With Strong Feelings Running Pro and Con, Center City Proposal Goes to Public Hearings

Above: The Center City District developer's rendering of a Target store along Grand River Avenue.

The Center City District proposal heads to public hearings at City Council tomorrow night, with strong feelings for and against the project being expressed in the community. A short article on the project published today in the Lansing State Journal quotes Mayor Pro Tem Ruth Beier saying she supports the project—suggesting Council’s approval of the plan is within sight. But, reached this afternoon, Beier and Mayor Mark Meadows tell ELi their minds are not yet made up.

Asked to confirm the LSJ report, Beier told ELi, “The quote [in the LSJ] was not entirely accurate. I said, or I was trying to say, given all of the information I had on Friday and assuming the developer agrees to all of my proposed changes to the development agreement, I will be supporting the project unless I get more information that makes me change my mind.”

Beier continued, “One of the changes to the development agreement that I insisted on is that we get the results of the due diligence [review] before the agreement goes into effect.” As we previously explained, the due diligence review is designed to get at the question of whether the developer has the experience, financial wherewithal, and general trustworthiness needed to see the project through.

We reported on Friday that the draft development agreement does not make the deal contingent on the City’s obtaining satisfactory findings in the due diligence review of the developer. The draft development agreement also does not contain the kinds of specific deadlines or the same level of financial safeguards Councilmembers had put in place for the Park District development agreement before voting for it.

Council and the East Lansing Downtown Development Authority (DDA) may yet question and amend the terms of the Center City District deal before approval as they did with the Park District.

Asked whether her remarks to the LSJ meant critics of the project should not bother to attend the public hearings, Beier said, “I am just one Council person, and I have changed my mind at a council meeting in the past because of the questions raised at the meeting. I always think it makes sense for people to speak.”

Asked where he stands at present on the project, Mayor Mark Meadows told ELi today, “I won’t be making a final decision until I hear what everyone has to say.”

Meadows confirmed he will be making a campaign donation disclosure before votes on the project because he received a $100 donation from Howard and Viv Ballein. The Ballein family business is co-developing this project, and this Council passed an ethics ordinance requiring disclosure in cases like this. (We previously reported that some members of this Council have not been following its ethics ordinance on campaign finance disclosure.)

Councilmember Erik Altmann has not responded to an email today asking him where he stands on the project. Councilmember Susan Woods has indicated full support, last week offering ELi an op-ed by her in support of the project. (We explained that ELi does not publish op-eds.)

Councilmember Shanna Draheim told ELi today, “My mind is made up now….I am comfortable with where we are and what we are going to get out of the due diligence process.” Draheim has named the density of the project as a major reason she is for it.

Draheim wrote to forward a message from Center City District developer Harbor Bay’s Mark Bell indicating endorsements from several construction unions and businesses. These include Charlie Kang’s restaurant, Pasta Per Trio/Noodles, and Cellular & More, three businesses which are tenants of the Balleins and which are being moved by the Balleins to make way for the project. Endorsements also came from Lotsa Pizza and Ralley House, Dublin Square, El Azteco, the Aveda Institute/Douglas J, and Tin Can Bar. (Draheim referred in her cover email our reporting on Bell’s misrepresentation of business endorsements to Planning Commission.)

Draheim also forwarded a previously-unavailable letter from Target, dated June 9, which says that “Target is excited to be a part of the Center City District that Harbor Bay is seeking approval for.” Target says it expects to provide, at this location, “fresh produce and meats that will include grab and go food options, home products and décor, and beauty and personal health products.” In her message to ELi, Draheim also noted Target’s “give-back” program which supports local community public service projects.

In these smaller-store formats, Target sometimes includes Starbucks or CVS within the store, but Target says that in this case, given that there is a Starbucks and a CVS nearby, that won’t happen at this location. “However, we do hope to sell beer, wine and spirits.”

The East Lansing Brownfield Redevelopment Authority unanimously approved a $56 million revised tax increment financing (TIF) project in support of the project. That TIF plan will be revisited by Council tomorrow.

In late April, the Planning Commission formally voted against recommending this project to Council in a split 4-4 vote. And, while some businesses have been supporting the proposal, as noted above, others have been against it. Mail to Council on the project has also been split.

Council is set to begin public hearings on this project tomorrow, June 20, starting at 6 p.m. at City Hall. You can learn more about the project by going to our dedicated reporting page on the proposal.