Hayes Development Moves Forward with $4.5M in State Funding

The Hayes second floor ballroom, photographed during a 2021 tour. JTV file photo.

(June 28, 2024 3:26 PM ET) The restoration of the historic Hayes Hotel in downtown Jackson has been boosted by $4.5 million from the State of Michigan. The funding support for The Hayes project comes from the 2025 State Budget through the Michigan Economic Development Corporation (MEDC).

$4.5 million will go to the City of Jackson to help close a funding gap needed for The Hayes development to move forward. The City sold the former hotel building to J. Jeffers & Co., a Milwaukee-based development company, in 2022. Since then, the company and local officials have been working to secure additional funding for the project. The $4.5 million from the State is the result of Mayor Daniel Mahoney and local business leaders advocating for additional funding to make the project happen.

Mayor Daniel Mahoney says this will help accomplish a long-time goal of redeveloping this vacant property. “This is the icing on the cake of all the transformation that Downtown Jackson has had over the last 10 years. I am very appreciative to be here to witness it and be part of it,” Mayor Mahoney said. “The Hayes Hotel was once a cornerstone of our community, and its redevelopment will bring new opportunities for residents and additional vibrancy to downtown.” The Mayor told JTV News the project is now a “100% go”.

The $40 million investment will rehabilitate the 10 story historic building into a rejuvenated development named The Hayes. Plans call for transforming the building to include 15 short-term rentals and 84 apartments. The market-rate apartments will be a mix of studio, 1 bedroom, and 2 bedroom units. The Hayes will also feature event, office and commercial space on the first three floors.

For 50 years, the 200-room hotel served as a social hub in Jackson, hosting numerous community events and welcoming visitors from out of town. However, since 2003, this downtown anchor has remained vacant.

The Hayes property is located on W. Michigan Avenue in the heart of Downtown Jackson. Built in the 1926, the building functioned as a hotel until 1975. Consumers Energy used the property for office space until 2003. The City of Jackson took control of the building in 2004. For the past 20 years, the City has been preserving the building for future development. Efforts to sell the property picked up steam in 2021 when the City started collaborating with the Anchor Initiative for economic development.

J. Jeffers & Co. has previously completed sizable rehabs of historic buildings in Milwaukee. Brian Loftin says his company is excited to start this project in Jackson. “The building has a solid core and shell. Some may see blight, but we see a great opportunity,” Loftin said. “One of the things that attracted us to the project was all the work that’s already been done in the City, such as the vibrancy that you can see taking shape downtown.”

Today, State Senator Sue Shink (D-Northfield Twp.), representing Jackson County, said she secured funding for the Michigan Dept. of Labor and Economic Opportunity (LEO) to provide the budget earmark to the City of Jackson for the redevelopment of the Hayes.

“After years of efforts by the Jackson community to redevelop the vacant Hayes Hotel, I am excited to have secured $4.5 million in Michigan’s budget to support the transformation of this vacant building into housing and commercial space,” said Sen. Shink. “This investment will reinvigorate the Hayes Hotel from a vacant structure into a vibrant anchor in Jackson’s energetic downtown area. I appreciate the collaboration with Mayor Daniel Mahoney, the Jackson Chamber of Commerce, and Consumers Energy to achieve this victory for Jackson.”

The Jackson Anchor Initiative recruited J. Jeffers to visit Jackson and explore development possibilities for the Hayes in 2021. (Then) President and CEO Scott Fleming hosted a luncheon to introduce out of town developers to the Hayes. J. Jeffers representatives attended and were the only firm to show a serious interest. Following several trips back to Jackson, J. Jeffers prepared a development proposal, purchased the building and began work on use, design, and funding.

“Over the past decade, significant resources have been invested in Downtown Jackson’s revitalization. This community enhancement grant sets the stage for the next phase of Jackson’s development by leveraging state dollars for this transformational project,” said Ryan Tarrant, president & CEO of the Jackson County Chamber of Commerce and Experience Jackson. “Redeveloping the historic Hayes Hotel has been a community priority for many years, and the unique mix of proposed residential, retail, commercial and restaurant space as another anchor downtown is an opportunity to showcase the vibrant community and quality of life Jackson offers.”

Since early this year J. Jeffers has been soliciting bid proposals from contractors, vendors and retail/restaurant tenants. In April 2024 the developer announced an agreement with GROW Hospitality for the restaurant and events spaces in The Hayes. GROW Hospitality, led by Roberta Dalenberg, is a hospitality operator in Jackson and surrounding areas.

GROW Hospitality has significant experience in the local market as the company manages and co-owns Veritas in Jackson, as well as the nearby Manchester Market, Males Grocery, and Jerry’s Market. GROW will open a new restaurant in Grand Blanc later this year. Roberta’s husband, Justin Dalenberg, is CEO of Grand River Brewery and Doll N Burgers, among other area businesses. He joins Roberta in having a passion for craft made food and beverage and in being champions for a thriving Jackson community. Justin said, “The addition of the event spaces, as well as the restaurant, will add a unique value to Jackson’s urban core. I know these will attract the interest of people locally and regionally.”

J. Jeffers is currently recruiting other tenants for the commercial space to complement the restaurant. “Our team at J. Jeffers & Co. set out to identify partners for The Hayes,” said Lisa Wogan, economic development specialist for J. Jeffers & Co. She continued “The (city’s) Master Plan encouraged adaptive reuse and placed focus on adding retail and hospitality. We know that GROW Hospitality will embrace the building and its history and their investment will add value to the Downtown District and its emerging status as a lifestyle hub.”

With the additional funding secured, renovation work on the project is expected to begin as early as this fall. Earlier this year, J. Jeffers announced a goal to complete the project in 2026.

Visit the developer’s Hayes website here.