DTN Management Co. was awarded the project after a committee appointed by the Downtown Development Authority and East Lansing City Council determined the company’s proposal was the best choice for the community, in part because of its strong financial standing and community presence.

ELBB LLC, a holding company affiliated with DTN Management Co., filed a series of documents transferring ownership interest of the former Citizens Bank building at 100 W. Grand River Ave. to City Center Two Project LLC on Nov. 8. ELBB LLC first acquired rights to the property from ROB LLC in March.

The property initially went into foreclosure in October 2012 under the ownership of CADA Investment Group LLC.

Both CADA Investment Group LLC and City Center Two Project LLC are affiliated with Strathmore Development Co., the primary developer of the failed City Center II project deemed financially infeasible in June 2012. Scott Chappelle, the president of Strathmore Development Co., did not respond to requests for comment from The State News.

DTN Management Co. President Colin Cronin said part of the foreclosure agreement with the companies allowed them the opportunity to redeem the property if they came up with the outstanding mortgage valued at $533,371.63 plus an annual interest rate of 24 percent in a certain amount of time.

He said the recent move on the part of City Center Two Project LLC is something they expected to happen eventually, and said he is in negotiations with Chappelle and others affiliated with the City Center II project on purchasing back the property.

“The overall structure (of the project) hasn’t changed,” he said. “We have a very good relationship with him (Chappelle) and the other three people we’re talking to.”

Cronin said he expects DTN still will be able to acquire the land and is confident the property will be a part of the Park District project .

Curtis Hertel Jr., the Ingham County Register of Deeds,, said the option to redeem the property from foreclosure was extended four times since the original foreclosure.

Hertel Jr. said the number of times the option to redeem has been extended is unusual.

“The normal procedure is to have six months (to pay the money owed) — that particular one has been extended a ton of times,” he said.

Throughout the process, Cronin told city officials the company had options to acquire private properties associated with the former City Center II project.

DTN has exclusive rights to negotiate a purchase of the land until Dec. 11, a deadline that potentially could be extended.

Even if the final design does not include the former bank building, East Lansing City Manager George Lahanas, said the Park District project will move forward regardless.

“What (the transfer of property) means is one of two things, (DTN) will attempt to assemble the larger portion of land, but when we put out original RFP out, it did not include that land,” Lahanas said. “We’re perfectly accepting to move forward with a project that is on a smaller scale on land that we publicly own. … The Park District is certainly going forward.”