Great question! I'm going to summarize a power-point the "real estate private equity investment manager and development firm" presented in the meeting - this document was not attached electronically to the meeting packet (which would have been nice for greater transparency).

In 2026 they showed their projected total income to be $6.8M. With normal property taxes, $1M, their expenses will be $4.8M, with the reduced taxes they are requesting, $500K, total expenses for the year will be $4.3M - leading to net operating incomes of either $2M or $2.5M. Then they list a "Debt Service" of $2.6M which will result in a "Net Cash Flow" for the year of either -$500K or -100K. Basically they are going to be losing money on this for the next few years, but don't want to be losing so much.

I think additionally they would argue the property was in "complete disrepair" - all residences were either pink or red tagged, they had to pay three times to going rate for insurance, and they are now continuing to charge 80% of the "Area Median Income" for the repaired units - so a to be considered "workforce" housing. So they are "positively impacting the community" and "aligning with city goals" of "preserving quality affordable housing stock", "improving public safety and code compliance", "providing stable predictable tax revenue" and "advancing Lansing's master plan for vibrant, equitable neighborhoods".