The explosion of development along Wealthy Street SE has reshaped the neighborhood from a street lined with vacant buildings to a busy business district filled with shops, restaurants, bars and entertainment spots.
Today, Jenison-based Georgetown Development marks its first foray into urban redevelopment with a groundbreaking ceremony for the historic renovation of two buildings at 632-636 Wealthy SE. The $1 million project promises to bring four residential apartments and 4,000 square feet of retail space to the area.
"We see things moving to more of an urban community with the synergy that's happening here," Ponstein says. "There are more people moving into the city and there's a need for more retail and businesses. With the tax incentives, it makes these projects viable to do, where in the past they were not."
Those tax incentives include brownfield redevelopment and historic tax credits, and a Renaissance Zone extension.
Last year the city of Grand Rapids granted a Renaissance Zone extension for the retail portion of the development only, but Todd Ponstein, president of Georgetown Development, said that without the Ren Zone the company couldn't afford to move forward on the project. This spring, the city reconsidered and granted the Ren Zone extension until 2024.
The four apartments will be 1,000 square feet each with two bedrooms and two bathrooms, and will rent for about $1,000 dollars a month.
Residential tenants will pay no state or city income tax – a savings of about 5.5 percent of their wages – and no property tax until 2024, says Ponstein. Commercial tenants will not pay property tax of the Michigan Business Tax until 2024.
Source: Todd Ponstein, Georgetown Development
Deborah Johnson Wood is development news editor for Rapid Growth Media. She can be contacted at [email protected].
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