Macritchie Storage LLC, a self-storage developer based in Calgary, Alberta, Canada, is planning to convert the former Michigan Liquor Control Commission warehouse in Lansing, Mich., to self-storage. The company will spend $2.9 million to transform the two-story, 79,000-square-foot building at 506 Hosmer St. to a storage facility consisting of 678 climate-controlled units, according to a city press release.
“Once again, we have a great opportunity to transform an abandoned, dilapidated building into a viable commercial facility,” Mayor Virg Bernero said. "Rehabbing old buildings reduces blight in our neighborhoods, puts people to work, creates new business opportunities for local contractors and suppliers during the renovations, and adds to our city’s tax base, all at zero cost to Lansing taxpayers."
Macritchie is purchasing the property from Sam Eyde Management Co., a real estate and development firm that bought the building from the state in 2001 for $410,000. Macritchie has requested a 12-year abatement on new-property taxes generated from the project through the Obsolete Property Rehabilitation Act (OPRA). If approved, the company will save $157,000 in city taxes, which it must then reinvest in the property, the source reported. The facility will generate $80,000 in property taxes for the city during the abatement period, up from the $5,200 it currently produces, the release stated.
The Lansing City Council was scheduled to consider the OPRA request during a Dec. 12 meeting. If approved, construction will begin in the spring with a completion date in December 2017.
Macritchie is also converting a former SuperValu supermarket in Kenosha, Wis., to self-storage. It’s transforming the 61,651-square-foot structure into 122,818 gross square feet of storage in about 1,000 units.
Sources:
- Lansing State Journal: Former State Warehouse to get $2.9 Million Rehab
