EGLE awards grant to new affordable housing redevelopment

The Michigan Department of Environment, Great Lakes, and Energy (EGLE) is awarding an $850,000 Brownfield Redevelopment Grant to a project that will bring 46-units of new affordable housing to Muskegon.

The 0.97-acre property at 122 West Muskegon Avenue has been vacant since 2016. It was originally used for housing. It then had various commercial uses from 1938-1968 including gas station, auto repair shop, vulcanizing rubber company, dry cleaner, and paint shop. Contamination at the site, which includes petroleum compounds and chlorinated solvents, is believed to have come from that period.

The grant will pay for site assessments to look for underground storage tanks, demolition of the existing building as well as the parking lot and utilities, transportation and disposal of contaminated soil, and a system to keep vapors from moving into the new building.

Redevelopment plans call for a $16,000,000 four-story building that will be across the street from city hall and within walking distance of the public library and city farmers market. The city says the project will improve the appearance, property values, and walkability of this section of downtown Muskegon, and bring more retail traffic to the area. The city is helping reduce the cost of redevelopment by awarding the project Payment in Lieu of Taxes (PILOT). PILOT is a way to encourage the development of low-income housing by allowing developers to pay a service fee instead of property taxes. Construction is scheduled to be finished by spring of 2026.

 

More than half of EGLE’s annual budget supports local projects, protects public health and the environment, and helps create economic growth and jobs for Michigan workers. Redevelopment increases the value of brownfield sites and other nearby properties. In 2024 EGLE awarded $25.1 million in brownfield incentives to 87 projects around Michigan.