East Lansing OKs Center City high rise project

Alexander Alusheff | Lansing State Journal

Show Caption Hide Caption East Lansing approves $125M Center City project An overview of what the project will bring to downtown East Lansing.

EAST LANSING - Two more high rises will be built in the heart of downtown East Lansing.

On Tuesday night, East Lansing City Council unanimously approved the Center City District project's site plan, brownfield plan and development agreement.

The project, which the city labels a $125-million investment, calls for a 12-story apartment building to be constructed on the 100 block of East Grand River Avenue. A Target with a grocery section will operate on the first floor.

Plans also call for City Lot 1 directly behind the apartment building to be the site of a 10-story structure that will house retail space on the first floor, parking on the next four levels and a five-story apartment complex for people 55 and older on top. The project will add 363 apartments total downtown.

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Chicago-based Harbor Bay Real Estate Advisors is developing the project in partnership with East Lansing's Ballein Management.

Council members said the project helps meet the goals of the city by adding diverse housing options and bringing a grocer downtown.

"Some of these amenities we want requires us to grow," said Councilwoman Shanna Draheim. "I know the density feels scary to a lot of people ... but the beauty of East Lansing is that we have a pretty small downtown. It is dense. And this chunk of these few blocks are really going to be vibrant and thriving."

Council also passed a $50.2-million brownfield reimbursement plan for the project, which covers the cost of public improvements such as the four-level parking garage that will be city-owned along with the improvements to Albert Avenue and the utilities in the vicinity. The garage would have 620 parking spaces. Of those 302 would be for the public, which is more than double the 143 spaces currently available at Lot 1.

Roughly $24-million in infrastructure improvements will be covered by a non-recourse bond where the developer is liable for any shortfalls and not the city. The bond would be paid by 100% of the project's property taxes over a 30-year period.

The project would generate $422,000 annually for the city through ground lease payments, parking revenue and base taxes and new taxes.

Mayor Mark Meadows described the brownfield plan as a way to use property taxes to rehab Albert Avenue and build infrastructure that will accommodate future redevelopment in the area.

The condominium agreement on the Albert Avenue building still needs to be completed before the development agreement can be finalized, Meadows said.

The city can still back out of the deal if it is not satisfied with the developer's financial materials on the project. It has two days to review them upon receipt of those materials.

Within six months of the execution of the agreement, the developer must submit plans and apply for permits to start work on the public infrastructure improvements. The parking garage portion could open roughly one year after construction starts.

"I"m excited the project is ready to take the next step," said developer Mark Bell. "It will significantly add to the vibrancy of downtown."

Contact Alexander Alusheff at (517) 388-5973 or aalusheff@lsj.com. Follow him on Twitter @alexalusheff.