EAST LANSING, Mich. – The closing on $25,265,000 in Brownfield Redevelopment Authority (BRA) revenue bonds for the Center City District’s public infrastructure improvements and parking garage took place on Wednesday, Dec. 13.
The debt related to the BRA bonds is payable only through the Tax Increment Financing (TIF) created by the project. They are non-recourse bonds, meaning no securities other than the TIF have been pledged. If the TIF is insufficient, the City’s assets are protected.
“The funds are now in a trust at Huntington Bank and they are dedicated for the purpose of building the 620-space parking structure and public infrastructure,” said East Lansing Mayor Mark Meadows. “We are conscious of the fact that we need to protect the taxpayers at every step in the process when it comes to these types of redevelopment projects and we have certainly done that with this project. We look forward to continuing to watch the progress of this exciting project in downtown East Lansing.”
The Center City District project will bring an urban density and vibrancy to downtown East Lansing. The $135 million project will include a 12-story, mixed-use building on Grand River Avenue with a Target flexible-format store and mixed-market rental housing and a 10-story, mixed-use building on Albert Avenue with street-level retail, senior housing and a City-owned parking structure.
Demolition is wrapping up at the Center City District site and foundation permits have been issued for both the Grand River Avenue and Albert Avenue portions of the project. Construction is expected to begin immediately. While the initial construction will mostly involve foundation work, community members can expect to see the project begin to go vertical around March of next year.