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.

How Can I Get More Engaged?

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. No cost for members and easy to sign up!

Start Your Week:

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

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.

Government Affairs: Q4 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

Why Does it Matter?

Having engaged, informed and active business leadership is critical to our success. The Council guides the Chamber’s local efforts and is honed in on three key areas to promote a thriving business environment. These factors are critical in overall vibrancy and improving quality of life and are often cited as a major determining factor in attracting and retaining talent, employers and investment.

Included below:

Reversing the Urban Doom Loop
City Engages Employers on Parking
What to Expect from Lansing in 2024
Safety Remains a Top Business Priority
2024: Big Year for Big Projects
2024 Election
Growing Michigan Together Council Releases Report
How to Get Engaged

Dash of Data: Visitor Activity

Throughout 2023, the daily visitor count in downtown Grand Rapids has consistently stayed above the 5-year average, with November seeing a 12% increase.

IT’S NOT JUST US.

Urban Boom or Urban Doom:

Across America, many cities and metro areas are facing the same challenges leading to a phenomenon called the “Urban Doom Loop.” The loop starts off simple — all it takes is a decrease in population for the cycle to be set in motion:

As quality-of-life decreases, people leave. Tax revenue is reduced. Cuts must be made. Quality of life drops, and more people leave.

San Francisco serves as the common example of the dangers of the urban doom loop:

Since 2020, the Bay Area has lost a quarter of a million residents.
San Francisco’s population has dropped 7.2%.
The city has an almost 30% office vacancy rate, up from around 5% in 2019.

But cities across the Midwest face similar challenges as well:

Minneapolis has 21.2 million square feet of vacant office space and expects to max out at 75% of its pre-pandemic workforce.
The Midwest as a region has lost over 400,000 residents from 2020 to 2022.

Our Goal: Reverse the Loop

A review of more successful cities shows a common thread. Their leaders point to a focus on:

Attraction and retention of talent
Investments in the “livability” of the city
Frequently note cleanliness, safety, green spaces, and entertainment.
Promoting unity between public and private sectors behind a shared goal

Our goal is to reverse the loop. With the support of business leadership and continued public-private collaboration, the Grand Rapids metro is poised to do just that. A number of investments based on a successful P3 model are planned for 2024 (more info below!).

How Our Priorities Align:

A significant majority of West Michigan’s growth comes from within Michigan. A scientific survey of Michigan youth ages 18-29 had housing attainability (housing supply) and low crime rates (safe communities) as the top two considerations on their minds. Entertainment, amenities and recreational opportunities (transformational projects) were also rated high under several categories.

The City of Grand Rapids has taken a number of actions to address clean, healthy and safe public spaces and the difference has been noticeable.
Grand Action 2.0 is leading the effort with numerous public and private partners to bring transformational investment.
Housing Next is working to create financing tools and remove regulatory barriers to housing supply and affordability.

CITY ENGAGES EMPLOYERS ON PARKING

What Happened?

This fall the Mobile GR Department held several roundtables with property owners, business managers, real estate professionals and more.

What Was Discussed?

The parking and mobility department was one of the hardest hit by COVID-19 and the extended shutdown which created a projected deficit. They are evaluating options and gathering feedback on several different approaches for the next budget year.

One meeting focused mostly on safety and cleanliness in off-street parking ramps. Mobile GR reported they have taken actions since the first discussions including changes to the cleaning schedule of ramps, improvements to the security, increased camera coverage and routine stairwell checks. They will also be working to have more cleaning done during the day in the ramps.

What Was the Outcome?

There was a strong consensus on a few items. That costs for monthly parking permits are a concern for downtown employers and that special events prices and on-street parking enforcement hours could be evaluated to support revenue needs.

What’s Next?

The Mobile GR Commission recommended funding strategies align with the feedback above to the City Manager & Commission. Greater details will come with the next budget year.

Quarterly meetings will be held next year with city staff and stakeholders to continue to improve feedback, communications and build relationships. Want to get engaged? Contact trevor@grandrapids.org.

WHAT CAN WE EXPECT FROM LANSING IN 2024?

The Chamber had a successful year in supporting legislation, including:

The expansion of the Elliott-Larsen Civil Rights Act
Ending the unfair delivery and installation tax
Allowing tax increment financing for workforce housing
Increasing the earned income tax credit

What’s on the Agenda?

The Governor is pushing for action on the “Make it in Michigan” economic development package which includes changes/funding for the SOAR incentive program, the R&D tax credit and more. The language of the Senate-introduced legislation was not received well by Republicans and has so far sputtered out. An effort is underway for a bipartisan workgroup to get things moving again.

The Governor also announced a new vehicle tax credit initiative which favors electric and union-made vehicles. She is expected to mention this and more in her 6th State of the State in January.

What Else Should I Know?

With the House partisan split now 54-54 due to the election of two House Dems to mayoral seats, items won’t be able to move on party-line votes until late April.
Committees, however, remain stacked heavily in favor of House Democrats. This means even partisan items could advance through the Committee process to be taken up later in the year.
The Senate remains at 20-18 Democratic control and could also advance items to tee up in the House.
Lame duck should concern employers on items that currently lack votes to advance. The session days following the election, particularly if the House flips Republican, could mean a track race to finish items before split control returns.

What is the Chamber Doing?

We are meeting locally with members and legislators to discuss unintended consequences of a number of bills and doubling-down on broad coalitions to increase effective advocacy for:

Going Pro funding increased to $110 million in FY 2024-25 budget
Childcare: Remove federal red tape and expanding programs in the state
Reducing regulatory obstacles for housing
Immigration reform

What is the Chamber Opposing?

We will oppose any new onerous impacts on employers that will limit job creation.

SAFETY REMAINS A TOP BUSINESS PRIORITY

In response to continued business interest, the Grand Rapids Chamber held two safety trainings in November for businesses and employees to be prepared for whatever situations they may encounter.

On behalf of South Division Businesses, we facilitated Safety Training at Four Star Theater led by Jayme Nunn and DK Security to cover verbal de-escalation and situational awareness. Grand Rapids Police Chief Eric Winstrom and Captain Terry Dixon also attended and answered questions. This training featured Spanish translation to accommodate our Spanish-speaking community.
We held an additional Safety Training at the Chamber, led by Jason Russell and Secure Environment Consultants that covered what to be prepared for and how to respond to workplace incidents and emergencies.

2024: BIG YEAR FOR BIG PROJECTS

Grand Action 2.0 and the numerous public and private partners involved in bringing an amphitheater and soccer stadium to downtown Grand Rapids are working towards breaking ground later this Spring.

The projected impact of these projects means hundreds of jobs and more than a billion in net new economic impact. The impact of the projects goes far beyond their physical limits and will catalyze thousands of housing units, mixed-use development, and investment in greenspace and trails.

But There’s More:

Several other noticeable projects are underway or about to kick off including Lyon Square, Grand Rapids Public Museum Expansion, the Grand River Greenway, Factory Yards, River North, Corewell Health’s Center for Transformation and Innovation, and more.

What Else Should I Know?

Much like the “doom loop,” everything is connected. These investments and a vibrant business environment will spur further investment and raise the quality of life for current and future residents.

2024 Election

Big Changes Coming:

The announcement that Third Ward City Commissioner Nathanial Moody will resign from his position on December 31st for personal reasons means that three of the seven members of the Grand Rapids City Commission will not be returning in 2025.

Commissioner Jon O’Connor (Ward 1) and Mayor Rosalynn Bliss are term limited. With the Mayor and both commissioners leaving office, experience in leadership and small business is significantly impacted.

Why Does it Matter?

Leadership matters and with the challenges noted above facing cities, it is critical that high quality candidates are elected to fill these seats.

What’s Next?

Former Commissioner and State Representative David LaGrand and former Commissioner and School Board Member Senita Lenear have both announced for Mayor.