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City council discusses 7-bedroom apartments

August 11, 2013

The East Lansing City Council approved a moratorium at last Tuesday’s meeting to further discuss whether seven-bedroom apartments are a viable option for downtown development.

In the past year, the city has received two applications for seven-bedroom, multiple-family-dwelling units. One is a set of townhouses, owned by Hagan Realty, Inc., 927 E. Grand River Ave., adjacent to Lot 11. The other is the space above the former Wanderer’s Teahouse, 547 E. Grand River Ave., owned by Perry Investment Group.

“We want to make sure that the apartments that we’re building in East Lansing can endure changes in the market,” East Lansing City Manager George Lahanas said. “And we’re questioning if this seven-unit model … is a good thing for East Lansing to have.”

Lahanas said the concern is that larger models, such as five-, six- or seven-bedroom apartments, lack flexibility.

The moratorium, he said, is an opportunity for the city to do comprehensive planning and listen to community input.

“If there’s a significant decline in the market, those five-, six-, seven-bedroom apartments will never be rented by anyone but students,” Lahanas said. “But the one-, two-, three-bedroom (apartments) might very well be rented by young professionals or a couple.”

Lahanas added if students really do want to live with a large group of friends, there are other options, such as renting a house.

Perry Investment Group co-owner Loren Perry said he disagrees with the council’s decision.

“Do they like vacant buildings? Because (547 E. Grand River Ave. has) been vacant for about 20 years,” Perry said. “It doesn’t make sense to me. They built three seven-unit apartments right behind us on Albert Street, and they’re all occupied”

Perry said he has spoken to several students who are interested in his seven-bedroom unit shadowing Grand River Avenue.

He also said a similar moratorium was placed in a town outside of Augusta, Ga., his current residence. The city eventually backed off of its moratorium because it was in conflict with the highest and best use of the parcels.

“The best use of (547 E. Grand River Ave.) is for students,” Perry said. “There’s a long history of students living in that spot. I don’t see any conflicts in history, in demographics or in usage by using it for students.”

Perry said he plans to attend the East Lansing City Council meeting on Sept. 3 to plead his case.

After two years in the dorms, kinesiology junior Andrew Cusmano said he is ready to move into a house with four of his friends.

Cusmano said he is looking forward to having more space and his own privacy; however, he isn’t quite ecstatic about parking accommodations, and he says that’s the biggest downfall of living with a large group.

“The parking pass is pretty expensive,” Cusmano said. “But living with five people brings down the house cost a lot.”

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