“It will be in the financial interest of every property owner to participate,” he said.

While no property owners have signed on to the project, Pierce said the multiple options he is offering property owners — tax breaks and investment opportunities — will persuade them to sign on.

The East Village is a 35-acre area bounded by Grand River Avenue, Bogue Street, Hagadorn Road and the Red Cedar River. The first phase of the development, which is planned to include a mix of residential, retail, entertainment and office space, could be built on 25 acres of that land.

Although the city doesn’t track rental housing vacancy rates, it is confident the rental housing market would be able absorb the students displaced by the project’s construction, said Tim Dempsey, East Lansing’s community and economic development administrator.

People can relocate to rental housing along the 500 and 600 blocks of streets on the city’s east side, Chandler Crossings, Lansing and Okemos, Dempsey said.

While it could be a burden for some, Dempsey said students can cope with the change.

“Because students are much more mobile nowadays, many have cars, there’s much more capacity in the market,” he said.

Astrophysics senior Katie Rabidoux said the ability to walk to class and not worry about parking attracted her to Cedar Village. If the development follows through, Rabidoux said she fears some low-income students could be forced to find housing farther from campus.

“I personally couldn’t afford to pay more than I do now,” Rabidoux said.

A two-bedroom apartment at Riverside East & West apartments costs $435 per student per month with a 12-month lease. A two-bedroom rental at Cedarbrook Apartments costs between $490 and $525 per month with a 12-month lease.

Pierce officials said they expect the development’s apartments to be priced similarly to Campus Village, which costs $700 per student per month for a two-bedroom apartment. A four-bedroom standard unit runs about $575 per student per month.