City Center II still could move forward
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Loomis
A downtown development that is in foreclosure might continue as planned after Tuesday’s City Council meeting at the Union.
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.
Commentary
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student
(09/16/09 9:46am)Report
Ambiguous articles like this one ofter are the effect of the lack of business knowledge on behalf of the journalist and him wanting to be a hero by asking ridiculous questions.
Bill S. Preston, Esq.
(09/16/09 11:10am)Report
I support City Center II.
The concept needs a new developer.
student
(09/16/09 11:54am)Report
I support City Center II.
With our without a new developer.
tedman
(09/16/09 2:24pm)Report
You can put lipstick on a pig but in the end, it’s still a pig.
Something shady is going on between Strathmore and Loomis.
Benjamin Campbell
(09/16/09 3:48pm)Report
Yea something isnt right.
I think that area would make a better buss stop than anything.
Marie
(09/16/09 7:14pm)Report
I was just thinking how East Lansing needs more overpriced condos that no one will buy.
The way the City of East Lansing and Strathmore conducted themselves in “negotiating” with property owners is shameful. Let this terrible idea die.
me
(09/16/09 8:39pm)Report
Every single construction activity has its struggles, whether economic or logistic.
First, City Center II involves a lot of properties and a lot of money. To acquire all the properties and put them to date in order to begin construction is the equivalent of replacing a bureaucracy. Bureaucracies do not cooperate and their parts do not communicate so, even if they are small in employees, their departments make them ridiculously inefficient. Here, in this project, the developers have to clear all the properties and that involves a huge amount of time since it involves dealing with a bureaucracy (government) in one of the worst economic times in the history of the US. Comparatively, in better economic circumstances, this project probably would be mid way through construction by now. So, City Center II is expected to take time.
Second, people must understand that the City Government is preparing East Lansing for better economic times in the city due to a substantial increase in companies and firms in the area. These new businesses are established but are in their early development stages and they represent spin offs from MSU, local entrepreneurs and just other businesses, from other parts of Michigan, the US and the World, that are deciding to establish en East Lansing due to tax credits and great advantages that result from being close to the state capital and greater cities like Chicago and having an academic giant like MSU. All that people will need a place to sleep and they will stay in downtown EL because of all it has to offer. Also, people needs to understand that this is not a City Center II development, but this is a stage in the transformation of the downtown and the general East Lansing. Furthermore, in the future you will see the East Village area being redeveloped and consequently the entire East Lansing will be transformed.
Essentially, these are structural development but what will make East Lansing the best city in Michigan, one of the best cities in the Midwest and one of the best collegiate cities is the atmosphere that the new young workforce of professionals will bring to the city and the area.
When you combine the long run transformation of East Lansing with one of the brightest, if not the brightest, future in the history of MSU you will not only have a magnet of businesses and quality people, but you will have an atmosphere that will make people forget about the cold weather, like they do in Chicago.
TAXPAYERS FUND CC2
(09/18/09 5:38pm)Report
The TAXPAYERS are giving the developer $60 Million Dollars in Tax Captures and $30 Million Dollars in Taxpayer Backed Bonds to prop this insolvent developer up.
What a joke! There is NO benefit for the taxpayers—only more tax burden.
SB