August 7, 2005

Muskegon Chronicle

Dave Alexander, Business Editor

The commercial construction pattern in Muskegon County this summer is a patch-work of relatively small developments that many may overlook.
There are no Lakes Malls, Lakeshore Marketplaces or Great Lakes Downs — all high-profile efforts along major highways in the past decades —being built. But projects under way add up to significant activity.
From an office building on the downtown waterfront to a redevelopment of an old office furniture factory and a new retail superstore, this summer’s Muskegon-area major construction projects are part of more than $100 million in development now underway in city of Muskegon, Norton Shores and Fruitport Township.
“Construction jobs are good long-term trends that shows the health of an economy and it shows great confidence on the part of business and investors,” said Jim Edmonson, president of Muskegon Area First, the economic development agency.
A tour of the Muskegon metro area shows that construction is under way on several major projects such as the new Meijer Inc. supercenter in Fruitport Township and on the Hackley Lakes Professional Village in Norton Shores. Foundation work is just being completed on such projects as AMG Business Center in the Muskegon County Airport Business Park and the Parmenter O’Toole law office at Edison Landing on the downtown waterfront.
Likewise, construction is progressing well on two banks — the new offices for National City Bank in downtown Muskegon and Muskegon Commerce Bank in the Eastowne development in Norton Shores.
And there is more than just the major commercial developments seen in the metro area. Smaller but significant construction is underway along Seaway Drive in the city of Muskegon as new outlets for Chalet House of Flowers and Lange Carpet Co. are moving toward completion.
Meanwhile, a few projects are on planners’ drafting boards but are expected to begin construction soon. One of the most notable is the planned Wal-Mart supercenter on Henry Street in Roosevelt Park on the former J.C. Penney site.
For a community continually hammered for several decades by higher than other West Michigan unemployment rates, Edmonson points out that commercial construction equates to jobs. Those jobs just don’t come from construction companies but from the businesses that will eventually occupy the new spaces, he said.
Muskegon Area Chamber of Commerce President Cindy Larsen said she likes the trends seen in the current construction activity.
“I think it says that Muskegon is bucking some statewide trends,” Larsen said. “These project are part of an economy moving forward. People are making investments and jobs are being created.”
However, the job losses at historic Muskegon industrial mainstays, such as Sappi Fine Paper, Dana Corp.’s Sealed Power operations and Brunswick Bowling & Billiards, are distressing. More than 700 jobs will be lost from the three major industrial companies in the coming months.
“It doesn’t mean that there aren’t companies hurt by what is happening in Southeast Michigan and the auto industry,” Larsen said. “But overall, Muskegon is holding its own thanks to a more diversified economy.”
For those in the commercial construction business, they would like to see even more. Muskegon Construction Co. is working on the ArtWorks apartment redevelopment of the old Muskegon Boiler Works plant and the redevelopment of the Shaw-Walker building into WaterMark Center.
Muskegon Construction President Gary Post said that the construction in Muskegon is a “mixed bag” as commercial work is pretty strong this summer.
He said that most of the major work is being done in the retail area, but his company would still like to see more activity in office development and industrial projects. A division of Owen-Ames-Kimball Co. of Grand Rapids, the 75-year-old Muskegon Construction handles commercial, industrial, municipal and institutional projects with its 25 employees and dozens of West Michigan subcontractors.
“The office market is still tough as you have a surplus with vacancies in Terrace Plaza and no one in (the former SPX headquarters) at Terrace Point,” Post said. “We would like to see more downtown from our perspective.”
Post has committed to investing and redeveloping three existing buildings in the redevelopment of the former Muskegon Mall site.
In Norton Shores, city Community Development Director Dick Maher said medical office construction seems to be driving the commercial development activity. The Hackley Lakes Professional Building is gong up on Harvey Street, north of Pontaluna Road.
The U.S. 31 corridor has become big draw because it serves Muskegon and the Spring Lake area of northwest Ottawa County.
“The Hackley decision with Rockford Construction will bring many more kinds of medical developments,” Maher said. “That medical office market has been phenomenal.”
Maher said that overall he sees an improving economy locally despite some of the recent manufacturing job losses.
Muskegon Area First’s Edmonson would agree.
“Overall the economy is taking its hits with the older industries,” Edmonson said. “But we are growing and evolving the ‘new’ economy.”