GRAND RAPIDS, Mich. (WOOD) — The Grand Rapids City Commission held a public hearing Tuesday to hear feedback on Transformational Brownfield Plan incentives for the proposed mixed-use development project on the corner of Fulton Street and Market Avenue. 

The meeting was dominated by comments from the local activist group Together West Michigan, which staged a press conference outside of City Hall ahead of the meeting and packed the chambers.

“Now let me be clear,” Rev. Lynette Sparks, Senior Pastor Westminster Presbyterian Church said. “Together West Michigan does not oppose private development. What we do oppose is the unacceptably small affordable housing contribution being proposed.”

The project proposal includes contributing $8.5 million to the Grand Rapids affordable housing fund. That would be paid out over a 20-year period at around $425,000 per year.

Together West Michigan’s representatives requested Tuesday that the city commission renegotiate that contribution to 20% of the $585 million in state and local incentives the development is asking for, with 10% paid upfront. 

The founder of the economic development subsidiary managing the financial planning of the project, Michigan Growth Advisors, addressed that request in his presentation during the public hearing. 

“Diverting 10% to 20% of a project’s incentive simply means that the affordable housing fund will receive a portion of zero,” Joe Agostinelli said. “The project simply can’t move forward with the request being made.”

The project’s reliance on public funds was another major sticking point for those in attendance. 

“Nearly half the city is living paycheck to paycheck and you want to give this amount of money, $565 million, to a project that is being brought to us by two of the wealthiest families in the city. To me, it’s just unconscionable.”

The project’s developer reiterated that it would not be a viable proposal without the incentives. 

The project’s overall effect on the city’s housing supply was also challenged. Both opponents of the project and the city’s economic development director cited a Grand Rapids Area Chamber of Commerce-sponsored study on housing gaps.

The 595 rentable housing units range in size from studio to three-bedroom and are estimated to rent for between $2,600 and $3,900 a month, which would help alleviate the largest housing gap for families that make about 120% of Area Median Income.

Three-quarters of the overall need in the city, though, is for housing affordable to households making less than 120% of the Area Median Income.

Because of these concerns, Together West Michigan requested that the city commission delay any additional votes that would move the project forward until the recently-elected mayor, David LaGrand, and council takes office next year.

The next step in the process, if it proceeds as scheduled, would be the commission voting whether to recommend approval of the Transformational Brownfield Plan and Development Proposal to the Michigan Strategic Fund on Dec. 3.