After the
Gillespie Group’s December announcement of the $6.7 million local and school tax capture granted by the
Michigan Economic Growth Authority (MEGA) Board, just one piece of the financial incentive puzzle remained for the Marketplace project: a
Michigan Business Tax Credit of a 20 percent.
After a December 22 meeting to consider the credit returned an approval, the firm can now move forward with their plan for the proposed $25 million project.
"We’re very excited about the approval," says Jason Kildea with the Gillespie Group. "That 20 percent credit is crucial. We needed it to make the numbers make sense."
According to Kildea, the 20 percent tax credit will allow the project to proceed on a scale that will maximize the use of the site.
While the necessary incentives have now been assembled, a good deal of work is still ahead for the Gillespie group before construction begins near East Shiawassee Street and North Cedar Street.
"During this first six to eight months, we'll be working to put the plans together and get the budget and financing in place," Kildea says. "There will be a lot of moving parts."
If all goes well, construction on the multi-phase Marketplace development could commence by the end of 2011. The first phase is slated to include 80-85 residential units and is expected to total a $6.5-$8.5 million.
The Gillespie Group is optimistic the investment will prove worthwhile — for the firm and for Downtown Lansing.
"It’s pretty easy to see there’s a residential demand Downtown," Kildea says. "The adage of these Midwestern cities in midst of a revitalization is that only way to get that shopping, dining and retail centered around downtown is to have a residential base. This will be one more step toward having more people living and supporting Downtown."
Source: Jason Kildea, Gillespie Group
Writer: Natalie Burg, Interim News Editor
All Photographs © Dave Trumpie
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