East Lansing City Council to weigh 3 housing proposals for Coleman Road property
EAST LANSING — What was once envisioned as a development with an assisted living center, a four-story hotel, corporate offices, a fitness center and restaurant could become some much-needed housing in East Lansing.
At a special meeting at 7 p.m. Tuesday, East Lansing officials will discuss three housing proposals for the 26.8-acre city-owned property southwest of the intersection of Coleman and West roads and next steps.
The strongest proposal, according to city officials, could bring 34 buildings to the site as a mix of townhomes and apartments. The other two proposals include apartments, “tiny smart homes,” and retail space on the property.
“Our hope is that a housing project can be developed on the property that will serve as an initial step in addressing the affordability and attainability gaps in East Lansing’s market,” East Lansing City Manager George Lahanas said in July when the city said it would take proposals for the property.
East Lansing purchased the land in late 2018 for about $400,000. In November 2019 East Lansing voters approved a ballot measure allowing the city to sell it.
City officials and marketing professionals have worked to market and sell the property. City officials have discussed putting housing in the area and a recent study found housing is a problem in the city, especially for low- and moderate-income residents who are not students.
The city set a September deadline for housing proposals, which were asked specifically to address “missing middle” housing in East Lansing such as multiplexes, live-work units, courtyard apartments, townhouses, and more that are currently underrepresented in East Lansing.
City officials desired proposal plans include a mix of unit types and price points that create opportunities for a broad range of new owners and/or renters, including low- and moderate-income families, seniors, workforce housing and college graduates starting careers locally.
Krimson proposes 316 units
East Lansing-based Krimson, in a partnership with Rockford Construction of Grand Rapids and Progressive AE of Plainfield Township, is proposing 316 units including one-, two-, and three-bedroom units and 100 townhomes.
The proposed development would include 34 buildings, nine apartment buildings, 14 townhomes and 11 stacked townhouse buildings, according to an East Lansing agenda item report.
There would be 108 one-bedroom, 81 two-bedroom, and 27 three-bedroom units.
“Assuming 2.5 residents per townhome, a total of approximately 600 residents could take up residence in the completed project as envisioned,” the report states.
According to the proposal, square footage and monthly rent prices would be:
One bedroom, one bathroom standard: 605 square feet, $1,162 monthly
One bedroom, one bathroom large: 663 square feet, $1,195 monthly
Two-bedroom, two-bathroom standard: 904 square feet, $1,394 monthly
Two-bedroom, two-bathroom large, 1,047 square feet, $1,435 monthly
Three-bedroom, two-bathroom: 1,307 square feet, $1,841 monthly
Ranch style townhome: 1,625 square feet, $2,212 monthly
Stacked townhouses: 1,700 square feet, $2,212 monthly
The total development cost is an estimated $75.8 million and the developers would seek city support with a brownfield tax increment financing program. The project’s total duration would be an estimated 30 to 35 months, according to the project proposal. It's annual income would be about $4.1 million.
Krimson was founded in January 2001 and owns, manages or is developing approximately 30 properties with a value exceeding $500 million, according to documents.
Past projects include Krimson's $38 million Willoughby Estates in Holt completed in 2018. Rockford Construction completed the $40 million Block600, a mixed-use development totaling 160,000 square feet and home to a ground floor grocery store, 35 apartment units and a 122-room hotel in downtown Lansing.
“Together with the strong experience, financial acumen, and local success in developing and operating similar projects that the Krimson team has demonstrated, staff finds this proposal as the strongest of those received,” city staff wrote.
Many items will need to be determined before city staff recommends moving forward with the project, such as a sale price for the transfer of land, rezoning the property to include housing, and the brownfield plan.
These could be included in a pre-development agreement, which, if reached, would set the main deal points between the city and developer in negotiating a housing project for the site, the report states.
"Report Staff recommends that Council direct staff to move forward with the negotiation of a pre-development agreement with Krimson and return to Council for consideration at a future meeting,” it states.
PK Housing wants 344 units
Okemos-based PK Housing and Third Coast Development of Grand Rapids have partnered to form 3CPK, which is proposing walk-up apartments, townhouses and two mixed-use buildings including ground floor commercial space with stacked flats for the property.
A total of 344 units would be built, including 77 studios, 168 one-bedroom apartments, 76 two-bedroom apartments and 23 two-bedroom townhomes, according to documents. No rent prices were included in the proposal.
Assuming 2.5 residents per townhome, the community would have about 455 people residents. The company is proposing to buy the land for $2.7 million, records show.
About 5,400 square feet of commercial space would be set aside for uses such as a coffee shop, small-scale fitness establishment or a hair or nail salon.
The total development cost would be approximately $90 million and would use low-income housing tax credit funding. The size and scope of each phase of the development would require a 12 to 15 month construction schedule and leasing would begin in mid- to late-2025, according to documents.
PK Housing owns or manages more than 5,200 apartments within 124 developments across seven states, according to documents.
A past project includes the $8.9 million adaptive reuse of the Bailey Center in East Lansing to 30 senior homes, 25 of which are limited to low-to moderate income qualified renters, in 2018.
Although the proposal was well-received by city staff, the intended use of low-income housing tax credit funding and conceptual framework would require considerable time and staff resources to determine whether the project would be attainable, according to a report from city staff.
“As a more developed proposal was received with a potentially stronger path towards a project coming to fruition, staff does not recommend moving forward with 3CPK on this project at this time,” the city report states.
Watson & Watson proposes tiny homes
Texas-based Watson & Watson Development Company has built custom homes and established communities for 30 years. Now its proposing creating micro-units, on-site food production and waste-to-energy capabilities, and a multitude of recreational, business and service opportunities in East Lansing, according to the staff report.
The project proposes adding 200 “tiny smart homes,” 192 “efficient apartment units” in a mix of one-, two-, and three-bedroom units, as well as 50,000 square feet of retail space at the property. It also proposes draining the existing wetlands into a retention lake as a site amenity.
The company is proposing to buy the land for $3 million and the project would have an annual income of $1.4 million. Individual unit rent prices were not included.
City staff had significant concerns for the project.
The proposal didn’t include a detailed financial analysis, a list of similar completed projects, the financial capability of the developer, evidence of the project’s commercial viability or “any recognition of or comment on how the proposal will address the City’s stated attainable housing goals,” according to the city report.
“As noted above, staff recommends that Council direct staff to move forward with the negotiation of a pre-development agreement with Krimson and return to Council for consideration at a future meeting,” the report states.
Contact Bryce Airgood at 517-267-0448 or bairgood@gannett.com. Follow her on Twitter @bairgood123.
This article originally appeared on Lansing State Journal: East Lansing council to weigh 3 housing proposals for Coleman Road property
