Boji Group

Boji Group

  • 124 W Allegan
  • Lansing, Michigan
  • 48933

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Tax breaks to assist downtown project By Jeremy W. Steele Lansing State Journal Developer Ron Boji is offering a glimpse of his plans to turn downtown Lansing's Hollister Building into a mix of retail, office and residential space. Boji, Mayor Virg Bernero and city economic development officials were scheduled this morning to offer an overview of the project, which will use a series of local, state and federal redevelopment incentives. "This building is a challenge because it's tired," said Boji, whose Boji Group bought the 1893 building about a year ago. "But it has beautiful historical artifacts." The tax breaks range from a local property tax freeze and state business tax credits to state and federal historic tax credits. The city council is scheduled to have a public hearing on a portion of the package July 10. The tax breaks are estimated to save Boji Group $1.4 million in local taxes over 12 years, based on a $4 million increase in the building's value, according to the Lansing Economic Development Corp. Boji envisions the building adding to its retail and office space by putting about 20 apartments on the upper floors. That would give the nearly 100,000-square-foot building about 30,000 square feet of residential space, 15,000 square feet for retailers and 55,000 square feet of offices. Tenants have not been named. That mix has been successful in downtown redevelopment projects in other cities, Bernero said. "It's a major anchor in downtown," he said. "When we talk about a major project and a catalytic project, this is key." The redeveloped building will give the Boji Group three structures along two blocks of Allegan Street. The company owns the adjacent Boji Tower, which leases space for about $20 per square foot, and the new Capital View building, which leases space in the mid- to high $20s per square foot. The Hollister likely will rent in the mid-teens per square foot, Boji said. "It gives me another price point that I can aggressively approach tenants with," he said. Contact Jeremy W. Steele at 377-1015 or jwsteele@lsj.com .

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