KALAMAZOO / PORTAGE / BATTLE CREEK | Development Thread

[deja vu]

Back from a few days camping up north. I have decided that I like vacation more than work...

Originally Posted by LMich

It's blowing my mind that the DDA is losing money, though I guess it does go to show how much of the development downtown has been residential. Does the current DDA boundaries cover Upjohn? It seems crazy to avoid them given that's where all of the money would be. I know they don't want to antagonize them, but they are the biggest private downtown employer by far, right? Perhaps more effort needs to be focused on growing the downtown private employer base with the residential development having largely taken care of itself. I think the Exchange is good in that it has some commercial space, but a nice, speculative Class A office building would probably be more the speed to kick things off.

The current DDA boundaries do cover what was once Upjohn property. Some of that is now current Zoetis and WMU property. By 'biggest private downtown employer', if you are referring to Upjohn's modern 'successor' / purchaser - Pfizer, then no, because Pfizer is technically Portage-based. The largest downtown employer is Bronson Methodist Hospital, which employs upwards of 8,000 total employees, and I think around 3,000 at its main downtown facilities. But they're tax-exempt.

I too am somewhat surprised that the current market hasn't driven development of more class A office space in the downtown core. But with the 7-story Catalyst development supposedly breaking ground soon (they did expand the perimeter construction fence last week), and with Phase 2 of The Foundry supposedly kicking off soon as well (pretty boring-looking 1 - 2 story office space), there is some stuff on the horizon.

But I would disagree that residential development has largely taken care of itself. Apart from The Exchange (billed as market-rate / 'luxury' living) I would say it seems the opposite. Private development of housing downtown is slow, and small-scale. There is tons of prime land and incentives out there for developers willing to consider a public funding component, but despite the many pleas for affordable and varied housing options in downtown and in its surrounding neighborhoods, the city can't get much kickstarted, even with local and state incentives (the new 4-story, 135-unit, mixed-use affordable housing proposal at the corner of Rose St. and Lovell being the apparent exception, for now). The BRA continues to issue RFPs for their many sites and can't seem to get anyone to bite. At least not anyone that they are confident working with.

I read or heard recently (on the radio maybe?) that there is something like 10,000 daily commuters who work downtown, and something like 2,000 residents downtown. But of those 10,000 commuters and of those 2,000 residents, only about 100 or so fall into both categories (living and working downtown). I don't remember who did this study, but will try to find out. If it is remotely close to true, it says something about a city of 75,000 if only 100 downtown employees actually live downtown.

In other 'news' -

It's neat to see Kalamazoo's Burdick street featured on this PBS special, alongside roads like Woodward Avenue, Detroit, and Fifth Avenue, NY.

Kalamazoo Mall featured on PBS special about streets that changed America
Franque Thompson | Newschannel 3
June 4, 2018

The Kalamazoo Mall will be one of 10 places in the nation featured as one of the streets that changed America in an upcoming PBS special. Lynn Houghton, mall curator, said hundreds of cities followed Kalamazoo's lead after seeing the success it had with the mall and Kalamazoo was affectionately named Mall City USA after the success of the development. The Kalamazoo Mall is still one of the most vibrant places in the city and still holds part of the vision Austrian developer Victor Gruen had for the space when it first opened in 1959, a place for people to shop, eat, socialize and do business...

And this recent article does not do much to inspire confidence for the 'revived' downtown arena plan. WMU didn't even know about it until the media broke the news, and they would likely need to be a stakeholder in it, in order for it to succeed. I'm surprised to say that I am inclined to agree with many of the commenters on the article, who point out that right after the earlier proposal lost steam when the recession hit, Western and KWings invested lots of money into their own, existing facilities. Why now would these entities want to entertain a completely new investment when they have current facilities that are adequate? Either way, I think the PR for this has been handled rather poorly so far.

Western Michigan 'neutral' on proposal for arena on its property
Malachi Barrett | MLive
July 10, 2018

KALAMAZOO, MI -- Western Michigan University has no plans for property it owns in the northwest corner of downtown Kalamazoo -- land seen as the last site for a $110 million event center. Southwest Michigan First CEO Ron Kitchens said an internal group of "emerging leaders" under the age of 35 are leading efforts to build a publicly-owned sports and entertainment center at the corner of West Kalamazoo and North Westnedge avenues. Bob Miller, WMU's associate vice president for community outreach, said the university is "neutral" toward the project...

[LMich]

Originally Posted by deja vu

Back from a few days camping up north. I have decided that I like vacation more than work...

The current DDA boundaries do cover what was once Upjohn property. Some of that is now current Zoetis and WMU property. By 'biggest private downtown employer', if you are referring to Upjohn's modern 'successor' / purchaser - Pfizer, then no, because Pfizer is technically Portage-based. The largest downtown employer is Bronson Methodist Hospital, which employs upwards of 8,000 total employees, and I think around 3,000 at its main downtown facilities. But they're tax-exempt.

I too am somewhat surprised that the current market hasn't driven development of more class A office space in the downtown core. But with the 7-story Catalyst development supposedly breaking ground soon (they did expand the perimeter construction fence last week), and with Phase 2 of The Foundry supposedly kicking off soon as well (pretty boring-looking 1 - 2 story office space), there is some stuff on the horizon.

But I would disagree that residential development has largely taken care of itself. Apart from The Exchange (billed as market-rate / 'luxury' living) I would say it seems the opposite. Private development of housing downtown is slow, and small-scale. There is tons of prime land and incentives out there for developers willing to consider a public funding component, but despite the many pleas for affordable and varied housing options in downtown and in its surrounding neighborhoods, the city can't get much kickstarted, even with local and state incentives (the new 4-story, 135-unit, mixed-use affordable housing proposal at the corner of Rose St. and Lovell being the apparent exception, for now). The BRA continues to issue RFPs for their many sites and can't seem to get anyone to bite. At least not anyone that they are confident working with.

I read or heard recently (on the radio maybe?) that there is something like 10,000 daily commuters who work downtown, and something like 2,000 residents downtown. But of those 10,000 commuters and of those 2,000 residents, only about 100 or so fall into both categories (living and working downtown). I don't remember who did this study, but will try to find out. If it is remotely close to true, it says something about a city of 75,000 if only 100 downtown employees actually live downtown.

Shows you how behind I am. I thought Pfizer still had a major downtown presence if even greatly reduced. I guess then it's not really a big deal if they leave out the former Upjohn complex, as I between WMU (tax-exempt) and Zoetis, I imagine that that's not a lot of money and they'd likely want to be able to keep it out of the DDA to market it more easily.

As for residential development, I guess I also overstated the amount of it. But what I was getting at is that relative to commercial development in say the last 15-20 years, that most development downtown - and I was talking mainly conversions into lofts and such - has been more residential than commercial, right? Development of housing may be slow, but I can't really remember the last time there was any significant office building built downtown. More than that, as you revealed it seems the city has spent much more of its time and effort into developing housing downtown than it has commercial space.

It just seems to me that it'd be easier for Kalamazoo to try and land some bigger downtown employers to spur larger-scale residential developers, because it seems doing is it the other way around hasn't been working. But this is true of most of Michigan's cities. I think we've reached a point in a lot of these cities where attracting residents for "downtown amenities/living" instead of attracting downtown jobs to lure residents has kind of diminishing returns; we've kind of maxed out the "people who want to live downtown because of the cool shops/parks" category of potential downtown residents.

[subterranean]

Originally Posted by LMich

I think we've reached a point in a lot of these cities where attracting residents for "downtown amenities/living" instead of attracting downtown jobs to lure residents has kind of diminishing returns; we've kind of maxed out the "people who want to live downtown because of the cool shops/parks" category of potential downtown residents.

Yes. It's the main failure from a state policy perspective, too. Or at least it was with the 'placemaking' programs. I was initially skeptical when the community development programs moved from MSHDA to MEDC, but now I'm optimistic. I've spent enough time in the great urban centers on the west coast to understand that if there are the right jobs, then people will come. And urbanism is en vogue right now, hopefully for good, but who knows. It's important have the middle and high density housing typologies many Michigan downtowns are so sorely lacking, and the amenities, but you need to have the jobs. And the schools. Schools are also where so many communities fail badly. Without good schools, you're going to get the young professional set and perhaps a couple empty nesters, but you're not winning unless you're getting the people with kids. End of story.

[deja vu]

Originally Posted by LMich

...As for residential development, I guess I also overstated the amount of it. But what I was getting at is that relative to commercial development in say the last 15-20 years, that most development downtown - and I was talking mainly conversions into lofts and such - has been more residential than commercial, right?

I would agree. I don't know the dollars and cents comparison for residential vs. commercial investment in this city over the past decade, but in terms of visible conversions and remodeling especially, I'd guess that residential is winning out, to the point that semi-vacant, downtown commercial structures (thinking Mall Plaza, Corporation Hall, 100 block of E Michigan Ave.) have all had their above-ground floors converted into residential lofts and apartments.

Originally Posted by LMich

...It just seems to me that it'd be easier for Kalamazoo to try and land some bigger downtown employers to spur larger-scale residential developers, because it seems doing is it the other way around hasn't been working. But this is true of most of Michigan's cities. I think we've reached a point in a lot of these cities where attracting residents for "downtown amenities/living" instead of attracting downtown jobs to lure residents has kind of diminishing returns; we've kind of maxed out the "people who want to live downtown because of the cool shops/parks" category of potential downtown residents.

I concur. The question in Kalamazoo that I hear all the time is, housing for who? There are very strong racial and socio-economic divisions here, and for a city so small, I think local government and developers alike have struggled to navigate the dynamics and historical divides in the city when it comes to providing new housing. I also think a lot of businesses steer clear of downtown because of the complexities involved with developing something new (various overlay districts, taxes, land acquisition, parking challenges, etc. etc.). That's pretty much a challenge in any urban center, but in a region where rural land land is available just a few miles away from the city center (and is still quite cheap and less regulated), many businesses opt for staying outside the core. Maybe The Exchange will set a good precedent for the coming years in attracting more businesses with substantial employment #s to downtown.

One thing's for sure - if the number of folks who can currently claim live / work status in downtown Kalamazoo is less than 1/2 a percent of the entire city population, yet recent studies say the downtown is ready to support another 2,000 - 3,000 units of housing, something isn't adding up...

Originally Posted by subterranean

Yes. It's the main failure from a state policy perspective, too. Or at least it was with the 'placemaking' programs. I was initially skeptical when the community development programs moved from MSHDA to MEDC, but now I'm optimistic. I've spent enough time in the great urban centers on the west coast to understand that if there are the right jobs, then people will come. And urbanism is en vogue right now, hopefully for good, but who knows. It's important have the middle and high density housing typologies many Michigan downtowns are so sorely lacking, and the amenities, but you need to have the jobs. And the schools. Schools are also where so many communities fail badly. Without good schools, you're going to get the young professional set and perhaps a couple empty nesters, but you're not winning unless you're getting the people with kids. End of story.

Well put. No doubt that education is a key factor. Kalamazoo has The Promise (guaranteeing discounted or free in-state college tuition to those enrolled at Kalamazoo Public Schools), which definitely helps, but its public schools need work. They are not considered as strong as many surrounding communities. Portage Public Schools, Mattawan Consolidated Schools, and Gull Lake Community Schools all rank highly in the state, and these are communities that are all growing faster than Kalamazoo proper, by at least double the rate. And I think business is growing faster in these outlying communities too.