November 29, 2011
LANSING -- The last piece of the puzzle of federal loans, tax credits and other incentives pieced together to finance the redevelopment of a downtown Lansing landmark was approved Monday night by the Lansing City Council.
The council voted 7-0 in approving a $5.9 million federal Section 108 loan application to the U.S. Department of Housing and Urban Development (HUD).
Fourth Ward Councilwoman Jessica Yorko was absent.
The loan is part of a package of private financing and tax incentives -- including state and federal historic tax credits, brownfield MBT and renaissance zone designations -- that will fund the $36 million renovation of the historic Knapp's building at 300 S. Washington Square.
The application for the loan is made by the city and The Eyde Company. The Eyde Company, which owns the building and is the developer of the project, would then have up to 20 years to repay the loan. The first seven years of payments would be interest-only.
Last week city officials announced that a final agreement had been reach for the redevelopment, putting the project back on track after a separate grant application to HUD was rejected by the federal agency.
The redevelopment calls for retail and restaurant space on the ground floor, commercial space on the middle floors, and residential apartments on the top floor.
The Lansing Economic Development Corporation's new 10,000-square foot business incubator will also be housed in the rehabbed space.
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