Kyle kaminski

TUESDAY April 2 – A grocery store in downtown Lansing takes it one step further.

Demolition has started to clear the site of the Gillepsie Group’s mixed-use project which will include a hotel and apartments as well as a mini-Meijer.

Five large excavators drove around the corner of Michigan Avenue and Larch Street last month. Fences were put up around the site last week. Signs were put up this morning and the back of Brogan’s auto and tire service came down today. The inauguration is expected this month, sources said, with completion late next year.

“If we don’t reach that date, we’re in trouble,” Pat Gillespie said previously. “We will have to start the project by April.

Plans call for the hotel and apartments to be stacked on top of a Meijer mini-grocery store – using millions of dollars in brownfield redevelopment funding and state-sanctioned loans.

The corporate lawsuits at Meijer “have asked us to do some things that are quite difficult to do,” Gillespie explained last year as he applied to city council for more than $ 10 million in brownfield sites, a financing through tax increases and two loans of $ 1 million. State Department of Environmental Quality – Steps for Completion.

This plan was approved by city council last year. And officials from the Lansing Economic Area Partnership said additional steps – like the State Department’s approval of environmental quality – have been completed.

Gillespie announced in August his intention to build the first hotel to be built in Lansing in more than 20 years. The four-story site will cover more than four acres and include both an “urban” Meijer – the second in the state – and dozens of apartments. He said one development’s “game changer” absorbed 21 separate downtown plots in order to become possible.

Brownfield plans are distributed to properties that are either contaminated, damaged or functionally obsolete and face economic hurdles before they can be reused or redeveloped. The tax increase funding allows local tax authorities, like Lansing, to reimburse developers to help offset the costs of the inevitable cleanup.

The additional tax capture takes place over time as the additional taxes are realized. In Gillespie’s case, the 600-block project is expected to include $ 4.3 million in eligible environmental clean-up activities as well as $ 6.1 million in estimated interest for a total of $ 10.4 million, including contingencies and lending activities of the MDEQ.

The hotel will be developed by nationally renowned Concord Hospitality, the management team behind household names like Hyatt, Couryard and Renaissance, and will consist of between 120 and 125 guest rooms. The name of the hotel has been kept under wraps but could likely be revealed during Gillespie’s upcoming announcement plans.

36 to 40 other apartments will also be merged into the structure for those looking for “the experience of living in the city center”. Gillespie said almost all of them will likely become one-bedroom apartments to help meet market demand. A stairwell will also give residents direct access to Meijer without ever going out.

The grocery store, billed under the working nickname Capital City Market, would mark Meijer’s second departure from its traditional storefronts towards an “urban market” concept. The concept is modeled almost identically to that of the Bridge Street Market, which opened months ago in downtown Grand Rapids.

Gillespie said that a 20-year rental agreement was signed with Meijer and that he also solidified a purchase agreement with the hotel chain which has not yet been named. He expects the development to become fully operational by October 2020.

Gillespie also pointed to extensive environmental contamination to justify the incentives. Several oil tanks must be removed due to the history of automotive service in the area. The houses engulfed by the development were also in “very poor condition” and the asbestos must be cleaned before demolition.

“We are formalizing some demolition and groundbreaking dates,” said Gillespie. “Everything comes together fine.”

About 25 to 30 jobs are expected to be created in the grocery store. A “good amount” of staff will be needed to run the hotel and another couple of staff will help staff the apartment complex. Gillespie also suggested he would use as much local labor as possible to complete construction over the next two years.

The Gillespie Group could recover up to $ 10.4 million in additional tax refunds, with around $ 800,000 earmarked for the Lansing Brownfield Redevelopment Authority and an additional $ 443,000 reinvested in the state’s Brownfield fund, according to the reports. proposals. Another $ 1.2 million would go back to local tax units.

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