Government Affairs: Q2 Quarterly Update

The Chamber’s priorities for regional and local advocacy have been further honed by business leaders to focus on the elements that are critical to vibrancy.

While our team is working hard to ensure a Michigan business climate that promotes job creation, the Municipal Council has set a pro-growth agenda that focuses on:

Transformational Projects
Safe Communities
Increased Housing Supply

Learn more about what our team has been up to in Q2.

Destination Kent

Last month, the Acrisure Amphitheater took an important step forward, but there is still a major action coming that Kent County voters need to take to ensure the next generation of transformational projects are successful.

Destination Kent has launched to encourage residents to vote yes on August 6 to allow an increase in the Kent County lodging (hotel/motel) tax.

The proposed increase from 5% to 8% will generate the predictable revenue to support the public financing components of catalytic public-private projects. We have successfully done this before for projects such as DeVos Place Convention Center.

This includes projects such as the Acrisure Amphitheater and an 8,500-person professional soccer stadium. Research shows these projects will create more than $1B in net new economic impact and create hundreds of jobs in the region.

With nearly 90% of the funding coming from visitors outside of the region, this has been coined as “the tax you don’t pay.”

The Grand Rapids Chamber is strongly supporting a YES vote and urges you to share this information with friends, family and colleagues. Learn more about Destination Kent here: Yes Destination Kent.

Dash of Data – DDA Visitor Activity

Learning from Houston on Homelessness

What Happened:

In March, a delegation of public, private, and philanthropic stakeholders from Grand Rapids traveled to Houston to meet with leaders who helped lead a significant turnaround in homelessness outcomes over the last decade.

Why Houston?

In 2011, the metro had ~8,500 unsheltered individuals, landing it in the top 10 for homelessness in the country. Since then, they’ve made significant and lasting progress in addressing chronic and other types of homelessness.

Takeaways:

The group, which included the City, County, Chamber Continuum of Care and other partners, benefited from time to work together on pressing issues and engaging with Houston leaders, donors, and nonprofit executives. Here are a few key items:

Grand Rapids can use a similar model of public-private partnerships that have helped our region succeed to address this challenging issue.
We need to have a bias for action. Advice from the Special Advisor to the Mayor of Houston was to “move fast and modify as needed.” The first few wins will build support.
Alignment, communication, and transparency are important.
Houston didn’t have a magical solution. It came down to commitment. If Grand Rapids can commit to solving chronic homelessness, it can be done.

What’s Next:

Public and private partners are joining the Continuum of Care (CoC) in Grand Rapids to launch a 100 in 100 effort later this year to house many of the most vulnerable individuals on the streets. The goal is to house 100 individuals in 100 days. Mayor Bliss publicly declared her support for this effort at her final State of the City address.

“If there is any city that can end chronic homelessness, it is Grand Rapids,” the mayor said, before asking the community to partner in the coming effort.

The CoC team is working to pull together the planning team to launch the effort later this summer. More details will be available as the team identifies opportunities for support.

Go Deeper:

Metros across the United States have struggled with addressing chronic homelessness, particularly since the pandemic. Unfortunately, finding a solution can quickly get “political.” Houston warns that balancing effective policy with reputational risks and political needs is difficult. Thankfully our community continues to show the courage to stay at the table even when philosophies don’t completely align.

The good news? Success is a win for everyone. Helping chronic homeless individuals find permanent housing solutions with appropriate services will significantly improve their quality of life. We also know it will reduce emergency room visits, enhance vibrancy in public spaces, and support additional investment in our urban core leading to more revenue for the City to invest into essential services.

Stay tuned for more information on how the business community can support these efforts.

Dash of Data – Downtown Office Vacancy Rates

Local PAC Endorsed Candidates

The Grand Rapids Chamber Political Action Committee (PAC) has announced its slate of endorsed candidates for this August in several city and county elections.

The Chamber PAC is supported by the personal contributions of its members and is not supported by member dollars. Endorsement considerations include policy alignment with Chamber priorities, voting record for incumbents, questionnaires, interviews and public statements of candidates. All endorsement decisions require a two-thirds majority vote of the PAC Board.

Learn more here.

City Races:

For Mayor of Grand Rapids, the PAC endorsed David LaGrand, former Second Ward Commissioner and State Representative, as well as the owner of Long Road Distillery. LaGrand will face off against former Third Ward Commissioner Senita Lenear, Steve Owens, and Hailey Lynch-Bastion.     

In the First Ward, the Chamber PAC endorsed Dean Pacific, partner at Warner Norcross + Judd who also has experience on the Grand Rapids Civilian Appeals Board and Heas Start for Kent County Board of Directors. Pacific will face Melanie Droski, Alicia Marie Belchak, and Mike Fassbender in August.

For Third Ward Commissioner, the PAC endorsed John Krajewski, a principal at Hopkins Elementary with 20 years in public school administration and former GRPD officer. The Third Ward seat is the most crowded primary of the city races, including sitting-commissioner Bing Goei, Marshall Kilgore, Al Willis, Reggie Howard, and Joyce Priscilla Gipson.

County Races:

In Kent County District 2, the PAC endorsed Elizabeth Morse, the Downtown Development Director for the City of Sparta. She will face off against Joel Langlois in the August Republican Primary.

For Kent County District 10, the PAC endorsed Robin Halsted, a Marketing Assistant and former executive director at the Cutlerville-Gaines Chamber of Commerce. She will face Bill Hirsch in the August Republican Primary.

In Kent County District 18, the PAC endorsed Steve Faber, the communications and marketing director for the Kent County Department of Public Works. Faber will compete against Dan Hesse and James Rinck in the August Democratic Primary

In Kent County’s 19th District, the PAC endorsed sitting County Commissioner Kris Pachla, who also serves as the Director of the Center for Experiential Learning at Grand Valley State University. Pachla is unopposed in this August’s Democratic Primary.

These candidates join the slate of candidates at the county level that the Chamber PAC previously announced early-endorsements for:

Kent County Clerk: Lisa Posthumus-Lyons (R)
Kent County Drain Commissioner: Ken Yonker (R)
Kent County Sheriff: Michelle LaJoye-Young (R)
Kent County Treasurer: Peter MacGregor (R)
Kent County Prosecuting Attorney: Chris Becker (R)
Kent County Commissioner District 1: Ben Greene (R)
Kent County Commissioner District 3: Jennifer Merchant (R)
Kent County Commissioner District 5: Dave Hildenbrand (R)
Kent County Commissioner District 6: Stan Stek (R)
Kent County Commissioner District 8: Dan Burrill (R)
Kent County Commissioner District 11: Lindsey Thiel (R)
Kent County Commissioner District 12: Monica Sparks (D)
Kent County Commissioner District 13: Michelle McCloud (D)
Kent County Commissioner District 14: Carol Hennessy (D)
Kent County Commissioner District 15: Lisa Oliver-King (D)
Kent County Commissioner District 16: Melissa LaGrand (D)
Kent County Commissioner District 17: Tony Baker (D)

How Can I Get More Engaged?

Upcoming Events:

Our Breakfast with Legislators and Chamber Issue Forums provide opportunities to engage with lawmakers or dive deeper with experts on significant issues.

Our next Chamber Issue Forum on June 14 will focus on electric vehicles. West Michigan’s automotive industry is rapidly expanding to meet the needs of electric vehicles – investing in new facilities, creating jobs, and transforming manufacturing operations across the region. But where exactly does business and policy stand amid these transitions? How will these shifts affect neighboring industries? Sign up here to learn more.

Answer the Call:

Our monthly First Friday Call is the best way to get a quick update on the efforts of your Chamber government affairs team. There’s no cost for members and it’s easy to sign up!

Contribute:

The Friends of West Michigan Business Political Action Committee provides a voice to the business community to support pro-business and pro-growth candidates at the local, state, federal level.

Chamber Applauds County on Ballot Proposal to Support Transformational Projects [Press Release]

Kent County, Mich. — Today, the Grand Rapids Chamber applauds the Kent County Board of Commissioners for placing a question on the August ballot to increase the countywide lodging tax by 3% that can be used to support the amphitheater, soccer stadium and other future transformational projects.

If voters approve, the revenue stream will support the public financing components for these public-private partnerships without a general tax increase on residents.

The additional fees, collected from hotel room stays, will be paid for mostly by visitors from outside of Kent County. The 3% increase would put the County’s room tax rate in a comparable range to peer cities.

“Bringing these transformational projects to life is one of the Chamber’s top priorities and we the thank the Kent County Board of Commissioners for taking this critical step in making them a reality,” said Josh Lunger, Vice President of Government Affairs for the Grand Rapids Chamber. “These investments will support talent attraction and retention, bring more than $1 billion in net new economic activity and create hundreds of new jobs.”

“Imagine Grand Rapids without the DeVos Place and Van Andel Arena,” continued Lunger. “The benefits of those projects stretch far beyond their physical footprints and have led to over $11 billion in additional investment.”

“Supporting these new catalytic investments will drive the next generation of our region’s economic growth,” Lunger concluded.

The Chamber looks forward to supporting the ballot campaign, helping to educate the community on the proposal and seeing its passage on August 6.

Additional data:

86.6% of overnight visitors to Kent County come from outside of the Grand Rapids-Kalamazoo-Battle Creek Metropolitan Statistical Area in 2022.
9 million visitors stayed overnight in Kent County in 2022.
In 2023, hotel room sales in Kent County hit record highs, with 2.17 million rooms sold.
Between 73 and 80% of Ticketmaster sales for events at DeVos & Van Andel were purchased outside of Kent County in each quarter of 2023.
These new projects are entertainment amenities for all the residents of Kent County and West Michigan.

Sources: Longwoods International 2022 study, Experience Grand Rapids, Placer.ai data, Downtown Grand Rapids Inc.

Government Affairs: Q1 Quarterly Update

The Chamber’s priorities for regional and local advocacy have been further honed by business leaders to focus on the elements that are critical to vibrancy.

While our team is working hard to ensure a Michigan business climate that promotes job creation, the Municipal Council has set a pro-growth agenda that focuses on:

Transformational Projects
Safe Communities
Increased Housing Supply

Ward 3 Appointment: Deep Dive & Finalists

On February 20, the City’s Committee on Appointments conducted interviews and selected three finalists for the vacant Third Ward Commission seat.

Bing Goei (interview) – stated he is only seeking the appointment and will not seek election in November

In his interview, Goei stated poverty as the key issue facing the Ward and viewed the reduction of poverty rates as a key to addressing other issues such as homelessness, pressure on the healthcare system, and racism.

John Krajewski (interview) – stated he is seeking the appointment and intends to seek election in November, has already filed for election

In his interview, Krajewski stated that the biggest issue facing the ward is safety, and that safety is an all-encompassing term that includes public safety, environmental safety, mental health, as well as economic security.

Marshall Killgore (interview) – stated he is seeking the appointment and will be seeking election in November

In his interview, Killgore stated that housing and environmental concerns were two of the biggest issues that the Ward faces, and there were a number of opportunities for growth such as multi-modal transportation.

The appointed Commissioner will serve the rest of the year. The full Commission will interview and is expected to name the appointee on March 19. You can watch the interviews live here, starting at 11:30am.

What’s Next on Transformational Projects

Grand Action 2.0 Update from Kara Wood

The pre-approval community engagement process has wrapped up for the Soccer Stadium, and has provided critical input into the shared vision of bringing professional soccer to Grand Rapids.

We expect the City Planning Commission will consider the Special Land Use request at their meeting March 28, which will also provide a final opportunity for public comment.

GA2.0 believes community support and engagement is a critical component of a public-private partnership. Hundreds of Grand Rapids residents and stakeholders have directly participated in events that included meetings with focus groups, residents, neighborhood and business associations.

This includes discussions with John Ball Area Neighbors (JBAN), GVSU Leadership, the YMCA Executive staff, West Fulton Business Association, Stockbridge Business Association, Westside Corridor Improvement Authority, the CAA Community Inclusion Group, the West Grand Neighborhood Organization, and more.

The Focus Group meetings were held at Küsterer Brauhaus, the Hispanic Center of Western Michigan, the Downtown YMCA and the Center for Community Transformation. These meetings were jointly facilitated by La Fuente Consulting along with Progressive AE. Each meeting included multilingual interpreters offering four language options and bilingual materials.

The final public meetings summarized the information and input gathered for a virtual in-person Open House on Tuesday, February 27, 2024. The final component of the Community Engagement process will include information shared back with the groups and posting the information at the Grand Action 2.0 website.

See the latest in Crain’s.

Dash of Data: Office Vacancy

Source: DGRI – DDA Downtown Vitals Report January 2024

Office Vacancy in downtown Grand Rapids was 8.3% in the fourth quarter of 2023, down from 9.5% in the third quarter.

Divided House Doesn’t Mean Nothing is Happening

The Michigan House of Representatives will remain split 54-54 until April, when the two vacant seats are expected to be filled by Democratic candidates. The House has taken very little action on legislation in 2024 and we can predict that this trend will continue until the tie is broken.

This doesn’t mean all work in Lansing will come to a halt. The budget process has kicked off and Committees are holding hearings on a number of significant items to prepare items for post-election actions.

Here is what we are watching heading into spring:

Budget

The Governor’s budget proposal has been made and the House and Senate have started their own process. Read more about it here.

Redevelopment

The so-called “polluter pay” legislation may get a hearing before Spring Break. This legislation would have a significant impact on the ability for redevelopment/rehabilitation of brownfield sites in urban communities such as Grand Rapids.

The hearing is especially concerning because it will cast a shadow over and discourage potential investment in contaminated properties. The Chamber’s Infrastructure and Natural Resources Committee is meeting to discuss ways to inform legislators and other stakeholders of the benefits of the current process and the severe consequences of the current proposal.

Rumors/Behind the Scenes: Workers Compensation & Unemployment

Significant rumors and potential language are circulating about new legislation impacting workers compensation and unemployment policies in Michigan. This is concerning for business and the Chamber team will be watching developments closely.

Economic Development

The Governor made three economic development items a top priority. The first two, creating a Michigan R&D tax credit and Renaissance Zones changes passed the House and sit in the Senate.

The third component, the High-wage Incentive for Regional Employment (HIRE) incentive, was initially introduced in the Senate but has been introduced in the House with several changes to address concerns in the current Senate bill that led the Chamber and other organization to oppose the bill.

To deliver these bills to the Governor, the Senate would have to pass all three and the House would have to pass HIRE.

Child Care

Child care continues to be a policy focus for many legislators in Lansing. The Governor’s new Department of Lifelong Education, Advancement, and Potential (MiLEAP) now oversees all things childcare, from licensing, to quality, to the MI Tri-Share program.

We are focused on expansion of the MI Tri-Share program to become a statewide program that will allow for all employers to better utilize the program. This would also include an increase in the cap of qualified families.

In her budget presentation, Governor Whitmer also proposed $60 million for Child Care Benefits for Child Care Workers Pilot program. Details are still to come on what this program will look like, but potentially could show similarities to a program in Kentucky.

The Grand Rapids Chamber is positioned to advocate for a substantial increase in childcare investments across the state, ranging from MI Tri-Share expansion to grants for childcare providers. By addressing the extreme shortage of slots available and the cost associated with care, parents will have more flexibility to return to work and help address the workforce shortage throughout West Michigan.

Kent County Corridors Could Provide Housing Opportunities

What’s Happening:

Housing supply remains a top issue of discussion in West Michigan. Dr. Paul Isely stated it as one of the major opportunities to promote economic expansion for our relatively young and growing region.

What’s Being Done:

To help scale efforts, Housing Next has identified 21 corridors in Kent County that have the infrastructure and available land to solve a significant share of the regional housing need over the next decade.

As a roadmap for long term prosperity and some initial takeaways include:

1600+ acres of vacant land with direct access to sewer/water have potential to produce 33,000 units.
Significant opportunities for redevelopment of functionally obsolete properties

What Happens Next:

Using these corridors effectively will require coordination between the public and private sector as well as lending partners and investors. Later this spring, Housing Next will be unveiling a strategy to support the region in an aligned approach to housing supply at all price points.

Dash of Data: Visitor Activity

Daily visitor activity for downtown Grand Rapids was 5% higher in January 2024 than the January 5-year average but was 8% lower than the daily average for January 2023, and 6% lower than December 2023.

Kentwood considers public safety millage

The Kentwood City Commission has placed a public safety millage on the May ballot. If approved by voters, the 1.95 mills would generate an additional $5.1 million to support the police and fire departments.

The City views the millage as a necessity to support emergency services. Kentwood’s population has increased 11.5% since 2010 to more than 54,000 residents. This comes with a 14% increase in calls for police service and a 36% increase in calls for fire and emergency medical services.

“Kentwood has had the same police staffing levels since 2000,” said Kentwood Mayor Stephen Kepley. “This proposal will allow us to enhance community safety by raising the minimum staffing levels from three to five police officers, and invest in training, necessary equipment, and proactive community engagement.”

The City also highlights that the dedicated funds will:

Support the creation of a basic public safety outdoor training facility, eliminating the need for additional travel and overtime.
Enable the Fire Department to add another EMS unit in the future when the demand for emergency services exceeds current staffing.
Fund increased simulation-based training for police and fire personnel
Add updated technology/equipment and enabling public safety departments to focus resources on proactive prevention and education

Wyoming voters passed a similar, dedicated 1.5 mill public safety millage last year with 64% support.