Red Cedar Development Gets Green Light with Michigan Strategic Fund Approval

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May 19, 2020

FOR IMMEDIATE RELEASE 

Red Cedar Development Gets Green Light with Michigan Strategic Fund Approval

Lansing, MI - With the Michigan Economic Development Corporation’s (MEDC) staff recommendation, the Michigan Strategic Fund (MSF) voted today to approve the Brownfield/TIF revised plan for the Red Cedar Development giving a green light to Continental/Ferguson Lansing, LLC to move forward with bonding and full construction of the $256 million mixed-use development.  It will feature new multi-generational housing, restaurants, retail and two hotels along the Michigan Avenue corridor connecting Lansing with the region.

According to the MEDC, this plan is consistent with the MEDC Strategic Plan to develop attractive places and activate vacant property and aligns with the City of Lansing, East Lansing and Lansing Township’s Corridor Improvement initiative to revitalize the opportunities and investment along the region’s most high impact corridor. 

The MSF was the final approval needed for the state’s portion of the Brownfield/TIF. The Lansing Brownfield Redevelopment Authority (LBRA) approved the local portion of the plan in 2019.

“The Red Cedar development will activate a long-vacant property into a vibrant, attractive mixed-use development that will bring density and vibrancy to a high-impact commercial corridor in Lansing,” said MEDC Sr. Vice President of Community Development Michele Wildman. “We’re pleased to work with our partners to support this project and look forward to seeing the additional investment it will encourage in the area.”

The infrastructure will be completed first with construction for the market-rate apartments and senior living center beginning in late summer. Student housing will be ready for the fall of 2021. Construction for the two dual-brand hotels - Hyatt House and AC Hotel by Marriott is set to begin next year.

“With today’s approval from the Michigan Strategic Fund Board, I am thrilled that the Red Cedar Project has now attained all necessary state and local approvals to move forward,” said Mayor Schor. “This is positive news, especially with the unforeseen economic hardship that we’re experiencing as a result of the COVID-19 pandemic. This continued investment will help drive Lansing forward and is a good sign to others looking to invest in the city.”

Frank Kass, Principal-Continental/Ferguson, noted a particular thanks to the City of Lansing, “From Mayor Schor to the City Council to the people of Lansing, they all stuck with us.”  

Joel Ferguson, Principal-Continental/Ferguson, described the challenges of a project of this magnitude acknowledging: “The leadership and staff at MEDC helped us refine and enhance the Red Cedar project to be a powerful catalyst to a bright future for Lansing and the region.”

Christopher Stralkowski, Executive Project Manager for Continental/Ferguson, recognized the hard work of all who contributed to this undertaking, stating: “Instrumental to our success was the dedication and support of Mayor Schor and former Mayor Virg Bernero, along with LEAP, the LBRA, Williamstown Township, all of the citizens participating in numerous community meetings and working closely with City Council members over the past seven years. We especially want to acknowledge and thank the residents for voting for redevelopment along with all past and current administrators who have supported this project. I want to acknowledge our partner Frank Kass, who has been tenacious and deeply committed to this enormous investment towards Lansing’s future.”

Based upon the 2020 Economic/Fiscal Regional Impact Study conducted by the Anderson Economic Group, they stated that the plan is “one of the most economically impactful mixed-use development projects we have studied."

For more information and the latest updates go to redcedarfacts.com

Contact: Christopher Stralkowski

o: 517-371-2515 c: 219-898-6667 cstralkowski@gmail.com

Construction has Restarted

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Per the governor’s regulations, the Red Cedar Development Project restarted construction on Thursday, May 7. Decision makers will continue to work with all stakeholders involved as they adhere to any requirements, precautions and safety measures necessary for not only construction workers but also the general public. We are excited to see this project moving forward.

https://www.lansingcitypulse.com/stories/construction-resumes-across-greater-lansing,14346

MSF Denies Incentives For Ferguson-Backed Red Cedar Development

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A state board, in a special virtual meeting today, rejected a request for incentives to back a Lansing redevelopment project tied to the developer and prominent Democratic donor Joel FERGUSON.

A majority of the Michigan Strategic Fund (MSF) Board voted to reject the $32.4 million in tax capture to reimburse activities estimated at $97.3 million to support the redevelopment of the Red Cedar Golf Course in Lansing.

Despite objections from Lansing-based MSF Board member Paul GENTILOZZI and Sen. Curtis HERTEL Jr. (D-East Lansing), who urged the board to table the item, MSF Board Chair Mark BURTON moved to reject the Red Cedar incentives. MSF Board member Ron BEEBE had requested to rescind the motion.

The vote to reject the incentives was approved by everyone except for Gentilozzi and Beebe, who voted no, and Brittany AFFOLTER-CAINE, who abstained. The board met virtually via conference call because of the COVID-19 outbreak and Gov. Gretchen WHITMER's exhortation to the public to avoid gathering in person.

Hertel addressed the MSF Board during the public comment portion of the meeting, saying, "This issue has nothing to do with the developers. It has everything to do with our local community."

Ferguson is facing some pressure from within the Democratic Party to not pursue reelection for his spot on the MSU Board of Trustees (See "Ferguson Future At MSU On Thin Ice," 2/28/20). His statements and his response to the Larry NASSAR situation have rankled some in the Democratic community.

It's unusual for the Michigan Economic Development Corp. (MEDC) to present the MSF Board with a recommendation to deny a requested incentive for a project. However, according to an MEDC memo, the law required action on this item by April 11 or it would have been automatically approved.

Burton cited a "lack of transparency" with the Red Cedar project throughout the process of working with the developers.

According to the MEDC, the submitted work plan didn't include enough information to define the final scope of the project or the resulting financial gap. It also lacked details on the project's regional benefits.

The MEDC also said it didn't comply with guidelines on allowable costs and was not "consistent with the state economic development priorities."

Yet, Gentilozzi argued the MSF Board's rejection of the Red Cedar project would fly in the face of what the local community wanted, citing Hertel and Lansing Mayor Andy SCHOR as favoring the development.

Gentilozzi also said the MSF manager was calling board members and urging them to strongly reject the approval of the project.

"There's so much disinformation and misinformation and bad treatment of this project," he said.

Hertel said not approving the incentives for Red Cedar would be "a huge issue for us" and that the recommendation to deny was a "surprise to many of us in my community."

Bob TREZISE, president and CEO of the Lansing Economic Area Partnership, said he didn't find out until Wednesday afternoon that there were "additional concerns" from the MEDC on the Red Cedar project.

Trezise said the Red Cedar project is similar to a lot of other brownfield properties and noted that it's more than shovel-ready – the project broke ground in October 2019.

He also said this comes during a time where people are losing jobs because of the COVID-19 crisis, and that approving the incentives would make sure "hundreds of workers" have jobs for at least the next 18 months.

Frank KASS, principal of Continental Real Estate and part of the development team for Red Cedar along with Ferguson, said in his 45 years of developing, he's "never seen a process that has been as unwelcoming and not open to a developer as this has been."

Christopher STRALKOWSKI, executive project manager for Continental/Ferguson, said in response today the Red Cedar project would create more than 1,000 jobs during construction, and according the Anderson Economic Group, with more than a $500 million economic impact over the next 30 years, "this project is too important to not be successful."

"Continental/Ferguson remains committed to Lansing, the region and state especially at this extremely difficult time dealing with the COVID-19 crisis," he said in a statement. "The development team will continue to work with all stakeholders to make this $275 million project successful."

An MEDC official noted the incentive request could always be resubmitted. The agency also said the denial doesn't prevent the local brownfield authority’s ability to move forward with its partial financing of the project.