A region transforming

Greater Lansing reshaped by large and small projects

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Photos by Todd HeywoodIn the decade since Mayor Virg Bernero took office, the Lansing skyline has slowly evolved as new developments change the contours of the city.

Bob Trezise, president and CEO of the Lansing Area Economic Partnership, rattled off a litany of successful projects accounting for thousands of new jobs and, he says, an increase in Lansing’s population. He said when he was first appointed to his post he kept a cover image from City Pulse featuring a cobweb-covered Lansing skyline. That, he said, drove his motivation to develop the city and the region.

And clear the cobwebs.

There have been notable successes that are reshaping greater Lansing and others in the planning stage that portend even greater change.

In 2015, Jackson National Life insurance company completed a $130 million expansion and added 1,000 jobs. Lansing beat out Franklin, Tenn., for the project.

Niowave Inc. created a rare isotope facility for $79 million and added 120 jobs. Spin-offs from the Michigan State University Facility for Rare Isotope Beams project — the FRIB — are just beginning.

There has also been a flurry of residential building. The Outfield apartment project going up on the northern end of Cooley Law School Stadium was recently featured in Sports Illustrated Online. Apartments at the former City Market location at Shiawassee and Cedar streets are being rented out.

Midtown, to the east of Frandor, is renting apartments and PNC Bank is anchoring the building. The 2000 block of Michigan Avenue is slated for a multimillion dollar make-over, including residential and retail spaces.

Many of these projects have been accompanied by press releases, architectural renderings and civic celebration. Some continue through the approval process, while others have withered because of a lack of financing.

“The vast majority of our projects are successful,” Trezise said. “They are all online for review. They are obvious to the eye and to the bottom line of the city. LEAP works to get difficult and challenging sites redeveloped and quite often it takes several attempts and many years before a project is completed.”

Together they are positioning Lansing for a sustainable economic future and complementing its traditional strengths: cars, capital and college.

City Pulse checked on the status of 10 notable projects in the Greater Lansing area. The results are below.


1. RED CEDAR RENAISSANCE

PROJECT LOCATION: Former Red Cedar Golf Course on Michigan Avenue, 61 acres

PROJECT COSTS (AS DETERMINED BY DEVELOPER): $276 million

PROJECT: Development of floodplain area into mixed use — residential and commercial

FIRST PROPOSED: 2014

DEVELOPMENT INCENTIVES APPROVED TO DATE: None

MUNICIPAL AUTHORITY: City of Lansing

This project is still in the discussion phase as private and public financing options are explored and developed. Lansing City Council would have to finalize any development agreement. Construction could begin as soon as spring 2016, with a projected completion date in 2017.

“Our due diligence and negotiation continues, and I remain very optimistic about the project and the extraordinary impact it will have on the Michigan Avenue corridor at the geographic nexus of Lansing, East Lansing, Lansing Township and Michigan State University,” said Trezise. “2016 will be a watershed year for this project as all of the complexities of redeveloping a flood plain site are worked out, private and public financing are finalized and site work begins.”


2. LANSING KEWADIN CASINO

PROJECT LOCATION: Michigan Avenue and Cedar Street

PROJECT COSTS (AS DETERMINED BY DEVELOPER): $245 million

PROJECT: A 125,000-square-foot casino with parking decks.

FIRST PROPOSED: 2011

DEVELOPMENT INCENTIVES APPROVED TO DATE: None.

MUNICIPAL AUTHORITY: City of Lansing, State of Michigan, federal government agencies and the Sault Ste. Marie Tribe of Chippewa Indians.

In 2011, Lansing Mayor Virg Bernero and leaders of the Sault Ste. Marie Tribe of Chippewa Indians announced plans to build a 125,000-square-foot casino on property owned by the city adjacent to the Lansing Center downtown. The city would sell the property to the tribe. The proposal has been delayed by lawsuits, the last of which was rejected by a federal court in September of last year. The casino is by no means a sure bet, however. The tribe must receive approval from both federal and state governments to break ground. The Bernero administration has said the city would have a revenue sharing agreement with the new gambling facility. The estimated $6 million coming in from the casino would be used to finance the Lansing Promise scholarship program.

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3. PARK DISTRICT

PROJECT LOCATION: Abbot Road and Grand River Avenue, as well as property on Evergreen Avenue

PROJECT COSTS (AS DETERMINED BY DEVELOPER): Nearly $95 million

PROJECT: Development of two buildings. The first would rise to eight stories and contain underground parking, retail, boutique hotel, restaurant and residential units. That building would be located on Grand River. A second, four-story building would go up on Evergreen Avenue, with retail and office space on the first floor and residential units above.

FIRST PROPOSED: 2015

DEVELOPMENT INCENTIVES APPROVED TO DATE: None. Developers have requested Brownfield incentives worth $17.4 million

MUNICIPAL AUTHORITY: City of East Lansing

Since 2001, East Lansing has been trying to develop this “gateway” to the city. But the project, formerly known as City Center II, has hit numerous snags. When first proposed, it was supposed to house the State Archives and the MSU Museum. Both entities withdrew from the project and developers revamped the plans. But the 2008 recession hit, and financial concerns ultimately derailed the project. When the deal fell through, the property was in the hands of City Center Two Project LLC and CADA Investment Group LLC, both of which are tied to East Lansing developer Scott Chappelle’s Strathmore Development Co.

Those properties were foreclosed on by an Ohio-based lender in July of last year. That lender then sold the properties for $8 million to a Chicago company. City Center Two Project LLC is now connected with Park District Investment Group. City Center Two Project LLC has until Feb. 6 to pay the full amount of the loans foreclosed on, or forever lose the property. Park District Investment Group is suing in Ingham County Circuit Court to overturn the foreclosure. It tried a similar move last year in Ohio, but a judge there has refused to stop the foreclosure.

East Lansing Mayor Mark Meadows said he expects Judge Joyce Draganchuk to dismiss the lawsuit. In addition, the group is suing the Chicago company that now owns the property in Ingham County Circuit Court, alleging it conspired to get the property for use by a former partner in the City Center II deal. Until all the legal challenges are over, the properties involved are encumbered and development is unlikely.

“No matter what happens, I expect there will be proposals coming,” said Meadows. He noted that the properties in question are all scheduled for dangerous building hearings later this month, and property owners could be ordered to demolish the properties immediately.


4. SKYVUE ON MICHIGAN

PROJECT LOCATION: Former Story Oldsmobile location on Michigan Avenue in Frandor near Sears

PROJECT COSTS (AS DETERMINED BY DEVELOPER): $90 million

PROJECT: Nine-story building, 667,000 square feet with 359 residential units and commercial space.

FIRST PROPOSED: 2015

DEVELOPMENT INCENTIVES APPROVED TO DATE: $26 million in Brownfield Tax Increment Finance incentives. This money is paid out over the course of 25 years from city coffers based on the increased value of the property.

MUNICIPAL AUTHORITY: City of Lansing

This project is under way. The former car dealership’s buildings have been demolished and the land is being cleared for construction. The developers, RISE, from Atlanta, expect to have the building complete and start renting by July of 2017.

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5. WAVERLY GOLF COURSE DEVELOPMENT

PROJECT LOCATION: Former Waverly Golf Course on West Michigan Avenue and Waverly Road, 121 Acres

PROJECT COSTS (AS DETERMINED BY DEVELOPER): Unknown

PROJECT: Unknown

FIRST PROPOSED: 2014

DEVELOPMENT INCENTIVES APPROVED TO DATE: None

MUNICIPAL AUTHORITY: City of Lansing and Lansing Township

While the City of Lansing owns this property, it is located in Lansing Township. The city has agreed to sell the parcel to Schostak Bros. & Co. for $5.8 million. However, a zoning freeze in the township put the plans on hold. The township wanted to spend the time updating its zoning and building ordinances. That freeze ended in December 2015.


6. METRO PROJECT

PROJECT LOCATION: Former YMCA Building at 301 Lenawee St. downtown

PROJECT COSTS (AS DETERMINED BY DEVELOPER): $20 million

PROJECT: Demolish six-story building, replace with four-story, 99,000-square-foot building consisting of 156 apartments and more than 7,400 square feet of commercial space.

FIRST PROPOSED: 2008

DEVELOPMENT INCENTIVES APPROVED TO DATE: Estimated $500,000 in Brownfield incentives

This on-again, off-again project has floundered since it surfaced in 2008. It was proposed as an office facility, a plan that was ditched when the recession hit. Then it turned into a much larger mixeduse residential and commercial project, including a taxpayer-funded parking deck. That proposal hit a snag when it was revealed that the developers — Y Site LLC — owed back taxes on the location. Lansing City Council refused to issue the bonds to build the parking deck for the property. Despite getting $3 million in loans from state development authorities, requests for funding from the federal government — which would have accounted for the lion’s share of the development costs — failed. City officials have declared the project “dead,” but developers say they are working to bring it back.

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7. HOLMES STREET SCHOOL - SPARTAN INTERNET

PROJECT LOCATION: Former Holmes Street Elementary School, 1030 S. Holmes St.

PROJECT COSTS (AS DETERMINED BY DEVELOPER): $2.5 million

PROJECT: Redevelop obsolete, three-story building into high-tech center including City of Lansing Community Media Center and the Information Technology Empowerment Center.

FIRST PROPOSED: 2007

DEVELOPMENT INCENTIVES APPROVED TO DATE: Obsolete Property Rehabilitation Act credits worth $449,000 paid over 12 years

MUNICIPAL AUTHORITY: City of Lansing

Last week, a sign advertising space for lease at the former school was no longer on the site. In stead, the property has a "for sale" sign on it. Spartan Internet Properties LLC purchased the building in 2007 from the Lansing School District for $115,000. In 2013, Lansing City Council officials became aware that the developer was late on property taxes, despite being paid $1.5 million by the city for Internet services during the same period of its late tax payments.

“The developer has been unable to secure financing to complete the proposed project,” said Trezise. “The city is actively pursuing new partnerships that would result in completion of the project, including space for the city’s Community Media Center and the Information Technology Empowerment Center.”

8. MICHIGAN ASSOCIATION OF BROADCASTERS

PROJECT LOCATION: Ottawa and Butler streets

PROJECT COSTS (AS DETERMINED BY DEVELOPER): $12 million

PROJECT: Headquarters for the Michigan Association of Broadcasters, as well as residential development

FIRST PROPOSED: 2014

DEVELOPMENT INCENTIVES APPROVED TO DATE: Brownfield incentives possible

MUNICIPAL AUTHORITY: City of Lansing

While there was a June 2015 groundbreaking ceremony for this project, the empty lots remain with no construction activity visible. The Michigan Association of Broadcasters has lost its in

itial residential developer, Ferguson Development, but Trezise said the group is seeking a new partner. In the meantime, the association is continuing with plans to build its new headquarters. This site has been the location of previous development ideas, but each has failed for a variety of reasons.

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9. SEVEN BLOCK PROJECT

PROJECT LOCATION: Area bounded by Martin Luther King Jr. Avenue, Butler Street, and Kalamazoo Street

PROJECT COSTS (AS DETERMINED BY DEVELOPER): None

PROJECT: None

FIRST PROPOSED: None

DEVELOPMENT INCENTIVES APPROVED TO DATE: Renaissance Zone, now expired

MUNICIPAL AUTHORITY: City of Lansing

This parcel of city land in the southern shadow of the state’s Hall of Justice complex and the Library of Michigan stands empty, save for a weathered and boarded-up mobile office. The property is owned by the Sam Eyde Co., but Trezise said no development plans are currently in play for the area.

The now expired Renaissance Zone incentives were approved under former Lansing Mayor David Hollister.

“The location is still very viable for future development,” said Trezise. “It is up to the property owners to propose a development plan for consideration by the city.”


10. MICHIGAN FLYER DEPOT

PROJECT LOCATION: Corner of Michigan Avenue and Howard Street at US-127

PROJECT COSTS (AS DETERMINED BY DEVELOPER): $1.6 million

PROJECT: Remove old housing, replace former used car lot with bus depot and retail spaceor hotel

FIRST PROPOSED: 2014

DEVELOPMENT INCENTIVES APPROVED TO DATE: Brownfield worth nearly $795,000 in reimbursements over 15 years

MUNICIPAL AUTHORITY: Lansing Township

Chad Cushman, a vice president at Indian Trails, which owns the Michigan Flyer, said the company has removed three homes and the former sales building on the site. But further development, including building the depot for the company’s shuttle from Lansing to Detroit Metro Airport, is delayed until the right development partner can be found. Cushman said development of the site will, in part, rely on what a development partner wants to put in place. He noted there is talk of a hotel or some sort of eatery — two very different building needs.

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