The Michigan Department of Environment, Great Lakes, and Energy (EGLE) has awarded an $850,000 Brownfield Redevelopment Grant to support the construction of 46 units of affordable housing in Muskegon. The development will be located on a 0.97-acre site at 122 West Muskegon Avenue, which has been vacant since 2016.
Historically, the property was used for residential purposes, but between 1938 and 1968, it housed several commercial operations including a gas station, auto repair shop, rubber company, dry cleaner, and paint shop. These past uses contributed to site contamination involving petroleum compounds and chlorinated solvents.
The EGLE grant will fund critical environmental and site preparation work. This includes assessments for underground storage tanks, demolition of existing structures and utilities, removal of contaminated soil, and installation of a vapor mitigation system to protect future residents.
The redevelopment project involves a $16 million investment in a four-story building located across from Muskegon City Hall, near the public library and farmers market. The project is expected to enhance downtown Muskegon by improving aesthetics, increasing property values, and boosting pedestrian activity and retail engagement in the area.
To further support the project, the city has granted a Payment in Lieu of Taxes (PILOT) arrangement, allowing the developer to pay a service fee instead of standard property taxes. Construction is anticipated to be completed by spring 2026.
