Nearly $2 billion development possibly coming to GR

[Glenn]

I mentioned this in the GM thread, but don't want to steer that topic too far off track.

Check this shit out, it's going to totally change the western side of the state if it comes to pass.

It's rumored that A&M Records/Geffen/Interscope would be re-locating to GR as part of this.

http://www.mlive.com/news/grpress/in...950.xml&coll=6

Document outlines plans for mystery development

Monday, March 27, 2006
By Nancy Crawley and Ken Kolker
The Grand Rapids Press

GRAND RAPIDS -- A developer with offices in Los Angeles and Atlanta is among the leaders in the mystery project along the Grand River, a spokesman confirmed today.

Duane E. Faust, a California-licensed real estate agent who owns ESNA Corp., is identified in a 22-page document that outlined plans for $1.6 billion project.

The document, dating from April 2005, envisions a 41-acre commercial, entertainment and residential district.

It includes a letter from Mayor George Heartwell in which he expresses his commitment to "creating the entertainment hub of the Midwest here in Grand Rapids."

Details have changed, but the proposal generally describes what the development could look like, spokesman Don Hunt said this morning.

"The specifics in the documents reflect a very early draft and should not be taken at where things are at present," Hunt said. "The dollars and specific components are very much out of date."

The document -- labeled "Draft-confidential" -- lays out a financing proposal for sweeping redevelopment of the industrial riverfront south of downtown.

Among the highlights: a 2,500-seat indoor and outdoor concert venue and a million-square-foot, multi-story mall. That is the same footage as the Woodland Shopping Center.

The district also would include an amphitheater, cinemas and small museums, and up to 1,500 town homes and condominiums. Shops, restaurants, a park and a riverwalk would round out the development.

Hunt said those were preliminary plans, created by a Los Angeles company for the developer. The company, Step Strategy Advisors, no longer is involved, he said.

He said he couldn't say whether the plans have grown or been scaled back.

The document was "commissioned" by the developer and Faust was "one of the parties involved in the project," Hunt said. "Duane is active in the leadership of this project."

He said Faust was not available for comment today but likely would discuss the project this week.

Faust recently bought a $1.37 million home north of Atlanta, records show.

The document states ESNA a year ago was in the process of securing purchase options on private land within the so-called "mystery development" area: from the Grand River east to Grandville Avenue and from U.S. 131 to Wealthy Street. The site has been the focus of intense interest in recent weeks as details have begun to surface.

The document also shows Mayor Heartwell and Faust have been corresponding since at least July 2004.

"I would like the opportunity to express my personal commitment to creating the entertainment hub of the Midwest here in Grand Rapids, Michigan," Heartwell wrote on July 12, 2004.

In another letter a year ago, he referred to the project as "Alpha One" and told developers the city was willing to sell land it owns in the project area. That land was formally put up for bid last week.

Heartwell's letter went on to say the sale process is competitive and told Faust "your proposal would have to pass muster against other proposals. . . . in a fair and open procedure prescribed by law and local ordinance."

Heartwell this morning declined to comment on the document or the letters, written on city letterhead.

"I'm bound by a confidentiality agreement," Heartwell said. "I'm simply not going to put myself in legal jeopardy given the binding document I signed."

The document shows ESNA has been counting on obtaining city-owned land along the river now used by the Public Works Department. It further stated the city "will be providing the public portion of the land under a negotiated long-term lease arrangement."

In the letter, Heartwell acknowledged Faust's proposal "might include deferred payment for the real estate."

Last week, the City Commission voted to put the 16 acres on the market for $35 million, seeking letters of interest from developers by May 19.

ESNA's plan indicates it planned to pay about $25 million for the private parcels within the project area, plus whatever it cost to obtain the city land.

The company would then refinance at a higher value once the whole parcel has been assembled and rezoned and the project designed.

Within three years, ESNA planned to sell the 41-acre parcel to an entity called River Grand LLC. There is no explanation of who controls that group.

River Grand would "seek syndication financing in the amount of $1.6 billion" to buy the land and pay for construction in several phases.

"Each phase of construction will be sold to residential borrowers, national retailers, entertainment conglomerates, major hotel chains, or local and regional business owners," the document says.

No specific entertainment entities are named, but the reference is consistent with confirmations from a number of people familiar with the mystery development. They have said the music and entertainment industry is a significant component.

It is also not clear whether the project as outlined would include facilities for a recording company, as mentioned in previous reports, or whether an urban music company that made previous inquiries into the site would be a tenant.

[Glenn]

I'm not sure how many here will find this story interesting because it deals with the west side of the state, but it sounds like it will definitely have state-wide impact.

It's sounds sort of like part Metreon (for those of you that have been to San Francisco) and part San Antonio Riverwalk.

Very cool.

Some think that this is the precursor to GR getting a major league sports franchise (or two). There is also some speculation that Donald Trump may be involved with the residential aspect of this.

[TK]

I'm not sure how many here will find this story interesting because it deals with the west side of the state, but it sounds like it will definitely have state-wide impact.

It's sounds sort of like part Metreon (for those of you that have been to San Francisco) and part San Antonio Riverwalk.

Very cool.

Some think that this is the precursor to GR getting a major league sports franchise (or two). There is also some speculation that Donald Trump may be involved with the residential aspect of this.

Where are you getting all this info?

I've been speculating what the hell this is all about, and through digging all I could come up with is it's supposed to have something to do with the Music and Entertainment industry.

I'm hoping for Auotoworld 2! :hyper:

[Hermy]

I pretty sure Purple East is just relocating across the street.

Total cost of the project is supposed to top a billion dollars. The only way they can get a financial return off that is to have some type of gambling according to sources. No way that flies in GR, so I remain leary.

[TK]

Total cost of the project is supposed to top a billion dollars. The only way they can get a financial return off that is to have some type of gambling according to sources. No way that flies in GR, so I remain leary.

If it's privately funded, I think they can build whatever they want, with the mayor's blessing.

It might be political suicide, though, if he red-stamps a casino in GR.

[Glenn]

Where are you getting all this info?

I read a lot.

Read this: http://www.mlive.com/grpress/myst.pdf

[TK]

Where are you getting all this info?

I read a lot.

Read this: http://www.mlive.com/grpress/myst.pdf

No worky.

[Glenn]

I'll email it to you as a pdf.

An interesting aspect of all of this is that if it does come to pass, Granholm's "Cool Cities" initiative will likely be a big reason.

What a major coup in an election year, and in Dick DeVos's backyard, no less.

[Hermy]

Total cost of the project is supposed to top a billion dollars. The only way they can get a financial return off that is to have some type of gambling according to sources. No way that flies in GR, so I remain leary.

If it's privately funded, I think they can build whatever they want, with the mayor's blessing.

It might be political suicide, though, if he red-stamps a casino in GR.

The native Americans had a 5 year court battle to get the OK to build one 20 miles away, no way anyone lands on right smack in town just cause they have the loot. I would think it would take the OK of city board as well, which IMO has no chance.

Whole thing smells fishy.

[Glenn]

I don't think a casino is part of this plan at this point.

Doesn't mean they can't drop a few riverboats in once everything is built (maybe 6-8 years from now).

Who knows what the climate/legislation will be at that time?

A big part of the fight against/failure of the Gun Lake/Wayland casino plan was that Grand Rapids-based business owners didn't want that "entertainment dollar" leaving the city.

It very well could be a "if you can't beat them, join them" scenario at some point, especially if they can keep the $ in GR, eating at their restaurants, buying tickets at their venues, etc.