2022 Annual Impact Report shows promising growth with economic development

Presented to the Committee of the Whole Feb. 7 by Economic Development Director Jeremiah Gracia, the Impact Report highlights data from an active inclusion plan and the projected spend in several areas. An investment partner with tailored programs and resources that support business investment and job growth, the Office of Economic Development has presented a clear picture of the economic impact in Grand Rapids.

2022 Impact Report and investments

Private investment in Grand Rapids increased by 35% between 2021 and 2022 (currently at $245 million), according to the report. There has also been a 40% increase in total investments in business neighborhoods since 2021 (currently $990,364).
Economic development in Grand Rapids continues to grow, despite hurdles, according to a new report from the city's economic development director.
Despite the dragging effect of the pandemic, development efforts resulted in roughly $6 billion in construction in the city of Grand Rapids since 2021.

According to Gracia’s presentation, a significant dollar amount was put up for construction value through development efforts, with roughly $6.0 billion of construction value invested in the city since 2021, even with the effects of the pandemic.

Momentum continues to build, Gracia shared, highlighting that the city “now [has its] third highest year in development construction value permits.”
Despite the dragging effect of the pandemic, development efforts resulted in roughly $6 billion in construction in the city of Grand Rapids since 2021.
Inclusion plan commitments

With commitments of $42 million to minority business enterprises (MBEs), women business enterprises (WBEs) and micro local business enterprises (MLBEs), a fully implemented inclusion plan has been in effect since January 2021, after initially being recommended in 2020.
Despite the dragging effect of the pandemic, development efforts resulted in roughly $6 billion in construction in the city of Grand Rapids since 2021.
This initiative was put into place to support an increase in demand for MBEs, WBEs and MLBEs in the private development market, according to Jonathan “Jono” Klooster, assistant economic development director for the city of Grand Rapids’ Economic Development Agency.

“The way we implement that is in partnership with our private sector, developers and investors,” says Klooster, who adds that it’s reflective of the city’s values in reference to collaboration and equity, also enhancing access opportunities for small businesses.

Klooster says that now, two years into implementation, after planning and evaluating progress, there is a better understanding of what has been working.

“We’re just going to make some changes to try to make it easier to navigate and focus on those initiatives that are working more heavily and continue to expand the knowledge of the program in the community and move forward from there.”

Overall, everything seems to be moving in the right direction, according to Gracia, who states that there are many projects under construction.  He adds that the department goes back and surveys their partners, using their influence and inquiring of them to commit to seeking minority contractors. These action steps and focus areas are based on the department’s values and equity plan.

Looking at housing, the economic development department has supported 762 new housing units with 366 of those new housing units targeted at residents with 80% of the area median income or below.

Looking back while moving forward

Surveys have documented the progress of those inclusivity commitments and investments. The past year has shown job creation and retention of more than 113% as well as completed projects and new investments of more than 114%.

Gracia points out, the Report represents a lot of momentum and the important people behind these projects, and he is looking forward to an even stronger 2023.

For more information, click here.