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]]>MUSKEGON, MI – A contractor was picked this week to help manage pre-construction work on Muskegon’s proposed 45,000-square-foot convention center.
Clark Construction Company, a Lansing-based contractor, will be paid $38,355 for pre-construction on the proposed $17 million convention center, which will sit on what is now Fourth Street between West Western Avenue and Shoreline Drive. The building will be flanked on either side by the L.C. Walker Arena and the downtown Holiday Inn, which will soon be rebranded as a Delta by Marriott.
Construction on the convention center will be mostly funded through the county’s accommodation taxes and assessments collected from Muskegon hotels. A $6 million renovation to the Holiday Inn that will result in the brand change to Delta by Marriott, and a $1.7 million upgrade to the L.C. Walker Arena brings the total investment at the site to $26 million.
Pre-construction work on the proposed convention center includes reviewing preliminary design plans previously drafted by architects Progressive AE to ensure that the project is completed on time and on budget. Clark Construction also plans to manage the bidding process for sub-contractors hired to complete construction.
The city commission voted on Tuesday, Jan. 22, to approve the pre-construction agreement between the city and Clark Construction.
The company is also one of four finalists that is competing for a construction management contract for the entire project. Clark Construction is expected to be awarded the construction management contract, which City Manager Frank Peterson said should appear before the Musekgon City Commission for final approval within the next few weeks.
Downtown Muskegon convention center design plans unveiled
Designers Progressive AE have offered clearer pictures of the proposed $17 million convention center.
If Clark Construction is awarded the construction management contract but fails to meet the city’s established goals, or veers off budget, the city has the right terminate the agreement, said Jeff Salowitz, a partner with Construction Simplified, which was hired by the city to act as a consultant on the convention center project.
Clark Construction’s portfolio of local work includes Muskegon Community College’s Carolyn I. and Peter Sturrus Technology Center and MCC’s main campus arts and humanities renovation, which is currently under construction.
Regarding construction, Commissioner Debra Warren wondered about Clark Construction Company’s commitment to hiring local workers.
Salowitz said that Muskegon County elected officials mandated that local workers be used on the project in some capacity, and that Clark Construction Company used a local work force to complete downtown MCC project.
“We do want a substantial amount of local workers present on this project, we just want to see what the market can bear,” Salowitz said.
Clark Construction was selected to handle pre-construction work by a committee of city and Muskegon County leaders, which also included Jon Rooks, a prominent Muskegon developer and the owner of the Holiday Inn, the Shoreline Inn and Highpoint Flats apartments.
Proposals were also considered from CSM Group, Triangle Associates, Inc., and Visser Brothers, Inc.
Rooks’ Parkland Acquisitions Two LLC will manage convention center operations when it opens, according to an agreement ratified by the city commission at Tuesday’s meeting.
Rooks was chosen to manage the facility because it is expected to be built next to his downtown hotel, which would offer additional breakout space for convention center clients and patrons.
The convention center is expected to boost winter tourism, hotel and motel room rentals, and special events throughout the year.
See Walker Arena upgrades that have upped the fan experience
Here’s what residents said about arena updates and the proposed convention center.
Salowitz and Peterson explained that convention centers are often unprofitable for the cities and counties that own them, and the companies hired to manage.
The convention center is expected to boost Rooks’ hotel profits, so the developer and the city felt Rooks was in the best position to shoulder the losses, Peterson said.
“The nice thing about this agreement is that we’re not requesting money from them and they aren’t requesting money from us,” he said. “At the end of the day … (Parkland) will be responsible for gains and losses. No one else is in a position to do those things like they are.”
Commissioner Ken Johnson thanked Rooks for stepping up to take on the role of convention center manager so the risk won’t be passed on to city and county taxpayers.
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]]>Designers Progressive AE have unveiled its designs for the proposed $17 million downtown Muskegon Convention Center. (Courtesy | Progressive AE)
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]]>A conceptual rendering of a proposed $15 million convention center in the heart of downtown Muskegon. Design and architectural work is being handled by Grand Rapids-based Progressive AE. (Courtesy | Progressive AE)
MUSKEGON, MI — City officials plan to sell $20 million in bonds to pay for the construction and furnishing of a proposed $15 million convention center in the heart of downtown Muskegon.
The Muskegon City Commission approved a resolution of intent to sell capital improvement bonds Tuesday.
City and county leaders hope the convention center will boost tourism throughout the year. It is also expected to help bolster sagging winter occupancy numbers for downtown and surrounding Muskegon-area hotels.
Progressive AE is currently drafting design plans for the convention center, which could be located on Fourth Street between L.C. Walker Arena and the Holiday Inn.
Design work on downtown Muskegon convention center moving forward
City officials paid $832,800 upfront for design work on the $15 million project when Muskegon hired Progressive AE, a Grand Rapids firm, in early February.
Muskegon County and city officials agreed this year to use a new 4 percent self-assessment tax from the downtown Holiday Inn and the Shoreline Inn to help pay off the construction bonds.
Jon Rooks — who owns both downtown hotels — will forward proceeds of the assessment for 27 years. The city plans to finance the convention center over 25 years, meaning it will set aside the last two years of revenue for the center, said Muskegon City Manager Frank Peterson.
Peterson said the next steps include a bit of a waiting game and a bond auction that will eventually set the interest rate on money borrowed.
Muskegon convention center plan moves forward with architect selection
Grand Rapids-based Progressive AE has been tapped to determine the size, location, amenities and costs for the $15M convention center.
First, anyone opposed to the sale can file a petition for referendum, but they would have to do so within 45 days from the date a notice is published in the Muskegon Chronicle. Assuming no one objects, the city will move forward and consult a bond attorney before taking the sale to market, Peterson said.
“(Interested buyers) will bid and then we’ll find out what the interest rate is,” Peterson said. “We don’t know what that will be quite yet, but we’ll also have our bond rating (reanalyzed).”
The city was most recently given a AA bond rating, which Peterson said was strong and will be favorable for Muskegon. Once design work is complete, the city will have final estimates for construction and other associated costs.
The proceeds from the bond sale will help pay for all or some of the cost to construct, furnish and equip the new convention center. That includes any land acquisitions, demolition or necessary improvements.
Officials also hope to have contingency dollars in place if construction runs over budget.
Convention center in downtown Muskegon gets consultant to shape plan
The Muskegon County Board of Commissioners voted to approve the $20,000 consulting contract with Conventions, Sports & Leisure International.
County and city brass have expressed an interest in placing the convention center on a portion of Fourth Street between Shoreline Drive and West Western Avenue. Progressive AE will help them determine if that’s the best location. The other option is to place the center atop the downtown Holiday Inn’s parking deck behind the hotel.
A project timeline outlined by Progressive AE assumes design work will be completed sometime this year with construction beginning in 2019. Late last year, officials said the convention center would likely open in 2021, if all goes according to plan.
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