CORRECTION:This story has been corrected to indicate that Lake Trust Credit Union still maintains a branch inside its former headquarters building on Capitol Avenue.

LANSING – A $33 million project that will remake a block of downtown Lansing goes before the Lansing City Council on Monday.

Called the 500 Block Project, the mixed use development will start with renovation of the former Lake Trust Credit Union building at the corner of South Capitol Avenue and Lenawee Street and includes a second, new building at the corner of South Capitol and Hillsdale Street.

The total proposal includes 160 residential units and nearly 27,000 square feet of office or commercial space, according to a news release.

“Repurposing the Lake Trust parcel in the south end of downtown is an important revitalization effort," Lansing Mayor Andy Schor said in a statement released Friday by Lansing Economic Area Partnership. "Creating new housing and business opportunities will be tremendous for Cherry Hill and downtown neighborhoods. We look forward to working on getting this done."

The renovation of the former Lake Trust headquarters at 501 S. Capitol Ave. is slated to begin in November, with completion estimated by fall 2021. Construction of the new mixed-use building is slated to begin in September 2020 and be finished in spring 2022.

Lake Trust relocated to Brighton in 2015. In 2016, the site had been considered as a potential location for a new Lansing City Hall. Those plans did not materialize and it was sold to developers in 2018.

The credit union still maintains a branch in the building.

True North Development is seeking a brownfield tax credit for the project, which would help offset the cost of cleaning environmental contamination at the site. Asbestos removal will be among the first steps in the project.

The Lake Trust building will be converted into a mixed-use structure with 23,461 square feet of office/commercial space and 44 multifamily apartments on four floors.

The new building includes 116 residential units and 3,500 square feet of commercial space.

A second phase of the project, which is not included in the Brownfield Plan that goes to City Council on Monday, was also proposed, according to city documents.

The second phase included plans for another new, mixed-use structure along South Washington Avenue and Lenawee Street, contingent on success of the renovation and new building.

The brownfield plan will be submitted to the City Council at its meeting at 7 p.m. Monday. The council will then decide whether to refer the proposal to the Committee on Development and Planning.

A public hearing on the proposal is scheduled for Oct. 28.

More:Former Lake Trust headquarters sold to Lansing developers

Contact business reporter Christian Martinez atcmartinez@lsj.com or (517) 267-1342. Follow him on Twitter at @ChristianM_CA.

Support local journalism: Purchase a Lansing State Journal subscription here.