(LANSING, MI) - Mayor Andy Schor and the Lansing Economic Development Corporation (LEDC) released a detailed economic development report for the City of Lansing in 2021. This report highlights the MMMM while facing the challenges of the COVID-19 pandemic, including the detailed response provided by the LEDC and its partners.
“Lansing is a great place to invest, open or expand a business, and create jobs. We have seen billions of dollars of investments in the last few years. Throughout the pandemic we have worked together to keep our local businesses open, and now we are seeing that we are even stronger with new businesses and opportunities for those who live and visit Lansing!” Schor stated. “The LEDC Board and staff have been working incredibly hard and we have seen the results with cranes in the air, new businesses opening in our commercial areas and corridors, and with the vibrancy and growth happening all over Lansing!”
“Looking back at 2021, the LEDC had a major impact on the City’s recovery from the pandemic and laid the groundwork for 2022 to be a pivotal year in shaping Lansing’s bright future,” said Karl Dorshimer, President and CEO of the LEDC.
Several highlights in the report include:
COVID-19 Response: The Lansing CARES program helped to award 20 businesses a total of $350,000 in forgivable loans and provided technical service to 127 businesses including Disaster Planning Training. The LEDC, in partnership with LEAP, assisted with the LEAP Regional Ingham County Sunrise small business grant program which provided $4,640,000 in grant funds to 356 businesses in Lansing.
Lansing Brownfield Redevelopment Authority (LBRA): Successfully managed and administered 32 active brownfield plans that generated $7 million in revenue in 2021, as well as reimbursed brownfield eligible costs to brownfield projects which totaled more than $1 billion in private development investment. The LBRA also used it's Brownfield Revolving Fund and EPA Assessment Funds to finance $222,842 in environmental assessment work on 10 projects throughout Lansing and utilized $5,918,400 in LBRF funds on 8 brownfield development projects for brownfield related costs. The LBRA also completed the issue and sale of $40 million in LBRA bonds to finance the brownfield costs associated with the $250 million Red Cedar project.
Tax Increment Financing Authority (TIFA): Generated $2.5 million to continue financing Lansing public assets such as the Lansing Center and the City Parking system. The TIFA has provided over $100 million in funding for public infrastructure that supports and encourages both public and private development.
Commercial Corridor & Facade Improvement Programs: The LEDC manages the City’s Business Façade Improvement and Commercial Corridor Improvement Authorities (CIAs). These two programs work to assist business owners throughout the City of Lansing. In 2021, the Michigan Avenue CIA and Saginaw (SSCIA) CIA continued to meet consistently and the SSCIA established its first public improvement project.
Ultium Cells Battery Plant: Worked with partners to approve an Act 425 land sharing agreement and incentive package that convinced General Motors and Ultium Cells to commit to building a 2.5 million square foot facility adjacent to the LDT Plant to manufacture Electric Vehicle Batteries for use in Electric Powered Vehicles. Ultium will invest $2.5 billion to construct the facility that will be completed in approximately 2 to 3 years. Employment work will ramp up over several years and is expected to generate 1,700 jobs; these jobs will have an average yearly wage of $46,000. The battery plant will help ensure that the Lansing Delta and Lansing Grand River Assembly Plants will have a bright future as the Auto Industry transitions to producing electric vehicles.
While 2021 was a year for gradual economic improvement as the pandemic continued to run its course, the LEDC gained local and state incentive approvals for five Lansing Development Projects totaling $11 million in investment. The LEDC also assisted and administered 10 projects that were under construction or completed, these projects totaled over $1 billion of investment.
The LEDC also announced that the Capital City Market project was selected to receive two gold Economic Excellence Awards by the International Economic Development Council. The first award was for best Public/Private Partnership and the other for best Real Estate Reuse (Brownfield). The Capital City Market project joins the previous IEDC top award-winning LEDC projects of the Ottawa Power Station (AF Group), Knapps Centre and The Outfield.
The LEDC is a nonprofit organization created in 1976 to attract and grow businesses; create and retain jobs; redevelop vacant, underutilized, or contaminated properties; and create public-private partnerships to make Lansing a great place to live and work for everyone. The Lansing Brownfield Redevelopment Authority (LBRA) was created by the City of Lansing in 1997 to use tax increment financing, grants and loans to redevelop contaminated and functionally obsolete properties in the City. The Lansing TIFA and TIFA District were created by the city in 1981 under the Tax Increment Financing Authority Act.
The full Annual Report, along with more information about the LEDC, can be found at: www.lansingmi.gov/ledc.
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