Deadline for Sale and Redevelopment of East Michigan Avenue Buildings Pushe

By Jonathan Kleyer

The time frame on the sale and redevelopment of four, mostly vacant, building in the 100 block of East Michigan Avenue, of Kalamazoo, has been pushed back—possibly until October 1st.

Downtown Tomorrow, Inc., has owned the four buildings for a decade. Last September, the Kalamazoo City Commission approved several measures to provide financial support of a project that would facilitate the sale and redevelopment of these buildings to MAVCON Properties.

The city transferred $400,000 from the Economic Initiative Fund and $101,000 from the Economic Opportunity Fund, to its Brownfield Redevelopment Authority for the project, approved terms for new market tax credits being sought by the developers and gave them $400,000 in Home Investment Partnerships Program—otherwise known as “HOME”—grant and loan money using money from the Department of Housing and Urban Development.

According to City Attorney Clyde Robinson, when the city approved these measures, it came with a built-in deadline: the support would be withdrawn if the redevelopment and sale of the buildings were not completed by April 1st.

“While the developer and all the governmental agencies providing financial support or incentives to this project, have proceeded diligently and in good faith, in the efforts to close the sale as originally contemplated, several developments since the resolutions were approved have occurred which will push the closing beyond April 1st,” Robinson explained.

The developments he referred to, were changes in the designs of the work being performed on the building, because of historical features that the developers discovered. The plans have been revised based on suggestions from the State Historic Preservation Office.

According to Robinson, the new plans focused on a redesign for the block’s north façade and several interior modifications.

Robinson said that the changes in these details also contributed to a delay in finding an investor for the project’s new market tax credit, which he called the final and crucial financial component for the work to move forward.
“However, a potential and likely investor has retained a consultant to discuss the matter further with developer’s consultant on [new market tax credits],” Robinson noted.

After the project is completed, the buildings are expected to see both commercial and housing use.

Assistant City Attorney, John Kneas, clarified, “The agreement requires MAVCON Properties to retain and improve the facades of the buildings and to completely renovate and redevelop them for commercial/retail use on the first floor and apartments on the second and third floors. Upon completion of the project, total useable space will approximate 30,000 square feet.”
More specifically, the assistant attorney said, that when the work on the buildings is done, they are expected to have 20 apartments.
According to Kneas, retaining the historical character of the block has always been a key component of the project.

“Considering the advantages reaped when the buildings within the Haymarket Historic District were renovated, retaining the historical character of this vital downtown block has been a driving force behind this project,” Kneas noted.