Lansing-East Lansing, MI Development

[LMich]

This is really just Lansing Township releasing the full details of this grossly speculative plan to try and wrangle the majority of Stimulus bonds to be doled out by Ingham County from an existing downtown project also wrangling for these bonds, but it's still newsworthy, regardless.

Courtesy photo

Big plans: Lansing Township Downtown Development Authority is planning an $85 million development next to Eastwood Towne Center at U.S. 127 and Lake Lansing Road. New buildings, built along U.S. 127 north of Champps Americana restaurant, would include two towers for a hotel, residential and office space, a public parking ramp, and additional restaurants.

$85 million plan puts shops, hotel near Eastwood

Melissa Domsic • mdomsic@lsj.com • October 21, 2009 • From Lansing State Journal

LANSING TWP. - An $85 million development plan adjacent to Eastwood Town Center is poised to bring more diners and shoppers to the area near Lake Lansing Road and U.S. 127.

Plans are in the works for a 15-acre mixed-use development on vacant land along Preyde Boulevard east of NCG Eastwood Cinemas and north of the Champps Americana restaurant. Those plans call for a collection of restaurants, shops, condos, a boutique hotel and a parking ramp.

The Lansing Township Downtown Development Authority hopes to receive $29 million in Recovery Zone Bonds - federal stimulus package money - and start construction in spring 2010.

The DDA would build the parking structure and some commercial space at a cost of roughly $21 million to $25 million, but it's seeking a private developer for the rest of the project.

The DDA's portion would be funded partly through a special assessment levied on the existing and future commercial properties that would use the parking structure.

"The DDA's role is to encourage economic development at a level above what the private market would support," Executive Director Steve Hayward said.

New jobs

Altogether, the development should create 200 to 300 jobs, Hayward said. But at least one retail expert questioned the wisdom of embarking on such an ambitious plan now.

Pat Huddleston, retailing professor at Michigan State University, said she's surprised the DDA is planning an expansion in the midst of a recession.

On the other hand, she said, this could be a good opportunity to lock in lower construction costs.

"I'm not sure that it's needed, but it's possible that it could be viable if they bring in retailing and dining options that aren't already present in the Lansing area," Huddleston said.

Eastwood Towne Center opened in September 2002 at Lake Lansing Road just west of U.S. 127. It's 95 percent occupied and is made up of about 40 stores, several restaurants and a movie theater. Wal-Mart Stores Inc. and its Sam's Club subsidiary opened stores west of the center in August 2004.

The planned expansion is not affiliated with Eastwood, which is owned by Inland US Management LLC.

Multi-use space

The DDA's plans call for more than 100,000 square feet of mixed-use commercial space and a 926- to 1,285-space parking structure that would span both sides of Preyde Boulevard. Two 12- to 15-story towers would be constructed on top of the parking deck.

One tower would house a boutique hotel, residential rental units, owner-occupied condominiums and penthouses. The other would hold 140,000 to 200,000 square feet of office space.

Hayward said sewage from the development would be handled by the city of East Lansing.

The DDA also is requesting federal recovery zone bonds through Ingham County. It wants $17 million in tax-exempt facility bonds and $12 million in development bonds, which are taxable but include a 45 percent credit on the interest. The county can allocate a total of $13.9 million in development bonds and $20.8 million for facility bonds.

Competing for funds

But the DDA isn't the only one after the bonds. Accident Fund Insurance Co. of America is seeking $16.2 million in facility bonds to construct a $31 million, 1,000-space parking ramp for its new downtown Lansing headquarters.

"I'm saddened by the fact that there might not be enough bond money to go around," said Lansing Township Supervisor John Daher.

"I'm hoping the county can find money to satisfy the needs of the city and the township."

The project will need site approval from the township. The DDA expects to award a design and construction bid early next month to either Clark Construction Co. or Wieland-Davco Corp., both based in Lansing.

Site preparation work could start in January, with full construction to begin next spring, Hayward said.

The expansion would include about five restaurants and a host of other retailers. Hayward said he's received oral commitments for about 25 percent to 30 percent of the retail space but would not name the businesses.

New retailers

"We're trying to pursue retail users that don't compete with other areas in the region," Hayward said. "We're not just out there to put another business out of business."

Eastwood Towne Center general manager Emily Desrochers said she's excited about the parking structure and attached developments.

"We definitely do not have sufficient parking during certain times of the day, specifically evenings, weekends and holidays," Desrochers said.

But Mindy Biladeau, executive director of the Principal Shopping District in Lansing, said further sprawl and expansion of Eastwood would add to rising vacancies in established commercial areas hurt by the recession.

"We should be reinvesting in our established, traditional urban centers and not farther out," she said.

To be clear, the only piece of this anywhere close to being a go is the initial first floor of a parking garage with ground-floor retail, which will be the base/podium of the new project. The only reason they released the plan was to make a case for the stimulus bonds.