City Center II taxes paid by Strathmore
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The City Center II stalemate between Strathmore Development Co. and the city of East Lansing moved one step closer to ending Tuesday when Strathmore paid its remaining $96,000 balance in city taxes.
The payment puts a site plan amendment in motion after more than a month of inaction.
East Lansing City Council members had said they would not review any changes to the site plan until Strathmore had paid its city taxes. City Center II is a $116.4 million mixed-use project slated for the corner of Abbot Road and Grand River and Evergreen avenues.
City Manager Ted Staton said Strathmore restructured finances with smaller “boutique lenders” and not commercial banks, although he was not sure of specific details. He said he was more optimistic about recent City Center II discussions because he heard from a bank about the refinancing progress, although he would not say which bank. Mayor Vic Loomis said Strathmore has not found new financiers, rather it refinanced with existing backers.
Strathmore developer Scott Chappelle did not respond to e-mailed questions and refused to speak on the phone.
Staton also was told the nearly $98,000 in delinquent taxes owed to Ingham County would be paid at the same time as city taxes, but Ingham County Treasurer Eric Schertzing could not confirm whether those taxes were paid as of Tuesday evening.
Loomis said he didn’t read too much into the recent news.
“I guess what I want to say is I don’t want to speculate,” he said. “I think the only news … is he paid his taxes which we’ve been waiting on for several weeks now.”
Strathmore owed city taxes on six of its seven properties, as it last paid $41,000 in October to clear one of its parcels.
The city’s planning commission will consider Strathmore’s modified site plan at its Feb. 24 meeting, which will allow Building B — located at the corner of Abbot Road and Albert Avenue across from Dublin Square Irish Pub & Restaurant, 327 Abbot Road — to incorporate office space in the top four floors of the five-floor structure.
The bottom floor will remain zoned for retail activity. The original site plan restricted the top four floors to residential use but the amended plan would enable Chappelle to use either all residential, all office or a mixture of the two.
Staton said it could take about 90 days to approve the project’s new site plan and that it will be reviewed by the planning, environmental and transportation commissions.
“This is a virtually identical site plan that went through 47 meetings, including reviews by virtually every city board and commission,” he said. “It was endorsed by a super-majority by every board and commission that reviewed it, City Council approved it unanimously. … It’s a pretty modest change and in my opinion a change for the better.”
East Lansing Planning and Community Development Director Tim Dempsey said Chappelle wanted to incorporate more office space given successful ventures such as the Technology Innovation Center, 325 E. Grand River Ave., and the IBM Global Delivery Center for Application Services, 600 E. Crescent Road, that have shown East Lansing is a coveted technological destination. Dempsey said both Chappelle and the city received inquiries about more office space downtown, and the modified site plan would accommodate some of that demand.
“The proximity to the university is intriguing for businesses because they can tap into the talent on campus,” Dempsey said.
Staton said he expected the site plan to move through all the necessary commissions. He also said the proposal addresses qualms related to residential units, as many residents felt the project contained too many.
Commentary
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A Simple Proposal
(01/27/10 10:32am)Report
If this is such a great new plan, then it should be viable without putting East Lansing taxpayers on the hook for more bond money. If Strathmore can find lenders who are willing to support the project without taxpayers, why not? But the city should require the financing to be of the old-fashioned kind. If Strathmore believes in this project, it should put 10% down before it is approved.
Phil Bellfy
(01/27/10 1:53pm)Report
There are a few major points that were not addressed in this article.
First, the site plan proposes that Building B sit on city-owned land, and the Charter requires a 60% vote of the people in order to sell that land to Strathmore —a question the city should have proposed to the voters two years ago.
Secondly, the permit to demolish the historic homes on Evergreen to make way for the proposed parking garage was issued to the city, but the properties are now owned by the DDA —the DDA will have to revisit that HDC process (they and the city should do it within the law, this time).
Of course, there’s a whole lot more wrong with this project, but at least we’ll now have another 3-4 months to try and convince the city to not simply walk down that same dark path, hand-in-hand with debt-strapped Strathmore.
student
(01/27/10 10:55pm)Report
This will be another key in the reformation of East Lansing. With the FRIB, IBM, Technology Innovation Center, new Broad Art Museum, possible redevelopment of former Michigan State Police Headquarters and the City Center II East Lansing is repositioning itself to become the greatest city in Michigan and one of the best in the Midwest.
BUT WHERE IS THEIR MONEY FOR THE PROJECT?
(01/28/10 4:03pm)Report
They are still TALKING about paying their delinquent taxes? Did we completely forget to ask about where Strathmore is NOT getting their private funding from, the $30 Million dollars for their private housing project?
Mayor Loomis, City Manager Ted Staton and our City Council are throwing $60 Million Dollars of TAXPAYER money at an financially insolvent, tax delinquent private developer, who is drowning in lawsuits, liens, and foreclosures, involving numerous other failed projects.
This is a publicly funded bailout of an insolvent private developer, more pork barrel spending, and evidence of under the table payouts and special favors for public votes.
ryan
(01/28/10 4:29pm)Report
The best part is that Strathmore will be able to capture $59 million in taxes for thirty years, taxes that would be wasted on schools, roads, parks, and City services. I wish I could capture my neighbor’s taxes to pay for a new in-ground swimming pool, and maybe a new Mercedes.
Confused
(01/28/10 4:42pm)Report
Haven’t the Eyde’s been running lots of costly ads trying to sell space in their technology center? I know the folks pushing CC II are looking for any angle, but they can’t keep making up new business plans as they go along.