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Development plans await public hearing

September 15, 2010

Plans to build a proposed eight-story, mixed-use development on the corner of Albert Avenue and Grove Street are moving forward.

The Brownfield Redevelopment Authority, which assists development projects facing economic challenges because of environmental conditions, has approved the plan. The East Lansing City Council discussed the proposal at its work session Tuesday.

In a next step, the Brownfield plan will be presented at a public hearing during the East Lansing City Council’s meeting next Tuesday at East Lansing’s 54-B District Court.

The proposed development at 211 Albert Ave. would include retail on the first floor and seven stories of one-, two- and three-bedroom apartments, said Tim Dempsey, East Lansing’s planning and community development director. The Brownfield plan includes water and sewer improvements and other public infrastructure work.

Sites can qualify as a Brownfield site for three reasons: Functionally obsolete status, contamination by hazardous or toxic substances or blighted property, Dempsey said.

This property mainly qualifies under the contamination category because of chemicals left behind by a former dry cleaners adjacent to the site, Dempsey said. The project would address a need for improvements in downtown East Lansing’s infrastructure, East Lansing Mayor Vic Loomis said.

“We’re dealing with some very antiquated infrastructure, particularly with our water and sewers, and how we address that is really the question that is being looked at,” he said.

The current estimated direct cost for significant clean-up and site preparation is $2.3 million to be funded by the developer, Cron Management, and the city, Dempsey said. Increased tax revenue from the new development would be used to pay back the funds over time, he said.

The council can vote to approve the Brownfield plan at Tuesday’s meeting or defer action to a later date.

Progress made so far on this development is satisfactory, Loomis said. Complex financing creates the need for careful consideration of the plan, he said.

“Now, as with a lot of projects, you get into the financial component, and that’s what is being looked at,” Loomis said.

Two housing units on the proposed development site, 312 Grove St. and 201/205 Ann St., currently are licensed for a combined occupancy of 13 residents, Dempsey said. The proposed property would contain 42 apartments licensed for 84 residents, he said.

Many types of people, in addition to MSU students, may be attracted to live at this location, Dempsey said.

“It’s geared more to a wider audience,” he said. “For example, a single, young professional or a young couple looking for a downtown environment.”

The location is very convenient for MSU students, said Kim Drochak, current 312 Grove St. resident and dietetics senior.

“It’s central to campus, and it’s great to be right downtown,” she said.

Although the location is appealing, price matters significantly when choosing where to live, Drochak said. Current residents of the Grove Street property have been approached regarding the house’s future availability, she said.

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