UPDATE: This story has been changed to reflect that the zoning change approved Tuesday does impact some areas of downtown.
GRAND RAPIDS, MI -- In an effort to increase the city’s housing stock, Grand Rapids elected leaders are allowing ground-floor residential units in business districts around the city, including downtown.
The zoning ordinance change goes into effect March 1 and will allow first-floor residential units like apartments in nearly half of the city’s 6,000 commercially-zoned properties, according to Grand Rapids planning officials.
The move, officially approved this week, is expected to create not only more opportunities to address the city’s housing shortage but also different avenues for property owners struggling to find commercial and office renters to fill their first-floor spaces.
“The impact of the public health crisis has exacerbated an already challenged commercial market,” said Grand Rapids Planning Director Kristin Turkelson, “and, although the demand for commercial space has lessened, the amount of available space has not changed. Additionally, the need for housing units, generally, and affordable units, specifically, is well documented.
“These changes were necessary and critical to the continued vitality of our neighborhood business areas.”
The zoning change was a recommendation by Housing Next, which was commissioned by the city to conduct a housing assessment. In its report released summer 2020, Housing Next found the city needs an additional 5,340 rental units and 3,548 for-sale units by 2025 to meet demand and ensure low-income residents aren’t displaced.
The change applies to sections of the city zoned traditional business area and commercial, including portions of downtown.
Areas that fall within those classifications include stretches of Leonard, Bridge and Fulton streets on the city’s West Side, as well as most of 28th Street and portions of Division Avenue, Wealthy Street, Plainfield Avenue, Michigan Street east of Medical Mile and more.
In downtown, stretches of Pearl Street, Monroe Center, Ionia Avenue, South Division Avenue and Bridge Street are included in the change.
Many of the major intersections throughout the city are included in these two zoning districts, as well. A full map of the districts can be found here.
Related: Proposal would allow ground-floor apartments in nearly half of Grand Rapids’ commercial spaces
“Vibrant business districts are critical in creating a livable city and strong local economy,” Mayor Rosalynn Bliss said. “Great neighborhoods and vital business districts go hand-in-hand. Permitting first floor residential will support reinvestment in our traditional business corridors while creating much needed additional housing in our city.”
Turkelson said allowing first-floor residential units in these areas will increase the amount of floor space available for housing in the city by 50%.
She previously said about 46%, or 2,770, of the city’s 6,000 commercially zoned parcels are located within these two districts.
Commissioners received letters of support for the zoning change from some in the business community.
“The proposed changes will have a swift, positive impact in supporting shared community goals of increasing housing supply, supporting commercial corridors and existing retailers, and returning vacant spaces to active use,” Joshua Lunger, senior director of government affairs at the Grand Rapids Area Chamber of Commerce, wrote.
“The change to allow these uses provides an opportunity to add in-demand units throughout the city without necessarily needing to construct new housing that comes with historically high construction, materials and land costs.”
In addition to allowing residential units on the ground floor in these districts, the approved zoning change will allow the construction of four-story buildings in traditional business districts without previous stipulations requiring urban open space or affordable or mixed-income housing as part of the development.
Turkelson previously said very few developers were able to meet the former requirements for a four-story building because including those conditions into a development was “practically infeasible.”
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