Lansing, MICH — The Lansing Economic Development Corporation and Eyde Company received notice today from the U.S. Department on Housing and Urban Development that the Knapp’s Centre redevelopment project did not receive a highly competitive $2 million Brownfields Economic Development Incentive (BEDI) grant.
While the BEDI grant is a relatively small piece of the overall funding for the Knapp’s Centre, the project is temporarily on hold while the city of Lansing and Eyde Company determine whether to apply for the next round of grant funding or seek other funding alternatives.
“The Knapp’s Centre project was very well-received by HUD, but the BEDI grant is extremely competitive,” said Lansing Economic Development Corporation CEO Bob Trezise. “Lansing remains 100 percent committed to seeing the building restored to its former glory, and we are now working with the developer to determine how to best move forward.”
Available BEDI grant funding was reduced from $27 to $8.1 million, leaving room for only four recipients this round. Grant recipients include Reading and Philadelphia, PA; Port Huron, MI; and Memphis TN. Knapp’s Centre owners had hoped to use the BEDI grant as part of a package of incentives to leverage financing for the $24 million historic renovation of the building into a mix of retail, office and residential space. The Lansing Economic Development Corporation also plans to lease space in the Knapp’s Centre for a new downtown business incubator.
“We would have liked to receive the grant, but we know that where there’s a will, there’s a way,” said Eyde Company CFO Mark Clouse. “Both the city of Lansing and the Eyde Company have the will to bring the Knapp’s Centre back to life. I’m confident this is only a temporary pause.”
HUD is expected to make another $17.5 million in BEDI grant funding available as soon as this fall, with grant recipients announced in early spring. Renovations on the Knapp’s Centre were expected to begin as early as spring 2011. Should the Eyde Company decide to apply for the next BEDI grant, the earliest construction would begin is summer of 2011.
Contact: Bob Trezise, Lansing Economic Development Corporation, 517-483-4140
