Before East Lansing's first island can be carved from the banks of the Red Cedar River, a San Diego-based developer must acquire the land necessary to begin the East Village project.
On Tuesday, Theresa Nakata, the company's vice president for marketing and communications, said The Pierce Company Inc. has had progressive negotiations with the region's property owners for several months.
The estimated $500 million East Village project involves redeveloping the land bounded by East Grand River Avenue, Hagadorn Road, Bogue Street and the Red Cedar River with a mix of residential, retail and entertainment properties by 2011.
The project's latest concept design by Hollywood-based 5+Design calls for a man-made canal and island next to an 11-acre riverfront park, showcasing the features of the Red Cedar River.
International relations freshman Kelly Steffen said she would return to the East Village if it's redeveloped, but for now, she is concerned about the student housing that could be affected by the project.
"Cedar Village is the only off-campus housing that's cheap," she said. "It is especially for students, and I wonder whether it's feasible for students."
The East Village is owned by several companies that provide housing for student renters.
The area is home to the Cedar Village apartments, among others, and has the capacity to house about 2,000 people.
The development plans call for mixed-use housing for up to 2,500 people.
In the event that some property owners don't agree to be a part of the project, officials proposed constructing the East Village in two phases.
The first phase would include the water features and all land west of Stoddard Avenue.
The land in the potential second phase includes six of the seven properties owned by Prime Housing Group.
The group's president, Nancy Kurdziel, has repeatedly said the group will not be relinquishing control of its properties.
"When the time is right, we are going to redevelop on our own," Kurdziel said in a statement. "We will continue to own and manage our properties."
"We have never been antidevelopment. However, we believe that we have the right to move forward on our own without being pressured into a project promoted by the city or another developer."
The choice of where to divide the development into the two phases has nothing to do with Kurdziel's refusal to sell, Nakata said.
"It's a natural split in the region," she said.
But the success of the project requires that all property owners "embrace" the redevelopment, said Fred Pierce, president and CEO of The Pierce Company.
"I respect the ownership rights of the property owners," he said. "I remain hopeful that through continued dialogue with all of the property owners and continued understanding of this vision that even those who aren't on board with us yet may realize that this is in their best interest."
The Pierce Company met with the village's property owners Wednesday to further discuss their involvement in the project, Nakata said.
Pierce said Thursday that he is talking with DTN Management Co., which owns the most rental properties in East Lansing, about possibly managing the new East Village's residential properties.
But for DTN to participate in the project, its officials would have to be shown a plan for the area that makes sense, said Colin Cronin, DTN's area director for student properties.
"If it doesn't make sense, we don't want to be a part of it, which I think has been echoed by a few other people," he said, adding that there is enough rental and family housing already on the market in East Lansing.
"It doesn't make any sense to build those condominiums and apartments. Even in terms of student housing, there is some that goes unrented every year. Why build more right now?"
Local & State editor Kris Turner contributed to this report.
