Club Tequila will be razed, thanks to $50,000 state grant to Kent County Land Bank

GRAND RAPIDS, MI - The next big date at the old Club Tequila night club will be with a wrecking ball.

The Michigan State Housing Development Authority (MSHDA) announced a $50,000 grant to tear down the 95-year-old structure at 725 S. Division Ave. on Monday, July 1.

The grant, to be administered through the Kent County Land Bank Authority, will clear the last of six properties that have been assembled by the owners of Van Eerden Food Service, which is headquartered next door at 650 Ionia Avenue SW.

Club Tequila was shut down by the city in 2010 after it generated 120 police calls in a two-year period. The building has been abandoned since 2010.

Van Eerden acquired the old tavern from Mercantile Bank for $275,000 last year after the previous owner went into foreclosure, according to city property records.

Company spokesman Doug Van Eerden said they acquired the property to get rid of an eyesore that was structurally unsafe and a shelter for illegal activity.

They have not yet developed plans for the property located along the new Silver Line bus rapid transit system, he said. The company has invested $1.4 million in buying up property along S. Division Avenue, according to MHSDA.

"We're kind of waiting to see what takes place in the years to come," he said. "I think we might invest in something that's mutually beneficial to Van Eerden's and the community."

The grant was among $3.8 million worth of grants aimed at helping 19 Michigan communities eliminate blighted areas.

"Over the years, West Michigan has been a key leader in economic development and community growth," State Sen. David Hildenbrand, R-Lowell, said in a MSHDA news release announcing the grants.

"I thank and congratulate the Kent County Land Bank Authority for taking the initiative to improve our community and look towards the future."

MSHDA's Blight Elimination Program has funded about $25 million in demolition projects since 2012.

"The Blight Elimination Program has provided an excellent way for local land banks and municipalities to promote growth and investment in our neighborhoods," Hildenbrand said.

Jim Harger covers business for MLive/Grand Rapids Press. Email him at jharger@mlive.com or follow him on Twitter or Facebook or Google+.

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