“We’ve been thinking about this for a long, long time now,” said Krause, who — along with partner Douglas Cron — developed Albert Place Condominiums and Stonehouse Village in downtown East Lansing. “(East Lansing city officials) asked us to redevelop the corner, and we thought, ‘Well, we’ll get a plan going.’”

A submitted site plan will go before the East Lansing Planning Commission at its March 10 meeting.

Krause said the earliest the project would start is May 2011, when the leases for the tenants occupying the two properties he owns at the location expire. Since Krause owns the two properties, the city would not have to go through the hurdles of property acquisition it encountered with the City Center II and East Village projects.

East Lansing City Manager Ted Staton said the city has little land for development without resorting to property acquisition. But considering the hits and hardships the city has taken from City Center II and East Village, Staton said the city has revised its approach.

“The acquisition of the 5.5 acres of land for City Center II was not just time consuming, (but) it was very expensive because you’ve got no leverage,” Staton said. “The private property owners hold out for a king’s ransom.”

It’s still uncertain how much the city’s bill will be for the project, as there currently is no price tag — whatever funding does amount will come from tax increment financing.

Staton said the deal would be mutually beneficial for the developer and city, as one of the city’s main goals is to increase population density downtown to help support business. It also would help the city achieve its restaurant incubator goal, which would build on the success of the Technology Innovation Center, or TIC, 325 E. Grand River Ave. Krause said he would consider the restaurant incubator if the Downtown Development Authority backs it, as it did with TIC.

If the complex is constructed, it will extend the face-lift the west portion of downtown East Lansing would receive, should City Center II materialize.

Students, however, had mixed reactions about whether the accommodations would be necessary.

Although many residents have objected to the size of City Center II, relative to its surroundings, economics senior Ashley Gillespe said she wouldn’t have a problem with the aesthetic implications of an eight-story structure.

“Why not? I think it would be convenient for people to live on this street,” the Grove Street resident said. “I love living on this street, and I don’t think it would affect anyone’s view or be that big of a deal. I think it’s a good thing.”

Kaye Sutherland, a hospitality business senior, said there already is a housing glut in the area with many units unoccupied.

“I do not think it’s a good investment because the money could go elsewhere, and the apartment market is already saturated in the area,” she said.

But John Marcicky, a retailing senior who lives on Grove Street, said the apartments would be a beneficial addition.

“I think it would be pretty useful just because most of the houses are really out of date, and they need a lot of work,” he said. “So if there’s something new, it’d be really beneficial over here. There’s not many apartments here, so it’d be a plus.”

Staff writer Alanna Thiede contributed to this report.