Former state warehouse to get $2.9 million rehab

LANSING - A warehouse once used by the Michigan Liquor Control Commission will be redeveloped as a self-storage facility.

Canadian developer Macritchie Storage LLC will spend $2.9 million to rehab the two-story, 79,000 square-foot building at 506 Hosmer St. into a climate-controlled storage facility with 678 units, according to a news release from the city.

“Once again we have a great opportunity to transform an abandoned, dilapidated building into a viable commercial facility,” said Mayor Virg Bernero in the release. "Rehabbing old buildings reduces blight in our neighborhoods, puts people to work, creates new business opportunities for local contractors and suppliers during the renovations, and adds to our city’s tax base, all at zero cost to Lansing taxpayers."

The Sam Eyde Co. purchased the building from the state in 2001 for $410,000. Macritchie will purchase the building for the project. The company is asking for a 12-year abatement on new property taxes generated from the project through the Obsolete Property Rehabilitation Act. In that time, the company will save $157,000 in city taxes and has to reinvest that money in the property.

The project still would generate $80,000 in property taxes for the city during the abatement period, according to the release. It currently generates $5,200. The Lansing City Council will consider the OPRA request during Monday's meeting. If plans are approved, construction is expected to begin in the spring with a completion date of December 2017.

Alexander Alusheff is a reporter at the Lansing State Journal. Contact him at (517) 388-5973 or aalusheff@lsj.com. Follow him on Twitter @alexalusheff.