MUSKEGON, Mich. — What was formerly the largest furniture factory in the world will soon help to combat the housing crisis in Muskegon by transforming into a living space called The Shaw. Upon completion, The Shaw is expected to provide housing for roughly 900 residents, thanks to a $159 million tax break offered by the state, Tuesday.
"This project is a huge win for Muskegon county, as it will tremendously help the housing shortage we have," said Kelsey Rhoda, Program Director with Greater Muskegon Economic Development. "We can't grow our economy if we don't have places for our employees and families to live. Greater Muskegon Economic Development has been proud to support this project through to fruition!"
Naming the housing project The Shaw is meant to honor the building's roots, which was once called the Shaw Walker Furniture Factory. The factory was formed by two Muskegon men in 1899, A.W. Shaw and L.C. Walker. In the decades since the building became vacant in 1989, it's become dilapidated.
“This is the last remaining post-industrial era structure, and it's so large that for 35 years, nobody dared take it on and finish it,” said Parkland Properties of Michigan President, Jon Rooks.
Rooks believes The Shaw will play a big part in Muskegon's downtown revival. "This is a project that will create more units in the city of Muskegon under one roof than what's been developed in the last 30 years," Rooks said.
The Shaw will include a total of 538 units, comprised of 432 apartments, blended with 69 luxury condominiums and 37 townhomes. There will also be eight retail outlets, including a restaurant, a bar, a fitness center, a hair salon, etc.
In order to bring The Shaw to reality, financial assistance from the state was needed. “We just received a transformational brownfield approval for the Shaw Walker Project," Rooks explained. "It's a program that doesn't require any upfront money from the state or the city, but it allows you to capture a portion of future property taxes and a portion of future state income tax and a portion of payroll tax and sales tax involved in the construction process, and it helps make a project like this go forward."
The Shaw will receive the $159 million tax break from the state over the next 30 years, according to Rooks. "It's a big number, but it's also a necessary number since carrying costs, based on construction costs increasing and interest rates increasing, are almost 300% of what they used to be 10 years ago," Rooks said.
The tax incentive, Rooks adds, is performance based. If the project doesn't happen, the state doesn't contribute the money. But, from the looks of it, the $220 million project is happening. Demolition work began in August, and now, people will soon see the historic building change from blight to beauty.
This is what the exterior of The Shaw will look like when it's finished.
"It'll be great for the neighborhood, but also really great for downtown," Rooks said. "Most of all, it will be just a great place to live for the residents."
According to Rooks, The Shaw is set to be complete in the next three years.
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