City Center II still could move forward

A downtown development that is in foreclosure might continue as planned after Tuesday’s City Council meeting at the Union.

Loomis

Strathmore Development Company, developer of the City Center II project, a $116.4 million mixed-use development slated for the corner of Abbot Road and Evergreen and Grand River avenues, will submit a request for a fifth extension at City Council’s Sept. 22 work session, Mayor Vic Loomis announced at the meeting.

He would not elaborate on how Strathmore could submit a request for an extension when several of its properties already are in foreclosure.

“It’s a very complex project with a lot of moving parts,” Loomis said. “This project has a lot of things that change.”

This comes after it was announced Aug. 27 that seven Strathmore-owned properties within City Center II were in foreclosure. The properties are scheduled to be auctioned off on Sept. 17 at a minimum price of about $3 million.

Strathmore originally was scheduled to submit a financial plan or request an extension at Tuesday’s meeting, but the item later was removed from the agenda.

Loomis said he was on standby with the auction, and there was a possibility the properties would not be foreclosed upon. Even if the Strathmore properties stay in foreclosure and are sold Thursday, Strathmore could secure financing in the redemption period after the sale, Loomis said.

Loomis would not elaborate on why he believes the properties might not stay in foreclosure.

If Strathmore submits a formal request for another extension, Loomis said council would examine Strathmore’s potential financing plans.

“We want to make sure we have the most recent and correct information,” he said.

City Attorney Dennis McGinty also made an announcement about the city-owned properties slated as the future site of the City Center II parking garage.

East Lansing resident Phil Bellfy recently applied to appeal the city’s right to demolish the homes on the property, but his appeal was dismissed in court.

“The integrity of our process had been challenged,” Loomis said. “And we withheld that challenge.”

McGinty said the city now has the right to demolish the homes, but Loomis said there are no plans to construct anything on the properties unless City Center II proceeds.

“There are no plans to do anything with the parking garage in advance with a project,” he said.

Also on the agenda was the application for the Transportation Investment Generating Economic Recovery, or TIGER, grant. The grant would allow the city, MSU, the Michigan Department of Transportation and the Capital Area Transportation Authority to redevelop the Amtrak station at 1240 S. Harrison Road.

With the application approved, East Lansing Community and Economic Development Administrator Lori Mullins said the city will be notified in February whether it received the grant. Construction would begin within five months of receiving funds.