City Center II could advance by fall
By Kate Jacobson The State News Published: June 15, 2009 http://www.statenews.com/media/00/00...-South_big.jpg Tonight’s East Lansing City Council agenda includes one item that is familiar to the council and the residents of East Lansing: a request from the City Center II developer for a fourth 90-day extension to finish securing funds for the project. The $116.4-million project, which has been in the works for almost 10 years, is scheduled to begin in the fall, city officials said. Because of a bleak economy, Strathmore Development Company, the developer, has experienced difficulties obtaining funds to finance the project. To the dismay of some residents, the plan is moving forward, as city officials hope the final pieces of the project fall into place. City Center II is supposed to modernize the vacated Citizens Bank building and the 5.5 acres that sit at the corner of Abbot Road and Grand River Avenue. Originally planned to be a counterpart to City Center I — located on the corner of M.A.C and Grand River avenues — the project has transformed into a multibuilding, mixed-use facility, complete with a preforming arts theater, parking garage and space for residential and retail space, among others. Construction of the parking garage, which is the first part of the project to be built, is slated for spring 2010. “It took seven years to get the land all together, but this is not unusual for downtown developments like this,” said Jim van Ravensway, director of East Lansing’s Department of Planning and Community Development. Finding finances The $112-million funding the developer needs for the project should be completed in the next 90 days, Strathmore President Scott Chappelle said. The financing comes from cash equity from the buildings’ existing owners, traditional bank financing, mezzanine financing, tax-increment financing and Michigan business tax credits. The rest of the almost $5 million in financing will come from the city. Chappelle said he has received commitments for the $112 million. However, a portion of the commitments are in the form of equity participation, a relatively expensive option to finance real estate projects. He’s currently trying to obtain cheaper funding options for $54 million of the money he needs. Strathmore is pursuing $28 million in financing backed by either a loan from the U.S. Department of Housing and Urban Development or lender Freddie Mac, Chappelle said. He is looking to garner another $26 million in financing with New Markets Tax Credit Program, part of the U.S. Department of Treasury, and traditional bank financing. Because of the frozen credit markets, Chappelle has had some difficulties securing those funds. Problematic projects Two of Strathmore’s other developments have resulted in somewhat messy results. A project in Bear Creek, Mich., resulted in a legal dispute with the township about the approval process for the development. “Bear Creek Township acted improperly by not approving our project despite complying with the local ordinance,” Chappelle said in an e-mail. “The project was finally approved by the Michigan Court of Appeals and we are still trying to resolve the issue of damages.” Bear Creek Towship Supervisor Dennis Keiser could not be reached for comment. An Ann Arbor project also brought controversy to the company when the city claimed that Strathmore filed documents late, causing a check to bounce and a divide between the developer and the city. The project currently is stalled. Connie Pulcipher, senior city planner for Ann Arbor, declined to comment. Chappelle said there are no financing options for the project, but the company still plans to pursue it. East Lansing officials said they are not worried about the company’s track record. “We have examined all litigation that they’re party to,” City Manager Ted Staton said. “We certainly don’t see anything that would disqualify them for candidacy.” Construction concerns The project will bring a big building into a neighborhood where it might not fit, said Ann Nichols, a resident living near the project and a member of the city’s Community Relations Coalition. After working with the city on the project, Nichols said the voices of the residents were heard, even if their initial wants weren’t addressed by project changes. “I, and most of my neighbors, I think, have pretty much resigned ourselves to the fact that we fought the good fight,” she said. “People aren’t thrilled about it, but we have decided that it’s going to happen and we need to be positive about it.” Phil Bellfy, a resident in the project area and associate professor of writing, rhetoric and American culture, is opposed to the development. When the project was proposed, Bellfy did not like Strathmore’s design and started a petition against the development. It was later submitted to the city. “They’re changing the character of this community, and it’s bad,” he said. Timetable The city instituted a flexible plan for construction and didn’t hammer down any specific dates. Staton and van Ravensway said they are confident demolition will begin in the fall. “It’s very feasible to have our project under way by then,” van Ravensway said. “But there are so many things that have to be completed before we’re finally able to get to that point.” The city and Strathmore have acquired almost all the properties required to build City Center II. Purchases for the two remaining properties are on track to be completed by the end of the month, Staton said. He said once the demolition occurs, there is a 30- to 36-month window before construction of the two larger multi-use buildings will be completed, Staton said. “If you believe in a business cycle, there are 30 to 36 months (before) we could be staring at a whole different economy,” Staton said. Published on Monday, June 15, 2009 |
I love how they spun news of them asking for a fourth extension as a possible start date for this project. lol I don't have any doubt it will happen, but this is hardly what I would have titled the story, to be honest.
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Agreed. I'm just tired of that site, which could and should be one of the most lively sections of town, continuing to lay vacant and drab. That's supposed to be the grand entrance to the city.
As far as the rendering is concerned, I'm actually quite impressed. I know a lot of things can change in a short period of time, but compared to City Center I, this is a major improvement. The brick boxes that have been going up in E.L. as of late fall incredibly short of anything I would consider inspiring. Not that CC II is incredible or anything, but compared to anything that has been built in Lansing or E.L., it's quite an improvement in my opinion. Now if only the developer of East Village can manage to not Disney-fy the project, we might have the workings of a nice little city on our hands. |
So is City Center II way too big as compared to the surrounding structures?
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It's quite oversized, yep. But, downtown East Lansing is ridiculously undersized given the population of East Lansing and MSU. One of East Lansing's biggest failures has been that the city long ago went down a road of trying to stunt the growth of the downtown that looks like a downtown for a city half EL's size.
June 22 - Accident Fund & Boarwalk Construction http://farm4.static.flickr.com/3647/...33ac951e_o.jpg [img] http://farm3.static.flickr.com/2472/...3a4c4877_o.jpg[/img] East Bank Boardwalk http://farm4.static.flickr.com/3365/...38567373_o.jpg West Bank Boardwalk http://farm3.static.flickr.com/2471/...22e10b98_o.jpg Stretch, with the Michigan State Police Headquarters (u/c) seen down the river... http://farm4.static.flickr.com/3232/...8a08e3b3_o.jpg It seems the entire downtown riverfront is under construction. The new City Market as broken ground, as well, and work is to be started on the Capitol Club Tower (if it's to be believed) sometime in the next few weeks. |
LMich, if the state troopers pull out of their lease, is there any demand to fill it with something/someone else. btw, I don't really think they won't move in. I'm guessing its just some lip service by the Gov.
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It's not lip service by the governor. She's the one that wanted this project. It's the state senate making idle threats. They know that the state house will never quash this, so they are just making a statement.
And, no, no one else could fit the space. It's being built specifically for the needs of the state police, so even if another tenant were found, they'd have to do quite a bit of work work it around a new department. |
Oh yeah, your right about the Gov, sorry bout that.
On another note, I drove by Lansing on Sunday (127 South) and was wondering what all those cranes were towards downtown. Thanks for the pics. |
You could see the cranes from way over on US 127?
BTW, renderings of the new boardwalks http://edc.cityoflansingmi.com/image...jects/51_1.img http://edc.cityoflansingmi.com/image...jects/51_2.img |
I could see a crane, we were at a standstill and I had time to peek over in that direction without worrying about slamming into the ass end of somebody. But yes, I could see the Capitol dome and what I think is the Light and Power or Water building...don't know for sure.
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It's finally coming to pass:
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^
Good news or bad news? Looks like it was a cool building. |
Losing a historic building is almost always sad/bad, but in this case, it's at least being replaced by something, and something that will more ably utilize the riverfront.
The building (blt. 1861) was one of the oldest buildings remaining in the immediate downtown core, but had fallen into disrepair after the City Club moved to the suburbs. http://farm1.static.flickr.com/217/5...9cf928.jpg?v=0 http://farm1.static.flickr.com/230/5...aa576a.jpg?v=0 http://farm1.static.flickr.com/226/5...da6d49.jpg?v=0 (backhouse) http://farm1.static.flickr.com/210/5...4db04e.jpg?v=0 BTW, I'm surprised the neighboring Goodrich Building is not being mentioned, as it will also have to come down to make room for the tower: http://farm4.static.flickr.com/3238/...592e70.jpg?v=0 |
Thanks for the pics! Can't believe the CITY Club would move to the burbs!
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The Troppos (upscale restaurant) expansion has begun according to the State Journal:
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Before: http://www.onemichiganavenue.com/ima...an-Avenue2.jpg After: http://farm4.static.flickr.com/3231/...829f77.jpg?v=0 Construction: http://cmsimg.lansingstatejournal.co...xH=650&title=0 Matthew Dae Smith/For the Lansing State Journal |
August 2nd
http://farm3.static.flickr.com/2472/...c91453fac3.jpg BTW, it seems that the mayor already has a tenant lined up for their current 10-story headquarters on the other side of downtown, though, he's only saying that it'll be 400 employees. That was quick, and it's good that we're not playing a game of 'musical office space'. One of the weekly alternative papers in the city have labeled the current headquarters the "RoboCop" building: http://farm1.static.flickr.com/42/88...fb67fafdbc.jpg It's actually an historic building that was both vertically expanded and totally reconstructed. |
This development, below, is one of two brew pups, downtown, scheduled to reopen, this year:
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They are taking out the windows on the Accident Fund, and yesterday I saw them tearing down parking structure over Grand Ave. I'll try to get some pictures this afternoon.
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Here's two from yesterday
http://farm3.static.flickr.com/2437/...80196ef6_b.jpg http://farm3.static.flickr.com/2474/...212304c9_b.jpg |
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