GRAND RAPIDS, MI - Grand Valley State University is moving forward with a project to develop affordable housing off the Medical Mile in the Belknap Lookout neighborhood near its health campus.
The Board of Trustees Friday, July 13, authorized the lease of approximately 0.85 of an acre to Three CPK, a joint venture of Third Coast Development and PK Housing, for development of affordable housing.
The property is on the north side of I-196, on the south side of Trowbridge Street, between Lafayette and Prospect avenues. The housing is something Grand Valley leadership wanted to provide the neighborhood because of the homes torn down to pave the way for the expansion of its health campus.
"We listened and wanted to do the right thing,'' said Pat Waring, director of community development for GVSU, who raved about the collaboration between GVSU, the neighbors and city of Grand Rapids.
"In the way that Grand Valley included everyone in its decision-making about what's going to be there, I think it gave people trust in institutions. We have shared a goal of providing the best quality of life for those who live, work and attend classes in this busy area of the city.''
In 2013, officials announced plans to buy nearly 11 acres for $19 million near the Cook-DeVos Center for Health Care, located at 301 Michigan St. NE, to grow its programs to accommodate student demand.
Grand Valley has a memorandum of understanding with the city of Grand Rapids and Neighbors of Belknap Lookout.
The plan is to build 50 units of one and two-bedroom apartments - 70 percent will be affordable housing (35 units) and 30 percent market rate. The development would be at the corner of Trowbridge Street and Lafayette Avenue.
Brian Copeland, associate vice president for business and finance for GVSU, said the deal with the developer has not been finalized. He said they do not yet have the monthly rental fees for the apartments, as it relates to the affordability.
The housing is near GVSU's new $37.5 million Raleigh Finkelstein Hall, located at 500 Lafayette Ave. The five-story, 84,000-square-foot building, includes classroom, laboratory and office space to support the College of Health Professions and Kirkhof College of Nursing.
The community is invited to open house to see the new health building on Thursday, July 19, from 5 to 8 p.m.
"This project was a true partnership,'' said Todd Leinberger, vice chair of the Neighbors of Belknap Look board.
The Rev. Jerome Burton, of Coit Community Christian Reformed Church, said members of the neighborhood in his congregation are pleased with the proposed development and felt GVSU was inclusive. He said that "they kept their word'' about responding to neighbors input.
"The scope and design of the project is consistent with the goals and values of the neighbors of Belknap Lookout in terms of our goal to have a diverse neighborhood. We have felt heard in terms of the process and outcome of this project.''
The total land GVSU purchased for expansion encompasses five blocks. Waring said there are another 80 to 90 homes that people are living in that could be torn down for development in the distant future.
Mayor Rosalyn Bliss and city commissioners Ruth Kelly and Joe Jones attended the GVSU Board of Trustees meeting Friday in Allendale.
Bliss said affordable housing continues to be a significant problem for the city and one officials can't solve alone.
"This is a testament to our commitment to partnership and to collaboration and to really coming to the table to try to find solutions to complex community problems,'' Bliss said.
Copeland said the university will not use tuition revenue or any of its funds for the construction of the project, operating expenses of the property or any future renovations and repairs.
The project is estimated to cost between $6 million and $7 million, according to board member Randall Damstra. Construction could be completed as early as fall 2019, depending on if the developer secures the tax credits.
Copeland said Three CPK will apply for low-income housing tax credits in November for the project and should know if they are successful by early 2019. If unsuccessful, he said GVSU has the right to issue another request for proposals.
Board member John Kennedy said while supportive of the housing project, he said he would have liked to have seen more than two bidders.
He said he was skittish about the deal because the developer is coming to the table with no money effectively. He said the developer is relying on the equity, the tax credit but otherwise is putting less than 3 percent of the whole project.
Kennedy said he is encouraged by the engagement between the university, city and neighbors and hopes the project can be a model for other institutions.
At the end of the 45-year lease, ownership of the development will revert to the university. The annual lease payments will equal or exceed the university's acquisition cost of the property ($800,000) located on this parcel of land, Copeland said.
In February, the board approved a six-level parking structure with 1,220 spaces, east of Lafayette Avenue along a strip of land located south of I-196. Neighbors asked that it not be located in the neighborhood.
The $39.4 million parking ramp is being built in partnership with Spectrum Health. Construction is scheduled to begin in May and will be complete by May of 2021.