Grand Landing sale gets city's OK

The stalled Grand Landing development on Grand Haven's northeast side is closer than ever to having a new owner.
Alex Doty
Aug 21, 2012


A hearing in Ottawa County Circuit Court scheduled for Aug. 27 is to decide whether to approve a sale agreement with Red Star Shores LLC to acquire the property.

Grand Haven City Council gave the agreement its nod of approval Monday night.

Mayor Geri McCaleb said she was glad to see some movement in the prominent development.

“It’s good to see someone is interested in the property,” she said. “I guess we’re ready to move forward.”

The Grand Landing property was placed in receivership in November 2010 when Grand Landing LLC and its lender, Comerica Bank, entered into a receivership agreement with O’Keefe & Associates.

The proposed sale price of the property is estimated to be $3.08 million. According to city attorney Scott Smith, $920,000 would go to Comerica; $275,000 would go to pay receiver fees; and the remaining sale funds would be used to pay delinquent taxes, special assessments and utility bills on the property.

“Unfortunately, the way tax law works, the county will get $560,000 in penalties and interest,” Smith said regarding the delinquent taxes. “The upside from going through with the sale far exceeds the downside of this interest.”

City Manager Pat McGinnis said the interest will be paid by the city, and will come from the more than $3 million paid to the city by the county to cover delinquent taxes on the property.

According to, Redstar Shores LLC is led by Christopher Plwowarczyk of East Lansing. The company was formed in 2009.

The city's OK for the sale comes nearly two months after City Council approved an initial memorandum of understanding with the potential buyer. City officials will follow up on that memorandum with greater detail regarding development plans, special assessments and easements.

“You will see more on this after the project closes, which could come next week,” McGinnis said.

Smith said the buyers have the capital and experience to make a project work, as they have been involved in numerous large developments both in and out of Michigan.

“The new property owner has detailed a plan for redevelopment, which includes many of the uses we had forecasted,” the city attorney said.

City Finance Director Jim Bonamy said the sale, plus the potential for new investment, would push out the deficit condition the city would face from paying off the brownfield redevelopment fund on the property to 2021.

“It assumes a $30 million investment by the developer,” Bonamy explained. “That $30 million is a number that the developer feels comfortable with at this point.”

In the agreement filed with the city in June, the developer stated they were interested in completion and sale or lease of the currently built condominium units, constructing a new hotel, adding two or more restaurants, and constructing as many as 300 apartment units.



I sure hope the restaurants they want to add are REAL, sit-down restaurants, and NOT more fast-food restaurants. We do not need any more sub shops, burger shops,(unless it is a Red Robin) or taco shops. Something like a Chili's, or an I-Hop would be welcome.
This town has more than enough fast food. We need more Applebees-type restaurants.


The world needs another Applebees "type" restaurants like it needs a frik'in hole in the head. New owners or not, this development will never amount to what was sold to Grand Haven and those charged with protecting our interests. How many taxpayer $$$ have to be wasted? They've done agreat job! Re-elect them all! Not a good idea.


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