Neogen Intends $1.3M Rehab of Lansing Building to House Ideal Instruments Subsidiary
Mayor Virg Bernero and the Lansing Economic Area Partnership (LEAP) have announced the Lansing-based Neogen Corporation’s plans to create a new home for its Ideal Instruments subsidiary. This project includes a complete rehabilitation of the current building at 1000 S. Hosmer St. in Lansing, since it currently is defined as functionally obsolete.
Ideal Instruments, founded in 1931, is an industry leader in the development of precision veterinary drug delivery instruments. Neogen was founded in 1982, developing and marketing products dedicated to food and animal safety.
“We’ve been in Lansing for a long time and have made a considerable investment and commitment in the community,” said Jim Houthoofd, Neogen Treasurer. “We’re excited to expand our workforce and increase our impact.”
As of its recent history, the property creates no jobs, carries little property value and shapes a liability to the neighborhood. Totaling to a $1.3-million investment, the resulting 39,687 square feet of new office and warehouse distribution space is anticipated to create 25 new full-time jobs and 15-20 construction jobs.
“Redevelopment in REO Town is booming,” said Lansing Mayor Virg Bernero. “Turning this obsolete, unusable property into a new engine of economic growth and opportunity will not only bring new jobs, but it will reduce blight and bring more people to the area. This, in turn, will help the businesses already here to grow and prosper. We are delighted to see Neogen’s continued commitment to creating quality jobs in Lansing.”
Neogen will pay $414,273 in new taxes because of the new project. Neogen has asked for a brownfield incentive from the City, which would reimburse the company $192,588 over the next 19 years. The company will fund these costs up front as part of the overall project cost, and the brownfield cost reimbursement will be paid for from the future increase in property taxes — paid for by Neogen on the new, more valuable property.
Of the remaining tax revenue, $12,645 will be recouped by the City over the life of the plan, as well as from the new jobs in the form of income tax revenue. The project is contingent upon the Lansing City Council’s approval of the brownfield plan. The Hosmer Building Redevelopment project was approved by the Lansing Brownfield Redevelopment Authority on Friday, August 4, 2017. Pending remaining approvals, stakeholders expect project completion by 2019.
“We’ve been saying it a lot lately — REO Town is on the rise and is a great example of successful economic development strategies at work,” said Bob Trezise, president and CEO of LEAP. “Years ago, we laid the seeds of growth here and have been continuously nurturing them through our efforts ever since. Now we’re seeing the fruits of our labor flourish with new businesses, jobs and people working in and enjoying the city.”
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