American Seating Park in Grand Rapids: Rescue and Renewal

Article submitted by the Michigan Economic Development Corporation
Photographs by Pioneer Construction

One of Michigan's most brilliant urban success stories is the American Seating Park, a brownfield redevelopment project in downtown Grand Rapids. For nearly 100 years, the three-building complex of the American Seating Company churned out office, stadium, transportation, and event seating. Five years ago, the manufacturing operations relocated, leaving behind the company headquarters offices and a lot of empty space. Through the company president's vision, the assistance of state brownfield redevelopment tax credits, and a tax-free Renaissance Zone designation, the 12-acre site has been completely transformed into a mixed use development that is reviving the city's west side.

In spite of the decision to relocate manufacturing operations, American Seating Company's owner and CEO, Edward Clark, did not want to leave the area that had been it's home since the firm began in 1886 as Grand Rapids School Furniture. Instead, American Seating teamed up with Pioneer Construction Company to transform the entire 8.22-acre site into a multi-use complex that would revitalize the community.

The Michigan Economic Development Corporation (MEDC) offered the joint venture, American Seating LLC, a state brownfield redevelopment credit worth 10% of the eligible investment, up to $2.8 million. The MEDC and the city of Grand Rapids also endowed the site with a state Renaissance Zone designation. Any company located in the Renaissance Zone, including American Seating and various commercial and retail firms, would operate nearly free of all state and local taxes. In addition, residents living in the development's lofts and apartments would pay no state or local income tax, nor any personal property tax. The businesses and residents in the Renaissance Zone will enjoy these tax benefits through Year 2011.

Located adjacent to Broadway Street, the new development consists of four main buildings. Building 51, the Off-Broadway Apartments, is a 130,000 sq. ft., four-story, building comprised of 67 three- and four-bedroom apartments. The apartments were marketed to students of the Grand Valley State University's nearby Pew Campus, and within two months, the apartments were leased and the building 100% occupied.

Building 52 is a 175,000 sq. ft., four-story, mixed use building. The first three floors represent 141,000 sq. ft. of commercial office space. American Seating Company relocated its corporate headquarters to the first floor (56,000 sq. ft.) and an insurance company has leased 5,000 sq. ft. Overall, the commercial office space is 43% occupied. The fourth floor includes Clark Place, 22 luxury apartment units. These apartments are proving extremely attractive to high-income residents, whose net payments are partially or totally offset by the tax benefits associated with living in the Renaissance Zone.

The two remaining buildings in the complex are still being used for manufacturing, but are viewed as future potential brownfield redevelopments.

American Seating offers more than space for working and living. The development includes a courtyard area and fountain, seating area, and outdoor grills for residents' enjoyment. An outdoor amphitheater (with more of the company's chairs, of course) is used for concerts and other entertainment opportunities. The former power plant for the complex has been converted into a building that houses more offices and a 5,500 sq. ft.-restaurant, known as The Stack.

American Seating Park is a resounding success for both Grand Rapids, Michigan’s second largest city, and for the state’s aggressive brownfields redevelopment program, now in its tenth year. Michigan made brownfields attractive to investors by reforming cleanup laws and offering tax credits and low-interest loans to communities – brownfield redevelopment is a top economic and environmental priority.

“Our aggressive approach to brownfields redevelopment has helped us move from fewer than 10 projects per year in the mid-1990s to more than 100 projects per year,” said Don Jakeway, President and CEO of the Michigan Economic Development Corporation. “These efforts have resulted in $4 billion in new private investment in brownfield redevelopments, and the continuing use of the public infrastructures built to serve these sites.” He added that over time, many of Michigan’s original manufacturing facilities have become obsolete. For years, contamination problems were the only legal basis for state brownfield incentives, although boarded-up, abandoned buildings can be just as detrimental to a community as a contaminated site. By expanding the definition of brownfields to include blighted and functionally obsolete buildings, sites containing abandoned buildings with no contamination, are also eligible for brownfields single business tax credits.

With thousands of sites potentially eligible and attractive for brownfield redevelopment, the Michigan Economic Development Corporation continues to work aggressively with communities, developers, and companies in an ongoing effort to transform abandoned properties into clean, attractive, tax-generating assets like the American Seating Park.

For further information regarding this project, please contact Paul Krepps, Managing Director of Communications, Michigan Economic Development Corporation at 517-241-3531, or via e-mail at kreppsp@michigan.org.

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