Gov. Gretchen Whitmer joined fellow Democrats in Grand Rapids today to tout the economic benefits of a new law that could potentially generate new revenue for major entertainment projects such as Acrisure Amphitheater, the soccer stadium and an aquarium.
“Different places in the state have different needs, and as the city (of Grand Rapids) grows, drawing new residents from other parts of the country, it needs to be able to keep up,” Whitmer said at a press conference downtown this morning. “So this law will help fund projects that improve the quality of life and draw more people to Grand Rapids, ensuring the growth for generations.”
House Bill 5048, which Whitmer signed on April 2, will allow the city of Grand Rapids to levy a new 2% excise tax on hotel and motel stays with approval from voters to pay for eligible entertainment facilities. Those could include the Acrisure Amphitheater and soccer stadium being developed by Grand Action 2.0, as well as an aquarium that’s still in the conceptual phase.
“The inclusion of aquariums and sports complexes in this list of eligible convention and entertainment facilities is a reflection of our understanding that diverse and modern amenities are crucial to keeping our communities vibrant and competitive,” said state Rep. John Fitzgerald, a Wyoming Democrat who sponsored the bill. “These facilities are not only venues for entertainment and recreation but also catalysts for economic growth, job creation and creating a positive upswing of economic growth that will continue for decades.”
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The law, which has support from the Grand Rapids Area Chamber of Commerce, also allows Kent County and seven other counties that currently levy a 5% hotel/motel excise tax to seek voter approval to increase their excise tax to 8%. Kent County leaders are considering putting the question on the ballot to voters as soon as the Aug. 6 primary, as Crain’s Grand Rapids Business previously reported.
“What I wanted to do was make sure we’re supporting communities that have good ideas and have community support to take that next step, and that’s what this legislation does,” Whitmer said.
Fitzgerald said the law allows communities to decide for themselves whether they want to use the new revenue tool.
“Every community will decide if this is their path or not,” he said.
Kent County already voted in December 2023 to use $15 million from its current lodging excise tax for the $184 million Acrisure Amphitheater project.
“We are lock-step on this (with the county),” said Grand Rapids Mayor Rosalynn Bliss. “I’ve always said that one thing I’m really proud of in our community is we continue to punch above our weight class. These assets, these amenities, have contributed to us being able to have this thriving downtown we see today in this growing region.”
Large downtown venues like DeVos Performance Hall, Van Andel Arena and DeVos Place have contributed to Grand Rapids’ status as a “premier destination,” Bliss added. The new legislation can provide the city with a local revenue stream paid for largely by visitors, she said.
“All of these venues support retail, office and residential that is growing downtown,” Bliss said. “They are a huge, major draw for retention and attracting not just residents but also businesses.”
Democrats Senate Majority Leader Winnie Brinks, House Speaker Joe Tate and U.S. Rep. Hillary Scholten also attended today’s press conference.
Tate noted that West Michigan’s success can lift up the entire state, adding that the new bill accomplishes House Democrats’ goals to improve the quality of life for residents across Michigan.
“This legislation today that we are celebrating just adds to that work that is being done by creating these opportunities for transformational projects that attract talent, that attract jobs, that attract private investment into this region,” Tate said. “That’s been a focus of effort for us.”
Besides the Acrisure Amphitheater and soccer stadium projects, several speakers noted that the legislation could also support an aquarium in West Michigan that is in earlier planning stages compared to the other projects.
A feasibility study conducted last year in coordination with Kent County, the city of Muskegon, Canopy Strategic Partners and John Ball Zoo found an aquarium in the region would be able to compete on a national level and generate billions of dollars in economic activity over a 10-year period.
“The aquarium is a long journey, but potential funding is always an important first step,” John Ball Zoo CEO Peter D’Arienzo told Crain’s Grand Rapids Business after the press conference. “There is a lot of progress happening behind the scenes.”
“I’ve lived in and worked in many parts of the United States, and this legislation will really help us transform our West Michigan economy to really flourish as a tourism economy whether it’s the aquarium, soccer stadium, amphitheater or even the zoo,” D’Arienzo said.
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Historic downtown Grand Rapids bank acquired by Muskegon developer
