Lansing City Council could OK new skyscraper, move of city hall

LANSING — The City Council Monday could approve several hundred million dollars worth of downtown developments that will change the capital city's skyline.

After a delay in February, council members are expected to vote on a pair of $40 million state appropriations − for a new city hall and the city's first new skyscraper in decades − and they could hear some of the first details on a proposal for a new Grand Avenue headquarters for the Capital Area Transportation Authority.

The two $40 million state appropriations are to move city hall into a renovated Masonic Temple just down the street on Capitol Avenue. The other would seed the $228 million riverfront skyscraper project that includes development of two other buildings and more than 400 new apartments.

Council members paused the city hall and apartment projects in February, saying they needed more time to look at how the projects were awarded to a pair of local developers and to propose changes to the plans.

Council President Jeremy Garza said Thursday that he plans to vote for both proposals, after getting his questions answered and learning that the developers plan to hire local union labor.

He said the developers of the projects - the Boji Group for city hall and the Gentilozzi family for the New Vision Lansing housing projects - each lobbied state officials and were key in helping to get the appropriations in the most recent state budget.

"I am super excited about the transformational money we're getting from the state," Garza said.

The city has been able to work through its approval process without strict deadlines from the state so far, said Scott Bean, a spokesperson for Mayor Andy Schor's office.

A state first: The chairs of the House and Senate appropriations committee are both from the Greater Lansing area, and the appropriations coincided with a "once in a generation influx of federal pandemic dollars," state Sen. Sarah Anthony, D-Lansing, said in a statement Thursday.

House Appropriations Committee "Chair (Angela) Witwer, (D-Delta Twp.) and I fought for this money, to give our capital city a direct infusion of resources to address important needs in our community: Housing and municipal services," Anthony said in the statement. "The administration and council need to work through their process — but let's be clear, this money is time bound. I hope we don't look back at this time in disappointment."

Lansing City Hall

The city's planned move to the former Masonic Temple building would allow the city to sell its current city hall to a developer, possibly to become a hotel. Developers have floated previous proposals for such a use.

Adam Hussain, the council's vice president, did not respond to phone calls and an email for this story. In February, he said during a City Council meeting that the delays on accepting the $40 million in state money were not an indicator that the city wasn't moving forward with the projects. He said the delays had led to significant savings for the city, which he would be able to detail at a later date.

The $40 million allocation for Lansing comes with a few strings: It has to be used for a municipal building and should give consideration to historic preservation, as well as helping other governmental entities. The state also expects the money to be spent by the end of September 2027.

That savings, at least in part, appears to have been in the purchase price of the Masonic Temple.

Masonic Temple owner The Boji Group was asking $5 million from the city, including $3.65 million for the building and $1.35 million for carrying costs and for not developing a neighboring parking lot so the future city hall could have windows on the south side, Bean said.

The Boji Group bought the building in 2019 for $1.75 million, but Boji Group President John Hindo told council members the building was part of a three-building deal with Western Michigan University's Cooley Law School.

Since council's February meeting, the city has confirmed that it would not be paying the $1.35 million in carrying costs.

The Boji Group is both selling the building and planning to act as contractor for the renovations. The purchase price of the building is $3.65 million, based on a city-commissioned appraisal, according to a statement from Hindo.

The renovation is expected to take 12 to 18 months if the city is able to acquire the building in May or June, Hindo said.

Part of the project would be figuring out what to do with the top three floors of the building since the city would only need the bottom four floors.

Garza said an incomplete plan for the building had been a major concern for him but he is expecting to hear a plan from the Lansing School District on Monday to use that space for administrative purposes.

Council member Brian Jackson said moving city hall was not a personal priority of his, but he sees the need given the current city hall's condition and he would support the move in part to get the current city hall back onto the tax rolls.

New Vision Lansing

The $228 million New Vision Lansing project, led by Paul, John and Tony Gentilozzi and Bloomfield Hills-based JFK Investment Company, consists of three buildings: The first would be a reworking of an historic existing office building at 100 S. Washington Square, followed by new construction of a skyscraper on Grand Avenue and a parking facility that spans Grand Avenue and connects both buildings. Additionally, another building would be built at Ottawa and Walnut Streets.

New Vision Lansing would add around 460 residential units.

The plans have changed for Capitol Tower, the third building at Ottawa and Walnut streets, which was originally pitched as a circular tower but is now expected to be a rectangular building with more street access.

The $40 million in state appropriation money would "be used for the construction of new mixed use/income housing facilities in the downtown area as proposed by Paul Gentilozzi," according to city documents.

Garza, the council president, said he was impressed when Paul Gentilozzi told council members last month that he was already working on a union labor contract with Lansing area workers.

"That was my big issue: A lot of times we have these developments going and taking place but they're hiring Grand Rapids contractors or other places and as soon as they get that money, it leaves," Garza said.

He said that without the work of developers and state legislators, the state money would be winding up in Grand Rapids, Detroit, Flint or anywhere but Lansing.

Jackson said one of the city's most pressing needs is housing.

"We need more housing of all types, especially affordable and workforce, because we need people to live here," he said.

CATA headquarters

The City Council is expected to get a first look at a plan to sell a city parking lot on Grand Avenue, which would be developed into a headquarters for CATA and potential housing for the Lansing Housing Commission.

There are no renderings of the plans or projected costs available, Bean said.

City Lot #1, located at 425 S. Grand Ave., is across the street from the existing CATA Transportation Center and it could be transformed into a transit-orientated mixed-use development, Lolo Robison, a spokesperson for the transportation authority headquartered on Tranter Street, south of Cavanaugh Road, said in an email.

The project would reduce the number of parking spaces and add housing and social development services, she said.

"While we recognize that there are still details that need to be ironed out, as a downtown anchor, we are thrilled about the prospect of being a significant partner in this exciting project," she said.

Housing commission officials announced in August they hoped to start construction this year on Riverview 220, a $22.5 million, 63-unit project planned for that block, on the south side of East Kalamazoo Street, between South Grand Avenue and Cherry Street.

Leasing would potentially start in 2026.

If you go:

The Lansing City Council meets Monday, starting with a committee of the whole meeting at 5:30 p.m. at the City Council chambers on the 10th floor of 124 W. Michigan Ave. A city council meeting follows at 7 p.m.

Schor to give State of the City address:

At 7 p.m. Tuesday, Lansing Mayor Andy Schor is scheduled to deliver a State of the City address from the new Grewal Hall, 224 Washington Square. You can watch a livestream of the event on City-TV's 24/7 Stream and the City's Youtube page.

Contact Mike Ellis at mellis@lsj.com or 517-267-0415

This article originally appeared on Lansing State Journal: Lansing City Council could OK new skyscraper, move of city hall