Daily News Story for March 3

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Written by: Melissa Domsic

$97M City Center II project may break ground this year

  

EAST LANSING - Developers and city officials have not given up hope on the prolonged City Center II project.

Scott Chappelle, president of Strathmore Development Co., said he expects to close on construction financing in the next 60 days. He would not provide further details.
City Center II would span about 5.5 acres from Grand River Avenue and Abbot Road to Valley Court Park. Plans include a hotel, residential units, office space, retail space and a performing arts theater.
The mixed-use complex has been in the works for several years as developers have struggled to secure financing in the tight credit market.
The latest estimates peg the project cost at $97 million, Chappelle said.
"We do feel that we have the means to move the project forward," Chappelle said. "We're currently in the process of finalizing architectural and engineering issues."
Chappelle said he hopes to break ground sometime this year.
But there are still issues that need to be worked out.
Owners of the seven properties on the City Center II site owe about $128,084 in delinquent 2010 property taxes.
Chappelle said the taxes would be paid off when he finalizes the construction financing in the next 60 days.
The site plan and special use permit expire in April.
The East Lansing planning commission on March 9 will consider a one-year extension of the site plan and special use permit, said City Manager Ted Staton.
"After many years in the planning process and a couple years in the financing process because of the collapse of the commercial credit markets, we're excited that it looks like the project has a fighting chance to be financed here over the next few months," Staton said.
Read Thursday's Lansing State Journal for more on this report.