Muskegon developer forms nonprofit to land cash, grants for $2M Russell Block Market

Deborah Johnson Wood

Muskegon developer Gary Post says that even in good economic times, traditional lenders might not finance the idea behind the proposed $2 million Russell Block Market – and right now getting the money is impossible.

So he's trying a different angle: Post has formed a nonprofit organization, Russell Block Market, Inc., to oversee the market and to help the project vie for grants and donations not available to traditional commercial ventures.

Post's plan for the Russell Block Market, 360 W. Western Ave., is a retail incubator on the first two floors, set up as an open market, then possibly a business community center or arts center on the upper two floors.

The main purpose of the nonprofit, he says, "is to get things started again downtown with a plan to provide some type of support (to the new businesses) and hopefully spin them off into other locations downtown and reestablishing some of the retail we lost a few years ago when the downtown mall was torn down."

The building has been gutted, and has a rebuilt stairway tower and elevator shaft. The removal of 1940s exterior cladding damaged the façade. Post says it needs $175,000 in repairs and historic renovation. Existing funding includes some $25,000 from a Cool Cities grant that also went toward renovation of the nearby Century Club and Savings Bank buildings.

"The nonprofit allows us to attract other funding sources we might not be eligible for," Post says. "Many grants go to nonprofits and we hope for private donations as well."

Post applies this week to the Michigan Economic Development Corp. through the city of Muskegon for an $85,000 Urban Revitalization grant toward the façade improvements. The grant requires a $90,000 match. Post says the city doesn't have the matching funds, so he is raising the money. The city will administer the matching funds and the grant if the grant is approved.

Source: Gary Post, Port City Construction and Development

Deborah Johnson Wood is development news editor for Rapid Growth Media. She can be contacted at [email protected]. Have a development news tip for Rapid Growth? Contact us at [email protected].