3 Muskegon waterfront housing projects receive $3M in state funding

What’s happening: The City of Muskegon has received three, $1 million brownfield redevelopment grants and developer-backed loans to assist three transformative housing projects. 

How they’re doing it: The Michigan Department of Environment, Great Lakes, and Energy (EGLE) awarded the grants, which are expected to draw $355.4 million in private investment and create more than 900 housing units.

Why’s it important: A recent study of the city’s housing market by a national housing consultant found that Muskegon will need 3,000 housing units of all kinds in the next five years. The three mixed-use housing developments could fill a quarter of that need.

The projects: Adelaide Pointe, Shaw-Walker and Harbor 31 will receive the environmental funds.

Adelaide Pointe is a condominium and commerical development that creates public access to Muskegon Lake. (City of Muskegon)

What’s planned:

Adelaide Pointe. This 200-unit condominium development, which includes a marina, retail center, hotel and restaurant, creates public access to Muskegon Lake at the far end of West Western Avenue. The EGLE grant will pay for the treatment of contaminated groundwater and demolition of a concrete foundation on the former foundry site. For more information on Adelaide Pointe: Muskegon Vehicle Storage and Marina Community – Adelaide Pointe

Shaw-Walker. The historic former Shaw-Walker office furniture plant at West Western Avenue and Division Street overlooking Muskegon Lake will be redeveloped into 552 condominiums and apartments with associated commercial space. The EGLE grant will further environmental investigation, installation of vapor mitigation systems and removal of wood block flooring along with abatement of asbestos and lead paint.
Harbor 31. This waterfront redevelopment of a former engine plant property will create 174 housing units, a 105-unit senior living facility, a marina, hotel and commercial space on Muskegon Lake at Terrace Street and Shoreline Drive. The EGLE grant will provide further site assessment and installation of vapor mitigation systems. For more information on Harbor 31: Harbor 31 – Redefining Lakeshore Life

What they are saying: “The whole team at the city of Muskegon, from the front-line Development Services staff to the city manager and elected officials, are committed to cleaning up these industrial legacy sites in our community,” says Jake Eckholm, city director of development services. “We have worked with our private sector partners to turn vacant, blighted, contaminated land and structures into projects that will increase public access to Muskegon Lake, create hundreds of housing units at a wide variety of rents and sale prices, and bring many new jobs that are attainable for our residents who call Muskegon home.”

What’s the big picture: More than half of EGLE’s budget each year flows into Michigan communities through grants, loans and other spending that supports local projects, protects public health and the environment, ultimately creating economic growth and jobs for Michigan workers. Redevelopment of brownfields – vacant or abandoned properties with known or suspected contamination – increases property values both on the revitalized site and on other nearby properties. Overall, in 2022 EGLE provided $20.7 million in brownfield funding to 67 projects statewide.

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Read more articles by Shandra Martinez.