The Avondale Square project is a 30-home development located on the 600 block of Virginia Avenue. The development is intended to have single-family homes starting at about $150,000.

“The bonds have been used for the project costs, infrastructure, property acquisition and demolition,” Haskell said. “There are still some project costs that are yet to be determined.”

The interest on the bonds will not be known until they go to market which changes frequently, but Haskell said right now the market is about 6.5 percent. The 25-year bonds will be paid back without burdening the citizens of East Lansing, Haskell said.

“If all goes accordingly, (the repayment) will all be on the tax increment financing and property sales,” she said.

The tax increment financing, or TIF, from the use of Brownfield developments, will repay $1.5 million of the bonds, and the remaining balance of $800,000 would be paid with revenue from future property sales. If the TIF estimates are low, there is an alternate plan to help pay the bonds back, said Tim Dempsey, East Lansing planning and community development director.

“If TIF capture is shorter in the early years, hopefully the lot revenue will cover us,” he said. “Long-term if the project doesn’t sell out it would become a little more problematic.”

Dempsey said the city also will continue to seek federal appropriations, which previously have fallen through, to help curb the use of the bond funds.

The proceeds of the funds will mostly go toward the acquisition of more land and the finishing of a park within the development, Dempsey said.

City Manager Ted Staton said the biggest unknown factor is when the lots will sell and the extra cash flow will be used to maintain those lots.

East Lansing Mayor Vic Loomis said he foresees the council acting favorably to the process.

“We’re getting down to the final stages of the project,” he said. “From my standpoint this is a very normal process.”