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Old Town stakeholders split over expansion of Old Town principal shopping district
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Summary
Council heard strong, mixed testimony on a proposed expansion of the Old Town Principal Shopping District (PSD). Supporters from the Old Town Commercial Association credited the PSD with decades of revitalization; some property owners and developers urged more notice and asked council to table the proposal for more stakeholder discussion.
A proposal to expand Lansing’s Old Town Principal Shopping District drew heavy public comment Dec. 8, with business‑group leaders and community organizers making contrasting arguments about benefits, costs and the notice process.
James Lennon, executive director of the Old Town Commercial Association (OTCA), told council the association has worked nearly 30 years to revitalize Old Town and said PSD expansion would let the organization extend marketing, beautification and programming to adjacent areas. "Areas supported with a PSD demonstrate significant growth and value for our community," Lennon said in support of item 7.
Eric Hanna, president of Michigan Community Capital, also backed expansion and presented data showing vacancy rates in Old Town had fallen dramatically over decades of coordinated investment. He told council the OTCA and Main Street model had been studied and planned for more than a year.
But several property owners and managers said they received late notice and were concerned the new assessment would increase operating costs on properties that are not well connected to Old Town activity. Jason Kilday of Gillespie Group said his properties may face a $6,000–$8,000 annual cost increase and asked the council to table the measure for additional consultation. Harry Hepler and others said the public hearing notice felt rushed and that owners need specifics about who would be assessed and how funds would be spent.
Why it matters: PSDs authorize enhanced assessments on properties to fund areawide services and programming; expanding that boundary shifts costs to new payers and changes where investment flows. Supporters said expansion is a targeted economic-development tool; opponents pressed for more clarity and outreach.
What’s next: Clerk referred the PSD expansion to the Development and Planning Committee for further deliberation and stakeholder engagement prior to a final vote.
