Southtown aspires to be secondary downtown in Grand Rapids oft-ignored ward – MLive.com

GRAND RAPIDS, MI Theres a vision, held by Southtown leadership, of Grand Rapids South Side doubling down on its cultural roots and using a diverse array of food, entertainment and attractions to elevate the area long overlooked for investment, both public and private.

Its a vision of a secondary downtown, where patrons go to eat, shop and spend an evening out while avoiding some of the parking and transportation challenges associated with the citys downtown core.

Making that dream a reality will take a level of investment the South Side, and the Third Ward as a whole, hasnt seen in recent memory. The citys most diverse ward is also its least invested in, which has contributed to sections of the community missing out on the citys surge of economic prosperity.

In 2012-17, the Third Ward received less than 2 percent of the $19.4 billion of private investments made in the citys three wards using government tax incentives. More recent data hasnt been released, but Third Ward commissioners, current and former, believe the new data will be similar to those from previous years.

Our community cant be successful if were leaving behind a third of our population, said Danielle Williams, manager for the Southtown Corridor Improvement District and a third-generation Grand Rapids resident.

The first step is acknowledging theres a problem. Recognizing theres something amiss when the city is growing and developing the way it is and, still, youre stagnant in seeing economic growth for a whole segment of our population. Intentional or not, something is broken, and it has to be fixed.

Southtown is a collection of six business districts Alger Heights, Boston Square, Franklin and Eastern, Madison Square, Seymour Square and part of South Division. It has a high rate of homeownership (56 percent) and neighborhood stability, with a population density higher than the city of Grand Rapids overall, according to the Southtown Corridor Improvement Authority.

Additionally, Southtown is:

The Southtown district was created three years ago to rally the business corridors and create a culture of investment thats long been lacking in the area. By establishing a CID, the corridors can collect tax revenue and use it to prevent deterioration of businesses that already belong to the district and help to attract and promote new businesses.

Were not seeing the kind of investment thats needed and probably has been needed for a long time but being able to recognize that and put work in to change that, to me thats really all we can do, Williams said.

City officials project tax increment revenue of about $150,000 per fiscal year to balance out Southtown CIDs expenses, with about $5,000-$15,000 left over after each year. Through the first 11 months of FY 2019, the CID board spent about $100,000 of its budgeted $318,814.

The nine-member corridor improvement authority board is also in the process of getting its business-focused area specific plan (ASP) adopted by the city commission. Its the boards hope that the plan, which acts as a blueprint for future development, will help revitalize the business corridor, spark new development and create jobs for nearby residents without significant displacement or changes to the existing community character.

Southtowns potential is obvious. Of its 500,000 square feet of total retail space, about 21 percent is vacant. Additionally, about 15 percent of its 13,000 households are vacant, according to city data.

Looking at the economic challenges we have in Grand Rapids, with the underemployment and lack of economic mobility for black and brown communities in the city, theres this amazing opportunity in Southtown to find the solution and do it in a way that benefits the community thats been here, Williams said.

Third Ward Commissioner Senita Lenear points to the growth of the citys West Side from recent years as an example of how cities can use a variety of tools to create economic opportunity in areas that are lacking it. She believes that success can be duplicated on the South Side.

In 2014, the West Side established its own corridor improvement district, made up of West Leonard Street, Bridge Street, Fulton Street, Butterworth Street and Seward Avenue. A year later the city adopted its area specific plan. The First Wards West Side now features popular restaurants, breweries and even a grocery store, among other developments.

It was a culmination of a bunch of things, which is what Im describing as solutions for the Third Ward, Lenear said. The investments came through work the commissioners were doing over there on the West Side to make sure investment happened. The outcome was it attracted people to invest in that area.

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Following the West Sides lead

For years, Leonard Street lacked new investment. However, in 2012, local entrepreneurs Chris Andrus and Max Trierweiler bought the old fire station at 527 Leonard St. NW and turned it into Mitten Brewing Co.

The brewery proved successful, as both a West Side business and catalyst for development. Within three years, Long Road Distillers and Two Scotts Barbecue opened their doors as neighbors of the brewery.

Mitten was the first people to really invest in that corridor, but we followed suit and sort of doubled-down on their initial bet on that neighborhood, said State Rep. David LaGrand, who was an initial investor in Long Road Distillers. We were looking for the next cool neighborhood in town.

Similar investment stories in areas like Bridge Street have helped in the rise of the West Side in recent years.

Jon OConnor, a co-founder of Long Road Distillers, said the area needed local ownership and investment from those who have roots in the area.

You dont just want people from the outside coming in, OConnor said. If you look at the West Side, those individuals knew they needed X in their neighborhood and did it. They needed a grocery store, so they got it. The Mitten guys said theres no brewery here and they did it.

The First Ward city commissioner said its important to be cognizant of potential displacement when a community is growing, but when its a choice between advancing or declining, hed prefer to see the community grow while remaining thoughtful.

With similar investments by locals on the South Side, OConnor said hes hopeful the Third Wards Southtown will follow the same path of improved economic opportunity.

For a long time, the West Side was just like Southtown, he said. Then we got some momentum, some energy and people making foundational investments in the business district that set the signal that we are open to projects, to an infusion of energy into the neighborhoods.

Sure, the Third Ward has different challenges than the First Ward. Geographically, it doesnt touch downtown, where a significant majority of investment occurs in the city. It doesnt have the highways the run through the other two wards, and it doesnt align with increasing desires to live in more dense areas like downtown.

Despite the differences, the Third Ward has potential for similar growth following a similar blueprint as the West Side, Lenear said.

Bakery proved concept

A section of the Third Ward the Wealthy Street corridor already is bustling with business, and it didnt take a massive development to spur it.

In 2002, four Grand Rapids residents bought a vacant meatpacking house in a dingy stretch of Wealthy Street SE that carried a leftover stigma of drug deal and gang violence.

There wasnt much investment being made along the Third Wards northern-most abandoned commercial street when co-founders Melissa and David LaGrand and Jim and Barb McClurg opened the Wealthy Street Bakery at 610 Wealthy Street SE.

David LaGrand, now a state representative and previously a city commissioner, said the ugly gang-related history of the Wealthy Street corridor left a residual fear and deterred development for some time. By opening the bakery, the LaGrands and McClurgs took one more blighted property off the map and proved the area was ripe for business.

The LaGrands bought the party store next door and sold it to Amy and Steve Ruis, who opened Art of the Table, a gourmet food and kitchen store. They bought an old plumbing store and sold it to David Lee, who opened the Winchester in 2009. Lee doubled down in 2013 with Donkey Taqueria across the street.

Once we sort of proved concept, that just meant a lot of people followed, LaGrand said. We succeeded and that was proof that others could succeed. And one thing you do is try to reinforce your investment with other peoples investments.

In addition to the citys role in providing tax incentives and improving public infrastructure, Grand Rapids leaders could help make the path to opening a business easier, according to LaGrand.

If business districts beyond the downtown core are going to continue to grow, LaGrand said the city will have to work to further reduce obstacles and restrictive zoning.

Hed like to see the city survey recently opened small businesses in the city to determine how the process of getting started could have been easier for them.

We really have to think thoughtfully about how to help someone who wants to invest $100,000 in a neighborhood, LaGrand said. That person isnt going to be able to hire a lawyer to help navigate through tax breaks and Brownfields. Removing barriers and really facilitating small investors will go a long way.

Whats next?

Southtowns area specific plan has been in the works since Dec. 2017 with the goal of improving commercial cores and public spaces in the area that support businesses, appeal to neighborhood residents and attract visitors.

The plans goals are to be a:

The proposed plan was released to the public for consideration last month. A public hearing is scheduled for Nov. 14 in front of the planning commission, with an expected city commission adoption vote set for Dec. 3.

What I love about the solution Ive become a part of is its a direct city investment as well as a community investment and business owner investment, Williams said. Its building up economic stability for the folks in our community who have been left behind, creating those on-ramps for entrepreneurship, supporting small businesses that have been here 20-30 years.

Southtown has created a business directory specific to its district to show potential developers whats already there and what the community could use. Theres also a faade improvement program that reimburses current eligible businesses up to $10,000 for upgrades or alterations to their building exteriors.

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Southtown aspires to be secondary downtown in Grand Rapids oft-ignored ward - MLive.com