$15M Bobville, $24M Health Park Central approved for brownfield abatements in Grand Rapids

Deborah Johnson Wood

The City of Grand Rapids approved two proposed development projects with a combined investment cost of $39 million for brownfield redevelopment tax abatements last week.

The $24 million entertainment and retail complex, Bobville, proposed by The Gilmore Collection, and the $15 million Health Park Central proposed by Health Park Central, LLC could generate an ongoing economic boost to the city, as well as dozens of jobs.

Plans for the project dubbed "Bobville" include a new four-story mixed-use building adjacent to The B.O.B., and will feature retail, entertainment venues, hotel condos and packaged food manufacturing. The parcel, currently a parking lot, is contaminated "probably due to urban fill," says Kara Wood, city economic development director. The complex could create 150 jobs.

"The lot was city-owned and sold to Greg Gilmore with a very specific development agreement," Wood says. "We're hoping Bobville will increase density in the downtown area and will provide a unique entertainment venue the downtown currently doesn't have."

Health Park Central plans propose the renovation of an existing medical office building at 245 Cherry SE and construction of a second medical building. The large land parcel across from Saint Mary's Health Care includes 216 and 236 State St. SE and 114 and 120 Jefferson Ave. SE.

The project is less than a block away from the $30 million Heart of the City Health Center currently under construction, and it will increase the availability of medical services and medical office space within steps of Saint Mary's Health Care campus.

"The city may be investing in this project with the American Recovery and Reinvestment Act bonds we received," Wood says. "We got a total of $25 million and Health Park Central is asking for $8 million in bond allocation."

The Grand Rapids Downtown Development Authority will support both projects with an as yet undetermined amount of tax increment financing, Wood says. Both projects will apply to the state for tax credits.

"It's important to mention that even in these tough economic times, we're still able to put together strong public-private partnerships," Wood says.

Source: Kara Wood, City of Grand Rapids Economic Development Office; Craig Clark, Clark Communications

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Deborah Johnson Wood is development news editor for Rapid Growth Media. She can be contacted at [email protected]. Development News tips can be sent to [email protected].