$252M in incentives for stadium, amphitheater approved by state

GRAND RAPIDS, Mich. (WOOD) — More than $250 million in incentives for the new Acrisure Amphitheater, a proposed soccer stadium and related Grand Rapids projects were approved by the state Tuesday.

The Michigan Strategic Fund Board unanimously voted in its meeting Tuesday morning to approve a Transformational Brownfield Plan incentive package worth $252.3 million for Grand Action 2.0, the development group behind the two projects, and the city of Grand Rapids Brownfield Redevelopment Authority.

“The Michigan Strategic Fund Board approval today was very important step forward for us in the projects, and certainly Grand Action 2.0 appreciates the consideration of these incentives to make this project a reality,” Grand Action 2.0 Executive Director Kara Wood told News 8. “As we have gotten into the project, there are significant costs and expenses that come along with these projects, making them very difficult from a return on investment standpoint. And so the incentives help make it easier for us to do these projects as a public-private partnership.”

According to a memo from the Michigan Economic Development Corporation, the incentives will go to the Acrisure Amphitheater, already under construction at a 10.6-acre property at 201 Market Ave. along the Grand River near US-131, and the soccer stadium, planned for an 8.2-acre site in the city’s West Side along US-131 near the YMCA .

“(The amphitheater) construction is going great,” Wood said. “We are on schedule and on budget, so I’m pleased to say that we’re doing very well and making great progress.”

The goal is to start construction on the soccer stadium next year, she said.

The incentives will also go toward related projects near the two developments. All projects, including the amphitheater and the stadium, are expected to cost a total of more than $701 million.

Along the Grand River by the amphitheater, a riverwalk that will include trails, green space and river access is planned.

Also near the amphitheater will be also be a 475-unit apartment building and a six-story parking garage, which was approved by the city commission last month and is expected to have 340 parking spots. All together, the amphitheater and its related projects will span 10.6 acres.

The Stadium District Tower — an 18-story, mixed-use building with commercial space, office space, 260 apartments and 350 parking spaces — is planned by the soccer stadium and is included in the incentive package. Also included is a 224-foot long pedestrian skybridge at the intersection of Lake Michigan Drive and Winter Avenue . One portion will stretch west of Winter Avenue, while another will stretch north over Lake Michigan Drive.

Some $97.6 million of the incentives will come from local and school property tax capture (with state capture limited to $54.4 million). A total of $128 million will come from income tax capture revenues, withholding tax capture revenues and sales and use post-construction tax capture that will be reimbursed over two decades.

Other incentives come from construction period tax capture revenues, sales and use tax exemptions.

While rental rates for the apartments both near the amphitheater and the stadium are expected to range between 11% to 46% above market, according to the MEDC memo, the developers are set to enter an affordable housing agreement with the city of Grand Rapids and contribute to its affordable housing fund. Until that affordable housing agreement is sent to the MEDC, the developers will only get 50% of the income tax revenue capture.

The incentives will also be decreased if the construction costs are less than 90% what developers are estimating.

The city of Grand Rapids has approved a local property tax capture for the projects, worth $43.2 million. It has also approved two 15-year Neighborhood Enterprise Zone tax abatements, worth $31.1 million together.

A hotel tax increase approved by voters and Kent County commissioners expected to draw in $8 million more each year is also set to help fund the projects, along with an aquarium project that’s in the early planning phase. The increase from 5% to 8% for hotel and motel stays that last less than 30 straight days is set to go into effect on Jan. 1.

“We are grateful to the support of voters of Kent County for the hotel-motel tax increase,” Wood said.

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