Lansing City Council Approves $2.78 Million Sale of City Hall to Illinois Hotel Developer

LANSING — Lansing City Hall has stood near the Capitol for generations, and after years of a potential deal, city leaders have formally approved the building’s sale.

City Council members unanimously voted Monday to sell the building to Beitler Real Estate Services, a company based in Northbrook, Illinois, for $2.78 million.

J. Paul Beitler, the company’s president, did not immediately respond to a request for comment.

Mayor Andy Schor said in a statement that he is very pleased that the project is moving forward.

“The redevelopment of City Hall, hundreds of new homes, a new City Hall and the Ovation Center for Music and Arts are all critical to the future growth of the city center,” the spokesperson said in the statement.

The City Hall building has been around since the late 1950s, when it replaced a post office across from the Capitol.

Construction of the hotel is expected to take about 14 months, beginning once the city completes its new City Hall at the intersection of Grand Avenue and East Lenawee Street, on an underused parking lot. The new City Hall would be built by the Boji Group, with $40 million in state money.

The city has not released a schedule for the construction of City Hall.

A redevelopment agreement filed by Beitler calls for construction of the hotel to begin in March 2026 and the project to be completed by summer 2027.

The hotel is expected to offer the following:

183 guest rooms
129,000 square feet
Underground parking spaces
A restaurant/bar on the seventh floor
Nearly 275 square meters of retail space on the ground floor

Boji Group won a tender to build a new city hall in 2021. That tender has been significantly revised and now calls for a building of approximately 75,000 square feet with many amenities on the ground floor.

Contact Mike Ellis at [email protected] or 517-267-0415