Reliable Sports to remain open, affordable housing development in question - News - Holland Sentinel
Reliable Sports owner Ken Vos sold to a different buyer.
Reliable Sports isn’t going anywhere.
After Holland City Council approved an affordable housing development earlier this year, developer General Capital could not secure funding through the Michigan State Housing Development Authority, and Reliable Sports owner Ken Vos sold to another buyer who wants to keep the business open.
Vos confirmed that the building is under contract to be sold in a sale that will be finalized at the end of September.
The building located at 254 S. River Ave. was sold in July. Vos declined to share who the new owner will be, but said they "are a prominent figure in downtown Holland." He still plans to retire, and a retirement sale is underway at the store.
Since the business will remain open, that means the planned 54-unit affordable housing building Centennial Apartments will not happen — unless the new buyer decides to work with General Capital, which technically could happen. City council approved a payment in lieu of taxes earlier this year for the project in order for it to apply for Section 42 tax credits through MSHDA.
This kind of tax credit provides money on the front end, for construction, instead of subsidizing tenants rent like Section 8. General Capital developer Sig Strautmanis said he was not aware the building is under contract with a different buyer. The last he heard, there was someone who was "interested" in buying, he said.
Section 42 funding can only be applied for a couple of times per year. The next round would take place in October, and Strautmanis said General Capital was still hoping for a chance to apply and continue with the project. General Capital was previously under contract with Vos for the sale, but Vos said he was asked to wait a year in order for the company to apply for funding again. But then his realtor had a more immediate offer for him.
Vos said Reliable will renegotiate a leasing agreement and will lease its space from the new buyer.
While Vos declined to name the owner, Douglas DeKock, owner of Geenen DeKock Properties, said his company did not buy the building.
Allan Hoekstra, president of EDP Management LLC, was present during every city meeting regarding the development. EDP is owned by Elsa Prince-Broekhuizen, widow of Prince Corp. founder Edgar Prince.
Prince-Broekhuizen has used her wealth to invest in the historic preservation of the downtown area through the Lumir Corp., which owns a significant downtown Holland property. Prince Broekhuizen has been the driving force behind historical building restoration projects, the establishment of Evergreen Commons and the city-wide beautification of Holland through the placement of many iconic bronze statues.
During the March 14 planning commission meeting, Hoekstra urged commissioners to carefully consider how the architecture and streetscape fit into the neighborhood.
"In other cities, this type of project seems to be more near like-kind developments," he said, according to meeting minutes.
At several meetings he mentioned the public was not aware of the project soon enough.
Projects around the state are evaluated on a points system. Strautmanis said this development came up three points short of getting $1.3 million in funding General Capital sought.
“We put a lot of blood, sweat and tears in the application process,” he said. “We spent a lot of money on design and working with the city, fine tuning details to make sure the building was appropriate with the location.”
Strautmanis said the company’s desire to have the project move forward still remains.
“My overarching comment is that Holland truly needs this type of workforce housing,” he said. “There is community alignment with the concept, and I desperately hope there is a way we can move forward with the project.”
General Capital suggested affordable housing based on a target market analysis that showed a demand for more than 8,000 renter-occupied units in the next five years in Ottawa County.
The development, if funding went as planned, was supposed to be completed in 2018.
— Business reporter Austin Metz also contributed to this story. Follow this reporter on Twitter @SentinelSydney.
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