Two historic building redevelopments in Grand Rapids are up for consideration by the city commission to be eligible for tax exemption certification.
The city commission will hold a public hearing Jan. 7 to consider an application for a 10-year obsolete property rehabilitation exemption certificate from Cedar Springs Brewing Company to renovate the building at 642 Bridge St. NW into a German-style beer hall.
According to city documents, 642 Bridge is a one-story structure with 3,430 square feet. The building originally was constructed in 1900 and was most recently used as a church until approximately 10 years ago.
The applicant purchased the property and plans to rehabilitate the obsolete building for commercial use.
According to a Business Journal report from mid-November, Cedar Springs Brewing revealed plans to open the new beer hall, dubbed Küsterer Brauhaus, with a tentative 2020 opening date.
The new location is named after Christoph Kusterer, who immigrated to Grand Rapids from Germany in 1844. Kusterer started a brewery in 1847 less than a mile away from what will become Küsterer Brauhaus, according to Cedar Springs Brewing.
Küsterer Brauhaus will serve Cedar Springs Brewing's signature Küsterer biers, including traditional Bavarian hefeweizens and lagers, as well as the brewery's ales and location-specific beers.
The beer hall will have its own three-barrel brewery on-site, manufactured by Fronhofer Design. Weber Developments LLC is developing the project.
The city assessor inspected the building in March 2016 and determined it meets the definition of “functionally obsolete,” as defined by Public Act 146 of 2000, and would require significant investment and rehabilitation prior to future use. No changes to the building have taken place since that time.
Rehabilitation of the building includes replacement of the roof, mechanical, plumbing and electrical systems, as well as significant interior and exterior upgrades to prepare for occupancy.
Investment by the applicant in the rehabilitation currently is estimated to be $249,000 with an additional $500,000 of improvements anticipated for the future tenant, Cedar Springs Brewing Company. Once complete, the project is anticipated to create approximately seven full-time equivalent jobs with an average wage of $19.50 per hour.
Cedar Springs Brewing also will seek special land use approval from the Grand Rapids Planning Commission in early 2020 for alcohol sales and a parking waiver.
On the same date of the public hearing for Cedar Springs Brewing, the city commission will hold a public hearing to consider an application for a 10-year Obsolete Property Rehabilitation Exemption for an entity affiliated with Cherry Street Capital. The applicant has planned a project at 1351 Leonard St. NW.
The applicant has purchased the property and plans to rehabilitate the obsolete building to be used as a venue for weddings and other events.
The building is a one-story structure consisting of 17,259 square feet. It was originally constructed in 1928 and was most recently used as an elementary school until approximately 2012. The city assessor inspected the building in March 2019 and determined it meets the PA 146 definition of “functionally obsolete.”
According to a Business Journal report from March 2019, Chad Barton, principal at Cherry Street Capital, received approval from the Grand Rapids Planning Commission to establish the event venue.
The 2.6-acre property was re-zoned in February from low-density residential to a traditional business area to accommodate the proposed use, according to planning commission documents.
The plan for rehabilitation of the building includes replacement of the roof, mechanical, plumbing and electrical systems, as well as significant interior and exterior upgrades to prepare for occupancy. An addition of 1,500 square feet to the north side of the building also is planned.
Investment by the applicant in the rehabilitation currently is estimated to be $2.6 million with $2.2 million in hard construction costs. Once complete, the project is anticipated to create approximately 23 full-time equivalent jobs with an average wage of $17.51 per hour.
The Obsolete Property Rehabilitation Act, or PA 146 of 2000, provides property tax exemptions for commercial and commercial housing properties that are rehabilitated and meet the requirements of the act.
Exemptions are approved for a term of one to 12 years as determined by the local municipality. Property taxes for the rehabilitated property are based on the previous year's taxable value prior to rehabilitation.