Board costs, a parking dilemma and mudslinging

The Lansing Housing Commission anticipates “numerousdetails” that need to be worked out before the Oliver Towers proposalis approved, part of which “entails a major expenditure of funds” formoving its administrative offices.

In a Sept. 7 letter to the Housing Commission Board fromExecutive Director Patricia Baines-Lake, she explains that negotiationswill need to cover “concerns of LHC’s Board, the site’s location in afloodplain and a floodway, timing of the move and start ofconstruction, resolution of the Fair Market Value differential … .” 

Also: “Ultimately, LHC may absorb some incidental costsof moving the Central Administrative Offices, transfer/installation ofcommunication lines, equipment, some furnishing costs, office build-outcosts and some capital improvements to replacement structure. The exactFinancial Considerations are difficult to determine until each of thesecomponents is priced out.” 

While Baines-Lake wrote that the proposal accomplishesthe goals of moving the Housing Commission’s offices to a place thatoffers easy access to customers and remains downtown, she added: “LHChas no specific policy regarding this action. However, this proposalentails a major expenditure of funds and it clearly defines how theorganization manages into the foreseeable future.”

Housing Commission Board President Tony Baltimore saidpotential costs are unknown at this point, but that he is “very much infavor” of the proposal because it will get rid of the “blight” that isOliver Towers and the move to Davenport’s campus would allow easieraccess for the Housing Commission’s customers.

The Housing Commission is one of four entities that needto approve a proposal to trade a 3.01-acre block downtown withDavenport University’s 2.73-acre downtown Lansing campus. The HousingCommission is the only occupant in the Oliver Towers building, whichsits on the three-acre, city-owned block. The Lansing City Council,U.S. Department of Housing and Urban Development and Davenport’s Boardof Trustees also need to approve the deal.

Davenport’s board won’t discuss the proposal until itsOct. 12 meeting, Davenport President Richard J. Pappas said in ane-mail. A spokesman from HUD said in an e-mail that the proposal is“still being evaluated.” The City Council aims to vote on it Oct. 24.

Baines-Lake said the Housing Commission board unanimouslyauthorized her on Sept. 7 to negotiate the deal, subject to the board’sfinal approval.

But if you happened to read the Sept. 25 edition of theLansing State Journal, a front-page story might have led you to believethe Housing Commission has already agreed to the deal.

The first three paragraphs of the LSJ story read: "Lansing’s housing commission has signed onto an expansion proposal ... .

"The commission’s unanimous vote this month ... iscrucial support for the project’s advocates because a deal can’t moveforward without it.

"With Davenport also on board, theproject now is contingent on approval from the U.S. Department ofHousing and Urban Development and Lansing City Council."

Fifteen paragraphs later, the LSJ clarified: "Thecommission’s resolution allows Executive Director Patricia Baines-Laketo work with HUD.

"It could take 30 to 60 days for the department to finishits review, she said. The commission will have to vote again on thefinal details of sale."

Baines-Lake and Baltimore made it clear in interviewswith City Pulse that the Housing Commission approved a resolution toenter into negotiations — it didn’t approve the proposal.

"They (the Housing Commission Board) have voted to allowme to negotiate and make a request. I don’t call that voting on thistransaction," Baines-Lake said.

LCC’s parking dilemma

On top of what the four entities consider beforeapproving the trade, Lansing Community College is contemplating thefurther challenge to parking if the deal goes through. If the proposedland swap is approved, LCC would lose 200 parking spaces the collegeleases from the city in Lot 2, which is part of the property beingswapped.

The surface lot, which LCC says it leases for $174,000 ayear, is at the corner of Capitol Avenue and Shiawassee street. OliverTowers is next door on Capitol.

Ellen E. Jones, LCC’s director of public affairs, said inan e-mail that LCC owns 1,716 parking spaces and leases another 392 —totaling 2,108 spaces. This does not include another 300 in thecity-owned North Capitol ramp, which LCC doesn’t lease but reimbursesthe city when LCC students pay with Star Cards to park there, Jonessaid. The LCC Board of Trustees also approved an agreement Sept. 19 tolease 300 more spaces in the Accident Fund parking ramp for faculty andstaff, for which LCC will pay Accident Fund Holdings Inc. $1.2 millionover five years.

Still, Jones wrote, LCC’s analyses show the college needsat least 3,200 spaces to accommodate the 4,000 students and 1,600employees on its downtown campus “at any given time.” It has about2,400.

“We characterize the situation as limited andchallenging, with a shortage of parking spots available to students andstaff,” Jones wrote. And as for the proposed deal: “Davenport’sstudents and employees would create additional demand in an areaalready beset by parking shortages.” Davenport envisions serving 2,000students, up from 800 at its current Lansing campus.

But Lansing Mayor Virg Bernero said parking issues are no reason to hold up downtown development.

“Cities don’t base critical development decisionsstrictly around parking,” Bernero said in an interview Monday night.“There isn’t a viable city in the country that says no to a $10 millionbuilding (to save) 200 parking spaces.”

Davenport has proposed building a $10 million,three-story, 60,000-square-foot building at the corner of CapitolAvenue and Shiawassee Street should the agreement go through.  That building would go where the city’s Lot 2 sits now.

Bernero said “parking can always be built” to meet LCC’sneeds and that cities are “constantly changing parking” to meet theneeds of new development: “You don’t halt development to save parking.” 

'Almost shocking and infantile'

Bernero added that the city would continue to work with LCC on its parking. “We are very attentive to LCC’s needs,” he said.

However, he said LCC’s position after the Davenportannouncement that it, too, is interested in the property, is promptedby LCC Vice President Lisa Webb Sharpe. Bernero said he’s had meetingswith LCC President Brett Knight, who Bernero said expressed support forthe land swap with Davenport. 

“Only recently with the arrival of Lisa Webb Sharpe …suddenly we’re getting mixed signals. Our posture with LCC is prettyclear and cooperative. We respect greatly what they (LCC) do. We alsorespect the role Davenport plays and can play,” Bernero said. 

“It’s strange — odd — the way this has developed. It’sone of the most befuddling things I’ve seen in my political career.This approach appeared out of nowhere — this misguided paranoia on thepart of folks at LCC. Now we hear about the proposal as if it’s hostile(for LCC).”

“It’s unexpected, almost shocking. And infantile, I mightadd. It’s a zero-sum game,” Bernero said. “This (proposal) can createunified areas of educational institutions and promote stability. We see(LCC) as a pillar downtown.”

Webb Sharpe’s response? “I won’t dignify his characterization with a response.” 

When asked if the Davenport proposalwould have a lasting impact on the city’s and LCC’s relationship, WebbSharpe said she hoped not. “People throw up diversions so that youdon’t focus on what’s real.”

As for the perception that Davenport’s growth is bad forLCC, Webb Sharpe said: “The mayor can create a win-win for everybody.There are other parcels within the downtown area (Davenport couldexpand upon). We’re interested in this parcel because it’s contiguouswith our downtown campus. It’s a natural and strategic parcel for us.We think Davenport should be able to stay here and grow.”