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HomeMy WebLinkAboutPlanning Commission Minutes 03.03.26 LANSING PLANNING COMMISSION Regular Meeting March 3, 2026 - 6:30 p.m. 10th Floor, City Council Chambers, Lansing City Hall 124 W Michigan Avenue, Lansing, MI 48933 MINUTES – Approved 4/7/2026 1. OPENING SESSION Vice-Chair Ms. Alexander called the meeting to order at 6:30 p.m. a. Present: Katie Alexander, Tony Cox, Monte Jackson, Spencer Lippert, Shane Muchmore, Ted O’Dell, John Ruge b. Absent: Tim Klont (excused) c. Staff: Rawley Van Fossen, Director of Economic Development and Planning Department; Erin Buitendorp, Manager of the Community Development Office; Doris Witherspoon, Senior Planner; Andy Fedewa, Principal Planner; Dan DuChene, Deputy City Attorney 2. APPROVAL OF AGENDA – The agenda was approved by unanimous consent. 3. COMMUNICATIONS Mitch Rice email in support of Z-3-2026. Lansing Chamber of Commerce letter in support of Z-3-2026. Alison Peeler email asking clarifying questions for Act-4-2026. 4. PUBLIC HEARINGS & ITEMS FOR ACTION A. City of Lansing Annual Action Plan, Citywide Needs Hearing and Proposed Funding Allocations FY 2026-2027 Ms. Witherspoon spoke on the City’s funding strategy with the Community Development Block Grants (CDBG), HOME Investment Partnership (HOME), and Emergency Solutions Grant (ESG) programs through the US Department of Housing and Urban Development (HUD) each year. Ms. Witherspoon reviewed the estimated funding amounts for various projects under each program such as, but not limited to, homeowner housing rehabilitation, rental unit rehabilitation, down payment assistance, housing construction, homelessness prevention, and shelter operations. As in previous years, the presented numbers are based on an expectation that they will follow last year’s amounts so the final funding amounts may differ slightly. Ms. Alexander opened the public hearing. Seeing no one wishing to speak, Ms. Alexander closed the public hearing. Mr. Muchmore made a motion, seconded by Mr. O’Dell, to recommend approval of the City of Lansing Annual Action Plan, Citywide Needs Hearing and Proposed Funding Allocations FY 2026-2027. Andy Schor Mayor Planning Commission Minutes March 3, 2026 Page 2 ____________________________________________________________________________________ On a voice vote the motion carried unanimously (7-0). B. Z-3-2026, 200 blocks of S. Cedar Street and S. Larch Street, 229 S Larch St., Conditional Rezoning from “DT-3” Downtown Core to “IND-1” Industrial. Mr. Fedewa stated Planning Commission previously reviewed Z-2-2025, a conditional rezoning for these four properties from DT-3 to IND-1 to permit a ‘data center’ and accessory infrastructure. During the public hearing process with City Council, Deep Green Technologies USA, LLC had committed to various agreements for inclusion in a new sale agreement. For the sake of transparency, the City has requested the Planning Commission review the request for a conditional rezoning. This request covers four contiguous parcels, three owned by the City of Lansing and one owned by 220 Larch LLC. The conditions as voluntarily offered by the property owners, the City of Lansing and 220 S. Larch, LLC are as follows: 1. The parcels will not be used for any purpose other than data center operations and supporting facilities; 2. Any structures will be compliant with the dimensional requirements, architectural standards, screening or massing requirements, and exterior materials requirements of the DT- 3 classification, as reflected in any final site plan as approved by the City of Lansing; and 3. All use of the parcels will be consistent with requirements of Lansing City Code regarding noise limitations, and the parcels will not be entitled to any exemption for industrial property or industrial use. The purchaser of the four parcels, Deep Green Technologies USA LLC, has consented to the conditions, which if approved, will run with the land and are binding upon successive owners of the land. Mr. Fedewa stated that this area, east of the Grand River, now colloquially called the Stadium District, is specifically mentioned in the Comprehensive Plan on pages 63-64. The area was recognized for its deindustrialization and the Plan recommends a transition from industrial and heavy commercial to a mix of office, retail, entertainment, arts/cultural live-work and residential uses. The Plan however does state that “Except on the riverfront, light industry can continue to be part of this mixed-use area if external impacts (outdoor storage, noise and truck traffic) are minimized, and buildings and parking are located and designed to make a positive contribution to the area’s visual appeal and walkability.” The former zoning here was “H” Light Industrial until the 2021 Form Based Code changed this area east of the river to DT-2 or DT-3. DT-2 does allow some light industrial uses, and DT-3 permits light industrial with retail sales on-site. Planning Commission Minutes March 3, 2026 Page 3 ____________________________________________________________________________________ Mr. Fedewa stated that the proposed data center is of a low intensity in the scheme of other industrial uses, not nearly the kind of heavy industry once located along the east bank of the Grand River. The proposed condition limiting the parcels to a data center and supporting facilities prevent future establishment of incompatible industrial uses such as open storage, heavy manufacturing, or recycling/salvage operations. Further, the conditions requiring the development to comply with the site layout requirements and architectural standards of the DT-3 satisfies the concerns stated in the comprehensive plan, as well as advancing the intent of the zoning ordinance. Staff recommends approval of Z-3-2026, to conditionally rezone the four subject properties, with the conditions voluntarily offered by the property owners and consented to by the purchaser: 1. The parcels will not be used for any purpose other than data center operations and supporting facilities; 2. Any structures will be compliant with the dimensional requirements, architectural standards, screening or massing requirements, and exterior materials requirements of the DT- 3 classification, as reflected in any final site plan as approved by the City of Lansing; and 3. All use of the parcels will be consistent with requirements of Lansing City Code regarding noise limitations, and the parcels will not be entitled to any exemption for industrial property or industrial use. Rob Stolpestad, Principal, Hedmark Holdings; reviewed presentation slides included in the agenda packet and spoke on how Deep Green’s model is based on heat reuse, which is how they chose to invest in Lansing and why they wish to locate in the Downtown area to connect into BWL’s future hot water system. Mr. Stolpestad reiterated their commitment to abide by rules and standards of the DT-3 zoning district and to fit in with buildings within the Stadium District. Mr. Stolpestad spoke on the expected noise of the back-up generators that are only used in case of power failure, but are tested for 30 minutes monthly. Each generator will be enclosed and then surrounded by a sound attenuated screen wall. This practice is similar to other large institutional and industrial users. Mr. Stolpestad spoke on how they will utilize 8 megawatts (MW) from the electric grid during phase one and have plans for a 16-MW biofuel cell substation. Mr. Stolpestad referred to information in the packet on anticipated emissions. Deep Green is paying for all capital expenditures for their electric consumption. Mr. Stolpestad reviewed their stated community benefits, including the sale price, property tax revenue, donations to BWL’s Pennies for Power, and a commitment to source the local population for employment. Mr. Stolpestad these commitments are legally binding in the sale agreement and their contract with BWL. Mr. Cox asked about the expected water usage and how water will be utilized and disposed of. Mr. Cox asked for details about the closed-loop system. Mr. Stolpestad referred to the agenda packet page that states they expect about 500,000 gallons of water annually, and how the proposed data center is just a fraction of the power and water used by mega-sites. The expected use is more comparable to a restaurant. Jack Pressman, development manager, spoke Planning Commission Minutes March 3, 2026 Page 4 ____________________________________________________________________________________ on how glycol is used to cool water that is recycled through the system after it is initially heated from the cooling process. The system is heavily non-water based and biodegradable. Deep Green will use a third party to properly ship the spent water and solution off-site for disposal. Mr. Van Fossen stated that site plan review is conducted with the Public Service Department and the Building Safety Office to verify compliance with applicable local, State, and Federal requirements. Mr. Ruge asked for more information about the 16-MW biofuel substation system. Mr. Pressman spoke on how the existing grid is powered by a natural gas combustion system. The proposed biofuel system is more efficient and produces less pollution. Mr. Pressman recommended that Planning Commissioners review Bloom Energy for a comparable system that would be operated by BWL when built. Ms. Alexander opened the public hearing for Z-3-2026. Brad Clark spoke on economic development and in support of Z-3-2026. Ivan Droste spoke on the additional information that has been released since Planning Commission’s public hearing during the November 5, 2026 and in opposition of Z-3-2026. Marshall Clabeaux spoke on the potential pollution of the proposed power substation, about the need for walkability within the Stadium District, the potential nuisances that could impact nearby residents, and the lifecycle of the data center. Mr. Clabeaux spoke in opposition of Z- 3-2026. Nichole Keway Biber spoke on conflicts with the vision of the Comprehensive Plan, walkability within the Stadium District, and use of the River Trail. Ms. Keway Biber spoke in opposition of Z-3-2026. Emma Bostwick, Lansing Economic Area Partnership, spoke on economic development and in support of Z-3-2026. Cynthia Rowe spoke on the potential water usage and disposal of wastewater, and in opposition of Z-3-2026. Fred McLaughlin spoke on the quick nature of the proposal and on community planning. Mr. McLaughlin spoke in opposition of Z-3-2026. Heather Shawa, Assistant General Manager of Lansing Board of Water and Light, commented on the ongoing partnership with Deep Green to integrate with the hot water system conversion, the first phase of which should be operational within the next 2-3 years. Ms. Shawa spoke on the capital costs Deep Green will bear and what may happen if they vacate the premises. Ms. Shawa spoke on the noise level of BWL’s substation plants in REO Town as a comparison. Jason Brown spoke on the potential for construction jobs and in support of Z-3-2026. Planning Commission Minutes March 3, 2026 Page 5 ____________________________________________________________________________________ Michael Mercer spoke in opposition of Z-3-2026. Sidney Mccalib spoke on economic development and in support of Z-3-2026. Seeing no one else wishing to speak, Ms. Alexander closed the public hearing for Z-3-2026. Mr. O’Dell made a motion, seconded by Mr. Jackson, to recommend approval of Z-3- 2026, 200 blocks of S. Cedar Street and S. Larch Street, 229 S Larch St., Conditional Rezoning from “DT-3” Downtown Core to “IND-1” Industrial. With the following conditions: 1. The parcels will not be used for any purpose other than data center operations and supporting facilities; 2. Any structures will be compliant with the dimensional requirements, architectural standards, screening or massing requirements, and exterior materials requirements of the DT-3 classification, as reflected in any final site plan as approved by the City of Lansing; and 3. All use of the parcels will be consistent with requirements of Lansing City Code regarding noise limitations, and the parcels will not be entitled to any exemption for industrial property or industrial use. Mr. Muchmore asked how long the properties have been parking lots. Mr. Fedewa stated that the parcel called Lot 49 along E Kalamazoo St. was first taken on by the City in 1990. Lot 49a along S Cedar St. was contemplated for a land swap with the City in the mid-2000s for redevelopment but ultimately did not happen. The City then bought the parcel in 2008. The two lots were productive until the Covid-19 pandemic affected revenue. A more detailed summary was included in the Act-7-2025 staff report for the sale of property. Mr. Ruge asked what architectural standards will be applied to the proposed building and how will the City decide what is on the proposed mural. Mr. Fedewa stated that there are commercial/mixed-use building standards in Chapter 1246 of the Zoning Ordinance that require certain building materials, massing and articulation, and the amount of windows. The content of any mural is a matter of free speech, so the City does not have rules for artwork. Mr. Jackson asked if a rezoning has a timeline and if the properties would revert back to DT- 3 if Deep Green left the property. Mr. Fedewa stated that the zoning and the conditions, if approved, run with the land and would be applied to any successive owner. The zoning only reverts back if the applicant fails to commence work with the stated timeframe. A future owner would be allowed to request a different rezoning if they wanted to use the land for something other than a data center. Mr. Lippert asked for clarification about the two rezoning requests, from November and the current one. Mr. Fedewa stated that the Z-2-2025 application only had one condition, that the parcels be used for a data center and accessory operations and that during the public hearing process with Council Deep Green verbally committed to other requests, but those were not Planning Commission Minutes March 3, 2026 Page 6 ____________________________________________________________________________________ ultimately in the sale agreement on file. This Z-3-2026 request includes the data center use as well as a requirement to adhere to the DT-3 Site Layout Requirements and the Architectural Standards, and adhere to requirements on noise level. The sale agreement will include Deep Green’s other commitments as decided on by the owners and Deep Green. Mr. Ruge asked for clarification on the statement that the data center will have a lifespan of 20 years. Mr. Stolpestad answered that the lifespan of equipment is at least 20 years and this will be a substantial capital investment for Deep Green. Mr. Stolpestad relayed information about another project of an existing data center that is being renovated to be updated with contemporary technology so that that existing building can continue its use. Ms. Alexander asked for information about what other locations were considered by the development team. Mr. Stolpestad stated that they considered multiple locations around downtown to be near the BWL system, including the former Cooley Law School building and parking lot. Mr. Muchmore asked for confirmation that the proposed data center would have to be downtown for proximity to the BWL hot water infrastructure. Mr. Pressman confirmed that proximity is necessary and they have been negotiating with BWL for ten months. Mr. Cox asked for the applicant to address previous comments about potential smells from operations. Mr. Pressman stated that the facility has three components, the data center which will be filtered, the back-up generators that will be enclosed and screened, and the fuel cell substation that will have lower emissions. Mr. Lippert asked how close does the data center have to be to BWL facilities. Mr. Pressman stated that siting further and further away requires a much higher cost to connect the two components. Mr. Ruge asked if the preliminary image released by Deep Green would meet the architectural standards. Mr. Fedewa answered that the rendering is preliminary for illustrative purposes and there is not enough information. Mr. Ruge asked if the building could have storefronts for third party use. Mr. Van Fossen stated that the proposed buyer has not asked for accessory commercial land use. Ms. Alexander stated she appreciated the amount of work the applicant and the City have put into addressing issues and questions that have come up in terms of the rezoning request. Ms. Alexander stated she appreciated their responsiveness and work. Ms. Alexander was still concerned that this is an industrial use in the downtown core. Mr. Ruge spoke on his vote in December and how he did not think the proposed data center aligned with a Stadium District plan, but that there is not a sub-area plan in place, so he has reconsidered the proposal. On a roll call vote the motion carried 5-2. Mr. Cox and Ms. Alexander cast the dissenting votes. Planning Commission Minutes March 3, 2026 Page 7 ____________________________________________________________________________________ C. Act-4-2026, 325 Riverfront Dr., Lansing Shuffle, Sale of Property. Mr. Fedewa presented this request from Lansing Shuffleboard LL LLC and the City to sell a portion of the property at 325 Riverfront Dr. which currently hosts the building known as ‘Lansing Shuffle’. The current existing parcel includes Rotary Park in addition to the building, but the park is not part of the proposed sale. An aerial is included in the agenda packet to show proposed boundaries. The subject parcel is dedicated park land. As such, the question to sell must be decided by the electors of Lansing during a general or special election. Because the applicant requested to purchase the property, as outlined in the terms of the lease agreement, the City is obligated to begin the process to place the question of selling the property on the August 4, 2026 primary election ballot. The Parks Board is scheduled to review the question of placing the proposal on the ballot at their March 11, 2026 meeting. Planning Commission is reviewing the question of the sale as part of the established Act 33 review process. Mr. Fedewa stated the current building opened in January 2010, replacing the original Lansing City Market that was at the southwest corner of E Shiawassee St. and N Cedar St. While originally serving as a farmer’s market with tens of merchants, the building closed in 2019 and the site transitioned to a food court with dedicated restaurant vendors and shuffleboard courts over the course of 2021-2022 with a grand opening in January 2023. Before Lansing Shuffle came, the building was managed by the Lansing Entertainment and Public Facilities Authority (LEPFA), and operated at a loss since its opening, necessitating a general fund subsidy. The Lansing Shuffle building is essentially commercial in character and not connected to typical parks or City functions/operations. With support from the Parks and Recreation department and the Administration, and with the understanding that the proposed parcel is not necessary for City or park operations, staff recommends approval of the request to place the question of the sale of the proposed property on the August 4, 2026 ballot. If the question to sell the land is approved by Lansing voters, the City will enter into sale agreement with Lansing Shuffle which will be subject to a public hearing at City Council and ultimately voted on by Council. There are some agency referral comments stating the need for various easements to be worked out at that time. The parcel must be split prior to sale. If ultimately approved, the property will return to the tax rolls with the more productive land use captured. An estimate by the City Assessor predicts that the annual property tax will exceed the current annual rent paid by the applicant. Mr. Jackson asked if Lansing Shuffle will have adequate parking after the split. Mr. Van Fossen answered that Lansing Shuffle does not currently own or have parking, but customers utilize the adjacent on-street and off-street city parking lots like other area businesses. Planning Commission Minutes March 3, 2026 Page 8 ____________________________________________________________________________________ Mr. Ruge asked if the sales agreement will have terms to protect the building from demolition and resale. Mr. Fedewa answered that that will be something for the Administration and Lansing Shuffle to determine if Lansing voters approve the question of sale. Mr. Lippert asked for clarification about the process, if Planning Commission is advising about placing the question of sale on the ballot or recommending the final sale. Mr. Fedewa confirmed that Planning Commission is being asked to determine their support for placing the question of the sale on the ballot. Ms. Alexander asked when the parcels would be split. Mr. Fedewa stated that the split would be processed prior to sale, after an affirmative vote and if/when the sale agreement is approved. Mr. O’Dell stepped away from the meeting at 8:20. Mr. O’Dell returned to the meeting at 8:23. Kris Klein, President and Chief Executive Officer of Lansing Economic Development Corporation, and Jon Hartzell, co-owner of Lansing Shuffle, spoke on the history of the site, Mr. Hartzell’s background and experience in Detroit, and the process to transition the former farmer’s market to a food hall for restaurants. The Lansing Shuffle model is focused on providing the space, infrastructure, and major components for individual vendors to move into, while also activating the shared space. Mr. Klein stated that an RFI was released in 2020 and a lease agreement with Lansing Shuffle followed with an original lease term to 2040, but with a provision included to sell the building if requested by Lansing Shuffle, after a minimum of three years and once a condition that taxes have been captured to repay all eligible activities described in the agreement were met. Mr. Hartzell stated that they are requesting the purchase to secure long-term financial stability and more affordable terms for their secondary tenants. Their debt service structure changes if they possess ownership of the building. Mr. Hartzell committed to assessing what agreements can be continued in the sale agreement, such as continued public use of facilities and restrooms, and various utility usage for Rotary Park. Mr. Klein outlined the process for the sale including review by Parks Board and City Council, the election, and then the future sale agreement which would be subject to a public hearing at City Council and City Council’s vote. Mr. Muchmore asked for clarification on what Lansing Shuffle offers secondary tenants. Mr. Hartzell stated they lease core equipment and restaurant space rather than just white-boxing the suite. Lansing Shuffle provides components such as major kitchen systems, hoods, fire suppression, three-compartment sinks, and grease interceptors. Ms. Alexander opened the public hearing for Act-4-2026. Sidney Mccalib, General Manager of Lansing Shuffle spoke on his experience as a resident and general manager for the business. Mr. Mccalib was supportive of the sale. Planning Commission Minutes March 3, 2026 Page 9 ____________________________________________________________________________________ Ivan Droste stated that a sale may more beneficial to Lansing Shuffle rather than the City. Mr. Droste questioned how property taxes may change in the future and stated that city-owned resources are valuable until a sale removes it from its assets forever. Seeing no one else wishing to speak, Ms. Alexander closed the public hearing for Act-4-2026. Mr. Muchmore made a motion, seconded by Mr. Cox to recommend placing the question of selling 325 Riverfront Drive, Lansing Shuffle Building, on the August 4, 2026 ballot. Mr. Ruge commented on the loss of a downtown city market and that it is unfortunate it was not successful. Mr. Ruge stated his opposition of selling City-owned property along the riverfront but understands how conditions change. Ms. Alexander asked how the City acquired the property and if there may be conditions tied to how the City proceeds or what it may do, similar to a previous request to sell land adjacent to North Cemetery and donated to the City. Dan DuChene, Deputy City Attorney, stated that if there conditions it will be discovered during the sale agreement process and review of the deed. On a roll call vote the motion carried unanimously (7-0). 5. COMMENTS FROM THE AUDIENCE – None 6. RECESS – Not taken 7. BUSINESS A. Consent Items (1) Minutes for approval: February 3, 2026 The minutes from the February 3, 2026, Planning Commission meeting were approved without objection. B. Old Business – None C. New Business – None 8. REPORT FROM PLANNING & ZONING OFFICE Mr. Van Fossen thanked the Commissioners for their time and consideration and thanked staff for their work for this meeting. 9. COMMENTS FROM THE CHAIRPERSON Ms. Alexander thanked the audience and recommended individuals consider signing up for a City board/commission to serve. 10. COMMENTS FROM COMMISSION MEMBERS Commissioners thanked staff for their work and wished Zoning Administrator Sue Stachowiak well. 11. PENDING ITEMS: FUTURE ACTION REQUIRED – None 12. ADJOURNMENT – The meeting was adjourned at 8:47 p.m.