Push on to find buyer for city's lone 'skyscraper'

Friday, April 13, 2007
By Dave Alexander
Chronicle Business Editor

Wanted: A specialist in historic renovation to redevelop the former Comerica Bank tower in downtown Muskegon, saving it from the wrecking ball.

When it comes to the historic bank building -- known as Muskegon's lone "skyscraper" -- don't call the Downtown Muskegon Development Corp. a desperate seller. But you can call them "highly motivated."

Downtown Muskegon Development has put out a "request for proposals" in an attempt to lure a developer to purchase the building. Officials say getting a high selling price is not as important as finding a willing, well-financed and competent developer.

Proposals are due June 15. The owners hope to receive proposals showing a mix of uses, like retail on the lower floor, offices on the middle floors and residences on the upper floors. The top floor of the eight-story building actually has views of Lake Michigan as well as Muskegon Lake.

The Comerica building, which was built in 1919 as the Hackley National Bank building, is becoming a bit of a "white elephant" for the "city center" redevelopment of the former Muskegon Mall property.

Three of the other five buildings saved from the Muskegon Mall demolition have been sold in the Russell Block and are undergoing reconstruction. The former National City Bank building has a purchase agreement but the sale has not been finalized, officials said. Details on the owner and plans for the National City Bank Building won't be released until the deal closes, officials said.

If the Comerica Building remains vacant without hope of redevelopment, the owners will have to consider demolition, Downtown Muskegon Development Chairman Chuck Johnson said. The mall property owners are a consortium of non-profit institutions including the Community Foundation for Muskegon County and the Muskegon Area Chamber of Commerce.

"We may be forced to tear it down," Johnson said of the bank building that dominates the Muskegon skyline. "We are concerned that if it goes unattended much longer it will face serious deterioration."

But Johnson said the Downtown Muskegon Development board isn't putting any deadline on finding the right developer with the right redevelopment plan.

"Maybe if we are here a year from now, we will have some serious decisions to make," he said.

Back in 2003 as the Muskegon City Commission hotly debated the fate of the remaining five buildings from Muskegon's historic downtown along West Western Avenue, commissioners actually voted to tear down the Comerica building. However, after negotiations with Downtown Muskegon Development a final plan for the 23-acre mall site included saving all five buildings.

Muskegon city planning officials said they are supportive of the search for a credible developer with a mixed-use redevelopment plan. However, demolition isn't an option until a property owner would make such a request, according to Cathy Brubaker-Clarke, the city's economic development and planning director.

The 73,000-square-foot commercial building has been vacant since the former Muskegon Mall closed at the end of 2001. The second floor had been the mall offices but the bank had already vacated the structure earlier that year. Over the years, various business and professional offices were in the upper floors.

The original building opened in 1919 as the headquarters for the Hackley National Bank, which over the years became Hackley Union National Bank, Hackley Bank & Trust and finally Comerica Bank in 1982. Comerica currently has its main Muskegon office at Norton Avenue and Henry Street in Norton Shores.

The early 20th century structure was renovated in 1967, when the current white Georgia Cherokee marble facade was added along with accents of black serpentine marble.

"It's a unique opportunity," said Dan Rinsema-Sybenga, the Muskegon Main Street Manager who is marketing "city center" properties for the owners. "I see no time soon when someone would have the ability to develop residential units eight stories above grade with views of Lake Michigan."

Rinsema-Sybenga and the owners remain optimistic on the Comerica Bank's future with Grand Rapids and other West Michigan developments having success in luxury penthouse residential units.

"There has been an interest in penthouse living in West Michigan," he said.

However, there has been little or no interest from the investment nor the development community in the Comerica building, officials said. Several groups have toured the structure but no offers or proposals have resulted, Rinsema-Sybenga said.

A group of investors led by Moses Gross -- the New York City developer of the former Shaw-Walker Building into Watermark Center -- was reported to be the most interested. However, Gross' Muskegon project manager Sarah Rooks, who was the Muskegon Mall's final manager, said her boss is no longer interested in the Comerica Building and remains focused on completing Watermark Center.

With a lack of interest, Downtown Muskegon Development decided to try to kick-start development plans with the RFP process. The building had been listed at $100,000 but price isn't a major consideration in proposals, Rinsema-Sybenga said. All offers will be considered, he said.

The Comerica site, just like all of the "city center" parcels, are in a low-tax Renaissance Zone, which has incentives running through 2014. There also might be public sector assistance from "new market," historic and "brownfield" business tax credits.

© 2006 Muskegon Chronicle. Used with permission