GRAND RAPIDS - New developments in and near downtown Grand Rapids continue to sprout, and planned expansions and projects are progressing despite a sobering economy.

Two new projects expanding the reaches of downtown that are expected to receive brownfield designations include a redevelopment of 502 Second Street NW into two offices and the renovation of 111 S. Division into a building aimed at drawing the film industry to the area.

Grand Rapids Economic Development Director Kara Wood said the city has a strong team that works together to craft development incentives for projects.

"We work together to offer the developer the best package to get the project done," Wood told MiBiz.

For the Second Street development located within the Downtown Development Authority boundaries, M Retail Solutions LLC and Catalyst Partners formed a separate LLC to restore the building for offices for the two companies. M Retail Solutions President Chris Muller and Catalyst Partners President Keith Winn plan to invest about $450,000 to renovate the 3,500-square-foot building.

Wood said the building, which was previously home to a machine shop, has been vacant for quite some time. Developers will also be able to use an existing, adjacent lot to expand in the future.

"The area has great potential for redevelopment," Wood said.

Muller and Winn liked certain aspects of the building, including some unique architectural features. Developers are using the services of an in-house architect for a conceptual design and plan to hire an architect soon.

Muller said the design of the building will be fitting with the neighborhood and will incorporate an overall theme for the building showcasing environmental technologies. Catalyst Partners helps businesses build LEED-certified buildings. Wood said developers hope to achieve "Living Building" status for the building, the highest LEED certification above the Platinum designation. Muller expects renovation on the building to begin in early summer in time for fall occupancy. Three banks, including one national bank and two local banks, are vying to finance the project.

"We have growing companies. They always like to see growing companies, and also the building is 100-percent owner occupied," Muller said, noting bankers like that there’s no speculative nature to the project. "We’re excited. It’s a cool building close to downtown with great views of the downtown skyline. It will be great to get in there and keep growing as a company."

Harris Lofts LLC will invest $3.5-$4 million to rejuvenate the vacant and rundown 38,000-square-foot building on 111 S. Division. Developer Robert Dykstra plans to transform the four-story building into a mixed-use LEED-certified building featuring a film and sound stage for the film industry.

The building will cater to local artistic talent and include space for photography studios, corporate meeting space, classrooms, commercial offices and potential retail space for a market and a wine/coffee shop.

Dykstra said the building used to be a brewery and a social club.

"It’s very unique," Dykstra told MiBiz. "Inside, it had a ballroom — a two-story space where we’ll put in film space to create films, commercials, Web casts and Web broadcasts."

He is seeking brownfield and historic tax credit and probably film credits. Work could start as early as June, but realistically the project will not be completed until summer 2010.

"The building is in such good condition, other than a new roof and new elevator, (so) it’s not going to take that long to build out," Dykstra said.

Dykstra is working with DTS + Winkelmann LLC for architectural services. In the building, Dykstra said his company is introducing "Next Work," a new concept that combines fitness and education areas for an integrated work experience. Users will have access to a photo studio, film stage, graphic design workstations and other resources. College-level courses will be available through NextWork University.

"Our vision is to create the office of the future — a place where today’s knowledge workers can collaborate, learn and succeed," Dykstra said.

EPA grant

Wood said there are numerous city sites — such as old gas stations or former manufacturing plants —that have the potential to be developed. Developers now can access funds from a new Environmental Protection Agency grant to be used upfront for site assessments to check on contamination. Grand Rapids partnered with the cities of Kentwood and Wyoming to obtain the EPA grant.

The funds are available to property owners or potential developers of sites. The cities can pay for the assessment, which can cost $5,000-$20,000.

Wyoming Deputy City Manager Barb Van Duren said Wyoming is working with a consultant and getting started on identifying some properties that may become viable projects.

"We’re very interested in looking at projects along Division Avenue," Van Duren said. Wyoming and Grand Rapids officials believe development will spring up along Division Avenue largely because of the Bus Rapid Transit, a high-speed bus line being developed by The Rapid that will run from downtown south along Division Avenue for nine miles. It will serve areas with the highest commuter volume in the region.