http://www.mlive.com/business/west-michigan/index.ssf/2017/01/liquor_store_owners_stand_pat.html
Liquor store owners stand firm as $42M Diamond Place goes up next door
By Jim Harger January 27, 2017
GRAND RAPIDS, MI - As developers and dignitaries broke ground on Diamond Place, a $42 million housing and retail project, Sequar Kahasay remained behind the counter at The Party Cooler, the liquor store he and his wife own that will soon be dwarfed by the four-story project.
Kahasay's 90-year-old building will cling to the corner of Diamond Avenue and Michigan Street NE while behind it, Pioneer Construction will build a 165-unit apartment complex with a grocery store, a 240-space parking ramp and two additional shops.
"I really don't know what it's going to do to my business," said Kahasay, whose shelves and coolers are stocked with liquor, beer, soft drinks and snacks. He sells cigarettes and lottery tickets from behind a worn wooden counter.
Kahasay, an Eritrean immigrant who bought the store 14 years ago, said the developers would not pay him what the property was worth. He said his lawyers told him the store was worth $850,000, far short of the $600,000 he was offered.
City records indicate they bought the store for $95,000 in 2004. Kahasay said they spent a total of $450,000 to purchase the business.
"They were not even serious," said Kahasay. "It's not even close to the market value of the store. It's a very strong store, it's in a good place."
Brad Rosely, a principal with Third Coast Development, said Kahasay and his wife told them they would sell for $1.8 million - a price they could not justify.
Even though they will have to deal with a wall they share with the party store, Rosely said they are moving ahead on the project with a 2018 completion schedule.
On Wednesday, Jan. 25, Third Coast and their partners, PK Development Group of Okemos, celebrated by hosting a groundbreaking party behind The Party Cooler on a 2.8-acre site that was once home to Proos Manufacturing.
To get the project off the ground, Third Coast and PK Development got a 10-year $2.8 million loan from the state's Community Revitalization Program, in part because of the plans to build a yet-to-be-named grocery store on the site.
The development will offer 165 apartments, ranging from one-and two-bedroom units. About 100 of the apartments will be designated as income-restricted.
Rosely said the partners have worked for 12 years to get the approvals they needed for the project from neighbors and city officials.
The project also will get $675,069 in reimbursement through the city's Brownfield redevelopment program to assist in cleaning up lead and asbestos on the site, demolition, environmental assessments and infrastructure improvements.
Third Coast is one of the most active developers along the Medical Mile, having built Mid-Towne Village, which includes the Grand Rapids Women's Clinic, Park Place Condominiums and a Hampton Inn Suites Hotel plus several other apartment and retail sites.
In 2012, Third Coast redeveloped a former lumber yard along Michigan Street into a retail, office and residential project.
"This has been one of our largest and most complex projects, but it has been terrific working with so many partners who share in our vision of creating a vibrant Michigan Street corridor," said Third Coast Development partner Max Benedict.
As for the party store, Rosely said they won't go back with another offer. "We've got footings going in," he said.
http://image.mlive.com/home/mlive-media/width960/img/grandrapidspress/photo/2017/01/25/-731332feb9b7d34f.JPG
Sequar Kahasay, refused to sell his Party Cooler store at 1001 Michigan Street NE to developers who have begun building Diamond Place, a $42 million development that will bring 165 apartments and a grocery store to the northeast corner of Diamond Avenue and Michigan Street NE.
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Unlikely neighbors: $42M development, little liquor store | WOODTV.com Video
http://woodtv.com/2017/01/26/reluctant-neighbors-42m-development-little-liquor-store/
Received on Fri Jan 27 2017 - 11:51:55 EST
