A redevelopment project slated to begin in late spring or early summer could eliminate a significant portion of rental housing along the 300 and 400 blocks of Evergreen Avenue.
The $117 million project calls for the creation of townhomes and apartments between Grand River Avenue and Abbot Road. The site is home to apartments and several rental homes, among other things.
Called City Center II, the development also could be home to the MSU Museum, office, retail and parking space. It also would expand into areas occupied by the former Citizens Bank on the corner of Abbot Road and Grand River Avenue.
Although 80 percent of the project’s properties have been purchased, the city still is working to acquire the remaining 20 percent.
Matt Hagan, an agent of Hagan Realty, hasn’t been able to strike a deal with the city for his apartment building at 404 Evergreen Ave. Hagan said he is skeptical a deal will be made anytime soon.
“We’re miles apart, and I don’t see that happening,” he said. “They’re pretty much left with this certain chunk of property they can’t acquire on their own.”
With negotiations stalled, Hagan is convinced the city will attempt to use eminent domain.
Because the city needs his property to build a parking ramp, the city could claim his property for public use, Hagan said.
Tim Dempsey, East Lansing’s community and economic development administrator, said the city is negotiating with Hagan.
“We’ve had multiple meetings with Matt on this topic, and we’re still trying to work something out with him,” Dempsey said.
The city could use eminent domain in the future but isn’t considering it at this time, Dempsey said.
“That option has always been there for communities,” he said. “Parking has been defined by the courts as a public use.”
During Tuesday’s East Lansing City Council meeting, City Manager Ted Staton said strict guidelines would have to be established if eminent domain is used in the project.
“We intended to negotiate the acquisition necessary for the parking ramp,” he said after the meeting. “No eminent domain threats have been made.”
Staton said he is confident a deal can be struck between the city and Hagan.
“We expect reasonable minds will eventually come together on this,” Staton said.
If the two sides can’t come to terms, the city would have to examine other options, East Lansing Mayor Vic Loomis said.
“If someone is being totally unreasonable, then that poses a different question,” he said.
Staff writer Marilyn King contributed to this report.
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