The East Lansing City Council's decision last month to designate the East Village area as blighted has caused a stir among property owners and residents.
Owners of roughly 40 percent of the properties involved have come forward with requests to pull out of the designated area, city officials said.
Council members maintain the move will help the city access funds to improve the area, by completely revamping the 35-acre spot into a business and residential district.
Property owners are concerned that a blighted status will hurt businesses and drive away potential renters. Some students worry that greek housing or other cooperative houses will eventually be pushed farther from campus.
"It is a bad fit, we don't qualify," said Nancy Kurdziel, owner of Prime Housing Group, which owns seven properties affected by the designation, including Riverside and Cedarview apartments.
The company has installed two new roofs and is continuing to make regular improvements, Kurdziel said.
"If they look at our buildings, they have to realize that the designation is not accurate," she said. "It is a black mark. Who wants to say they live in a designated blighted district?"
Some renters currently residing in Prime Housing Group units are baffled by the designation, Kurdziel said.
"They think the bulldozers are on their way," she said.
The council is not formally using the term "blighted" because city officials say it gives a false impression of the area.
"We are trying to take concrete actions to make the East Village into a more viable neighborhood," said Tim Dempsey, a community and economic development administrator for the city.
The designation gives the city access to unique tools to help revamp the area, Dempsey said. This access could include in tax breaks that could be used to improve street, sewer and water systems.
Other incentives include a freeze on property taxes for areas that are going to be rehabilitated and financial opportunities for businesses, Dempsey said.
With these tools on hand, the city plans to fix problems in the area, city officials said.
"It improves the water quality and the environment," Senior Project Manager Lori Mullins said. "Right now, there are a lot of parking lots that drain into the river. This plan alleviates that by having better storm water detention."
Plans also include making the land more accessible to the public, Mullins said.
"It will be a very pedestrian-friendly area that has a focus on the river and campus," she said. "It will appeal to a diverse group of people."
Although many improvements are planned, some students have reservations.
The four fraternities located in the designated area are opposed to being labeled "blighted."
"They have put a lot of money into the upkeep of their houses," said Mahfouz Ackall, president of the Interfraternity Council.
The Delta Sigma Phi house, 1218 E. Grand River, along with the other three fraternities, have spent more than $700,000 in the past three years updating their house. Renovations include new electrical systems, wireless Internet and fire code updates.
Despite their modifications, the fraternity, along with the others, was denied the right to remain outside of the blighted district.
Councilmember Bill Sharp was the only one to vote against the designation at the Dec. 21 meeting, citing property ownership rights.
"I just feel these people have the right to do what they want with their properties," he said. "They should be able to decide these things on their own."
The efforts of the fraternities and various apartment complexes were recognized by the council during the meeting.
"Both of these people that requested to be out have done a huge amount of renovating," Sharp said. "They have given a good reason for not being included."
Even with a blighted designation, the Interfraternity Council still intends to make its presence felt at future meetings.
"We are all for renovating," Ackall said. "We just want to be a part of it."
