GRAND RAPIDS -- A dilapidated produce distribution center at the southern end of downtown could become a hub of commerce for local farmers, food makers and artisans as part of a $27 million urban market concept unveiled Wednesday.
Grand Action, the private group that led efforts to build the Van Andel Arena and DeVos Place, said it would forge ahead with plans to develop an urban market offering space for vendors to create and sell a variety of foods and other goods.
The market also is envisioned as an educational facility with a greenhouse, demonstration kitchen and meeting rooms that will help people better understand local food systems while teaching about healthier eating.
The preferred location is the 3.5-acre former Sonneveldt Produce Co. complex, 435 Ionia Ave. SW. The site is visible from U.S. 131, south of Wealthy Street.
"We see this as being a very good fit," said Jon Nunn, executive director of Grand Action. "It represents almost a new frontier, a new edge of the city. You know, 14 years ago when the arena was built, people said nobody would go south of Fulton Street there."
Today, the Heartside Neighborhood around the arena is a hotbed of redevelopment and the heart of the city's entertainment district.
Though smaller in its conceptual form, the project would be modeled on similar successful urban markets developed in Columbus, Ohio, Milwaukee, San Francisco and Seattle where fresh meats, seafood, baked goods and produce have proven major draws.
Grand Rapids' concept differs in that it could provide larger spaces that would enable both retailing and production, so sellers would be better able to manufacture and wholesale products on site. Space also is set aside for a restaurant, bar, brewery or tasting room, distribution and artist studios.
Conceptual plans show a commercial kitchen that could be used as an incubator for entrepreneurs needing a space to produce items sold at the market and to do other businesses.
A rooftop greenhouse, demonstration area and meeting rooms could be used for special events, classes and other functions. Portions of a four-story building that is part of the complex could be redeveloped as offices or apartments.
The Downtown Development Authority purchased the property for $2 million in 2007 as a potential site for expanding its DASH commuter parking lot system.
DDA Director Jay Fowler said he was excited about the idea of creating a place to offer a wider variety of fresh food downtown -- and another fun place to visit. He plans to discuss the market at the DDA's April meeting.
"There's still a lot of questions about it that need to be answered," Fowler said.
Among them:
• How would the market will be funded?
• Who will manage it?
• Who will own it?
• How will vendors be chosen?
• What will the DDA do for DASH parking if, as expected, commuter lots closer to downtown are redeveloped in years ahead?
Those questions are among those that will be part of the planning process for Grand Action and the DDA.
If funding can be secured, the urban market could open by spring of 2012, though the project's backers said that is an "optimistic" date.
Two other sites also were considered for the market -- Amway-owned parking lots near Charley's Crab along the Grand River south of Fulton Street and a group of vacant riverfront lots owned by Kent County, the city and The Press north of I-196 along Monroe Avenue.
The Sonneveldt site was considered ideal due to its visibility from U.S. 131, ownership, proximity to public transit, free parking and Heartside Park, which could be used for related events, said Ted Spitzer, a consultant specializing in urban markets hired by Grand Action last year.
Spitzer's study estimated the market could generate up to $25 million in revenue, $2 million in annual rental income with operating expenses of $1.5 million a year. He estimated the market could generate 1,270 jobs and provide a $775 million economic impact over 10 years.
The location stretches into the southern border of downtown, a gritty area now lightly trafficked and dotted with old factories and warehouses.
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A quick look at the urban market being proposed for Grand Rapids Potential vendors | ||
"You may say it's not part of downtown today but, when you look at what's happened on the south end of downtown, I think it's a logical next step," said John Canepa, co-chairman of Grand Action.
Canepa said the market, like the arena, can be a catalyst that spurs further redevelopment on adjacent properties.
Residential projects have been floated for the former Klingman's Furniture warehouse and Baker Furniture factories adjacent to the proposed market site but have not gone beyond the study phase.
The Grand Action proposal is similar to, though more broad-reaching than, a $10 million market concept pitched by a commercial real estate agent in 2004 to redevelop the same buildings. That project was abandoned when financing couldn't be found.
Grand Action said it has a finance committee exploring "a range of public and private financing options," including a variety of tax credits, bonds, grants, donations and private investment.
State and federal tax credits geared toward projects like the urban market could pay for up to 30 percent of the project cost, Spitzer said.
Major national foundations, such as the Kellogg Foundation, are doing more to support projects that encourage local food systems and healthier eating and could be a source of grant funds to get the project off the ground, Nunn said.
Today's announcement followed more than a year of study by Spitzer, who interviewed area farmers, grocers, farmers market managers, merchants, minority groups and real estate professionals, among others.
A major goal of the project was to ensure it won't interfere with the historic, but currently seasonal Fulton Street Farmers Market.
Leaders at Fulton Street have supported the concept and said they would forge ahead with separate plans to expand and modernize the older market.
"We didn't want to do anything that would be a detriment or compete with Fulton Street," Nunn said.
The urban market is expected to serve a broader population than Fulton Street while meeting demand for year-round space and increased demand by producers for ways to directly sell to consumers.
"We found tremendous enthusiasm for an urban market, almost to a person," Spitzer said.
E-mail Chris Knape: cknape@grpress.com