Council Approves Motel, Calls Out BWL Rate Increases

By Lucas Day

Rate increases from the Lansing Board of Water and Light (BWL) were criticized by Councilmember Mark Meadows at the relatively short Sept. 3 City Council meeting.

Meadows used his public comment portion of the meeting to call out the rate increases, saying that BWL is not being transparent about using some of the new funds to build a fossil fuel-powered plant.

The plant is a gas-powered reciprocating internal combustion engine (RICE) plant. For months, local environmental groups have been raising concerns about environmental impacts of the plant. BWL officials have said the plant is an improvement the coal-powered plant that was previously at this location and a step towards clean energy production. But Meadows and environmental groups question why a fossil fuel-powered plant is being built at all.

BWL’s headquarters in Lansing. (Gary Caldwell for ELi)

“BWL is investing in infrastructure that would also be obsolete in 2040 because we’re scheduled to be fossil fuel free in energy production in the state of Michigan,” Meadows said.

Meadows said that Councilmember Dana Watson and other local officials signed a letter to BWL expressing concern about the rate increases. Meadows said he and Councilmember Erik Altmann support the letter, but did not see it before it was sent.

BWL has different increased rates slated to take effect in October this year and then at the start of October 2025. The rate increases are projected to rake in more than $26 million for BWL in the first year.

A summary of the BWL rate increases over the next two years. (From BWL press release)

Meadows said that BWL charges less for utilities than other providers in the state, but he was unhappy because it was not made clear that some of the money raised by the rate increases will be used to pay for the RICE plant.

Meadows said he saw an earlier proposal that showed some of the funds are to be used on the RICE plant. However, recent information shared did not mention the plant, but did maintain the increases to pay for the project.

“So essentially, you will be paying money to construct a fossil fuel production of electricity, even though they aren’t really telling you that’s what they’re getting their money for,” Meadows said.

Meadows continued to say the East Lansing City Council did not receive a notice about the increases, and he saw a notice sent to Lansing officials. He said residents who filed a Freedom Of Information Act request for information on the increase were met with a $5,000 fee to obtain the documents.

“There’s a lack of transparency with regard to this rate increase,” Meadows said. “I’m hoping that, as a city, we will pursue some obtaining of information so that we can share it with our residents. I think at this point in time, this rate increase has not proved to be justified but you’re going to see it on your bill going forward.”

Council approves “stay and play” motel and banquet space to be added near Eagle Eye Golf Club.

Council unanimously voted to allow a building on Harrier Drive to be converted to a four to six room motel and banquet space.

CNP LLC, the building owner, previously planned to sell the building as office space. However, after COVID-19 lowered the demand for office space, the company struggled to find a buyer. The Planning Commission unanimously recommended the company’s plan to repurpose the building to be a motel and banquet space.

This building will be converted to a motel and banquet space after the project was approved by City Council. (From agenda packet)

CNP representative Matthew Johnson said at the meeting that there is a demand for the space in the area. He said the golf course holds wedding and large golf events, and now there will be a place to host people overnight.

The plan is to rent the motel and banquet hall out to one party at a time.

The project was only slated to receive its public hearing at the Sept. 3 meeting, which means that usually council would not vote on the matter until a future meeting. However, the applicant requested council vote, so it could begin working on its project right away.

Members of council were excited by the project.

“I think this is a great use for this property,” Meadows said. “Just the location adjacent to the golf course will probably fill this up for you.”

Prior to council voting in favor of the proposal, Mayor George Brookover tried to negotiate better golf credentials for one of his colleagues.

“Is there any indication in this project that, somehow, through some magic, you can cut Mr. Meadows’ handicap by six or seven strokes?” Brookover joked.

“You can maybe ask a couple of those guys at Eagle Eye, I’ll do my best,” Johnson responded.