An agreement between two investors will, at least for now, maintain ownership of the former site of City Center II, which previously was threatened by foreclosure and now is saddled with about $39,000 in back taxes.
Core Campus, LLC recently proposed to construct an eight-story building with 54 luxury housing units, a six-story building with 127 luxury units and a parking structure containing 382 spaces.
Plans for the site long have been delayed because of financial issues, and the agreement saves the site from additional uncertainties the deadline posed.
CADA Investment Group LLC, and ROB LLC, two of the principle subjects on the property, 100 W. Grand River Ave., have agreed on an extension for CADA to try to retain ownership of the property, according to county records.
The property was foreclosed in October 2012 and was sold at a sheriff’s sale to ROB for more than $533,000. Under a prior agreement, CADA had until yesterday to buy back the property by paying ROB back for the amount of the sale, along with daily fees and interest rates.
But according to county records, an amendment to the agreement signed Feb. 14 extends the redemption period to March 18.
City Attorney Tom Yeadon said with the new extension on the redemption period, CADA still is the official property owner of the former Citizens Bank building.
Although ROB received the deed last October, it will not take effect until the redemption period ends in March, Yeadon said.
“The only thing that doesn’t make ROB LLC the outright property owner is the redemption (agreement),” he said.
Scott Chappelle, president of Strathmore Development Company, signed the amendment on behalf of CADA. Chappelle’s Strathmore Development Company was the primary developer of the former City Center II project, which included the property at 100 W. Grand River Ave. It was rejected last June because the city deemed it financially infeasible.
Chappelle could not be reached by press time Monday.
CADA owes $36,132 in taxes from the 2012 summer season, and about $3,246 is owed from the winter season, totaling more than $39,000 back to the city, according to city records. The summer payment was due Aug. 31, 2012, and the winter payment was due Feb. 14.
If the $39,000 is not paid to the city by Thursday, the county will become responsible for collecting the money, East Lansing Assistant Treasurer Jamen Winters said.
That tax money will go to other parts of the city, such as the East Lansing Public Schools and Lansing Community College.
While the city wouldn’t necessarily be affected by the move, Winters said, “It does drain the county itself because they have to put more work in collecting that money from CADA.”
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