MUSKEGON — It’s officially called the Western Avenue Redevelopment Project — the rebuilding of the utilities and street grid on the former Muskegon Mall property in the heart of downtown Muskegon. What it means to a city struggling to revitalize its downtown is the first glimmer of light that signals a bright, shiny future.

A late August groundbreaking ceremony for the $4.5 million project brought government dignitaries, community leaders and business leaders together to celebrate the long-awaited action.

“The beginning of this project is a great step forward for the city of Muskegon,” said Muskegon Mayor Steve Warmington. “We are sure this will be a real catalyst to the rebirth of downtown Muskegon.”

The city of Muskegon awarded Milbocker & Sons Inc. of Allegan the contract for the infrastructure work. City of Muskegon Director of Planning and Economic Development Cathy Brubaker-Clarke told MiBiz work would begin immediately.

“They (Milbocker) will be starting this fall with the underground utility work. As soon as possible in the early spring, they will start on the remainder of the project, including the paving of the streets,” said Brubaker-Clarke. “Phase I of the project is the construction of Western Avenue through the site and construction of a traffic circle at Western and Third Street in front of the Frauenthal. Phase II will the construction of the cross streets, Second and First streets.”

Although residents will finally see activity on the site, Brubaker-Clarke pointed out that there has been a lot of work behind the scenes to get to this point.

“This has been a major undertaking,” she said. “It’s a real shot in the arm and it took everybody working together, from the city to the chamber to the foundation as well as other individuals and organizations.”

The Downtown Muskegon Development Corporation, a nonprofit development group formed by the Community Foundation for Muskegon County, the Paul C. Johnson Foundation and the Muskegon Area Chamber of Commerce, owns the former mall property. The DMDC purchased the 23-acre parcel in fall 2002 with the goal of eventually creating a mixed-use development that would combine housing, office, retail, dining and entertainment. All but five structures on the site were demolished, leaving 16 acres available for new construction.

Now that utility and roadwork is underway, DMDC officials expect to close sales on several of the buildings and available lots. The first closing may be the pending sale of three existing structures to Muskegon Construction Co. President Gary Post PE. The Century Club, the Daniels Building and the old Muskegon Saving Bank buildings will be owned by Western Avenue Properties LLC, of which Post has a controlling interest. Muskegon businessman Russ Strong is a partner in that venture.

Post stated that the acquisition of the sites and the projected renovation and restoration of the structures represents a $3.5-$4 million investment. Approximately 80 percent of that will be construction costs.

The Muskegon Savings Bank Building would be the first to be renovated, with the project ready for occupancy when the streets open next year. It most likely will be converted into two or three street level retail/office suites, the largest of which could become a coffee shop or deli. The upper floor use has not been decided.

No timeline for construction has been set for the other two structures, but retail is slated for the Daniels Building and an upscale restaurant appears promising for the Century Club.

Post told MiBiz that he and Strong have been looking at other parcels on the property.

“We have 35,000 square feet to fill first. That’s our initial focus,” he said. “But we’ll be keeping our options open.”

Post has long been a supporter of the revitalization of downtown Muskegon and he expressed his support when he announced his intention to purchase the property.

“I just believe the time is right and downtown Muskegon is going to come back better than ever. It’s going to take a little effort, but it’s bound to happen,” Post said.

The two remaining structures — the former National City Bank building and the Comerica Bank building also have sales pending. Community Foundation of Muskegon President Chris McGuigan said there are verbal agreements with two separate out-of-state developers on the properties and once the formal legal documents are completed written agreements and closing dates would be firmed up.

McGuigan told MiBiz a restaurant and a specialty grocery are being proposed for the National City building. The upper loors of the Comerica Bank building are being looked at for residential, with retail shops being planned for street level.

Two significant lots on the northeast side of the property also are ready to be sold, with verbal agreements secured. A local developer intends to build residential townhomes on one site. A regional developer is proposing a two- or three-story office complex on the other.

McGuigan said commencing work on the infrastructure is exciting first step for a community that has been waiting with anticipation for the dawning of a new downtown.

“It has taken time, and we thank Muskegon residents for their patience, but now we are set to go and are looking orward to development that meshes with the vision of the Imagine Muskegon project,” said McGuigan.

COPYRIGHT 2005. MIBIZ NETWORK. ALL RIGHTS RESERVED.

This article appeared in the September 6, 2005 issue of MiBiz, read by upper management executives in West and Southwest Michigan. Print subscriptions are free to qualified individuals who do business in West and Southwest Michigan. For further information about MiBiz Network, visit www.mibiz.com.