CMS Energy HQ gives Jackson’s downtown a boost

“ Welcome CMS Energy Employees ” reads a sign in Jackie Killian’s storefront in downtown Jackson. Killian, owner of Economy Art and Framing, has seen “a definite increase in foot traffic, and perhaps a slight increase in sales” since 1,300 employees moved into their new offices at CMS Energy’s world headquarters in downtown Jackson this spring.

Will the new CMS Energy office tower and surrounding campus be enough to turn Jackson’s downtown into a thriving retail center again? Downtown retailers, restaurateurs and civic organizations all have their fingers crossed.

Consumers Energy, the main subsidiary of CMS Energy, has a long history in the Jackson area, going back to 1886. When its parent company decided to relocate its new world headquarters from Dearborn to downtown Jackson at a final price tag of $78 million, it was the result of months of hard work by city planners.

The 13-story office tower houses 1,300 employees—600 from the old Consumers Energy office that was also downtown, 600 from another Jackson-area office and 100 from CMS Energy’s former headquarters in Dearborn.

“With the addition of the CMS Energy campus and the beautiful landscaping along the river, there is an excitement in the air and sense of pride growing within the downtown area,” said Debi Weid, executive director of Jackson’s Downtown Development Authority (DDA).

It’s all part of a larger, ongoing plan, according to city planners like Weid. Incentives like a Facade Improvement Program (a forgivable loan for facade improvement) and a Residential Rehab Program (funds to renovate upper stories of building into low/moderate rental units) will also help.

In addition, downtown merchants are pursuing a Main Street Program grant with the assistance of Local Initiatives Support Corporation (LISC) and the DDA.

“Jackson—which has benefited from the input of CMS leadership long before the relocation decision—recognized that a vibrant urban core was critically important to community vitality,” said Greater Jackson Chamber of Commerce President Susan Milhoan.

According to Milhoan, “the DDA, the Chamber and local businesses were well on the way to re-energizing downtown when CMS announced its relocation, which helped tremendously. The success of today might have happened, but it would probably have taken much longer.”

Mood improving?
Many (but not all) downtown retailers agree with Milhoan about how much improvement has already taken place, the role CMS Energy might play and the future of Jackson’s downtown. Some see the revitalization as already well underway.

“I saw the mood changing before the CMS project. There was already increased interest in downtown,” said Philip DuPuis, owner of DuPuis et Fils Jewelers, which has been downtown for 75 years. “But the CMS Energy building is a tremendous boost, really dressing up the downtown.”

“The improvement has been slow and steady, over several years,” agreed Killian. “I give credit to city managers for improving the streets themselves. It was dirty looking five years ago; now it’s clean and neat looking. When you see the city doing things to improve your environment, you do your best to keep your storefront attractive as well.”

George Webster, owner of Pedal and Tour, a bicycle and fitness equipment shop, added: “Five to 10 years ago, downtown was laughable; now it’s becoming a place where it’s actually cool to be.” Webster has seen a steady increase in his bicycle and fitness equipment store since it moved downtown five years ago.

Others are more skeptical, like Steve Casler, of Casler Hardware. “Of course the DDA and Chamber people talk about revitalization, but honestly, I still don’t see it. It’s their job to talk like that, of course, but it may not be enough to bring people downtown.

“Where are the people? Where’s all the new retail? They’re trying, we’re all trying, but I don’t know if it will be enough.”

What’s for lunch?

The new CMS campus itself has no new retail space. A Starbucks is the only non-CMS tenant. As CMS worked with city planners and the Downtown Development Authority, it was agreed that the building should not supply employees’ every need.

“We didn’t want a building where employees would never have cause to leave the building,” said Weid.

The office tower does have an employee cafeteria, and some local restaurants are concerned that it may cut into the hoped-for increase in business at downtown eateries.

However, the new building’s cafeteria seats fewer people than the one in the old Consumers Energy building. With more employees and a smaller cafeteria, many more people should be looking to downtown eateries for lunch than before.

Mike Young, owner of “Mike’s Place,” just west of the CMS campus, has not yet seen a huge increase in business, but he’s not worried. “I didn’t expect a huge run on my deli just because a lot of new employees are working downtown now.” He hopes employees will come down as they gradually settle into their new offices and develop new habits.

A lunch crowd, of course, also means pedestrian traffic past retail storefronts which will, it is hoped, see a gradual improvement in sales.

Arts coming soon

Weid points out that there is more to downtown revitalization than filling vacant storefronts.

“We want to make downtown feel like a place in itself, to evoke an atmosphere here, so that when people come downtown for one reason, they don’t just hop back in their cars and leave,” she said.

“Now they may want to stroll on the new Grand River Arts Walk, hear live music at the new grass amphitheater behind CMS—shows are scheduled for August—and then browse nearby stores on their way to a downtown restaurant.”

Weid, who sees the development of arts and culture as vital to the plan, is excited about the riverside walk. Its first phase is nearly complete, with an official opening date of August 1. Later phases will extend the paved path to the planned Armory Arts project.

“The Armory Arts Project is a development that plans to transform a blighted former industrial complex four blocks from the heart of downtown Jackson into a vibrant hub of arts and cultural activities, with major economic benefits to the whole community,” explained Weid. “It is spearheaded by Enterprise Group of Jackson and nationally acclaimed nonprofit arts developer Artspace Projects, Inc.”

The project, slated to be complete in 2005, will be a mix of affordable residential space and public space for arts organizations and “arts-friendly retail.”

The journey back to a profitable, thriving downtown will take some time. But with a shiny, new office tower bringing many more people downtown, and the concerted efforts of downtown retailers and city planners, Jackson’s downtown may just make it a little sooner than people once thought.

This article was written by Michigan Retailer staff writer Amy Buttery.

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