Council approves sale of Hotel Hayes to Collier Gibson; staff to negotiate development agreement

Jackson City Council on Feb. 25 approved the sale of the Hotel Hayes, 228 West Michigan Avenue, to Collier Gibson and authorized city staff to prepare and execute a purchase agreement and a development agreement with the buyer.

The council vote followed a staff update that summarized a multi-year effort with a prior prospective developer, Jay Jeffers, and the city’s subsequent vetting of a different buyer. Staff said earlier negotiations with Jeffers produced extensions and discussions through late 2024 but ultimately did not yield a finalized deal before the purchase agreement expired on Dec. 31, 2024. City staff told council that Collier Gibson and Scott Gibson presented a financing and development approach that aligned with the city’s redevelopment goals and financing strategies, including potential assistance from the Michigan Economic Development Corporation.

City staff said the sale was expected to close later in the week; staff were authorized to complete the sale and to negotiate the development agreement. Council members asked whether prior approaches had included sale-first or long-due-diligence models; staff replied that the city has used both approaches on past projects and will finalize the agreement terms with the new developer. Council also asked whether the sale would include any reversion or “get-back” provisions if the project failed; staff said that those specifics would be worked out by the city manager and city attorney during negotiations.

Council members expressed support for moving forward. The clerk displayed a unanimous vote. Staff said finalized dates for redevelopment milestones would be included in the negotiated development agreement and that the city would provide updates as negotiations proceed.