility has originally financed by exempted. Levied only on Education Tax which is not taxable value frozen at pre - State Treasurer may also developer. the new taxable value. exempted. Levied only on All new personal property development level on exempt 50% of school the new taxable value. placed in service from the Benefit residential portion taxes for up to the first 6 Rehabilitated Facility has date of approval until the years. taxable value frozen at Restored Facility has date of expiration is development level on taxable value frozen at exempt (i.e. not only that economically obsolete development level on property acquired for the portion of the project. economically obsolete project described in the portion of the project. application). Between 9 - 15 years per Between 10 - 12 years per Up to 30 years of Between 1 and 12 years, as Between 1 and 12 years, as Between 1 and 12 years, as Duration City Commission policy City Commission policy reimbursement. approved by the City approved by the City approved by the City 900 -45. 900 -42. Commission. Commission. Commission. Bradford Station Lofts on 820 Monroe Studio Park Numerous breweries Construction Simplified Perrigo HQ (430 Monroe) Example Projects Victory on Leonard 1002 Hall St SE Eastern Elementary Flexco HQ (3 Lexington) Geographic limitation Commercial Zone City -Wide City -Wide City -W Commercial Zone City -Wide Generally Applicable Not be in arrears with the City, current on income taxes, have obtained necessary site plan/zoning approvals, submit Inclusion Plan with M/W/MLBE goals, pay application fees. 6  Economic Development Incentives Different Programs for Different Projects NEZ E XEMPTION OPRA E XEMPTION B ROWNFIELD TIF IFT E XEMPTION CFE E XEMPTION NPP E XEMPTION A CT 147 OF 1992 A CT 146 OF 2000 A CT 381 OF 1996 A CT 198 OF 1974 A CT 255 OF 1974 A CT 328 OF 1998 REAL ESTATE D EVELOPMENT P ROJECTS B USINESS D EVELOPMENT P ROJECTS Mixe d -u se p ro je c t s Bu sin e ss a t t ra c t io n , e xp a n sio n s, a n d re lo c a t io n s Mu lt i-fa m ily h o u sin g p ro je c t s Project Types O ffic e o r in d u st ria l c o n st ru c t io n p ro je c t s Sig n ific a n t in fra st ru c t u re im p ro ve m e n t s a n d p a rkin g ra m p s Hig h -t e c h & Re se a rc h & D e ve lo p m e n t Sig n ific a n t m a c h in e ry a n d e q u ip m e n t in ve st m e n t s Economic Development Project Team 7 EquitableEconomic Equitable EconomicDevelopment Developmentand andMobility MobilityStrategic StrategicPlan Plan 00/00/0000 00/00/0000  Economic Development Incentives Other Economic Development Tools EDC Tax Exempt Bond Financing (Private Activity Bonds) P ro vid e s a c o n d u it t o t h e t a x-e xe m p t b o n d m a rke t fo r n o n -p ro fit a n d in d u st ria l b o rro w e rs. Mo st re c e n t ly u se d b y n o n -p ro fit se n io r a ssist e d livin g fa c ilit ie s t o fin a n c e e xp a n sio n s o r sig n ific a n t re n o va t io n s. Re d u c e s c o st o f c a p it a l fo r e lig ib le b o rro w e rs. Local Brownfield Revolving Fund (LBRF) Grants and Loans Elig ib ilit y a n d e lig ib le c o st s a re t h e sa m e a s Bro w n fie ld TIF, b u t fin a n c in g is in t h e fo rm o f a g ra n t o r TIF lo a n a t p ro je c t c o m p le t io n w h ic h d e live rs a d d it io n a l va lu e t o t h e p ro je c t a n d a llo w s t h e BRA t o su p p o rt t a x-e xe m p t p ro je c t s (i.e . P ILO T/LIHTC) Environmental Site Assessment (ESA) Grant Program P ro vid e s g ra n t s t o fu n d b e t w e e n 50 -10 0 % o f e n viro n m e n t a l d u e d ilig e n c e c o st s fo r p ro p e rt y a c q u isit io n s, p rio rit izin g Ne ig h b o rh o o d s o f Fo c u s, first -t im e d e ve lo p e rs, a n d n e w o r e xp a n d in g lo c a lly-b a se d b u sin e sse s. Corridor Improvement Authority (CIA) Façade Grants P ro vid e s fu n d in g fo r u p g ra d e s a n d im p ro ve m e n t s t o st re e t -fa c in g fa ç a d e o f c o m m e rc ia l b u ild in g s w it h in a CIA’s d e ve lo p m e n t a re a . Fu n d in g a n d p ro g ra m p a ra m e t e rs va ry b y CIA, e a c h o f w h ic h se t a m a xim u m g ra n t a m o u n t a n d e st a b lish m a t c h in g re q u ire m e n t s, if a n y. Corridor Improvement Authority Development Support CIAs m a y u se t h e ir TIF t o re im b u rse p riva t e p a rt ie s fo r in ve st m e n t s in p u b lic in fra st ru c t u re w it h in t h e ir d ist ric t t h ro u g h n e g o t ia t e d d e ve lo p m e n t a g re e m e n t s a n d p u rsu a n t t o e a c h CIA’s p o lic y. Economic Development Project Team 8 EquitableEconomic Equitable EconomicDevelopment Developmentand andMobility MobilityStrategic StrategicPlan Plan 00/00/0000 00/00/0000  Economic Development Incentives Newly Enacted Housing Programs ATTAINABLE HOUSING FACILITIES ACT RESIDENTIAL FACILITIES EXEMPTION ACT (SB 362, PA 236 OF 2022) (SB 422, PA 237 OF 2022) Property must be residential rental meaning 4 or fewer units/bldg. Property must be commercial rental housing meaning more than 4 units per building. Must be in an Attainable Housing District which may be established by the City Must be in a Residential Housing District which may be established by the City Commission but Commission. must be 1 acre or more in size. Project may be either (1) new construction or (2) rehabilitation if renovation costs are Projects may be either (1) new construction or (2) rehabilitation if the renovation costs are Project $5,000 or more. $50,000 or more. Eligibility Owner must income certify its tenants annually, City may audit, or may contract with a third-party to audit and may pass that cost to the owner. Project must contain no less than 30% of units rented to households whose modified gross income is 120% or less of the countywide area median income (AMI). “Over-income” residents (those who qualified at the time of initial occupancy, but whose income has increased above the allowable AMI) are only able to serve out existing lease, and the “next available unit” must then be income restricted. The benefit is a tax exemption on new or rehabilitated facilities equal to ½ the statewide average millage rate (same as NEZ new facility rate); however, Benefit - Only the units that are rented at 30% of 120% AMI or less AND are income certified are eligible to receive the exemption (assessor must determine annually which units are eligible to receive the exemption and which must be charged the equivalent of ad valorem taxes), and - The State Treasurer may determine to exempt or to not exempt 3 mills of the State Education Tax after the exemption is approved. Duration Between 1 and 12 years, as approved by the City Commission This exemption has similar eligibility to existing geographic NEZ districts and available Existing programs (OPRA, NEZ, Brownfield) provide significantly more financial benefit and less exemptions, with two key differences: administrative burden on developers; therefore, those existing programs are likely to be preferable when they are available. - NEZ can apply to owner-occupied housing whereas Attainable Housing cannot; Applicability and Projects that may utilize the Residential Facilities exemption include those taking place on land - Attainable Housing exemption requires annual rent and income certification by greater than 1 acre, have minimal brownfield eligible costs, and are: the applicant whereas NEZ does not. - New construction projects that do not contain retail as required for NEZ, or - Renovation of existing but non-obsolete buildings. Neighborhood Enterprise Zone amendments not included above as legislative changes do not apply to or change any aspect of the NEZ program in GR. Ec o n o m ic D e ve lo p m e n t P ro je c t Te a m 9 EquitableEconomic Equitable EconomicDevelopment Developmentand andMobility MobilityStrategic StrategicPlan Plan 00/00/0000 00/00/0000  Visit GrowGR.org Fo llo w u s o n s o c ia l m e d ia t o s t a y u p t o d a t e ! # W e Are GR City of Grand Rapids @GR.EconDev @GR.EconDev Economic Development Community Development Programs  Outline Community Development Programs Grant Programs Highlight sources of funding for housing and community development activities administered by the Community Development Department Neighborhood Investment Plan and HOME -ARP Allocation Plan Explain the framework used to make community investments Required Benefit Identify eligible beneficiaries and implementation Affordable Housing Creation and Preservation Summary of Community Development Department support to create and preserve affordable housing PILOT Ordinance – Current and Amended 1966 PA 346 Overview of current City ordinance and the recently amended state authorizing legislation Questions Ec o n o m ic D e ve lo p m e n t P ro je c t Te a m 12 Equitable Economic Development and Mobility Strategic Plan 00/00/0000 00/00/0000  Community Development Programs Annual Formula Grants U.S. Department of Housing and Urban Development (HUD) formula grants Community Development Block Grant (CDBG) – Ap p ro xim a t e ly $ 5 m illio n P ro vid e s fu n d in g fo r a va rie t y o f c o m m u n it y d e ve lo p m e n t a c t ivit ie s, p rim a rily t o im p ro ve h o u sin g , t h e livin g e n viro n m e n t , a n d e c o n o m ic o p p o rt u n it ie s fo r lo w - a n d m o d e ra t e -in c o m e re sid e n t s. Elig ib le a c t ivit ie s in c lu d e :  Ho u sin g re h a b ilit a t io n , c o d e e n fo rc e m e n t , im p ro ve m e n t s t o c o m m u n it y fa c ilit ie s a n d p u b lic in fra st ru c t u re , e c o n o m ic d e ve lo p m e n t a n d c o m m u n it y se rvic e s HOME Investment Partnerships (HOME) Program – Ap p ro xim a t e ly $ 1.4 m illio n Cre a t e s a ffo rd a b le h o u sin g fo r lo w e r-in c o m e p e rso n s. Elig ib le a c t ivit ie s:  D e ve lo p m e n t o f a ffo rd a b le re n t a l a n d h o m e o w n e rsh ip u n it s, re h a b ilit a t io n o f re n t a l u n it s, a n d re n t a l a ssist a n c e Emergency Solutions Grants (ESG) Program – Ap p ro xim a t e ly $ 320 ,0 0 0 Assist s h o m e le ss p e rso n s a n d fa m ilie s. Elig ib le a c t ivit ie s:  St re e t o u t re a c h , e m e rg e n c y sh e lt e r, ra p id re -h o u sin g , h o m e le ssn e ss p re ve n t io n , a n d syst e m d a t a m a n a g e m e n t Justice Assistance Grant (JAG) Program – Ap p ro xim a t e ly $ 75,0 0 0 Su p p o rt s a c t ivit ie s t h a t re d u c e c rim e a n d im p ro ve p u b lic sa fe t y. P rim a ry u se :  Ne ig h b o rh o o d o rg a n iza t io n c rim e p re ve n t io n p ro g ra m s c o n d u c t e d in c o o p e ra t io n w it h t h e P o lic e D e p a rt m e n t Economic Development Project Team 13 EquitableEconomic Equitable EconomicDevelopment Developmentand andMobility MobilityStrategic StrategicPlan Plan 00/00/0000 00/00/0000  Community Development Programs Competitive Grants U.S. Department of Housing and Urban Development Office of Health Homes and Lead Hazard Control Lead Hazard Reduction Demonstration Grant – $ 4 .23 m illio n (c o n c lu d e s D e c e m b e r 31, 20 23)  Su p p o rt s re m e d ia t io n o f le a d -b a se d p a in t h a za rd s in o w n e r-o c c u p ie d a n d re n t a l h o u sin g ‒ Up t o $ 20 ,0 0 0 in le a d a ssist a n c e a n d a n a d d it io n a l $ 5,0 0 0 t o a d d re ss n o n -le a d h e a lt h a n d sa fe t y h a za rd s  Sin c e 20 0 3, re c e ive d 8 g ra n t a w a rd s t o t a lin g a p p ro xim a t e ly $ 23 m illio n Michigan Department of Health and Human Services Michigan Medicaid CHIP Lead Hazard Control Community Development (CHIP) Grant – $ 70 0 ,0 0 0  Id e n t ify a n d a b a t e le a d -b a se d p a in t a n d w a t e r h a za rd s in Ke n t Co u n t y h o m e s o c c u p ie d b y le a d p o iso n e d c h ild re n  Elig ib le p ro g ra m p a rt ic ip a n t s id e n t ifie d b y t h e Ke n t Co u n t y He a lt h D e p a rt m e n t Michigan State Housing Development Authority (MSHDA) Michigan Housing Opportunities Promoting Energy Efficiency (MI -HOPE) Grant – $ 50 0 ,0 0 0  Im p le m e n t im p ro ve m e n t s in a t le a st 25 o w n e r- a n d re n t e r-o c c u p ie d u n it s w it h in t h e Ne ig h b o rh o o d s o f Fo c u s ‒ 20 h o m e s in c o o rd in a t io n w it h t h e Cit y’s Ho u sin g Re h a b ilit a t io n a n d Le a d Ha za rd Co n t ro l p ro g ra m s ‒ 5 h o m e s in re n o va t io n p ilo t fo r d e e p e n e rg y e ffic ie n c y re t ro fit s a n d e le c t rific a t io n , w h e re p o ssib le , t h ro u g h t h e Eq u it a b le , He a lt h y a n d Ze ro Ca rb o n Bu ild in g s (E.H. Ze ro ) In it ia t ive Economic Development Project Team 14 EquitableEconomic Equitable EconomicDevelopment Developmentand andMobility MobilityStrategic StrategicPlan Plan 00/00/0000 00/00/0000  Community Development Programs Neighborhood Investment (NI) Plan  Cit y’s in ve st m e n t p la n fo r h o u sin g a n d c o m m u n it y d e ve lo p m e n t a c t ivit ie s su p p o rt e d w it h CD BG, HO ME, ESG a n d J AG fu n d s  P rio rit y n e e d s id e n t ifie d in re g io n a l five -ye a r Ho u sin g a n d Co m m u n it y D e ve lo p m e n t (HCD ) P la n Outcome 1: Outcome 2: Outcome 3: Improve access Outcome 4: Improve Prevent and Increase the supply to and stability of the condition of resolve episodes of affordable affordable existing housing of homelessness housing housing Outcome 5: Foster Outcome 8: Outcome 6: Outcome 7: engaged, connected Improve economic Enhance Improve community neighborhood and resilient opportunity safety infrastructure neighborhoods Economic Development Project Team 15 EquitableEconomic Equitable EconomicDevelopment Developmentand andMobility MobilityStrategic StrategicPlan Plan 00/00/0000 00/00/0000  Community Development Programs HOME -American Rescue Plan (HOME -ARP) Authorized by the American Rescue Plan Act of 2021, allocated under the HOME entitlement program formula  $ 4 .6 3 m illio n - P la n n e d u se s o u t lin e d in HO ME-ARP Allo c a t io n P la n ‒ $ 3 m illio n fo r a ffo rd a b le re n t a l h o u sin g ($ 2.32 m illio n re m a in in g ) ‒ $ 1.16 7 m illio n fo r su p p o rt ive se rvic e s ($ 26 7,0 0 re m a in in g )  P ro je c t s m u st b e n e fit t h o se e xp e rie n c in g h o m e le ssn e ss, a t risk o f h o m e le ssn e ss, o r in o t h e r vu ln e ra b le p o p u la t io n s a t g re a t e st risk o f h o u sin g in st a b ilit y. Affordable Rental Housing Supportive Services  Ac q u isit io n , re h a b ilit a t io n , o r c o n st ru c t io n  Ho u sin g se a rc h a n d p la c e m e n t  O n a p e r p ro je c t b a sis:  Re n t a l a ssist a n c e a n d a rre a rs - At le a st 70 % o f u n it s m u st b e o c c u p ie d b y  Re n t a l a p p lic a t io n fe e s “q u a lifyin g p o p u la t io n ” h o u se h o ld s  Se c u rit y/u t ilit y d e p o sit s - Up t o 30 % o f u n it s m a y b e re se rve d fo r lo w - in c o m e h o u se h o ld s ( ≤ 8 0 % o f a re a m e d ia n  Em p lo ym e n t a s s is t a n c e in c o m e ) w h o a re n o t “q u a lifyin g p o p u la t io n ”  J o b t ra in in g h o u se h o ld s  Ch ild c a re  Min im u m 15-ye a r c o m p lia n c e p e rio d Economic Development Project Team 16 EquitableEconomic Equitable EconomicDevelopment Developmentand andMobility MobilityStrategic StrategicPlan Plan 00/00/0000 00/00/0000  Community Development Programs Required Benefit MUST benefit low - and moderate -income (LMI) people or neighborhoods  Are a -w id e b e n e fit b a se d o n LMI e lig ib le n e ig h b o rh o o d  In d ivid u a l b e n e fit b a se d o n LMI h o u se h o ld in c o m e , e xa m p le s: 1-p e rso n h o u se h o ld in c o m e b e lo w $ 50 ,150 4 -p e rso n h o u se h o ld in c o m e b e lo w $ 71,6 0 0  P re su m e d LMI b e n e fit fo r e ld e rly, h o m e le ss, se ve re ly d isa b le d Economic Development Project Team 17 EquitableEconomic Equitable EconomicDevelopment Developmentand andMobility MobilityStrategic StrategicPlan Plan 00/00/0000 00/00/0000  Community Development Programs Affordable Housing Creation and Preservation Mu lt i-fa m ily  Su p p o rt /c o m m u n it y in ve st m e n t le t t e rs fo r LIHTC Ap p lic a t io n s Housing Rehabilitation Programs  P a ym e n t in Lie u o f Ta xe s (P ILO T)  Cit y su b st a n t ia l re h a b ilit a t io n a n d Ap p ro va l e m e rg e n c y re p a ir  Ga p fin a n c in g  Cit y le a d h a za rd c o n t ro l Sin g le -fa m ily City Homebuyer Assistance Fund  Ac q u isit io n , d e ve lo p m e n t , a n d re sa le  D o w n p a ym e n t a n d c lo sin g c o st  In -fill n e w c o n st ru c t io n a s s is t a n c e Community Housing Development Code Compliance Organization (CHDO)  He a lt h , sa fe t y, st ru c t u ra l  O p e ra t in g su p p o rt Economic Development Project Team 18 EquitableEconomic Equitable EconomicDevelopment Developmentand andMobility MobilityStrategic StrategicPlan Plan 00/00/0000 00/00/0000  Community Development Programs Tax Exemption and Payment in Lieu of Taxes (PILOT) Benefit  Th e o w n e r o f a h o u sin g p ro je c t d e t e rm in e d t o b e e xe m p t fro m t a xa t io n sh a ll p a y t o t h e Cit y a n a n n u a l se rvic e c h a rg e in lie u o f a ll t a xe s t h a t is b a se d o n a p e rc e n t a g e o f a n n u a l sh e lt e r re n t .  He lp s k e e p o p e ra t in g e xp e n se s p re d ic t a b le a n d re n t s a ffo rd a b le  P ro vid e s c e rt a in t y t o d e ve lo p e rs a n d in ve st o rs (re d u c in g risk ) a n d a llo w s in it ia l c a p it a l t o fu n d p ro je c t Local Approval Process  Exist in g c it yw id e P ILO T o rd in a n c e (Art ic le 5, Ch a p t e r 9 o f Tit le I o f t h e Cit y Co d e )  D e ve lo p e r su b m it s a P ILO T re q u e st a p p lic a t io n t o Co m m u n it y D e ve lo p m e n t  Co m m u n it y D e ve lo p m e n t re vie w s a n d a d va n c e s t o Cit y Co m m issio n p ro je c t s d e t e rm in e d t o m e e t re q u ire m e n t s.  W h e n p ro vid e d , Cit y Co m m issio n a p p ro va l is c o n d it io n e d u p o n re c e ip t o f t h e “No t ific a t io n t o Lo c a l Asse sso r o f Exe m p t io n ” (No t ic e t o Lo c a l Asse sso r) fro m t h e Mic h ig a n St a t e Ho u sin g D e ve lo p m e n t Au t h o rit y. Economic Development Project Team 19 EquitableEconomic Equitable EconomicDevelopment Developmentand andMobility MobilityStrategic StrategicPlan Plan 00/00/0000 00/00/0000  PILOT, continued Current City Ordinance and Amended Act Economic Development Project Team 20 EquitableEconomic Equitable EconomicDevelopment Developmentand andMobility MobilityStrategic StrategicPlan Plan 00/00/0000 00/00/0000  PILOT, continued Current City Ordinance and Amended Act Economic Development Project Team 21 EquitableEconomic Equitable EconomicDevelopment Developmentand andMobility MobilityStrategic StrategicPlan Plan 00/00/0000 00/00/0000  PILOT, continued Current City Ordinance and Amended Act Economic Development Project Team 22 EquitableEconomic Equitable EconomicDevelopment Developmentand andMobility MobilityStrategic StrategicPlan Plan 00/00/0000 00/00/0000  PILOT, continued Current City Ordinance and Amended Act Economic Development Project Team 23 EquitableEconomic Equitable EconomicDevelopment Developmentand andMobility MobilityStrategic StrategicPlan Plan 00/00/0000 00/00/0000  www.grcd.info (616) 456-3677 Economic Development Project Team 24 EquitableEconomic Equitable EconomicDevelopment Developmentand andMobility MobilityStrategic StrategicPlan Plan 00/00/0000 00/00/0000  1.C.2 Executive Project Report Wednesday, December 28, 2022 Communication: Development Center Report December 2022 (Discussion of Strategy) Investment Summary Construction Econ Dev Jobs Planning Comm Investment (applied) (applied) 2021 $442,000,000 168 82 2022 YTD $423,000,000 596 83 11/2022 $29,000,000 103 8 12/01/2022 - 12/31/2022 PROJECTS BY WARD: Economic Development applications received; Planning Commission applications received; and Building Permits (value >$500,000) issued during the period 12/01/2022 to 12/31/2022. Undefined Ward 55 IONIA AVE NW Owner: 55 IONIA PARTNERS LLC Economic Dev General Billing Applied: 12/12/2022 ECO-GB-2022-0003 55 IONIA REIMBURSEMENT OF USEPA LOAN FOR LBRF: Annual 55 Ionia Reimbursement of USEPA Loan to be deposited into the LBRF. Applicant: ROCKFORD CONSTRUCTION jedwards@rockfordconstruction.com First Ward 802 BRIDGE ST NW Owner: LUXE INVESTMENTS LLC John Ball Park Planning Commission - Special Land Use Applied: 12/20/2022 PC-SLU-2022-0117 802 BRIDGE ST NE: This will be a mixed use property. The upper level is a 2 bed 1 bath residential apartment and lower commercial space as a property management office. Our proposed use of the building, architectural design, high quality materials, and future landscape will add to the character of the neighborhood encouraging growth in the neighborhood and surrounding areas. (Retail is a possibility in the future development of this master plan). Applicant: RSB PROPERTIES OF GR LLC 6166336619 ross@rsbpropertiesgr.com 12/28/2022 Page Packet 1 of6 3 Pg. 260 LEONARD ST NW 3 Owner: EAGLE 3 HOLDINGS LLC West Grand 1.C.2 Planning Commission - Planned Redevelopment District Applied: 12/12/2022 PC-PRD-2022-0112 260 & 282 LEONARD ST NW: ADDITIONAL HEIGHT AND DENSITY TO ALLOW DEVELOPMENT OF A TEN-STORY MIXED-USE BUILDING Applicant: WEST LEONARD DEVELOPMENT, LLC 313-999-9518 joe@grandcitycapital.com 440 CESAR E CHAVEZ AVE SW Owner: JV SBAM SA LLC Grandville Planning Commission - Optional Plan Review Applied: 12/16/2022 PC-OPR-2022-0116 446 CESAR E CHAVEZ: SBAM SA, LLC and SBAM SB, LLC (John Gibbs) is requesting Optional Plan Review approval to modify the site layout, building placement, and building element requirements in the TN-TCC (Traditional Neighborhood–Transitional City Center) Zone District to facilitate the construction of two new five-story buildings and a single-story building. The request will be evaluated by the Planning Commission for compliance with the standards of Article 6 and Sections 5.12.08.and 5.12.14. of the Zoning Ordinance. Applicant: STURGEON BAY HOLDINGS LLC 917-414-7602 john@sturgeonbaypartners.com Communication: Development Center Report December 2022 (Discussion of Strategy) 64 IONIA AVE SW 400 Owner: 70 IONIA ASSOCIATES LLC Oldtown-Heartside Commercial Building Permit $524,750 Issued: 12/22/2022 BC-RENO-2022-2886 ACRISURE - TENANT IMPROVEMENTS: This project includes the renovation of 31,240 total sq. ft. on floors 3, 4, 5, & 6 of connected buildings 64 & 70 Ionia Ave SW. Scope includes: demolition of existing non load-bearing walls & interior finishes, new interior non-load bearing stud walls, new interior finishes, & new mechanical, electrical, & plumbing systems Applicant: ROCKFORD CONSTRUCTION PWilhelm@rockfordconstruction.com 211 LOGAN ST SW Owner: JV SBAM SB LLC Grandville Planning Commission - Special Land Use Applied: 12/16/2022 PC-SLU-2022-0115 446 CESAR E CHAVEZ: SBAM SB, LLC (John Gibbs) is requesting approval to convert a portion of the historic Sligh Building into a 24-hour self-storage facility. A parking reduction is also requested. The request will be evaluated by the Planning Commission for compliance with the standards of Article 6 and Sections 5.9.31., 5.12.08. and 5.12.12. of the Zoning Ordinance. Applicant: STURGEON BAY HOLDINGS LLC 917-414-7602 john@sturgeonbaypartners.com Second Ward 2984 BRADFORD ST NE Owner: SPECTRUM HEALTH HOSPITALS Leffingwell-Twin Lakes Planning Commission - Planned Redevelopment District Amendment Applied: 12/13/2022 PC-PRDA-2022-0114 2984 BRADFORD NE: Corewell Health (Rodney VanderZand) is requesting approval of a Major Amendment to an approved Planned Redevelopment District to construct a cardiovascular ambulatory surgery center with a parking reduction. The request will be evaluated by the Planning Commission for compliance with the standards of Sections 5.7.06, 5.10.05., 5.11.05., 5.12.08, and 5.12.12. of the Zoning Ordinance. Applicant: COREWELL HEALTH 6164502299 rodney.vanderzand@spectrumhealth. org 2160 CELEBRATION DR NE Owner: JACKSON ENTERTAINMENT LLC Leffingwell-Twin Lakes Planning Commission - Planned Redevelopment District Amendment Applied: 12/13/2022 PC-PRDA-2022-0113 CELEBRATION APARTMENTS: FIVE-STORY MIXED-USE BUILDING WITH GROUND FLOOR COMMERCIAL Applicant: VICTORY DEVELOPMENT GROUP, LLC 404-934-1025 jeff@1025ventures.com 1600 COLLEGE AVE NE Owner: KENT COUNTRY CLUB Creston Commercial Building Permit $1,725,000 Issued: 12/5/2022 BC-RENO-2022-2744 KENT COUNTRY CLUB: Interior renovation of a 3,589 sq ft area within an existing 34,600 sq ft building with a new roof structure over an existing patio. Applicant: FIRST COMPANIES, INC. 6168819638 josh.reynolds@firstcompanies.com 12/28/2022 Page Packet 2 of7 3 Pg. 2125 E BELTLINE AVE NE A Owner: GRAND RAPIDS RETAIL MGMT II LLC Leffingwell-Twin Lakes 1.C.2 Commercial Building Permit $600,000 Issued: 12/19/2022 BC-NEW-2022-1777 GRAND RAPIDS RETAIL MANAGEMENT II LLC: shell building multi tenant drawings Applicant: GRAND RAPIDS RETAIL MANAGEMENT II LLC ashley@alrigusa.com Commercial Building Permit $600,000 Issued: 12/19/2022 BC-NEW-2022-1578 GRAND RAPIDS RETAIL MANAGEMENT II LLC: Medical Shell Building A Applicant: ALRIG USA CONSTRUCTION Permits@alrigusa.com 3082 PEREGRINE DR NE Owner: CELEBRATION HOSPITALITY LLC Leffingwell-Twin Lakes Commercial Building Permit $11,500,000 Issued: 12/1/2022 BC-NEW-2022-2426 HOME2 PEREGRINE DR: New construction of a four story, 107 unit hotel. Communication: Development Center Report December 2022 (Discussion of Strategy) Applicant: BOWERS + ASSOCIATES BROOKEL@BOWERSARCH.COM 109 MICHIGAN ST NW Owner: BOARD OF TRUSTEES OF Downtown Commercial Building Permit $1,160,000 Issued: 12/1/2022 BC-RENO-2022-2646 TWISTHINK: Interior tenant fit out of part of the existing 6th floor space. Applicant: PROGRESSIVE AE youngp@progressiveae.com 187 MONROE AVE NW 1 Owner: AMWAY HOTEL CORPORATION Downtown Commercial Building Permit $1,976,000 Issued: 12/8/2022 BC-RENO-2022-2795 AMWAY GRAND PLAZA HOTEL - SPA RENOVATION 4TH FLOOR: THE SCOPE OF WORK FOR THIS PERMIT APPLICATION IS LIMITED TO THE FOURTH FLOOR OF THE EXISTING HOTEL BUILDING AT 187 MONROE AVE NW. THE SCOPE OF WORK INCLUDES RENOVATING EXISTING SPA FACILITIES AND TRANSFORMATION OF EXISTING GUESTROOMS INTO SPA TREATMENT ROOMS. ACCESSIBLE UNISEX TOILET AND SHOWER FACILITES ARE ALSO PART OF THE PROJECT. PROJECT SCOPE IS A LEVEL 2 ALTERATION. Applicant: ROCKFORD CONSTRUCTION 6162856933 aebnit@rockfordconstruction.com 250 MONROE AVE NW Owner: CWD 250 MONROE LLC Downtown Commercial Building Permit $1,800,000 Issued: 12/12/2022 BC-RENO-2022-2848 GRAND RAPIDS CHAMBER WORKPLACE EXPANSION: Interior renovation/buildout of vacant 5,623sf of interior office space on the second floor of 250 Monroe. Applicant: PROGRESSIVE AE youngp@progressiveae.com Third Ward 1050 FISK ST SE Owner: LIFEQUEST URBAN OUTREACH CENTER Southeast End Planning Commission - Planned Redevelopment District Applied: 12/22/2022 PC-PRD-2022-0118 1050 FISK PRD: Proposing a PRD rezoning to allow the existing Church & beauty salon uses and new school use with some site upgrades Applicant: LIFEQUEST URBAN OUTREACH CENTER dking@centerforsoundliteracy.org 12/28/2022 Page Packet 3 of8 3 Pg.