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Developer proposes 124-unit downtown housing project using 30-year brownfield capture
Summary
The Brownfield Redevelopment Authority and developer presented Brownfield Plan 90 to finance Capital Walk Apartments, a proposed 124-unit, $38.8 million project that requests up to $24 million in eligible reimbursement and a 30-year tax-capture period with a 10% pass-through to taxing units.
The Lansing Economic Development Corporation and developer representatives presented Brownfield Plan 90 on Feb. 23, asking the Brownfield Redevelopment Authority and city council to consider tax increment financing (housing TIFF) to support a 124-unit downtown housing project (Capital Walk Apartments).
Chris Klein, president and CEO of the Lansing Economic Development Corporation, explained the housing TIFF mechanism: incremental property taxes generated by redevelopment (the difference between the base taxable value and post-development taxable value) can be captured to reimburse eligible developer activities over a defined capture period. Under the city's brownfield policy, plans are typically capped at 15 years; the developer requested a variance for a 30-year maximum capture with a 10% pass-through to taxing units and a developer reimbursement cap of roughly $24 million.
Developer representatives said the project — a five‑story building with 124 units over podium parking — would cost about $38.8 million and include a mix of studios (44), one-bedrooms (64) and two-bedrooms (16). The units would be price-monitored for households up to 120% of area median income, with commitments tied to the life of the plan (estimated 30 years). The developer also committed $100,000 for adjacent Rudder Park improvements and projected about $26.6 million in new tax capture over the plan’s life, with approximately $3.1 million returned to taxing units via the proposed 10% pass-through (not including debt millages).
Council members asked whether the project would be financially viable without brownfield assistance; staff and the developer said their pro forma did not meet standard debt-service coverage ratios without the TIFF assistance. Questions followed about parking reductions (project proposes 78 on-site spaces plus 55 off-site for 133 total, down from 175 existing spaces), the downtown market for commercial space (staff said commercial leasing remains challenging), and the rationale for a 30-year capture (administration staff noted variances are permitted for strategic downtown projects and emerging developers under policy).
Staff said the brownfield request was reviewed by the development site committee and the Brownfield Redevelopment Authority and would return through development and planning committee with committee recommendations before final council action.
No final action was taken Feb. 23; the plan was referred to development and planning for further review.
