MUSKEGON, MI – A prominent Muskegon developer who has a purchase agreement for the huge Shaw Walker factory “eyesore” near Muskegon Lake is asking the city’s help in determining the extent of contamination there.
Jon Rooks, owner of Parkland Properties, said he’s interested in developing condominiums and apartments at the shuttered factory that would include a roof top pool and possible restaurant.
He told city commissioners on Monday, Sept. 12, the owner is on a fast-track to sell the property before the end of the year for tax reasons.
The former factory at 965 W. Western Ave. had been owned for two decades by P & G Holdings, a New York based firm that developed a portion of the property into the Watermark Lofts multi-unit residences as well as the Coffee Factory restaurant and Watermark 920 event center.
But approximately 700,000 square feet remain undeveloped, and the dilapidated structure has been the source of ongoing complaints about its unsightliness.
There have been several plans for the old office furniture factory, including more residential units and an indoor entertainment center. The latest plan for the property by P & G principal Moses Gross was a marijuana growing and processing operation.
But P & G lost the property to a lender, and Rooks said his purchase agreement executed a month ago gives him until Oct. 25 to complete his due diligence period of inspection. The sale closing is to occur within 30 days after that, he said.
“This project is really challenging,” Rooks said. “It’s also challenging to close that fast.”
Among work needed as part of due diligence is investigation for potential PFAS contamination as well as possible “vapor intrusion” into the building, Rooks said.
The vapor intrusion, involving contaminated vapors emanating from soil or groundwater under the building, can be costly to address. Rooks said that could involve developing vapor barrier and gas removal systems under the building if residences are to be constructed there.
He said there are 14 categories of due diligence that will cost $150,000 and he asked commissioners if the city would kick in $50,000 toward that cost. Another $50,000 has already been committed by the Greater Muskegon Economic Development corporation, Rooks said.
Among the due diligence items are researching if there’s sufficient water pressure in the building to service the residences, whether there’s an adequate fire protection system and if there’s asbestos or lead paint that have to be abated, Rooks said.
The city commission agreed to consider the request when it meets on Friday, Sept. 16. The money for Rooks’ request could come from the city’s share of American Rescue Plan Act funding, its economic development fund or possibly the public improvement fund, said city Development Services Director Jake Eckholm, who called the building “our biggest albatross in town.”
Rooks has worked with the city to develop the VanDyk Mortgage Convention Center downtown. He redeveloped a downtown bank building into the Highpoint Flats apartments and commercial building and the city’s old fire station into an office building.
Parkland Properties also owns the Delta by Marriott downtown hotel, the Shoreline Inn and Conference Center and the Lake House Waterfront Grille and Event Center.
Noting the city’s history of working with Rooks, Mayor Ken Johnson said it’s “sensible” for city officials to partner in a site assessment of the Shaw Walker building so they know the obstacles there, even if Rooks doesn’t end up closing the deal.
“I’m really appreciative that you’re exploring taking on this challenge,” Johnson told Rooks. “As a resident of the Nims Neighborhood, I see it in its current sad state, and I hear it a lot from residents about how that site has languished and has been an eyesore and has been a hazard and safety concern as well.”
Commissioner Michael Ramsey echoed Johnson, saying the “neighbors are highly agitated with good reason” about the property’s condition.
“Fortunately, or unfortunately, the bar at this property is set really low so you show up and cut the grass and I’ll bet people will clap for you when you walk down the street,” Ramsey said.
Studies of the building Parkland has already contracted show it is structurally sound, Rooks said. An architect and engineer have been working on the project and an environmental firm is lined up to do the assessments of potential contamination there, he said.
Rooks said his vision for the building calls for it to be half apartments and half condominiums. Lake facing units would have covered balconies and elsewhere apartments would have French balconies.
“We’re frankly excited about it,” Rooks said. “We love the building.”
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