84th Avenue, or Arbor Lane, has been closed at the CSX railroad crossing since a Zeeland City Council action in December 2003. Now, the city is looking to reopen the road and pave it as part of the JR Automation global headquarters project.
By Greg Chandler
Zeeland Record
More than two decades after the city of Zeeland closed 84th Avenue at the CSX railroad crossing just north of Washington Avenue, the city is moving toward reopening the road to accommodate the JR Automation global headquarters that is now under construction.
The City Council on Oct. 6 approved a $150,000 design contract with Moore and Bruggink that would address reopening the railroad crossing, paving 84th from Washington to Riley Street, and building a bike path on the south side of Riley from 84th west to Fairview Road. Since improvements on 84th were not included in the current city budget, the council also had to approve a budget amendment covering the cost of the contract.
JR Automation had suggested the improvements to the city in connection with the development of its 45.5-acre site at the southwest corner of 84th and Riley, Assistant City Manager Kevin Plockmeyer said.
“From a staff perspective, we feel it’s good, not only for traffic flow from this development, but also the greater community as well,” Plockmeyer said. “It gives us another access point across Washington.”
JR Automation intends to offset a portion of its site development costs through brownfield tax-increment financing, a method by which new tax revenues that are generated by development are redirected back to the developer to reimburse them for eligible development costs. The city is currently working with the company on the brownfield process and a development agreement that would allow tax-increment financing to be used for the improvements.
“These are opportunities that only come when a project like this is in front of us,” Plockmeyer said. “From a timing perspective, we feel it’s right to make these improvements and leverage these tax-capture resources that we don’t always have the opportunity to do.”
Plockmeyer recommended moving ahead with the design work in advance of having that development agreement.
“We’re at that point where if we want to be able to possibly construct by the end of next summer, we need to start the design process now,” he said.
The development agreement will include a provision that would require JR Automation to cover any costs if the project does not move ahead, Plockmeyer said.
“We don’t see a lot of risk in that at this point. JR has announced that they are doing this project. I’m fairly confident the project will happen,” Plockmeyer said.
The City Council on Dec. 15, 2003, approved a temporary closing of 84th, also known as Arbor Lane, at the CSX railroad crossing. The Michigan Department of Transportation had called for closing of the crossing in an effort to cut down on car-train accidents by rerouting traffic to crossings with signals and gates, according to a Zeeland Record story that was published Dec. 11, 2003.
In its resolution, the council said that the closing was temporary and would remain in effect “for an indefinite time period.” The resolution also stated that the city did not vacate 84th – had it done so, the property would have reverted back to CSX – and that the city “may seek to reopen Arbor Lane in the future.”
JR Automation is building a 210,000-square-foot manufacturing plant and a two-story headquarters with about 40,000 square feet on each level at 800 E. Riley St. The new facility will unify three existing locations in Holland into a single location. It will be home to 350 employees, and is expected to create another 150 jobs by 2030.
The $72.8 million project has been approved to receive a $1.6 million Michigan Business Development Program grant. The Michigan Strategic Fund Board on Sept. 30 approved the grant. The grant is one of several incentives JR Automation is receiving for choosing to build its headquarters in Zeeland instead of Greenville, S.C.
“They have to meet certain criteria before funds can be distributed,” said Otie McKinley, a spokesman for the Michigan Economic Development Corporation. “In this case, the MBDP grant is reimbursable for those costs associated with the construction of the facility and the jobs created.”
JR Automation is soon expected to receive approval of an industrial facilities tax abatement valued at about $9.5 million from the City Council, and has been approved for a state education tax abatement of nearly $2.3 million, McKinley said.
Zeeland Record
More than two decades after the city of Zeeland closed 84th Avenue at the CSX railroad crossing just north of Washington Avenue, the city is moving toward reopening the road to accommodate the JR Automation global headquarters that is now under construction.
The City Council on Oct. 6 approved a $150,000 design contract with Moore and Bruggink that would address reopening the railroad crossing, paving 84th from Washington to Riley Street, and building a bike path on the south side of Riley from 84th west to Fairview Road. Since improvements on 84th were not included in the current city budget, the council also had to approve a budget amendment covering the cost of the contract.
JR Automation had suggested the improvements to the city in connection with the development of its 45.5-acre site at the southwest corner of 84th and Riley, Assistant City Manager Kevin Plockmeyer said.
“From a staff perspective, we feel it’s good, not only for traffic flow from this development, but also the greater community as well,” Plockmeyer said. “It gives us another access point across Washington.”
JR Automation intends to offset a portion of its site development costs through brownfield tax-increment financing, a method by which new tax revenues that are generated by development are redirected back to the developer to reimburse them for eligible development costs. The city is currently working with the company on the brownfield process and a development agreement that would allow tax-increment financing to be used for the improvements.
“These are opportunities that only come when a project like this is in front of us,” Plockmeyer said. “From a timing perspective, we feel it’s right to make these improvements and leverage these tax-capture resources that we don’t always have the opportunity to do.”
Plockmeyer recommended moving ahead with the design work in advance of having that development agreement.
“We’re at that point where if we want to be able to possibly construct by the end of next summer, we need to start the design process now,” he said.
The development agreement will include a provision that would require JR Automation to cover any costs if the project does not move ahead, Plockmeyer said.
“We don’t see a lot of risk in that at this point. JR has announced that they are doing this project. I’m fairly confident the project will happen,” Plockmeyer said.
The City Council on Dec. 15, 2003, approved a temporary closing of 84th, also known as Arbor Lane, at the CSX railroad crossing. The Michigan Department of Transportation had called for closing of the crossing in an effort to cut down on car-train accidents by rerouting traffic to crossings with signals and gates, according to a Zeeland Record story that was published Dec. 11, 2003.
In its resolution, the council said that the closing was temporary and would remain in effect “for an indefinite time period.” The resolution also stated that the city did not vacate 84th – had it done so, the property would have reverted back to CSX – and that the city “may seek to reopen Arbor Lane in the future.”
JR Automation is building a 210,000-square-foot manufacturing plant and a two-story headquarters with about 40,000 square feet on each level at 800 E. Riley St. The new facility will unify three existing locations in Holland into a single location. It will be home to 350 employees, and is expected to create another 150 jobs by 2030.
The $72.8 million project has been approved to receive a $1.6 million Michigan Business Development Program grant. The Michigan Strategic Fund Board on Sept. 30 approved the grant. The grant is one of several incentives JR Automation is receiving for choosing to build its headquarters in Zeeland instead of Greenville, S.C.
“They have to meet certain criteria before funds can be distributed,” said Otie McKinley, a spokesman for the Michigan Economic Development Corporation. “In this case, the MBDP grant is reimbursable for those costs associated with the construction of the facility and the jobs created.”
JR Automation is soon expected to receive approval of an industrial facilities tax abatement valued at about $9.5 million from the City Council, and has been approved for a state education tax abatement of nearly $2.3 million, McKinley said.
––––––––––––––––––––
Subscribe to the Legal News!
https://legalnews.com/Home/Subscription
Full access to public notices, articles, columns, archives, statistics, calendar and more
Day Pass Only $4.95!
One-County $80/year
Three-County & Full Pass also available
