The Price Tag of Hope: Lansing’s Downtown Revitalization Amid Economic Uncertainty 

new taxpayer paid construction for Lansing
April 10, 2025|, , , , , , , , ,

After Killing Employee Freedom, Michigan Gov. Whitmer Tries to Build an Image of Economic Growth 

LANSING, MI — In the heart of Michigan’s capital, a gleaming vision of renewal is taking shape. The New Vision Lansing project promises to transform downtown with skyscrapers, apartments, and bustling retail, all fueled by a staggering $242 million of taxpayer money. But as cranes rise over the city skyline, a shadow looms: the state’s economic landscape has shifted since Governor Gretchen Whitmer axed Michigan’s right-to-work law in 2023, a move critics say has driven businesses out the door. With Lansing betting big on revitalization, taxpayers are left footing a bill that could either resurrect a fading downtown or become a monument to misplaced priorities. 

A $300 Million Dream, $242 Million from the Public Purse 

The numbers are jaw-dropping. The New Vision Lansing project, spearheaded by developers Gentilozzi Real Estate and JFK Investments, carries a price tag north of $300 million. At its core is a 25-story apartment tower—poised to be Lansing’s tallest building—alongside plans for over 560 housing units, retail spaces, and offices. But here’s the kicker: taxpayers are shouldering at least $242.2 million of the burden, according to records from the Michigan Strategic Fund and local reporting. 

Break it down: a $40 million state grant announced in February 2024 kicked things off, courtesy of Michigan’s taxpayers. Then there’s the tax incentive bonanza—$202.2 million approved in January 2025—covering everything from property tax captures to sales tax exemptions. Dig deeper, and you find brownfield tax financing, greenlit in December 2024, promising developers millions more over the next 30 years, with at least $15 million funneled back to the city. It’s a financial cocktail that’s left some residents reeling. 

“We’re talking about a quarter-billion dollars of public money,” says a local business owner who asked to remain anonymous, wary of reprisal. “For what? Apartments and shops we’re not even sure people will fill?” 

The Right-to-Work Repeal: A Business Exodus? 

The timing couldn’t be worse. In March 2023, Governor Whitmer made good on a campaign promise, signing a repeal of Michigan’s decade-old right-to-work law — a policy that let workers opt out of union dues while still enjoying union benefits. Effective March 30, 2024, the repeal flipped the script, empowering unions to demand dues from all workers in organized shops. Labor cheered; business leaders saw trouble ahead for new jobs. 

The fallout was swift. The Detroit Regional Chamber warned the move could “weaken Michigan’s position in a highly competitive global economy.” During legislative hearings, the Michigan Chamber of Commerce testified that it risked a “whiplash effect” on job growth. And then came the billboards: Florida and North Carolina, both right-to-work states, plastered ads across Lansing in 2023, beckoning businesses to flee Michigan’s new labor landscape. One, spotted near the Capitol, boasted Florida’s “business-friendly” climate—a pointed jab at Whitmer’s policy shift away from employee freedom. 

But did businesses leave? Many business owners would prefer to stay, hoping to bring back Michigan’s Right to Work Freedom soon. While government provided hard evidence remains murky, new businesses are not flocking to Michigan as they once did after passing the Right to Work Act, which empowers employees over union bosses. 

And whispers persist. Speaking off the record, a Lansing-based logistics firm admitted it’s eyeing relocation to Indiana, citing rising labor costs post-repeal. “It’s not just the dues,” a manager said. “It’s the signal it sends — Michigan’s rolling the dice on business.” …and the futures of Michigan’s citizens.

Downtown’s Desperate Bid 

Lansing’s downtown has been on life support for years, bleeding jobs and residents to the suburbs. Mayor Andy Schor (Michigan “legislative staff for years“) sees New Vision as a lifeline, touting affordable housing for legislative staffers scraping by on $35,000–$40,000 salaries. “We need a vibrant core,” Schor told WKAR in 2023. “This is how we keep talent here.” 

The project’s boosters point to its scale: over 560 apartments, including workforce housing, plus retail to draw foot traffic. But skeptics question the logic of pouring public funds into a city that is struggling to hold onto employers.

“If businesses are leaving, who’s filling these shiny new buildings?” asks Sarah Jennings, a local taxpayer and single mother. “I’m paying for this, but I’m not seeing the payoff.” 

The Money Trail 

Follow the dollars, and the picture gets fuzzy and complicated. That $40 million state grant? It’s dwarfed by the $202.2 million in tax breaks, a package that includes: 

  • Property Tax Capture: Up to $101.2 million siphoned from local and school taxes. 
  • State Tax Capture: Capped at $32.5 million. 
  • Income and Withholding Tax Capture: A whopping $86.2 million, banking on future residents and workers. 

Then there’s the brownfield deal, a slow drip of reimbursements that could stretch decades. Developers argue it’s a win-win—private investment spurred by public support. Critics call it corporate welfare, especially when Michigan’s economic footing feels shaky. 

What’s at Stake 

Lansing’s bad gamble on compulsory unionism is a microcosm of a broader battle. Michigan, once an industrial titan, has watched its population dwindle and its economic clout erode. Governor Whitmer’s right-to-work repeal was sold as a boon for workers, but with states like Florida circling, the risk of capital flight looms large and the decrease of outside investment without taxpayer subsidies has proved to be costly for Michigan’s future. Downtown revitalization might be a spark Lansing needs — or another taxpayer-funded costly misstep should businesses continue to keep their distance. 

For now, the cranes are humming, and the bills keep piling up. Taxpayers are locked in, watching as their $242 million bet plays out. Will it bring jobs and life back to downtown, or leave Lansing with a skyline of empty promises? The answer is still under construction. 

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