25-story residential building, hundreds of new apartments: Here's what $200M downtown Lansing proposal includes

LANSING — More than 450 new housing units would come to downtown Lansing in the next two years under a $200 million proposal by the Gentilozzi family, funded in part by the record amount of one-time grants in this year's state budget and millions in proposed tax credits.

Three projects by the longtime Lansing developers, in partnership with southeast Michigan investors, would create the tallest building in downtown Lansing, redevelop an existing iconic office building and turn several lots currently containing vacant homes into an apartment complex.

The developments, under the umbrella of New Vision Lansing, will be led by Paul, John and Tony Gentilozzi, along with Bloomfield Hills-based JFK Investment Company. JFK is owned by the Kosik family of Bloomfield Hills and led by Joseph Kosik.

The plan would approach the roughly 600 residential units that have been added downtown in the last two years and doubles down on the idea that new housing downtown will help revitalize a business district battered by the pandemic.

Paul and John Gentilozzi said the projects represent a new chapter in the city’s history, population and economy, ones they said would “transform” the Lansing skyline and downtown experience.

“There's a lot of great dynamics that can change our city if we just believe a little bit,” Paul Gentilozzi said.

The developments are the latest and most visible in a series of efforts to revitalize the Lansing area following a shift from an office-centered economy in the wake of the COVID-19 pandemic to attracting and retaining residents and bringing in visitors with worthy attractions.

John Gentilozzi said he learned working in auto racing engineering to rely on data as well as his gut.

He said the city's downtown vacancy rates aren't good, the traffic count numbers are down and most retailers aren't happy with their tills at the end of the night.

But, he said, there have been large investments by General Motors and Michigan State University and private companies.

"Lansing is the number one net migration city, they're coming here and they aren't leaving."

"What does the data tell us about downtown (Lansing)?," he asked during a news conference announcing the project. He answered his own question, saying his gut, as well as data, is showing that Lansing will be rebounding by the time the apartments are available.

The projects would be partially funded with $40 million allocated in the state budget and about $10 million in proposed local tax breaks. The plans and tax breaks would still need to be approved by the City Council.

The project is the first public explanation of what the Legislature had in mind when it approved a $40 million, one-time allocation for housing in Lansing.

House Speaker Joe Tate, D-Detroit, said housing has been a priority for legislators this year, one of the few areas of agreement across parties, leading to support for the project in the state budget.

Kosik, one of the funders, said he has partnered with the Gentilozzis on many development projects.

“I have partnered with the Gentilozzi’s on many development projects over the years,” said Kosik. “Out of all of our investments, New Vision Lansing holds the most promise for a transformative impact on Michigan’s capital city and we look forward to the vision for Lansing becoming a reality.”

The projects are planned to be completed between 2024 and 2025 and the Gentilozzis estimated the developments' residents would produce around half a million dollars in city income tax per year.

“We genuinely do believe that bringing housing to the central part of downtown Lansing will change this city,” John Gentilozzi said.

Here are details on each of the three projects.

READ MORE: Gentilozzis looked to Indianapolis, Cincinnati for inspiration for downtown Lansing plans

Tower on Grand

Located at 215 S. Grand Ave. and stretching across the road, the Tower on Grand is expected to be the most visually striking of the three developments.

The 300,000-square-foot building is planned for a lot between the Grand Tower at 235 S. Grand Ave., where West Washtenaw Street dead-ends into Grand Avenue, and a parking garage to the north. The main portion of the tower would extend 25 floors into the sky on Lansing’s riverfront.

A 1-acre parking deck would extend across the street. The west side of the structure would connect to the Atrium Building at 215 S. Washington Square, meaning residents would be able to cross over Grand Avenue from their apartments to reach downtown without setting foot outside. The Atrium Building, owned by the Gentilozzis, would maintain its "golden-era, arcade-like interior," the developers said in a release.

"Nobody is messing with this building, I promise," Paul Gentilozzi said, urging people at a news conference inside the building to look up at the ceiling, which had been restored from "drywall and Army green" back to the building's detailed and classic style.

The roof of the deck would contain green space, lounge and barbecue areas, pickleball courts and a pool, while the interior would connect to a ground level parking ramp that would be accessible from Grand Avenue and would hold 500 vehicles in covered parking.

The massive development would take the crown for the tallest building in Lansing, beating out the 23-story Boji Tower. But John Gentilozzi said he wants that title to only be temporary.

“I hope that we only have the tallest building for a couple of years,” John Gentilozzi said. The Gentilozzis said they want their projects to spur a cascading effect of further development in the area, a sentiment Lansing Mayor Andy Schor echoed.

“We're seeing a shift in our downtown that is important for the future,” he said.

The Tower would offer up to 308 units, including studio, one- and two-bedroom, and penthouse configurations. With the combined height of the parking deck and tower, residents would be able to live and observe at about 320 feet in the air.

Schor said the development package "checks a lot of boxes" in terms of supporting middle-income workers, repurposing downtown land and stimulating the local economy.

John Gentilozzi said specific rents would be set closer to the project's completion, but that the units would be priced under market and workforce rent structures, meaning that some units would be priced according to developers and some would be tied to the median income in the area by the Department of Housing and Urban Development.

The Tower would also include grocery store delivery from the Capital City Market owned by Meijer, a 24-hour concierge, rentable entertainment rooms and a fitness center.

The developers said they hope to start construction by the end of the year and finish the project by the end of 2025. The construction of the Tower and other properties would bring more than 1,500 workers to the Lansing area, the Gentilozzis said.

Washington Square

Located on the southwest corner of Lansing's downtown roundabout, the office building at 100 S. Washington Square that is owned by the Gentilozzis would be converted to housing, offering up to 75 units with a majority of apartments being priced at workforce rates.

This housing project would be one of the first reuses of Lansing’s downtown office space, John Gentilozzi said. Last year, the former Lake Trust Credit Union building at Capitol Avenue and Hillsdale Street was converted into apartments.

The 101-year-old building at Washington Square and Michigan Avenue formerly housed the state Court of Appeals and currently is home to the Department of Community Health. The Gentilozzis are aiming for the project to begin soon and finish by the end of summer 2024.

Many units in the complex would have 12- to 13-foot high ceilings and the complex would offer a rooftop deck with what the developers said would be unmatched views of the Michigan Capitol.

Some current retail and business space, which hosts the MLive Media Group, Insty-Prints and the Middle Village Micro Market would be maintained — but that footprint would be reduced as property behind those storefronts would become a dedicated parking ramp for the complex's residents, the developers said.

The conversion is one of the most direct signs of Lansing transitioning from an employee-based, office-focused economy, to a new era of prioritizing retail, service and entertainment, officials said.

John Gentilozzi said the main barrier preventing businesses in the downtown area from flourishing is the lack of foot traffic.

"If we can just put people in the right spot, the things that happen after that are really what we're looking for," he said. The complex would assist businesses in the area maintain a consistent customer-base, particularly one that's there after working hours, he added.

The complex, along with other projects, seeks to make Lansing a destination for visitors all around — not just its new residents.

“We're getting there," John Gentilozzi said. “We're adding little pieces here and there. But the situation down here in the central business district doesn't have time to wait for nature to take its course.”

Paul Gentilozzi said businesses in the area would benefit from a “kickstart” — and that the proposed projects would be just the thing to get the ball rolling.

Capitol Tower

The final of the three developments would be at Ottawa and Walnut streets just northwest of the Capitol.

Currently the site of mostly vacant houses, the Capitol Tower would include both apartments and 48,000 square feet of pre-leased office space.

"It's if you want to live downtown, but you don't want to be in downtown," Paul Gentilozzi said.

The site is located just across the street from the state Capitol and State Office Complex, making it a premiere location for state workers looking to live in the area, the Gentilozzis said.

The Gentilozzis stressed they likely wouldn't have included the office space if they didn't already have a tenant for the levels.

The building would feature 70 market rate and workforce apartments and parking for 110 vehicles.

The high-rise would fit in with the Lansing Tower complex, a 12-story community further west on Ottawa, and Ferris Park Towers, another 12-story complex north on Walnut.

The top three floors of the building and roof deck would belong to the office tenants, but many apartment residents would have their own balconies.

The Gentilozzis said they hope the building would serves as a sort of entrance to the surrounding neighborhood and encourages further home purchases and development.

John Gentilozzi said the site would likely have several hurdles to overcome, namely from the old buildings that may offer some unexpected surprises when being demolished. But the team is planning for the development to finish in late 2024, he said.

Contact Sheldon Krause at skrause@lsj.com. Follow him on Twitter @sheldonjkrause.

This article originally appeared on Lansing State Journal: Developers propose 450 new apartments in downtown Lansing