Two empty parking lots in downtown Muskegon could soon become a five-floor building with 40 apartments and street-level retail, after city commissioners cleared the way this week for the developer to pursue a property tax break. The project, planned by Revilo Two GRR, LLC, would rise at 118 W. Clay Avenue, squeezed between two local food staples.
The site sits on 0.4 acres between Morat's Bakery and Nipote's Italian Kitchen, according to mlive.com, and currently holds nothing more than two unused parking lots. On Tuesday, the Muskegon commission approved a Neighborhood Enterprise Zone District for the property, a designation that lets Revilo Two GRR apply for an NEZ certificate that could reduce a portion of property taxes on the new construction.
At least 20% of the planned units are to be income-based, per Jared Belka, who spoke on behalf of the developer, with the residential mix intended to address the so-called “missing middle” of housing options. The plan calls for 40 residential units alongside street-level retail space, though the exact size of the commercial footprint reported varies by source.
A $12.9 Million Build With Out-of-Town Partners
Separate reporting from EV Construction put the estimated cost of the mixed-use building at $12.9 million, with 570 square feet of first-floor commercial space planned for the ground level. That account also names Grand Rapids-based Integrated Architecture as the project's designer, with Holland-based EV Construction serving as general contractor.
The city's own housing data helps explain why officials are eager to see projects like this move forward. A Muskegon housing needs assessment found that there is a serious shortage of both for-sale and rental housing units at all price points across the city, according to the City of Muskegon Housing Needs Assessment.
What an NEZ Designation Actually Does
Michigan's Neighborhood Enterprise Zone Act provides for the development and rehabilitation of residential housing located within eligible distressed communities, according to the Michigan Department of Treasury. Muskegon has leaned on the tool before: commissioners approved NEZ districts in April for the former Harbor Theatre, a project that paired first-floor retail and a parking garage with 11 condos on the upper floors, and for the former Sappi Paper Mill site, where the designation covered a 44-acre first phase and a 21.46-acre second phase of the planned Windward Pointe development.
Commission Also Clears Demolition on Dratz Street
In the same meeting, the commission approved paying Melching Demolition $25,600 to tear down a property at 275 Dratz Street. City officials said this was the lowest bid received and that the building's owners had not responded to several attempts at communication.
No construction timeline, certificate approval, or final financing details for the W. Clay Avenue project have been reported. As the plan moves through the city's review process, it joins a short but growing list of downtown and waterfront sites where Muskegon has used the Neighborhood Enterprise Zone tool to try to coax new housing out of long-vacant ground.
