‘We’re swimming upstream:’ Construction costs strain development of Grand Rapids residential tower

Wheeler Development Group is proposing a 24-story, 280-foot mixed use building at what is now a city-owned lot at 22 Ottawa Ave. NW. (Photo provided by Wheeler Development Group)

GRAND RAPIDS, MI — A development firm seeking to build a 22-story commercial and residential tower in downtown Grand Rapids across from Van Andel Arena says rising construction costs have made moving forward with the project a big challenge.

John Wheeler, CEO of Wheeler Development Group, said his firm is not ready to call it quits yet, but costs would need to fall substantially to make the project viable. The project’s estimated price tag has jumped from $52 million to $76 million due to rising labor and material costs.

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