The West Village development project is a two-phase redevelopment initiative along West Grand River Avenue near its intersection with Michigan Avenue.

The first phase began in 2006 with the construction of a series of town house condominiums. The second phase, originally planned to be a mixed-use building and now a hotel, is set to begin in the fall.

“The developer is hopeful that he can secure the financing by the end of summer, and, if all goes well, start construction in the fall,” Dempsey said.

At the June 22 City Council meeting, councilmembers discussed an amended plan for the project that will be up for a vote July 20.

The amended plan would provide the project with tax increment revenue from the state to offset the cost of extensive infrastructure, including major water and sewer relocations, reconstruction of Valley Court Drive and underground parking, Dempsey said.

Tax increment financing is the use of future money gains generated by the improved property area, and would be used to pay back the money used by developers in the project.

The total investment of the hotel project is projected at nearly $18 million, and the nearby townhouses are likely to exceed $5 million, generating about $1 million more in tax increment financing than was projected.

Community Development Analyst Tim Schmitt said the 1.51-acre site for the West Village project will be used to move downtown East Lansing away from a renter mentality.

“The goals for the development were to bring new, owner-occupied housing to the downtown, along with a non-residential component (with the hotel),” Schmitt said.

Although the construction began in 2006, plans to redevelop the area have been in the works since 2000, said Jim van Ravensway, former East Lansing planning and community development director.

“We were redoing the Valley Court Park, and we came in the broader thinking that at some point in time, buildings along Grand River Avenue became obsolete,” he said.

“So as part of the Valley Court master plan, we looked at changing it in the future.”

Shortly after looking at the area, van Ravensway said the city was approached by Abood Properties, Inc. to redevelop the area.

“We didn’t want rentals,” he said.

“We asked (Abood) to not think about student rentals, and he came up with town houses and the hotel.”

Ultimately, the West Village project has a three-pronged approach, van Ravensway said.

“To the north of the park, we have the historic district, enhancing the historic perspective of the city,” he said.

“To the southeast, we have the City Center II area, hopefully a cultural corridor focusing around the park. And then to the southwest we have a unique spot to take advantage of the park with an owner-occupied residential area.”