Grand Haven's Floto's Building Renovation Plan Draws Mixed Reactions Over $1.1M Incentive Package

Residents support reviving the vacant building but question the extensive public funding required.

Published on Feb. 20, 2026

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A proposed $2 million renovation of the empty Floto's building in downtown Grand Haven has sparked mixed reactions from neighbors and business owners over the project's hefty incentive package. The development plan calls for three affordable apartments upstairs and a renovated ground floor for restaurant or retail space, but the developer is seeking nearly $1.1 million in public incentives to make the project financially viable.

Why it matters

The Floto's building has been vacant for some time, and filling the space is seen as important for maintaining a vibrant downtown. However, the significant public funding being requested has raised concerns from residents about the long-term return on investment for taxpayers.

The details

The building owner is requesting a $250,000 grant from the Michigan Economic Development Corporation (MEDC), and is asking the city to approve two tax abatements: an Obsolete Property Rehabilitation Act (OPRA) certificate exempting the property owner from paying taxes on the property for 12 years ($252,104), and a Brownfield Tax Increment Financing (TIF) which would freeze taxes on the property at their current rate for 25 years ($589,800). In order to receive the tax abatements, the three apartments have been made affordable for people making 100% of the area's median income, or between $60,000 and $65,000 a year.

  • The Grand Haven City Council will vote on the tax abatement requests at their March 2 meeting.

The players

Jared Belka

An attorney working with the property owner.

Bob Heimach

A Grand Haven neighbor.

Thomas Tebeau

The owner of Hotstetters News Agency, a nearby business.

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What they’re saying

“Construction costs have gone nowhere but up. Interest rates remain high. It makes these projects tough to pencil.”

— Jared Belka, Attorney (fox17online.com)

“It's kind of an eyesore now, and empty, but to have that filled with a restaurant would be awesome.”

— Bob Heimach, Grand Haven neighbor (fox17online.com)

“Tax abatements — I'm not big on that, but you need something in there. Downtown needs retail. Definitely.”

— Thomas Tebeau, Business owner (fox17online.com)

What’s next

The Grand Haven City Council will vote on the tax abatement requests at their March 2 meeting.

The takeaway

The Floto's building renovation highlights the challenges of revitalizing vacant downtown spaces, as the significant public funding required has raised concerns from residents about the long-term return on investment for taxpayers. However, the importance of maintaining a vibrant downtown and filling empty storefronts remains a key priority for the community.