Grand Haven, MI (WGHN) – A long-debated $1.99 million redevelopment plan for the former Floto’s Gifts building in downtown Grand Haven is set to move ahead after the Grand Haven City Council narrowly approved a revised Brownfield tax increment financing (TIF) package in a 3-2 vote Monday night.
The project was delayed earlier this year when councilmembers signaled the original incentive package needed changes. Developer 123 Washington, LLC returned with a scaled-back request. The updated plan removes the Obsolete Property Rehabilitation Act tax abatement and shortens the TIF reimbursement period from 25 years to 19 years or less, starting in 2027. It also includes up to five additional years of capture through the Local Brownfield Revolving Fund.
The redevelopment will convert the building into a mixed-use space with three apartments on the second floor and a restaurant on the ground level. The restaurant is expected to have a beach-themed, family-friendly concept.
Reimbursable costs include demolition, environmental cleanup, housing development work, and Brownfield planning expenses.
Some councilmembers supported the revised plan, pointing to the reduced incentives and commitment to preserving historic features. Others opposed it, arguing incentives should be reserved for more heavily contaminated sites, larger housing projects, or developments offering lower-cost housing.
Councilwoman Sarah Kallio:
The Grand Haven Tribune reports the project will offer housing at 100 percent of area median income. Supporters said the investment could help generate more long-term tax revenue and contribute to downtown growth.
The plan was previously recommended by the city’s Economic Development Corporation and Brownfield Redevelopment Authority.
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