Lansing State Journal du lieu suivant : Lansing, Michigan • Page 2

www.lsj.com Knapps: Renaissance Zone designation requested 2A Wednesday, April 7, 2010 Lansing State Journal ROD SANFORDLansing State Journal Plan for Knapp's: Nick Eyde of the Eyde Co. speaks on Tuesday during a news conference about the redevelopment of the Knapp's Centre at the former department store in downtown Lansing. Renovations The redevelopment of the Knapp's building is expected to cost $22 million to $24 million. Eyde Co. is seeking more than $21 million in tax credits, loans and grants, including: Renovation plan The redevelopment of the Knapp's building includes several features: The streamline moderne exterior will be restored, including the glass block and yellow and blue macotta facade, which involves concrete block covered with metal panels.

I Interior features such as art deco style railings and terrazzo floors are expected to be preserved. An atrium will be added to provide natural light. Developers will incorporate green building practices and hope to achieve a silver-level rating through the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) certification program. state of disrepair," according to the Eyde Co.

However, it retains much of its 1930s art deco style and can be rehabilitated. Mayor Virg Bernero said he's excited the iconic downtown building is being restored. "Next to the Ottawa power station, there's no building that I have been asked more about than Knapp's," Bernero said. "I think a lot of people have fond memories of being in the building. People from all walks of life from in and around the city I think felt like they had a stake in the preservation of this building." A $4.8 million federal New Market tax credit; A $2 million federal Brownfields Economic Development Initiative grant; and, I $1.8 million in Michigan Business Tax credits.

Renaissance Zone The HUD loan requires that some of the jobs created by the project target low to moderate wage earners. Eyde also is requesting a Renaissance Zone designation. That would eliminate most state and local taxes on the building and for tenants for 12 years. Taxes would be phased in over three years after that. Clouse estimated property taxes over the 12 years would have totaled roughly $4.2 million, but most of that would have gone to the city's Tax Increment Finance Authority because the building is in the downtown TIFA district "We need these incentives otherwise economically it won't work," said Karl Dorshimer, vice president of the Lansing Economic Development Corp.

"You've got to get the cost down to a point where the lease rates are competitive." Eyde is talking to a couple of potential restaurant tenants for the first floor and Clouse said he'd also like to see a bookstore. The mezzanine, second, third and fourth floors will have Class residents and some office users. Other tenants would park at nearby parking ramps. Eyde plans to seek certification through the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) program.

The facade and certain historical elements, such as art deco style railings, will be restored. An atrium will be added to provide natural light because most of the building has glass block instead of windows. Built in 1937 The Knapp's building, constructed in the Streamline Moderne style in 1937, was a keystone of Lansing's downtown business district for more than 40 years. Originally known as the Jewett and Knapp the store was sold to L.S. Good Co.

of Wheeling, in 1970 and closed 10 years later. Eyde Co. bought the building out of bankruptcy for less than $1 million in 1982 and planned to turn it into a downtown food court. But the plan faltered in the face of a severe economic recession, and later in the decade the building was leased to the state government, which used it as office space. The building has been vacant since the government offices were moved out in 2002.

The building is "in a Continued From 1A The project, expected to cost $22 million to $24 million, hinges on Eyde's ability to secure tax breaks, loans and grants from the state and federal government, said Mark Clouse, chief financial officer and general counsel Eyde. "This is not something we -do generally. We're more of a mainstream, go to the bank and borrow the money and make the project economically work," Clouse said. We've been trying since 2002 trying to come up with way to do that and ec- onomically it can't come together without a lot of programs." Costly preservation Clouse said the building, built in 1937, still has the original heating and cooling system, which needs to be -'replaced. Also, he said, extensive renovation work is needed and preserving the historical features are costly.

Eyde has owned the building since 1982. Eyde is seeking more than $21 million in tax credits, loans and grants, including: $73 million in state and federal tax credits for the rehabilitation of a historic building; A $5.4 million loan through the federal Hous-I ing and Urban Development 1 Department; I A $4.8 million federal New Market tax credit; A $2 million federal Brownfields Economic Development Initiative grant; and, $L8 million in Michigan Business Tax credits. $7.3 million in state and federal tax credits for the rehabilitation of a historic building; I A $5.4 million loan through the federal Housing and Urban Development Department; or high-quality, office space, Clouse said. High-end apartments The fifth floor will house at least 19 high-end rental apartments that eventually could be sold as condominiums. The roughly units would feature one supports Lansing facility fmmmmmm Eadt No Limit I 3f 37 All You Can Cany.

Shirts Laundered No Limit I BARYAMES I Coupon must accompany your mamm order Offer not applicable gJirn oiner orrrrs' unrr rxptrrs ru iv SLACKS SPECIAL $99 I I I I each Every Wednesday No Limit BARYAMES I or two bedrooms and outdoor decks. Rent would run about $1,500 to $1,700 per month, Clouse said. Residents would not have to pay state or local income tax for 12 years because of the Renaissance Zone. About 40 underground parking spaces would serve launched in 2005 and provides incubator space for high-tech startups, offers entrepreneurial advice and assists businesses with securing capital. As part of the Smart-Zone, the cities of Lansing and East Lansing set up a Local Development Finance Authority to capture taxes for projects within the zone.

The TIC's annual budget for fiscal year 2010 includes $70,000 from captured taxes from the authority. 3 11 INTRODUCING Incubator: Continued From 1A as retail, arts and technology. Dorshimer said. Building out the incubator space will cost at least a couple hundred thousand dollars, Dorshimer said. It will be financed with money originally given to the EDC from a federal Urban Development Action Grant.

Rental rates have not been set, he said. "We hope that it generates enough revenue to at least be close to self-sustaining," he said. The incubator will operate similar to the East Lansing Technology Innovation Center that opened in Octo AH Incoming -Dry Cleaning' I BARYAMES I (htrts, leathers, fuedes, wedding gowms, major repair exdoded, 'regular priced ftaininita onh) El. center ber 2008 in downtown East Lansing. The TIC provides low-cost office space and support to more than a dozen budding technology businesses.

TIC director Jeff Smith said he thinks the Lansing incubator is a great idea. "We've always led with the assumption that there needs to be more of these in the community, that there's a large market for individuals wanting to start their own business," he said. The new incubator also has the support of Ryan Var-toogjan, who started Spartan Internet Consulting Corp. in 1997 as a 19-year-old student 7 IDtscount excluded at 2423 S. Cedar jnd 1 122 Holmes locations.

I Coupon must jcoynipuny 'jour manning order. Offer not applicable with other offers! Offer expires 41010 Tuesday's lottery sasCn task CHASE 1 MORTGAGE CASH BACK at Michigan State University. "There's a lot of new incubators that are popping up and I think we can never have too many," he said. "I think it's starting to really create a change of mindset about en-trepreneurialism. I hear it a lot from MSU students now, it's becoming a more common term in their vocabulary." Like the TIC, the Lansing incubator will be part of the Lansing Regional SmartZone.

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