LANSING — Lansing-based Neogen Corp. will spend $1.3 million on a new home for its Ideal Instruments subsidiary in a building at 1000 S. Hosmer St.
Ideal, founded in 1931, manufactures veterinary drug delivery instruments. Founded in 1982, Neogen develops and markets food and animal safety products
The project includes a complete rehabilitation of the building, which has been deemed functionally obsolete by the city of Lansing. The $1.3 million investment will result in 39,687 square feet of new office and warehouse distribution space for Ideal Instruments, and is expected 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.”
As a result of the project, Neogen will pay $414,273 in new taxes. Neogen has asked for a brownfield incentive from the city of Lansing, which would reimburse the company $192,588 over the next 19 years in brownfield costs. Neogen 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 remaning tax revenue, $12,645 will be recouped by the city over the life of the plan, as well as income tax revenues from the new jobs. The project is contingent upon Lansing City Council’s approval of the brownfield plan. The Hosmer Building Redevelopment project was approved by the Lansing Brownfield Redevelopment Authority on Aug. 4. Pending remaining approvals, the project is expected to be completed in 2019.
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