HOOKER | DE JONG - Architechts & Engineers

Published: Thursday, October 07, 2010, 5:28 AM

GRAND RAPIDS -- A building that has defied more than 10 years of redevelopment efforts is getting another shot with a new developer.

Doug Gulker, owner of Fusion Properties, envisions 32 market-rate apartments filling the bulk of the four-story building at 100 Commerce Ave. SW.

Fusion bought the building, vacant for much of the past decade, this year under the name 100 Commerce Development Co. LLC. The company has spent the past year or so crunching numbers, working with lenders and lining up tax credits to make the $3 million project possible.

"I've met with the majority of neighboring property owners and everything seems to be in favor of additional residential units in the neighborhood," Gulker said.

The city's Brownfield Redevelopment Authority will consider a request Thursday for Michigan Business Tax credits worth about $400,000. Gulker also plans to apply for a $50,000 building reuse grant from the city's Downtown Development Authority and additional historic tax credits from the state and federal government.

Tax credits and other incentives could cover up to 40 percent of the renovation costs, Gulker said, making it possible for Fusion to secure bank financing for much of the rest of the project.

"The bottom line is we're going for a whole bunch of things and we don't expect to get everything, but we need a good majority to make it a doable project," he said.

Fusion's application for the tax credits says the project will contain about 1,500 square feet of ground-floor retail space.

Apartments would rent for about $575 to $995 a month, according to Kara Wood, economic development director for the city.

"It's another vacant building that's been a challenge for many developers to take on, so our hope is that this experienced developer can make a go of it," Wood said. "Adding additional market-rate rental housing in the neighborhood, which is in high demand, adds to the vitality."

Gulker said City Bakery erected the building in 1908 with the fourth floor added in 1923. Fireboy-Xintex, a maker of high-end fire suppression equipment, was the most recent long-term tenant. It left the building in 2000.

Since then, several developers have made proposals to convert the building into apartments or condominiums, but never got much past the talking stage.

A pipe burst in 2007, flooding the building and several neighboring properties, but Gulker said there was no structural damage.

"It needs new windows and roofing, but structurally it is solid," he said.

The building is one of the last large vacant structures north of Cherry Street in the Heartside neighborhood.

Kitty corner from the building, Rockford Construction and the DeVos family have been discussing plans to renovate the boarded-up former Heartside Manor/Mertens Hotel for years. So far they have not committed to a timeframe for that project.

Another nearby vacant building, the former Maxi's Lounge at 68 Commerce Ave. SW, is in the process of being renovated for The Pyramid Scheme, a bar and music venue.

Share: