East Village Project

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East Village Project

• A cooperative venture among the City of East
  Lansing, Michigan State University and Pierce
  Education Properties, to transform a large parcel
  of land next to campus into a positive and
  prosperous campus oriented neighborhood

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a transformational project
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Why?

• Cedar Village has been a blighted neighborhood
  and a reoccurring problem area for decades
  costing the city and university, time, money and
  town/gown relationships
• Requires a complete overhaul to change the area
  from an attraction for disruption to an
  attraction for positive community interaction and
  economic stimuli
• An ideal location other than campus, this is
  the only land on the Red Cedar River in the City
  of East Lansing

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Location
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EAST VILLAGE
EAST GRAND RIVER AVE
BOGUE ST
RED CEDAR RIVER
MSU SANFORD NATURAL AREA
HAGADORN RD
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Blighted Designation

• Physical deterioration of structures
• Functional or Economic obsolescence the
  floodplain limits property owners ability to
  redevelop.
• Average age of housing is 77 years
• Poor access to streets
• Deterioration of water mains and runoff issues
• Blight is a legal basis for condemnation, however
  city plans to have developers negotiate
  acquisition. Blight designation allows use of
  more redevelopment incentives.

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Blight
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Cedar Village Disturbance History

• Oct. 1983 First official Cedar Fest 1,000
  attend, 37 arrests
• May 1984 5,000 attend, no major incidents
• Oct. 1984 5,000 attend, more than 30 arrests
• May 1985 6,000 attend, 14 arrests, 10 injured,
  2000 in damage
• Oct. 1985 4,000 attend, 17 arrests
• May 1986 500 attend, 25 arrests, 22 injured
• Oct. 1986 5,000 attend, 35 arrests, 24 injured
• May 1987 200 attend, 44 arrests
• Oct. 1989 3,000 students attend
• March 1999 over 10,000 attend,250,000 in
  damages, 132 arrests
• March 2003 5,000 attend, 40,000 in damages,130
  arrests
• April 2005, 3,000 attend, 6,000 in damages, 43
  arrests
• April 2008 4,000 attend, 52 arrests
• Source The State News LSJ

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Expected Outcomes
Create a new dynamic campus oriented neighborhood
An attractor for alumni, students and
internationally competitive faculty New and
attractive housing facilities for rent and
sale World competitive academic, civic and
community focused facilities Catalyst for local
and regional economic development Model of new
Green community
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National Momentum

• University of Maryland East Campus Redevelopment
  Initiative
• Ohio State University Gateway Project
• University of Connecticut
• University of Pennsylvania
• Arizona State University
• Cornell University
• University of Cincinnati
• Notre Dame Eddy Street Commons
• Johns Hopkins
• Columbia University

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Early Challenges

• Fully built
• All privately owned and profitable
• Five fraternities
• Eight businesses
• Floodplain
• Contaminated sites in area

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How Were Doing It (1999 today)

• Joint Planning process City and U
• Class landscape design
• Draft plan developed by city and university
• Master plan updated and zoning code updated
• Community input (ongoing)
• RFP for developers
• Pierce selected as master developer
• Seeking state and federal grant assistance

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Economic Model

• Increase density, increase value
• City owned parking
• Seek Federal and State Grants
• Use of Michigan Economic Development Tools
• TIF
• DDA
• Brownfield
• Core Cities
• While no university will be used, MSU provides
  encouragement for university oriented tenants and
  location

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Master Developer
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About Pierce Education Properties
1) More than 12 years of experience planning
and developing campus communities 2) Focus on
two primary areas Real estate development for
educational communities Acquisition and
operation of student housing 3) In 2007, The
Pierce Company partnered with Hunt Realty
Investments creating Pierce Education
Properties, L.P.
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Phase One Progress
In August 2006, Pierce Education Properties (PEP)
and City of East Lansing entered into a
Memorandum of Understanding PEP selected as
master developer of the East Village
Project Phase One commenced to determine project
feasibility Project within the Downtown
Development Authority (DDA) boundaries Market
research studies Property owner
negotiations Design Financial feasibility Communit
y Input
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Project Description
Proposed as 25-acre, 800 million
project Dynamic Urban Village Signature gateway
to MSU City of East Lansing Extension of
Downtown East Lansing Regional
Destination 6-acre River Park with active
use Physical programmatic integration with
Michigan State University
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Project Components
Retail, restaurants entertainment (380,000 sq
feet) movie theatre, specialty grocer, outdoor
dining and retail Six acre riverfront park and
winter garden Hotel conference center (35,000
sq feet) Research business incubator space 965
Residential units 300 rental units and 190 for
sale units intended for grad students, faculty,
staff and workforce undergraduate rentals for
15000 students About 3700 above-and-underground
parking spaces
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Conceptual Design
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Conceptual Design
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Time Line
February 2008-December 2008 Phase
Two Development Agreement Negotiations City
Approval Permitting Programming Design Property
acquisition and/or agreements Leasing/Marketing Fi
nancing 2009-2011 Phase Three Construction Leasi
ng/ Marketing Operation
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Challenges Ahead

• Financial feasibility move forward with
  developer
• Land Acquisition
• Traffic Impacts
• Infrastructure Improvements

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What East Village Will Be

• Better living environment for students
• Housing for Alumni, faculty community
• Riverfront park for all
• Winter garden and performance space
• Cleaner, greener environment

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Questions
Ginny Haas Director of Community Relations MSU
Office of Governmental Affairs [phone]
haasv_at_msu.edu
Lori Mullins Planning Community Development
Senior Project Manager City of East Lansing
[phone] lmullin_at_cityofeastlansing.com