Alexander Alusheff

Lansing State Journal

EAST LANSING - The developers behind the $132-million Center City District project proposed in downtown East Lansing say they would make $27 million worth of public infrastructure improvements in the area.

Chicago-based Harbor Bay Real Estate Advisors plans to ask the city's Brownfield Redevelopment Authority to issue a bond to finance the improvements it makes, said company CEO Mark Bell, during a planning commission meeting Wednesday night. A non-recourse bond prevents the city or brownfield authority from assuming any financial liability.

Any brownfield reimbursement approved for the project would go to pay off the bond.

The project calls for two 12-story buildings to be built along Albert Avenue and Grand River Avenue. A mixed-use building along the 100 block of East Grand River Avenue would house a grocery store and 271 apartments. The building along Albert Avenue would replace City Lot 1 with a six-level parking garage. A six-story apartment building for people 55 and older would be built on top. The first floor would have roughly 20,000 square feet of retail space.

"We're proposing to completely transform Albert Avenue," Bell told the commission. "If done right, this can be a destination retail location."

Public infrastructure improvements would include the six-story parking garage, which would be owned by the city; a reconfiguration of Albert Avenue to widen sidewalks and add bike lanes; sewer reconstruction; and a new water main, Bell said.

The brownfield plan has yet to be submitted to the city, but will likely be available in two weeks. It is expected to be larger than the $27 million Bell mentioned during the meeting as that figure does not include interest and the brownfield eligible expenses, such as site demolition.

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Bell is working with East Lansing-based Ballein Management on the project. Ballein Management owns the buildings along Grand River Avenue between Urban Outfitters and Lou & Harry's, which will be torn down for the development. The Ballein family has owned Student Book Store since 1960.

Brad Ballein, the president of the company, also sits on the city's brownfield authority and downtown development authority. He said he will not attend meetings that pertain to the project, which his company would manage when completed.

The public hearing Wednesday night was meant to address concerns the commission had about the project before everything was submitted for review. The project could go before the commission as early as March 15.

The planning commission requested more information about the financial relationship between the developer and the city in regards to the project.

Besides the new property taxes generated from the project, Bell said, the city would get revenue from a ground lease at the Albert lot, which would allow the developers to build on the land. The city would also collect parking fees from the ramp.

He also added that the project is expected to create 400 construction jobs and 100 permanent jobs. They hope to start construction this summer and finish it in 2019.

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Downtown business owners voiced their own concerns about construction and parking.

"Congestion is already an issue," said Linda Dufelmeier, owner of Mackerel Sky on M.A.C Avenue. "People hate parking in ramps. And it will hurt businesses if you close the parking lot for two to three years during construction."

Jerry Byer, of East Lansing Grand River LLC, owns the buildings that house Urban Outfitters and Rally House, which would be right up against the development.

"Construction will create a tremendous mess," Byer said. "There's very limited access to the back of the building right now."

The alley behind the businesses on Grand River Avenue would remain, according to sketches presented at the meeting.

Byer also raised an issue with the parking garage, which is proposed to accommodate 725 vehicles. The parking would be shared with the residents of the 364 units of the development and the public.

Lot 1 has 148 parking spots now. Developers said an additional 253 would be available for the public in the garage.

Byer said it wasn't enough because it doesn't account for future development on the block.

He asked the planning commission to "take your time with this one."

"The current area is rich in amenities," Bell said. "We are simply saying we want to further enhance the area."

Alexander Alusheff is a reporter with the Lansing State Journal. Contact him at (517) 388-5973 or aalusheff@lsj.com. Follow him on Twitter @alexalusheff.