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Park Place loses bid for East Lansing approval

October 10, 2019
<p>East Lansing City Council meets on Sept. 17, 2019 at the 54B District Court.</p>

East Lansing City Council meets on Sept. 17, 2019 at the 54B District Court.

Photo by Matt Schmucker | The State News

The East Lansing City Council formally denied the Park Place project in its Oct. 8 meeting, opening up the vacant space on the corner of Evergreen Avenue and Albert Avenue to other potential buyers.

First proposed in August 2018, Vlahakis Developments and Royal Properties signed an exclusive contract to purchase the land from the city's Downtown Development Authority, or DDA, in December. 

As Park Place was making its way through the city process, it was criticized for proposing buildings beyond the city's height limit. In July, the DDA voted to end the contract, but that hasn't stopped the developers from taking a shot at approval from city council.

“We’ve spent a lot of energy and a lot of money on this project up to this point and I’m guessing that we will answer that (request for proposal) when it does come out,” said Paul Vlahakis, president of Vlahakis Developments.

Vlahakis seeks approval for a nine story building with underground parking, a food hall, apartments for low income residents and market rate apartments.

The food hall would take up the first floor and is different than food courts, which bring in chain restaurants. 

Michigan State Associate Professor in the School of Hospitality Business, Jeffery Elsworth, spoke in favor of the food hall at the meeting.

Elsworth said that food halls are a relatively new concept that provide market spaces for local chefs or people looking to get into the food business a space to sell their food. 

“If you’ve been in Chicago or you’ve been in New York or you’ve been in Detroit or even in Grand Rapids, you’ve seen examples of very successful food halls,” Elsworth said.

Council member Shanna Draheim had concerns about the food hall due to the failure of a similar project in Lansing.

“I have very serious concerns about whether, in practice, that will work here,” Draheim said. “We saw one fail two miles from here.”

Draheim went on to say she worried the project would require public funding to operate. The proposed plan was for it to be privately funded. 

The second and third floors of the proposed building were to be designated for low-income housing, with the remaining six floors designated to the market rate apartments. 

One of the issues the council had with the proposal was the changes it has endured. 

“It’s been 10 months since we’ve been talking about this project and there have been some really terrific concepts floated along the way,” Mayor Pro Tem Erik Altmann said. “Owner occupied condominiums, a movie theater, office space, automated parking. These are all great concepts, they never made it to the planning stage … This track record concerns me.”

While the council’s decision was a unanimous 5-0 vote, there is hope for a future deal if the developers can clarify their vision. Multiple council members praised the concepts and improved infrastructure that would come with Park Place.

Mayor Mark Meadows and Council member Aaron Stephens suggested they should test the market for the space and see how recent developments nearby perform. Meadows said the city may come back to Park Place.

“It may circle back to this project,” Meadows said. “There’s nothing that prevents this group from participating in that project.”


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