November 21, 2011
LANSING -- After a brief setback, it appears the redevelopment of a historic downtown Lansing landmark is ready to proceed.
Lansing Mayor Virg Bernero announced Monday that a final agreement had been reached for the redevelopment of the Knapp's Building, located at 300 S. Washington Square in downtown Lansing.
“This is tremendous news for downtown Lansing and for our entire city,” Bernero said. “Redeveloping one of the major historic icons in Lansing will put people back to work by refurbishing this architectural gem, and opening up new job opportunities as businesses move into the renovated building.”
The $36 million redevelopment -- about $20 million of which will be direct construction costs, according to a press release -- calls for retail and restaurant space on the ground floor, commercial space on the middle floors, and residential apartments on the top floor.
The City Pulse reported Monday that construction should begin this winter and be complete within two years.
An array of tax incentives, including state and federal historic tax credits, federal New Market tax credits, brownfield MBT and renaissance zone designations, and a federal Section 108 loan from the U.S. Department of Housing and Urban Development (HUD) are being used to finance the project, along with private financing.
The 190,000 square foot building will also house the Lansing Economic Development Corp.'s new 10,000 square foot business incubator.
The building had been vacant for nearly a decade before the East Lansing-based developers, the Eyde Company announced plans to transform the Art Deco showstopper into a mixed use development.
When a $2 million grant application to the U.S. Department of Housing and Urban Development wasn't approved, it appeared the project was in danger of coming to a full stop.
That funding has been replaced in the final agreement with loan guarantees and a reserve fund from the developer.
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