LANSING, MI - A 5-story apartment complex along the east bank of the Grand River on Monroe Avenue NW was cleared to capture over $1 million in local and school taxes to help pay for site cleanup costs.
The $9.6 million Rivers Edge project at 1001 Monroe Avenue NW will be built on a half-acre lot next to the city's Canal Street Park. It will replace a single story cement block office building that was demolished last month by developer Orion Construction LLC.
The tax capture was approved on Tuesday, Dec. 20, by the Michigan Strategic Fund Board.
The 12-year tax capture is designed to help the developer clear contaminated soil on the lot and prepare the site for new construction. Although the project is eligible for more than $1 million, state officials estimated the formula used for the capture will only yield $665,330 for the developers.
The Rivers Edge project will include ground floor commercial space, 32 apartments on the upper four floors and 32 spaces for parking. The project is expected to create the equivalent of about 35 full-time jobs.
The site was acquired in 2014 for $1.3 million. It is one of a few private non-residential properties on the west side of Monroe Avenue NW between Leonard Street and the Sixth Street Bridge.
Orion has been an active investor in the development of downtown apartments in recent years, putting together the $45 million deal to build Arena Place, which was recently completed at 55 Ottawa Avenue SW.