KALAMAZOO, Mich. — Plans to redevelop three currently-underused buildings in downtown Kalamazoo got a boost in funding thanks to tens of millions from the state.
The Michigan Strategic Fund on Monday signed off on $54.6 million for the redevelopment of three properties in Kalamazoo through a Transformational Brownfield Plan.
Those properties are:
- The Michigan Avenue Courthouse, which was replaced in late 2023 by the Judge Charles A. Pratt Justice Center on Eleanor Street
- A vacant industrial building at 619 Porter Street
- The Speareflex Building, currently used as office space
Plans for the old courthouse call for a 127-room boutique hotel including a bar, restaurant, and fitness center.
The vacant building on Porter Street is set to be torn down and replaced with a new five-story building that would house a retail space plus 58 apartments.
The Spearflex Building is expected to turn the current office space into another 57 apartments.
All three properties are owned by PlazaCorp Realty Advisors, Inc.
“This approval allows PlazaCorp to advance a coordinated redevelopment that brings new housing, hospitality, tourism, and commercial activity, while repurposing and revitalizing Kalamazoo’s historic buildings and cleaning up brownfield sites,” said Trisha Kidd, Director of Project Management for PlazaCorp Realty Advisors, Inc. “Through this plan, we are transforming previously underutilized and contaminated properties into vibrant destinations that strengthen downtown, stimulate economic activity, and create lasting benefits for the community.”
The Transformational Brownfield Plan application was supported by both the City and County of Kalamazoo. Each board previously recognized the need for housing in the neighborhood.
“This plan reflects years of collaboration and a shared commitment to reinvesting in Kalamazoo’s core,” said Jamie McCarthy, Development Manager for the City of Kalamazoo. “We are enthusiastic about the opportunity to leverage brownfield tools to support redevelopment that delivers new housing, addresses environmental challenges, and strengthens our downtown and surrounding neighborhoods.”
The Michigan Strategic Fund (MSF) estimates the three projects will support 93 jobs and invest $96.5 million into the Kalamazoo neighborhood. The $54.6 million in support by the MSF will be provided through tax breaks on the properties, construction-period revenue, tax exemptions, and post-construction sales tax. The money is supposed to be reimbursed to the state over a 20 year period.
