Lansing city hall will be moving to the former headquarters of the Lansing State Journal on the corner of Lenawee Street and Grand Avenue.
Mayor Virg Bernero announced the move Thursday evening. The current location at the corner of Michigan Avenue and Capitol Avenue will be turned into a hotel.
A real estate agreement with Chicago-based developer Beitler Real Estate Services was filed with the city clerk's office Thursday. If the city council approves it Beitler will buy the former State Journal headquarters from The Eyde Company, redevelop the building and sell the property to the city for no more than $50 million dollars.
The city plans to pay for it by issuing municipal bonds. The redevelopment is scheduled to take two years.
Once city hall is moved Beitler will turn the old site into a hotel. The city and developer will sign a 99-year lease. The lease payments and the new tax revenue generated by having that property back on the tax rolls will be used to pay for the bonds issued for the new city hall.
Mayor Bernero is asking the city council to schedule a presentation by his office and Beitler. The council would have to hold a public hearing on the real estate agreement before voting on it.
