Web exclusive: City Council approves grant agreement to bring IBM jobs to E.L.

Some state grant money will flow through East Lansing to IBM following a City Council vote to approve a grant agreement. The agreement between Michigan’s Economic Development Corporation and the city extends state funding to the company for bringing new jobs to East Lansing.

“It was an important part of IBM’s decision to locate at MSU,” East Lansing City Manager Ted Staton said.

In order to receive the grant money, IBM will be required to provide proof of job creation through its human resources department. The company could earn up to $2,600 per new job created.

“The goal here with IBM is to create this as a cumulative job growth,” said Tim Dempsey, East Lansing’s director of Planning and Community Development.

The council also approved a zoning measure to create an industrial development district along Coleman and West roads in the northern portion of East Lansing. The change would make it possible for new developments — such as high-tech industry and office space — to move into the undeveloped properties. Parcels of land within the industrial development district also would be eligible to apply for tax abatement.

But the zoning change does not automatically classify the currently vacant land as tax-free, council members said. Future developers would need to apply for the abatement on a case-by-case basis.

“The concern I raised about the action’s potential is what it sets up in the future,” Councilmember Nathan Triplett said.

Creating the potentially tax-free properties might draw developers to previously undeveloped property rather than empty, unused buildings closer to campus, he said.

“We have to ask, ‘Are we incenting developing green space rather than downtown space?’” Triplett said.

The council also voted to change wording of an ordinance about East Lansing cabs to include minivan taxis.