Grand Rapids Approved Factory Yards Project Funding

The $146 million mixed-use redevelopment will transform a historic industrial site into housing and commercial space.

Updated on Oct. 11, 2026 in Commercial

Grand Rapids Approved Factory Yards Project Funding

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Should your city use public incentives to convert old industrial sites into new housing?

Grand Rapids developers have announced a $146 million project to revitalize the 13.4-acre site at 655 Godfrey Ave. SW. City officials recently supported the initiative by approving an $8.2 million tax exemption.

Why it matters

The development aims to rehabilitate long-vacant industrial buildings, including a former furniture plant and parachute facility, into a modern mixed-use destination. It integrates essential housing and commercial infrastructure while addressing historical site contamination.

The Factory Yards project spans 13.4 acres and includes a $1 million EGLE grant for site assessment. Upon completion, the site will feature 450 residential units and 100,000 square feet of commercial space.

The players

City of Grand Rapids

The local government authority that approved an $8.2 million tax exemption to facilitate the redevelopment.

EGLE

The state environmental department that provided a $1 million grant to support site assessment and remediation efforts.

The details

The project involves environmental remediation to remove underground storage tanks and install vapor venting systems. The first phase will provide 200 housing units, 31,600 square feet of commercial space, and 100 full-time jobs, with 20% of units designated for lower-income tenants.

The property began service as a furniture plant during the 1890s.
The site functioned as a parachute sewing facility during World War II.
The facility was used for storage starting in the 1990s.

Culture Shift

The Factory Yards project follows the pattern set by brownfield redevelopment incentive programs by utilizing public subsidies to repurpose former industrial lands. This reflects a broader societal shift toward urban densification and the reclamation of historic manufacturing cores.

Residents can expect the creation of 100 full-time and 100 part-time jobs during the first phase of the development. Additionally, 20% of the new rental units are reserved for individuals earning 60% to 80% of the Area Median Income, offering new housing options.

The takeaway

This project demonstrates how public-private partnerships can turn legacy industrial zones into functional mixed-use community hubs. Readers should watch for future announcements regarding unit rental applications and commercial lease opportunities as construction phases advance.