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Posted on: October 1, 2019

Mayor Andy Schor Signs Executive Order to Update and Improve Lansing Universal Development Agreement

Mayor Andy Schor today signed an Executive Order to update and improve the City of Lansing’s Universal Development Agreement (UDA). The UDA is a tool that the City uses to define and agree on the specific commitments a developer or business is making as a condition for receiving an economic development incentive from the City. The UDA also provides accountability, transparency and a reporting and verification process. 

“Growth is a priority for Lansing,” said Mayor Schor. “People want to invest in Lansing but it can sometimes be costly due to necessary urban cleanup and revitalization. The updated UDA allows the City to efficiently discuss economic development tools when needed and appropriate, and sets the expectations of the City in order for those tools to be utilized.”  

The newly updated UDA requires developers and businesses to make every effort to hire local labor and Lansing based firms, start and complete development projects on time, pay all required City income and property taxes, meet project performance measures and provide the City with annual project progress reports and a final completion report. 

“Usage of local labor will allow our residents receive the benefit of the development work as a result of the incentives provided, by ensuring that the City collects all the taxes from contractors and sub-contractors. Lansing will be open to growth and development and the updated UDA allows the City to do that, as well as better support residents.” 

The City of Lansing offers developers a variety of economic development incentives that are designed to facilitate renovation and revitalization of obsolete structures and environmentally contaminated sites, as well as the expansion of existing businesses and the location of new businesses within the City. Incentives could include shorter term tax abatement and/or longer-term capture of local taxes on the increase of taxable value that result from investment. The City benefits from the use of these incentives through collection of income taxes during and after construction, usage of local labor, generation of economic activity related to the project. 

The Mayor’s Executive Order adopting the UDA will now formalize performance expectations and reporting requirements related to the approval of economic development incentives. 

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