Editorial: City Council must reject bidding ordinance

A drive down the Michigan Avenue corridor from the Capitol to East Lansing is proof the development climate in Lansing is strong.

In the past 15 years, downtown has experienced the repurposing of the long-vacant Ottawa Street Power Station as the headquarters of AF Group; a new Lansing City Market; the Marketplace apartments, the Outfield apartments; the mixed-use Stadium District and the Knapp's Centre.  And these are in just the first few blocks away from the city center.

There are more developments under construction east of downtown – including The Venue at East Town, a $5 million four-story, mixed-use building on the 2000 block of Michigan Avenue; and Skyvue, a $90 million, nine-story development on Michigan Avenue just east of Frandor Shopping Center. It's imperative the city keep its momentum and provide a climate that welcomes and empowers new businesses.

The bidding ordinance the Lansing City Council is considering – and could vote on Monday night – does the exact opposite. It puts unreasonable constraints on private developers and would effectively put the brakes on the region’s momentum.

The ordinance would require all private developers seeking economic incentives – ranging from tax abatements to brownfields to payment in lieu of taxes – to publicly advertise the solicitation of bids and open those bids in a public setting. Supporters of the ordinance see it as an increase in transparency.

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Tim Daman, president and CEO of the Lansing Regional Chamber of Commerce, sees it as “an overreach” and “bad for business.” Private developers see it as added red tape that could affect their financing and ultimately their decision to do business with the city.

There already are bidding stipulations in place for developers of public projects, which are fully funded by taxpayers. And it’s important to acknowledge the distinction between public and private projects.

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Private developers are fully on the hook for their projects’ success. They should be able to manage their projects as they see fit.

This ordinance will not apply to projects with private investment under $750,000 or for bid packages projected to be under $25,000. It also does not apply to industrial projects. Why would industrial projects be exempt when they receive some of the heftiest incentives?

Economic development is not an exact science. It’s nuanced and hyper competitive. Bob Tresize, president and CEO of Lansing Economic Area Partnership, says he needs every weapon in his arsenal to encourage investment in Lansing when companies can enjoy lower tax rates and access to developable property in surrounding townships.

This bidding ordinance considerably weakens Lansing’s arsenal. The City Council must reject it.

– An LSJ editorial