City center on road back to future

 

  Tuesday, August 30, 2005
By Dave Alexander
CHRONICLE BUSINESS EDITOR

Gary Post recently was pulling weeds around the old Muskegon Savings Bank building. As he looked at the unearthed plants, the thought struck him that he and his partners were the "grass roots" of the rebirth of downtown Muskegon.

Post, president of Muskegon Construction Co., and business partner Russ Strong are poised to complete the purchase of the first three properties in the "city center" redevelopment of the former Muskegon Mall property. The local businessmen plan to renovate the Muskegon Savings Bank, Century Club and Daniel's Office Supply buildings.

Community leaders and public officials hope what Post and Strong sow will prompt other residential, commercial, office and retail developments to find fertile soil in rebuilding the downtown.

Those streets -- many of which were part of Muskegon's downtown from the 19th century to the 1970s -- were removed with the construction of Muskegon Mall, now closed and torn down.

U.S. Rep. Pete Hoekstra, R-Holland, today led a group of dignitaries who celebrated the beginning of the "city center" redevelopment work at the groundbreaking. Road and utility work is expected to begin in mid-September by Milbocker & Sons of Allegan, which has a $1.24 million contract for the first stage of work.

Post is president of Muskegon Construction, but has joined Strong and his son, Matthew, in a separate business to redevelop the three downtown buildings, forming Western Avenue LLC. Muskegon Construction crews removed the old front panels for the Daniels building to reveal a decrepit-looking facade on the historic structure.

That work raised interest and comments from passersby.

"This is an emotional project ... a big project that is great for the community," Strong said of the overall "city center" redevelopment. "It's a good venture, but sound business decisions have to be the driver."

Post and Strong plan mixed uses for the three buildings, after they complete the land deals in the next four to six weeks. They will buy the buildings from property owner Downtown Muskegon Development Corp., a consortium of community-based nonprofit organizations. The purchase price was not disclosed.

"You have to realize that in Muskegon one person is not going to write one big check to solve all of our problems," said Strong, the former co-owner of Lakeshore Office Furniture and now the owner of Interiors Partnership Inc., which operates Muskegon Office Interiors and similar companies in Grand Rapids and Lansing.

"We are just small business people doing our part to make this happen," he said.
Since announcing his interest in the three buildings in March, Post said the progress of the redevelopment and tenant interest in the buildings have been strong.

"We think we are in at the right time," Post said. Post and Strong are in position to begin using the low-tax advantages of the site, which is a state-designated Renaissance Zone.

Of the three buildings, the Muskegon Savings Bank is in the best shape and will be the first to be renovated, Post said. The 4,400-square-foot structure has some exterior work to be done along with a complete renovation of the interior, he said.

"The atmosphere created with these old buildings is hard to duplicate," Strong said. "In the end, you have something unique.

"That's what downtowns are suppose to be about. We're not a strip mall."

Built in 1908, the building was most recently a men's store and offices of a Grand Rapids television station in the final years of Muskegon Mall. It is one of five "historic" buildings saved in the mall demolition. The two not owned by Western Avenue LLC are still for sale.

Post and Strong said the former bank building is best suited for offices and possibly a small restaurant or coffee shop.

As road construction begins, Post said work could begin on the bank building this fall and be completed when Western Avenue is reopened from Third to Terrace streets. That is expected sometime in the second quarter of 2006.

As for the two remaining buildings, Post said work will be driven by the market. However, many have voiced interest in renting space when they are completed, he said.

"Our goal has always been to be done with everything in two years," Post said.

The Century Club was built in the late 1880s and for many years was the downtown business club for lunch and dinner. The 9,000-square-foot Lumber Era structure has the most striking facade of any of the remaining buildings on the "city center" site.

However, the interior of the structure is in poor shape, Post said. Redevelopment might call for a completely new building using the historic facade, he said. In the end, the Century Club might be best used for an "upscale" restaurant, the pending owners said.

The Daniels Office Supply building is the largest of the three structures. There are three levels in the front and two levels in the back, providing 19,000 square feet of space, Post said. Known as the "Russell Block," the former office supply retail outlet was built in 1891 and was initially Muskegon's post office.

Post and Strong said they envision retail space on the first two levels with the possibility of residences on the third floor. Such a plan would likely require reconstruction of the two levels at the rear of the building, Post said.

In addition to the three buildings, Post and Strong will purchase a 30-foot lot immediately to the west of the Daniels building. This space will allow retail space to have newly created entrances on the west side of the building.

Parking remains an issue that must be solved for the long-term redevelopment of the "city center" site, the two said. With the initial redevelopment of the three buildings, the city of Muskegon and Downtown Muskegon Development have plenty of parking immediately available.

But as the site is redeveloped, parking must be addressed, Post said. The reuse of the city parking structure on Clay Avenue is an important part of that solution, Strong said.



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