What's next for downtown Lansing?

“We need to work to connect REO Town, Old Town and also the Saginaw corridor with downtown,” he said. “We have to think deeply about what we’re going to do with the existing (pedestrian bridge over the Grand River). The Washington Square streetscape is very poor right now and needs to be dramatically improved … .”

Continuing: Two proposed projects by local developer Pat Gillespie, Marketplace and BallPark North, need to be ushered to completion. The city’s river trail between Kalamazoo Street and Michigan Avenue needs to be improved, just like has been done with the stretch between Michigan and Shiawassee Street. The building of a performing arts center remains a goal, and several hundred more housing units and perhaps two more hotels would do downtown some good.

Reutter Park on the south end of Capitol Avenue needs to be incorporated better into downtown, and there is work to be done to bring the residential Capitol Club Tower and the Lenawee (an office building proposed to replace the old YMCA building on Lenawee Street) to fruition. Oh, and the EDC has to work to recruit and bring more corporations downtown.

“That’s the list of things we need to work on in the coming years,” he said.

After one of downtown Lansing’s last albatrosses fell last week with the news that the Eyde Co. would work to redevelop the architecturally significant Knapp’s Department Store building, a pertinent question is: What’s next?

With the ongoing redevelopment of the Ottawa Street Power Station into the headquarters of the Accident Fund Insurance Co. of America, and the Knapp’s announcement, it seems that the downtown has no more monumental redevelopment projects to tackle — there are perhaps now more empty parking lots than empty buildings.

As far as empty buildings go, there are a few storefronts on Washington Square that could be filled. The old Oliver Towers housing tower is still largely vacant and occupying increasingly valuable land, and the old YMCA building is stately, but apparently difficult to do anything with except possibly tear down and start fresh. Along Grand Avenue south of Michigan, there are a few parking lots and empty office buildings. On the east side of Grand Avenue is the proposed site of an upscale apartment building — the Capitol Club Tower — and beyond that, a stretch of riverfront occupied by dead (and living) trees and a dilapidated chunk of river trail infrastructure.

Along with his “to do” list, Trezise also keeps a list of things that are “impossible,” using the word as optimistically as possible. The power station was an “impossible,” so was the Knapp’s building, and so was a new City Market. The other two impossible tasks waiting in the wings: a performing arts center and a couple of new hotels.

“That’s five impossibles, if you will,” Trezise said. “We’ve hit three of those now.”

Take me to the river

If you happen to pass by the old Lansing City Market at the corner of Shiawassee and Cedar streets in the next few days, you may notice that it is slowly being picked apart. In a week, maybe, it’ll be gone forever.

Gillespie said that demolition is set to begin today. But it will not happen in one big crash. Last week, the windows were removed, and earlier in the week, the building was picked clean of its rustic hardware, like doors and other ornaments. And during demolition, scheduled to take up to 10 days, as many of the building’s old bricks as possible will be salvaged to go inside Gillespie’s Marketplace development, which will eventually rise in place of the old market.

Marketplace, and its twin east across Cedar Street, BallPark North, are part of two key aspects of continuing to grow downtown: adding more people, and opening people’s eyes to the Grand River. Both will feature a mix of residential, commercial and retail space.

It was Gillespie who, last fall, took interested parties out on a boat downtown to show them a different view of how the city looks from the river.

“We want to maximize the river,” Gillespie said. “That’s going to be a big part of the next five years.”

The first building in Marketplace, with 85 residential units, Gillespie said, could start to rise by the end of 2010. The plans for the development have not changed much since they were introduced in 2007, though interior plans for the building’s units have been sketched out. BallPark North, a sort of shoutout to apartments near Chicago’s Wrigley Field, would rise from behind Thomas Cooley Stadium’s center field, giving its residents a view of ball games. Gillespie would like to start BallPark North simultaneously with Marketplace, and finish them both at the same time.

“I’d love to see them go at the same time,” he said.

But while Gillespie’s developments at that part of the Grand River express a continued rejuvenation — along with improvements made to the river trail there, as well as on the west bank of the river at the foot of the Ottawa Power Station — pieces of the river south of Michigan Avenue have been more stagnant.

Bob Johnson, head of the city’s Planning and Neighborhood Development Department, says that if you look at the way riverfront development has been going, the southern tier of the downtown waterfront is ripe for improvement. The city does not have any new specific projects in mind right now for that section of riverfront, but there is the promise of the Capitol Club Tower project beginning in some form. The project, headed by developers Shawn Elliott and Alan Drouare, would place a high rise between a state office building and the South Grand Parking Ramp. Behind the proposed site of Capitol Club Tower along the banks of the Grand River is a thicket of trees that runs from the parking ramp to the Kalamazoo Street Bridge.

Elliott declined comment on what is happening with Capital Club Tower, saying that he would prefer his actions speak in place of his words. On the surface, at least, nothing appears to be happening. The project was supposed to break ground in 2007 or early 2008, but in an interview last April, Drouare said that the project was feeling the effects of a national credit lending freeze, and that the developers needed to turn some 60 interested buyers into full buyers. The tower was once projected to climb 20 stories, but was scaled back to 12 stories with 84 residential units.

But Johnson still sees hope for the project. He said the developers had to assemble three parcels into one for the footprint of the building, which was no easy task. Therefore, the land is developable, where it once was not.

“The assemblage of those three parcels provides there to be discussion on development,” Johnson says. “Heretofore, there could never have been a discussion.”

Johnson also said that he has been given “positive indication” that something will be done with the parcel. Trezise said that he has been told the project may not end up being entirely condominiums, but more of an overall mixed-use development.

Aside from Elliott and Drouare, Trezise said he has not heard of any private entity interested in building on that section of the river.

The next level

The progress of downtown Lansing from 20 years ago to now, say those who have seen it and are involved in it, is amazing. But there is still more work to be done.

Trezise has often talked about a “critical mass” of people living in the downtown area that would attract more retail opportunities, perhaps even a grocery store.

Gillespie says that surveys of people living in his downtown developments want more hotels in the area, and they want more dining choices. Trezise says that destination retail stores — like, say, a women’s clothing store — and more dining options will take a larger amount of people downtown. And, quoting a recent EDC market study of the downtown area, the area could support at least 300 more housing units, which may push it toward a “critical mass” tipping point.

Eric Rosekrans, a senior vice president of CB Richard Martin Ellis in East Lansing, who studies office space vacancy rates in the area, says that what the downtown area needs is more people. At this point, he said, the downtown area could not support another new office building — that may change by the time the Knapp’s renovation is complete in an estimated three years, he said — because there’s plenty of vacant office space.

Entertainment venues, like bars, are a sort of ground floor for retail, Rosekrans said. To bring a retailer of national scale, like a drug or grocery store, is going to take more “rooftop counts,” or more people living downtown.

“I do not know that retail will be in the near or middle rangefuture a big draw,” he said. “But I think you can bring in some morethat will help that area as long as the living environment continues togrow.”

Trezisesaid that an existing agreement with the Radisson Hotel could hamperhis desire to bring two new hotels to downtown Lansing, the goal ofwhich would be to boost convention business. The city cannot offer asmany tax incentives as it normally could for another hotel.

“It’s a problem we continue to work on, but we can’t violate the legal agreement, and we won’t,” he said.

It’s taken decades

“Therewas nothing. The city was dead,” said former Mayor David Hollister whenasked what downtown was like when he took office in 1993. There wasnothing open after 5 p.m., no entertainment, and certainly no loftapartments.

Hollistersaid he came into office with the focus of revitalizing downtown. Hefocused on three main areas: Washington Square (once known as the“Washington Mall”), the corridor along Michigan Avenue between theCapitol and Pennsylvania Avenue (a “sin strip” full of adultbookstores, drugs and prostitution) and Old Town. Hollister hired aconsultant to come in and study downtown, who told him that downtownneeded loft apartments, maybe a sports arena, more diversity, andelements that would make it more “walkable.”

Thefirst real development that Hollister remembers is the new Capital AreaTransportation Authority bus terminal at the corner of Grand Avenue andKalamazoo Street. The state had appropriated money for the center forseveral years, but the funds had sat around unused.

“Wecould never agree where to put it,” he said. He went to the state andtold them, “If we don’t do something with (the money) this year, youcan take it back.”

Thetransportation center gave the city’s image a boost, Hollister said. Itwas after that that Tom Dickson came to Hollister with an idea about aminor league baseball team.

“Itold him I would be interested, but only if he put it downtown,”Hollister said, reflecting that other sites, including the Red Cedargolf course, were looked at for what would eventually become ThomasCooley Law School Stadium (nee Oldsmobile), the home of the LansingLugnuts.

Hollisterwanted to use the stadium to clean up the Michigan Avenue “sin strip.”And it worked — after the stadium was built and opened in 1996,entertainment venues the Nuthouse, Rum Runners and Club 621 opened upalong Michigan Avenue.

Prettysoon, downtown Lansing began to appear on people’s radar. Developmentslike Buildtech president Richard Karp’s renovation of the ArbaughBuilding into lofts and Harry Hepler’s loft developments and thenow-defunct restaurant Blue Coyote were among the first investments inurban chic.

Duringthe 1990s, most developers were still focused on developing sprawlingsubdivisions and suburban shopping malls. But a new trend of youngprofessionals wanting to

“live, work and play” in an urban area was beginning to take hold.

Gillespierecalls being one of those developers who had “developed everywhere butdowntown.” He said he didn’t think of downtown Lansing as holding thepotential of other cities’ downtowns like in Madison, Wis., orIndianapolis. His eyes were opened, he said, while he was giving a tourof Lansing to an architect visiting from Winter Park, Fla.

“Hetold me, ‘You have no idea of the opportunity that’s going on here,’”Gillespie said. The architect pointed out that Madison and Indianapoliswere already developed, and that downtown Lansing was an undiscoveredtreasure.

“We drew a one-mile radius around the Capitol and said, ‘We’re going to commit as many resources here as possible,’” he said.

Gillespie says he does not know why the trend of young people wanting to live in urban areas sprang up, but it’s here.

Brandon Kirby/City Pulse Could this stretch of the Grand River be Lansings next big development project?

“Whatwe’re finding is the age group between 22 and 35 like the feel ofliving urban, green, and walkable. That sounds like just a lot of thetag words, but that’s what they like,” he said. “Their friends are inAtlanta and Chicago and other big cities. They would like to stay herebut have that same type of experience.”

Batting cleanup

Johnson, as the city’s sire of urban planning, has overseen a number of projects in the downtown area.

Mostcontroversially, he had worked for two years on a deal to sell theNorth Capitol parking ramp to Lansing Community College. The college’soriginal plans called for a rehab of the concrete behemoth, and arooftop restaurant for its culinary school. But after City Councilkilled the deal as too lopsided in favor of LCC, the college withdrewits offer early this year. Developer Joel Ferguson has been interestedin buying the ramp, but Johnson says the ramp has not been opened upfor general sale.

Johnsonwas also involved in the city’s buying the land where the shutteredBoarsHead Theater sits, with the end goal of building a mixed-useparking ramp for workers at the new state police headquarters. ButJohnson said he’s received word from the state that there’s no parkingshortage for state police workers.

Therewas also a plan to build a city-owned parking ramp between the newLansing City Market and the Lansing Center. That proposal was scrappedbecause the Accident Fund Insurance Co. of America and the ChristmanCo. were able to secure financing to build a parking ramp next to thepower station that would serve the new Accident Fund headquarters.Nearby, at the corner of Cedar Street and Michigan Avenue, there waswhat Johnson calls “brainstorming” over building some kind ofperforming arts or cultural center. But that idea has not beendiscussed recently.

Acrossfrom the North Capitol ramp is the partially vacant Oliver Towers (theLansing Housing Commission still has its offices on the ground floor).The Lansing City Attorney’s Office released a formal opinion lastWednesday, saying essentially that the city of Lansing owns thebuilding. But to dispose of the building would take the Lansing HousingCommission working with the U.S. Department of Housing and UrbanDevelopment to sell it for fair market value. At last check, Johnsonsaid, the commission was interested in selling the building and movingits offices to the former School for the Blind. Patricia Baines-Lake,the commission’s executive director, did not return a call seekingcomment on the status of the building. But Johnson said he is unaware of any specific interest right now in developing that site.

Johnson said that he has not heard of any movement onthe old YMCA building on Lenawee — he said he has not seen a demolitionpermit for the building, which means that the “sky is the limit” forthe building. Rosekrans, who represented the owners, The Lawton Group,said that the original plan for the building was to tear it down andbuild an entirely new building. Julie Lawton Essa of the Lawton Groupdid not return a call seeking comment.

Johnsonsaid that he does not know the condition of the building, but even ifit is in tip-top shape, the layout of the YMCA could be prohibitive.Much of the building is singleroom dwellings, which may not be suitablefor the class of people looking to live downtown.

Whenasked whether there are any major projects in the works for downtown,Johnson said any discussions right now are “embryonic, and even that’sa stretch.”

Oneimportant piece of downtown development, he said, is a study being doneby CATA of the Michigan Avenue corridor connecting Lansing, EastLansing and Meridian Township. The study could produce a recommendationto build new public transportation infrastructure along the corridor.Among the options being considered are light rail, modern streetcars, abus rapid transit line, and improving the existing bus service.

“The culture of the region, the culture of city, needs to move to a state where we embrace mass transit,” Johnson said.

If he could have anything, what would he like to see happen in downtown?

“Two-way streets,” he said.

Urban interest

JaredWein, a 23-year-old MSU computer science graduate student, and an EastLansing native, has always wanted to see the Lansing region more builtup, with more destinations and more cultural events. After finding theWeb site ModelDmedia.com, which focuses on developments in Detroit, hedecided to start his own development-focused site. He launchedDevelop.MetroLansing.com in 2006, right at the beginning of theadministration of Lansing Mayor Virg Bernero, an era that would usherin a boatload of exciting development projects. Wein’s site averages10,000 views per month, and hosts many forums related to specificdevelopment projects around the region. The site’s traffic has grown by15 percent in the last month.

“I don’t know if it’s my generation or what, but there seems to be a lot of interest in living in urban areas,” he said.

He’sexcited about development, though he observes that sometimes there willbe long stretches without development news. Plus, he’d like to see someof the major projects like the Lenawee and the Capital Club Towerfinally get off the ground. But what excites him now is the possibilityof the development of the Michigan Avenue corridor.

“Thestronger we can build that link, that’s really going to be the key tomake things successful,” he said of connecting Lansing and EastLansing. “We can get a lot of destinations along the way.”

Whenasked what he thinks is the next step for downtown Lansing, Hollistersaid that’s it’s the Grand River by getting Gillespie, Elliott andDrouare’s developments up and giving people more access to the riverand connecting downtown to Old Town and creating that “critical mass.”

MindyBiladeau, director of the downtown Principal Shopping District, seesthe Grand River as downtown’s third major street, next to MichiganAvenue and Washington Square.

“Unfortunately, the river has not been treated as a main street for decades,” she said.

Withthe “green” movement underway, Biladeau believes that the city has laidthe foundation for a Grand River comeback because of the combined seweroverflow project, which has aimed to divert wastewater from beingpumped into the river, and the addition of rain gardens along MichiganAvenue and Washington Square.

“Along museum drive and that area, there’s a lot of opportunity,” she said.

Trezisehopes that with public improvements along the river, more developmentswill follow. The city’s river walk runs on the east bank of the GrandRiver between Michigan Avenue and Shiawassee Street nearby to theImpression 5 Science Center and the Riverwalk Theater.

“That’s what we can control and work on and do,” Trezise said. “And then hope private development will occur adjoining it.”