Chappelle
The City Center II project is free to make progress with the East Lansing City Council as Strathmore Development Co., the project’s developer, paid more than $100,000 in back taxes owed to Ingham County and East Lansing.
On May 9, Strathmore Development Co. paid all its taxes on the site, East Lansing Treasurer Jill Feldpausch said. The base taxes for the site totaled $127,790.55, not including late penalties.
City Center II is a mixed-use development project located on the corner of Abbot Road and Grand River and Evergreen avenues.
Feldpausch said 2010 taxes were payable without penalty through Feb. 14, and on March 1 collection duties were transferred to Ingham County.
Strathmore President Scott Chappelle was not available immediately for comment Monday.
The paid taxes allow the city council to begin working with Strathmore to develop the site, but there will be no forward movement on the project until Chappelle presents a detailed financing plan to the council, Mayor Vic Loomis said.
“Anytime anybody pays a delinquent property tax, that’s a positive event,” Loomis said. “But it really means nothing in the scope of negotiation because we have nothing to negotiate.”
According to the East Lansing City Charter, “The (city) council shall not have the power to contract with or give any official position to any person who is in default to the city, except any contract to cure the default.”
Ingham County Treasurer Eric Schertzing, whose office dealt with Strathmore’s back payment, said it is disconcerting anytime a property owner cannot keep up with taxes.
“It always raises concern with me when someone who is proposing development is struggling to pay their taxes,” Schertzing said. “That’s kind of a minimum of someone who is a responsible property owner.”
East Lansing Planning & Community Development Director Tim Dempsey said he expected the payment as Chappelle previously had contacted the city to let them know he was sending the payment.
Dempsey said the city will begin working with Strathmore as they put together a plan to finance the construction. Dempsey said the project could be in its first stages by the end of 2011 in having the site cleared of its existing buildings.
“It’s understandable why people might doubt the project ever happening,” Dempsey said. “I think people have been very patient considering the broader (economic) circumstances.”
City Manager Ted Staton said the payment is cause for optimism, but not an immense stride in terms of the entire scope of the project.
“There is no reason to celebrate yet until we see an approved plan,” he said.
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