About The Red Cedar Project
The Red Cedar project is a mixed-use development that will connect the Lansing State Capitol to Michigan State University and adjacent communities along the Michigan Avenue corridor. Long viewed as an important yet under-realized corridor of possibility, this project will serve as a powerful catalyst for new multi-generational housing, vibrant activity, wide-ranging economic impacts, and regional pride. The project will include two hotels, market-rate housing, senior living, student housing, and public amenities. This $260 million dollars mixed-use development will be a catalyst for the City of Lansing, the Michigan Avenue corridor, and the region. What is currently viewed as fragmented with several blighted pockets of development, can evolve into an indispensable zone of activity that creates jobs, enhances the economy, and improves the community’s sense of place.
Latest Updates
We are pleased to announce that the senior living subdivision— Red Cedar Lodge is officially open. The market rate subdivision — Gateway Lofts, is also complete and is currently leasing. This $256 million mixed-use development will be a catalyst for the City of Lansing, the Michigan Avenue corridor, and the region.
Tenant List
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Red Cedar Lodge is an assisted senior living facility where residents will enjoy an unparalleled lifestyle, delicious food, constant activities, amenities that can rival a great hotel, and even a daily happy hour. New residents will adapt quickly to the lifestyle at Red Cedar Lodge and almost immediately begin referring to it as “home.”
For more info visit: https://www.redcedarlodge.com/
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Gateway Lofts Lansing is a brand-new luxury apartment home community in Lansing, MI. We are perfectly situated less than 5 miles from downtown Lansing, less than 2 miles from MSU, and have easy access to I-127 and I-496.
There are spacious studio, one, and two-bedroom apartment homes for rent that feature wood-style plank floors, granite countertops, stainless steel appliances, a kitchen with pantry and bar seating, walk-in closets, pendant lighting, and other luxurious touches throughout each living space.
For more info visit: https://gatewayloftslansing.com/
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Hooked is a bookstore with a coffee shop and wine bar. They feature community-building events such as book clubs, guided tastings, and meet-the-author talks. Hooked is a hub in the Lansing area for enjoying the good life, learning, discovering new interests, and keeping up with current issues in a community conversation. They also offer a wide selection of books for sale online, with our recommendations.
For more info visit: https://bookshop.org/shop/hooked
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All FENG CHA stores strive to provide a comfy teahouse experience to our customers. In Feng Cha, they work hard on finding good ingredients to make quality drinks and fine pastries, even the music that you hear in-store is carefully chosen to ensure a relaxing in-store experience.
For more info visit: https://www.fengchausa.com/
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Branch of a local bar chain serving American comfort food & signature battered fish ’n’ chips.
For more info visit: https://oldbagofnails.com/
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Tropical Smoothie Cafe's menu boasts bold, flavorful smoothies with a healthy appeal, all made to order from the freshest ingredients.
For more info visit: https://www.tropicalsmoothiecafe.com/
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Named the “Best Physical Therapy” in Lansing, Orthopaedic Rehab Specialists Physical Therapy is a local, privately-owned company that has been committed to getting you back to working, playing, and living since 1987!
Whether you work, play, or live in Lansing or the surrounding communities, ORS has a conveniently located clinic offering physical therapy in Lansing that is ready to serve you and get you back on your feet.
For more info visit: https://orsmi.com/
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A commercial real estate and property development company committed to serving clients and contributing to the economic development and prosperity of the communities they serve.
For more info visit: https://martincommercial.com/
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Continental Real Estate Companies are a team of multidisciplinary, nationwide developers and builders of commercial real estate projects.
Their deep bench of experts across specializations, combined centuries of experience, loyal industry relationships, financing, and ability to internalize all moving parts of a deal — from pre-construction through to ribbon-cutting — set Continental Real Estate Companies apart from the rest. Time and again, we deliver outstanding results for our clients and partners.
For more info visit: https://www.continental-realestate.com/
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Continental Building Company (CBC) was founded in 1984 and has annual revenues of $225 million. Ranked among the Top 400 Commercial Contractors in the U.S., CBC has successfully completed projects from coast to coast. They maintain offices in Columbus, Ohio and Pittsburgh, Pennsylvania.
For more info visit: https://www.builtbycontinental.com/
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Since 1985, Concord Hospitality has maintained an unparalleled standard of excellence across all capabilities as a hotel developer, owner, and operator, providing dedicated hotel management services to both full-service and upscale select-service properties. Together with the non-negotiables of hard work, integrity, and transparency, we apply a relationship-first mentality to every project.
For more info visit: https://www.concordhotels.com/
South Elevation Aerial View (AC and Hyatt Hotels)
Ariel View of Red Cedar Site
Northeast Elevation Aerial (AC and Hyatt Hotels)
The location, scope, and reach of the project addresses and solves many long-standing problems in the Capitol region by:
Sparking opportunities for city and community leaders to both draw and develop new businesses and new jobs to the region.
Specific and community activity by serving as a hotspot for additional development and community investment.
Eliminating the City’s responsibility to clean up city-owned property, provide infrastructure and provide a city-backed general obligation bond.
Reducing the responsibility for a proportional share of the Special Assessment for the repair and rebuilding of the Montgomery Drain thereby lowering the overall Drainage district’s cost.
Spurring additional economic and community activity by serving as a hotspot for additional development and community investment.
Meaningfully connecting Lansing and East Lansing and their corresponding identities of economies, commerce, local and state governments and higher education institutions.
Spurring a hub of economic development by the creation of new business, new jobs and new opportunities.
Creating additional housing, food and lodging options for seniors, families, young professionals and students.
Remediating an environmentally contaminated brownfield property that currently lies fallow and brings in zero tax revenue.
Revitalizing an underutilized location in a key regional corridor.
Increasing much-needed revenue through property taxes and other taxes.
Building infrastructure such as roads, water, storm drains, sanitary sewers, etc.
Utilizing a more traditional foundation system for parking and removing of the integrated parking structure (IPS).
The Facts
Location
The site of the Red Cedar project is the long-abandoned Red Cedar golf course. It is located at 203 South Clippert Street on the eastern edge of Lansing, directly adjacent to the City of East Lansing. Along Michigan Avenue, the site connects the State Capitol to Michigan State University and surrounding communities.
Public Private Partnerships (P3)
The main stakeholders view this project as a win-win for both Lansing and East Lansing as well as the region. Led by Lansing Mayor Andy Schor with unanimous support by Lansing City Council and the Lansing Brownfield Redevelopment Authority, there is broader regional backing. The Lansing Economic Area Partnership (LEAP) believes the project will be attractive to current businesses as well as businesses seeking to relocate to a region that promises affordability, livability and jobs.
How will the bonds be repaid?
New taxes generated by the vertical investment will be captured to reimburse the developers for their investment of the public infrastructure and environmental remediation of the site.
How will environmental impact be addressed?
The environmental eligible activities related to this project are estimated to cost $1,525,910. The subject property will be prepared to make it suitable for the planned development, and appropriate activities will be performed to prevent unacceptable exposure to hazardous substances encountered during subsurface construction. Soil and/or groundwater which may be hazardous to human health, safety, and the environment as identified, measures will be taken to properly manage those identified concerns.
Project Scope
A mixed-use development by Continental/Ferguson LLC, the Red Cedar project is an approximate 35.5-acre development. The project will include 792 beds of student housing, 181 market-rate apartments, two hotels, and senior housing development with independent and assisted living, and memory care living options. Plans also call for several restaurants, a 40,000 plus square ft retail and commercial space, and a public park with a recently dedicated Sue and Jack Davis amphitheater complete with a connection to the Lansing River Trail and MSU.
Costs
The estimated cost to complete the development is approximately $281 per square foot, which is in line with other projects in the Lansing area. Additionally, the analysis of developer returns showed a projected return of approximately 12% of operations, which has been determined by staff to be reasonable given the risk associated with the size and scope of the project.
Due to changes with the number of student housing beds and market rate housing, there will be a $10 million dollar decrease in the project’s hard costs. Therefore, there will be a net savings of approximately $23 million dollars for the local and state TIF costs due the net savings of hard costs and less interest paid over the 30-year Brownfield plan.
Who will pay for the project?
The current project is 100% privately financed investment with no public dollars involved. Initially, the city planned on a $38 million dollar city- issued TIF bond. This was amended to a $10.7 million dollar TIF bond in 2018. However, that has since been reduced to no city-issued bond and is a 100% percent privately financed project.
Future taxes are generated from the private investment on the project. These are new taxes and out of these new taxes, a calculated amount of approximately $54 million dollars will be set aside in order to be dedicated to public infrastructure under the LBRA Brownfield plan and through the State of Michigan, which is then reimbursed to the developer who pays for the eligible public improvements upfront.
The Lansing Capitol Region: A Thriving and Transforming Community
Re-imagining Lansing’s Capital region takes bold, participatory thinking and continued investments in downtown redevelopment, greenspace, tech hubs and cultural attractions similar to renaissance projects in Grand Rapids, Madison Wisconsin, and Columbus Ohio. The outcomes? A vibrant and connected community that thrives economically, serves as magnet for new families and workers and industry that is alive with possibilities. The Red Cedar project serves as catalyst to this transformation. To succeed, Lansing needs leadership from both the public and private sectors, willing to take risks in re-imagining Lansing and the region. Great projects make great impact.
“This is one of the most economically impactful mixed-use development projects we have studied.”