State Funds Two New Michigan Redevelopment Projects
The projects add new commercial spaces and housing to downtown Grand Haven and Calumet to support local growth.
Updated on Oct. 15, 2026 in Openings & Closings
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Governor Gretchen Whitmer announced $5.9 million in state-backed funding for two mixed-use redevelopment projects in Grand Haven and Calumet. The initiatives aim to revitalize downtown commercial cores by converting vacant properties into new restaurant and retail space alongside residential units.
Why it matters
These projects utilize a mix of grants and tax increment financing to offset the high costs of rehabilitating older downtown properties. For operators, the state's focus on mixed-use development signals a potential shift in municipal zoning and commercial density, particularly in historic urban cores.
The $5.9 million total investment includes a $390,000 Michigan Community Revitalization Program grant for the Grand Haven site and a $1.1 million Revitalization and Placemaking grant for Calumet. The projects will add a total of 10 apartments and three new commercial spaces across both Michigan cities.
The players
Gretchen Whitmer
The current Governor of Michigan who oversees state economic development and infrastructure policy.
The details
The Grand Haven project at 123 Washington Ave. replaces the former Floto's Gifts site with a restaurant and three apartments, supported by $589,800 in proposed Housing Brownfield tax increment financing. In Calumet, the $3.67 million initiative restores two buildings at 425 and 427 5th St. to provide three commercial spaces and seven workforce housing apartments. Both developments rely on performance-based state grants and local tax capture to bridge the gap between renovation expenses and market-rate returns.
Timeline
August 2024: Floto's Gifts closed at the Grand Haven location.
October 15, 2026: Governor Whitmer announced the redevelopment projects.
Market Landscape
These projects follow the funding patterns set by the Michigan Community Revitalization Program to incentivize private investment in historic downtowns. The strategy mirrors broader state efforts to prioritize workforce housing as a core component of local business district recovery.
Business owners in historic corridors should monitor how these tax-backed developments affect local foot traffic and real estate assessments. Consult with local planning departments to determine if similar redevelopment incentives or tax credits are available for your current or future commercial space.
The takeaway
These state-funded renovations highlight the growing intersection of workforce housing and commercial revitalization. Operators should track local tax increment financing approvals, as these can fundamentally alter the competitive landscape for downtown retail rents and long-term operating costs.
Further reading
Find more local commercial development updates in our Openings & Closings section.
Source note: This article includes information reported by Ottawa News Network.
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