Alexander Alusheff

Lansing State Journal

EAST LANSING - A Chicago developer is proposing a $132 million development that would sharply transform downtown East Lansing.

Harbor Bay Real Estate Advisors hopes to build a 12-story apartment building on the 100 block of East Grand River Avenue along with a six-story parking deck along Albert Avenue with a six-story senior housing complex built on top.

The developer and city officials made the announcement Wednesday morning inside the vacant Ned's Bookstore.

"This is an exciting project for the redevelopment of downtown," said East Lansing Mayor Mark Meadows. "This changes Albert Avenue from a back street to a main street."

The project, known collectively the Center City District, would include 364 units between the two apartment buildings. The buildings would have roughly 42,000 square feet of retail space between them. The developers want to bring a grocery store or major retail chain into the Grand River Avenue building while adding smaller retail shops along Albert Avenue.

"This development is so important to our region," said Bob Trezise, president and CEO of the Lansing Economic Area Partnership. "It will be full of energy and life for all ages."

The Grand River Apartments tower would replace the buildings between Urban Outfitters and Lou & Harry's. The Albert Apartments and parking garage would be built on the site of City Lot 1 across from Harper's Restaurant and Brewpub.

The buildings that would be torn down are owned by Brad and Greg Ballein of Ballein Management, who would manage the development with Harbor Bay. Brad sits on the city's Downtown Development Authority and Brownfield Redevelopment Authority.

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Businesses that would be impacted by the Grand River Avenue development are: Charlie Kang’s, Sundance Jewelry, Noodles & Company, Clever Clover Boutique, Verizon Wireless. No other businesses would have to relocate.

Greg Ballein, vice president of Ballein Management, said the businesses impacted by the development have been informed. They are working together to move them into the new development or relocate them.

Ballein said he wants the development to attract national retailers.

"We need more diversity of retailers here that will make East Lansing a destination," he said.

Plans could go before the East Lansing Planning Commission as early as March 8, said Mark Bell, CEO of Harbor Bay Real Estate Advisors.

The project would require a brownfield plan as it includes constructing a parking deck that would be owned by the city, as well as upgrading infrastructure and utilities.

Meadows said in a phone call that the brownfield plan could be bigger than the $26.2 million brownfield plan requested for the Park District project on the 100 block of West Grand River Avenue. That project includes building a 12-story hotel and apartment complex on the corner of Grand River Avenue and Abbot Road.

That plan drew criticism because it would have been the largest property tax rebate in the city's history. The developer rejected it in January. Revised development plans are expected to be submitted in March.

In regards to both projects, Meadows said the city would reimburse what it can afford and what it thinks is appropriate for the community.

Cory Quinn owns East Lansing Threads a few storefronts down from the Ballein's proposed development on Grand River Avenue.

He said he found out about it this week and is curious to see how it progresses.

"I think 12 stories is a bit much for downtown, but I think downtown East Lansing needs the help," said Quinn, who has operated at 225 E. Grand River Ave. for roughly two years.

Quinn said fine dining and shopping options would be an improvement to the area.

"There needs to be something that draws people downtown," he said. "Business is good, but it can always be better."

Ann Siegle lives less than a mile away from downtown. She said the possibility of having a downtown grocery store in the development would be helpful.

"It would be extremely convenient for us as a family," Siegel said.

She is not opposed to the height of the project.

"If East Lansing is going to grow, it has to grow up," she said. "I think it will be a very positive development."

Mark Terry, who lives a few blocks away on Michigan Avenue, thinks a 12-story building is too high for the area. And building a parking garage in the middle of downtown would create too much traffic, he said. He supports keeping parking on the edge of downtown.

"It would be more vibrant," he said. "Traffic is the enemy of downtowns right now."

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