Lansing is reviving a longstanding proposal to convert its current city hall into a hotel.
For years, Lansing mayors have entertained ideas to repurpose the building located across the street from the state Capitol. A sticking point has been identifying a new space to house government services.
After receiving state funds for a new city hall, Mayor Andy Schor unsuccessfully pitched the Masonic Temple building for redevelopment. Other plans are underway to relocate the city’s police and fire departments in a public safety complex.
With the city now targeting an empty Grand Avenue parking lot for a new city hall, a plan for the location on 124 W. Michigan Avenue is being resurrected.
Chicago-based real estate developer Paul Beitler wants to purchase the current city hall building for $2.8 million and convert it into a hotel.
Beitler, a Michigan State University graduate, said the project is personal to him, and that the facility inspired him to pursue a career in real estate.
“This building has an architectural heritage that is the cornerstone of the city's buildings downtown,” he said. “And I don't want to see a wrecking ball knock it down, not even one stone out of this building.
“We've worked very hard to come up with a program to reposition this building and to reenergize it so that going forward for the next decades, it will be an income producer for the city.”
Beitler’s plan would create around 180 hotel rooms downtown along with a restaurant and retail space. Some onsite underground parking would be included, and Schor said at least 100 other offsite spots could be located in city garages downtown.
The current city hall, constructed in the 1950s, has degraded over the years. Officials say Lansing spends hundreds of thousands of dollars a year on maintenance.
Developers are not requesting any tax abatement or incentives for the project and would purchase the building as is, conducting removal of asbestos and other hazardous materials.
The Leonard Jungwirth relief sculpture on the face of the building would also be preserved in the design.
Though Lansing City Council members had questions about the project, they also believe the hotel plan has potential.
“I think this is an exciting time, particularly in our downtown area,” said Council Vice President Adam Hussain. “And I think this can be transformational in this area. I certainly appreciate you all willing to move forward without asking for incentives from this body.”
Some members were curious about the asking price for the building. Schor said the $2.8 million price came from the most recent appraisal in March 2023.
A 2021 appraisal for the building put its value at $3.5 million. According to Hussain, an earlier estimate done in 2015 stated the building was worth $4.2 million. Other councilmembers asked whether a more recent appraisal might find a higher value for the building.
“I am not excited to do another appraisal as ... I would be concerned that it goes down,” Schor said.
Construction for the hotel would depend on the timeline for Lansing’s new city hall project. The developers project the building could be completed in 2027.
Residents can weigh in on the proposal during a public hearing on July 8.