THURSDAY, Feb. 18 —The old Deluxe Inn site along I496 just south of downtown Lansing, long an eyesore before it was torn down in 2010, has been optioned to a Grand Rapids company that would build a four-story, $4 million extended-stay hotel there.
The site has “good numbers“ for what would be a chain hotel, said Brian Winkelmann, a Grand Rapids architect who is a partner in M2B2 LCC, the developer. He declined to name the chain.
The Ingham County Land Bank owns the property. “We signed the option agreement to give them time to work with the city,” said Ingham County Treasurer Eric Schertzing, who chairs the land bank board.
M2B2 LCC, will pay the Land Bank $425,000 if it goes ahead with its plan, according to the agreement it signed on Feb. 4. The developer put down $20,000.
Under the agreement, the developer must submit a site plan to the city for review and approval within 90 days. The development company has 180 days to withdraw from the agreement and be refunded the $20,000 option fee. If after 180 days, the developer has not done so, the money becomes non-refundable.
The site, at Malcolm X Street and Washington Avenue, once played host to a motel that fell into disrepair and became known as a location rife with criminal activity. The building was a Motel 6 before becoming the Deluxe Inn. The Land Bank purchased the property for $400,000 after it was foreclosed on in 2009.