GRAND RAPIDS, Mich. — More housing is coming to South Division downtown and businesses in the area are hoping the new neighbors bring a boost to their bottom lines.
WATCH: New apartment building sparks optimism among South Division business owners
A new three-story, 26-unit apartment building is under construction at 443 Sheldon SE in the Tapestry Square neighborhood. The project broke ground in September and is backed by a tax reimbursement incentive anticipated to total $3,839,462 over 25 years. The incentive will require six of the units to be reserved for residents earning 60% of the area's median income, or $44,700 per year.
The Brownfield Redevelopment Authority (BRA), which oversees incentives for blighted, contaminated or functionally obsolete properties, is expected to approve an interlocal agreement with the Downtown Development Authority at its next meeting Wednesday. The agreement would redirect a portion of tax increment revenues — money generated by increased property values after redevelopment — away from the DDA and toward reimbursing developers for eligible project costs.
The area near South Division and Wealthy has seen around 200 new housing units built over the past 15 years. For some businesses along the corridor, the latest development is a welcome sign of continued growth.
"Our owner has worked very, very hard for these 9 years to try and get this together, and we are always welcome to more people coming in and just growing the area," said Jasper Underwood, a barista at the Cat Cafe.
Down the road at Khloe Mae Bridal, owner Stephanie Howard opened her shop 11 years ago. She said growth along the corridor slowed following the pandemic and that while new housing is a positive step, she believes more businesses need to move in as well.
"It's definitely gotten a little bit more busy with housing, which is great," Howard said. "I think a big challenge with this area is there's just not a lot of businesses on the street."
Still, Howard sees promise ahead.
"I think there's a lot of potential for the growth of this corridor in the future. I think Division is just going to take a while," Howard said.
The BRA is meeting to approve the interlocal agreement at 8:30 a.m. Wednesday. Click here to view the agenda.
Leasing at the new apartment building is expected to begin in Fall 2027.
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