State Rep. Kathy Schmaltz today submitted a $4.5 million state funding request to support redevelopment of the former Hayes Hotel site in downtown Jackson, taking the first step under a new, more transparent process for projects funded with taxpayer dollars.

Schmaltz submitted the request on the first day applications were eligible, highlighting her commitment to restoring funding for the project after a legislative committee paused a previously approved state grant when funds were still unspent at the end of the 2024-25 budget year.

The proposed redevelopment at 228 W. Michigan Ave. would bring a $37 million private investment to downtown Jackson, including apartments, a restaurant, and retail space.

“From the beginning, I have been clear that this project matters to Jackson,” Schmaltz said. “Submitting this request right away ensures the Hayes Hotel redevelopment is back in the pipeline and positioned for consideration as soon as the state can move forward with new spending.”

Schmaltz recently met with the Hayes Hotel developers, members of the Jackson County Chamber of Commerce, and the city of Jackson to discuss next steps and identify ways to get the long-delayed project back on track. During those conversations, the developers reaffirmed their commitment to completing the renovation and guaranteed the project will be finished if state funding is restored.

The earlier funding was paused as part of a broader legislative review of unspent projects from the prior fiscal year. Schmaltz opposed the action at the time, noting that worthwhile local projects – including the Hayes Hotel redevelopment – were being swept up alongside others that lacked progress or accountability.

Under new requirements designed to improve transparency and oversight, all state-funded projects must now have a legislative sponsor, be submitted to a public website, and remain publicly posted for at least 45 days before they can be included in a state spending measure.

Schmaltz said she has heard extensively from Jackson residents about the project. While some have expressed frustration, noting the redevelopment has been discussed for years and questioning whether it will ever be completed, she said the overwhelming message she hears is that the community wants to see the Hayes Hotel project move forward and succeed.

Schmaltz said she is proud to serve as the legislative sponsor and intentionally moved early to meet the new standards. She will continue advocating for the Hayes Hotel project to be funded through a supplemental spending plan expected to be considered later this spring.

“I know how much this project matters to everyone who lives and works in Jackson,” Schmaltz said. “It represents real opportunity for our downtown, and I am committed to doing everything I can to move it forward.”