Lansing asks developers to submit additional plans for new City Hall site

LANSING — Mayor Andy Schor is asking four developers to submit additional information about their plans for building a new City Hall.

Former Mayor Virg Bernero, whose term ended last year, had long discussed redeveloping the aging City Hall building. In June 2017, Bernero's administration put out a request for proposals to redevelop the existing site, which is on West Michigan Avenue at Capitol Vista Plaza across from the Michigan Capitol.

In November, Bernero announced that Beitler Real Estate Services had been selected to redevelop the current City Hall into a hotel and to redevelop the former Lansing State Journal building at 120 E. Lenawee Street as a new City Hall.

The city is still planning to use Beitler to build a hotel at Capitol Vista Plaza, a letter from the city indicates. But, the city is now re-opening the application process to build a new City Hall to the four developers who responded to the June 2017 RFP.

Along with Beitler, the other developers were Urban Systems LLC/WestPac Communities, Karp and Associates LLC and Boji Group LLC.

Bernero's June 2017 request centered around plans for a new development at the current building. Developers were invited, but not required, to include plans for a new City Hall facility.

“It was sort of like the cart before the horse," said Ron Boji, the Boji Group's president.

Boji said he was pleased that the city was making it possible for all of the developers to get a chance to submit plans for the new site since the initial RFP focused primarily on redeveloping the current site.

Responses from the four developers did include broad ideas for a new City Hall site, but City Council members raised concerns about insufficient detail.

Boji Group proposed putting a new City Hall at the northeast corner of South Grand Avenue and Lenawee Street. Boji said Thursday that the group plans to propose building at the same site. Under their proposal, he said, the new city hall would be adjacent to either apartments or a hotel.

Karp and Associates proposed putting a new City Hall and police station at at the corner of St. Joseph Street and Washington Avenue.

Urban Systems suggested using the former Lake Trust building on the southeast corner of Capitol Avenue and Lenawee Street. The credit union recently finalized the sale of the building to the development group.

More:

Three out of the four developers vying for City Hall have donated to Bernero campaigns

Public gets its say on Mayor Bernero's plan to relocate City Hall

Lansing police station, lockup not part of redevelopment agreement for new City Hall

The city sent a formal request letter to the four developers. Among other information, the letter asks the developers to include a "financial analysis" of a new City Hall.

The supplemental information from the four developers will be vetted and chosen by a team including Schor, the Lansing Economic Area Partnership, CBRE Lansing and additional experts. Supplemental proposals are due by March 16.

“The existing City Hall is a key location in our downtown, and we are committed to redeveloping the site. It is equally important to properly identify the best strategic location for our new City Hall, those costs of the overall project and our ability to afford a new City Hall,” Schor said in a Thursday news release. “Ensuring the best deal for the city through this process is a key priority of mine.”

The city's letter does not set a budget for the new building.

City officials say proceeds from the long-term leasing of the former City Hall site would offset the costs of building a new City Hall. A 2015 professional appraisal of the existing building calculated a $4.2 million sale price.

In order to move forward with his City Hall development plans, Bernero needed six votes from City Council to approve the long-term lease of City Hall to Beitler Real Estate. Last year, City Council agreed to set a public hearing for Beitler's proposal but never called a vote for the property transfer.

Council members said the process was too rushed. Some council members also raised objections because the Beitler proposal did not include plans for Lansing's 54-A District Court, the Lansing Police department headquarters and the city lock-up, which are currently housed at the City Hall complex.

Thursday's letter asks the developers to include two versions of a plan. One version would be a City Hall with no police administration building, no lock-up and no courtrooms. The second version would include a 10,000-square-foot police administration building, but would include neither courts nor a lock-up.

The letter adds that "adequate and convenient" parking for city employees and for visitors is an important factor.

Lack of parking is a frequent complaint from people who patronize Lansing City Hall.

The city is requesting additional information from the developers to get a better understanding of the potential costs of the project, said Bob Trezise, president and CEO of the Lansing Economic Area Partnership.

“It’s very important to generate as much revenue as possible to offset the cost of the new City Hall," he said.

Resubmitting proposals will let new city leadership become more involved with the project, developer J. Paul Beitler said.

The move will also help speed up redevelopment of the current City Hall building, he said.

"We’re encouraged by this," Beitler said. "The process, in order to be successful, needs to have the integration of the staff and the City Council."

Contact reporter Haley Hansen at (517) 267-1344 or hhansen@lsj.com. Follow her on Twitter @halehansen. Contact Sarah Lehr at (517) 377-1056 or slehr@lsj.com. Follow her on Twitter @SarahGLehr.