The State News notes this morning that City Center II has been approved for inclusion of office space rather than simply retail/residential. What's more interesting to me in the article, however, is the point made by Scott Chappelle. He claims that "[t]he demand for space in the City Center project has surpassed our most optimistic projections."
If that were the case, wouldn't they be all over getting this thing done ASAP so they can make some money? I'm guessing they're struggling to acquire the requisite amount of capital, because, based on Chappelle's statements at least, it's not a lack of potential tenants that's keeping this baby from moving forward.
Didn't read the entire article, but the State News reports that a few EL residents, including an MSU professor, aren't thrilled with the way City Center II is progressing so far. The main issues are the acquisition of property, as well as the financing of the project.
Phil Bellfy, an associate writing professor at MSU, appears to believe $5.5 million in taxpayer money is going to the project inappropriately in the form of parking garage funding. Vic Loomis disputes this, and other claims, defending the integrity of the development.
If the city is going to own and operate the parking garage, I see no issue with this. The city should profit from it, I know Lansing does quite well on its parking lots and garages.
Forgot about this shot I took yesterday. The banner is located on the facade of the old Thai Hut. But hey, they're gonna get started soon! *nudge nudge, wink wink*:
I noticed in the East Lansing DDA minutes that Riverfront Bicycles will be extending their lease through October, 2011. They are located in one of the buildings where the parking structure will be built. The city did not have a problem with the lease extension.
Pope said Doug Cron advised her that Evergreen Cycles and Repair’s lease at 341 Evergreen ends on August 31, 2010, and they would like to renew their lease through October 31, 2011 because they don’t want to move in the summer, their busiest time.. Mullins said this would not conflict with the structure of the parking structure. The Board concurred.
Obviously this means that the city does not plan to get shovels in to the ground until at least November, 2011 for their part of City Center 2.
Stalled again. The State News is reporting that the August finance meeting between Chappelle and city officials has resulted in a date for demolition still not being set in stone for this project. Chappelle is claiming that acquiring HUD funding is the main hangup, and a strong demand for HUD, considering the economy, is the reason for the delay. I just hate to see prime downtown property continue to sit there with silly "Future Redevelopment Site" banners hanging from buildings that have been empty forever.
The article also mentions that the DDA has purchased land on Evergreen Avenue where the "ramps are located." I'm assuming that means where the ramps built as a portion of the project will be located?
Demolition of an existing building also could be held up by any mortgage holders on the property. If there is any value in the building being torn down, the bank may not want it demolished until financing can be lined up for the new project - that way they don't end up with less valuable property as collateral. That said, given that these buildings have been vacant for awhile, who knows how much value is left to them.
Comments
This is just a follow up of yesterday's story.
That last sentence right there says so much about this change in plans...
If that were the case, wouldn't they be all over getting this thing done ASAP so they can make some money? I'm guessing they're struggling to acquire the requisite amount of capital, because, based on Chappelle's statements at least, it's not a lack of potential tenants that's keeping this baby from moving forward.
Phil Bellfy, an associate writing professor at MSU, appears to believe $5.5 million in taxpayer money is going to the project inappropriately in the form of parking garage funding. Vic Loomis disputes this, and other claims, defending the integrity of the development.
The article also mentions that the DDA has purchased land on Evergreen Avenue where the "ramps are located." I'm assuming that means where the ramps built as a portion of the project will be located?