March 7,2005

MiBiz Network

By Rod Kackley

MUSKEGON — Dozens of developers are interested in building on the site of the former Muskegon Mall, and the head of a local company has already signed on the dotted line, according to Muskegon Area First President and CEO Jim Edmonson.

"We have a list of 85 that we are working with," he told MiBiz. "Some are as small as a local mom-and-pop retail or restaurant; others are large companies from Milwaukee, Chicago, San Diego and St. Louis that would take large chunks of it."

Edmonson declined to identify the Muskegon individual that has committed to develop a portion of the eight-block downtown site before MiBiz went to press.

"They are not ready for us to announce them yet, but they have made the first acquisition," he said. "We also have options on several other parcels."

The effort to develop the site received a municipal boost Feb. 22 when the Downtown Muskegon Development Corp. (DMDC) finally won the Muskegon City Commission’s endorsement of a plan to build a retail/commercial/residential complex on the former site of the Muskegon Mall.

"There is great jubilation that we have the plan approved," said Edmonson. "But we also have to remember that it is a plan that is going to have to be amended numerous times as the project is built out."

The PUD that was approved in its preliminary form in August 2004 includes proposed locations of all streets, sidewalks, parking areas, service drives and buildings.

"The fact that the PUD was approved by both the planning commission and the city commission unanimously was very positive," said Community Foundation of Muskegon President Chris McGuigan.

She said that now the long line of developers that are interested in building in downtown Muskegon can see that the city is united and determined in the effort to bring the old mall property back to life.

"We can also show them now that the public infrastructure will be started this summer," she told MiBiz. "This will let them know that this project is real."

Edmonson agreed that the final PUD approval should make it much easier to get more developers to agree to build in downtown Muskegon. "We had to avoid selling a dream," he said.

The city commission’s approval is only the first governmental hurdle facing the redevelopment effort. The DMDC also needs approval of a $3.3 million dollar Michigan Economic Development Corporation grant for street work, the installation of underground utilities and other infrastructure. However, engineers have already begun their design work and ground should be broken for that part of the project in July.

At the very least, the city commission’s vote last month is one more milepost on a long, arduous journey that began in 2003 with the demolition of the Muskegon Mall. Southfield-based Charter Development signed a contract to purchase and develop the downtown mall property, but backed away from the deal in late 2003 during the 120-day due diligence period. Company executives blamed that on a city commission debate over the fate of five old buildings that some described as historic and worth saving. Those five buildings are still standing on the property.

McGuigan argued that the time it has taken to move the redevelopment of downtown Muskegon forward is not unusual. Rather, it is exactly what many municipal officials have faced as they tried to convince developers to build commercial, retail and residential projects downtown instead of in the suburbs and on greenspace.

"Developers hang back wondering if it is going to really going to happen. No one wants to be the only one," said McGuigan. "It is always a slow start, but once it starts, it spreads like wildfire."

Developers are not going to be asked to adhere to a central design theme as those who took part in the rebirth of downtown Holland did when the late Ed Prince led the revitalization of that district. Edmonson said though that all of the developments on the property would be environmentally consistent.

"It will have green infrastructure, LEED-standard buildings, renewable energy, snow melt and passive infiltration systems for runoff to the (Muskegon) lake," he said. "We will have an environmentally, energy-efficient downtown."

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ALL RIGHTS RESERVED.

This article appeared in the March 7, 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.