Lakeside Mall redevelopment moving forward in Sterling Heights
Sterling Heights, Mich. (CBS DETROIT) - Sterling Heights City Council is moving forward with a plan to give Lakeside Mall a major makeover. In a 5-2 vote on Monday, the council approved a memorandum of understanding to redevelop the aging mall.
Lakeside Out of the Box Ventures, or Lakeside OOTB, which is a subsidiary of Lionheart Capital, presented the plan to city council Monday night. The plan would overhaul most of the site at Schoenherr Road and M-59. Retail stores and restaurants will remain, but architect James Mellor presented broader uses for the nearly 110 acre space.
At its core will be the town center. The plan for that area includes a central lawn, community center, hotel rooms, office space, retail stores, restaurants, cafes, and bars. Macy's and JC Penny will remain in the town center. From there, streets will branch out to different residential areas, including a senior living space.
All of this is just a plan on paper. Councilman Henry Yanez questioned whether the site will look like the renderings once it is complete. He raised these concerns with Colin Carby, the Director of Development for Lakeside OOTB.
"This beautiful picture that you're showing us is a picture," Councilman Yanez said. "Its not something set in stone."
"No its not set in stone," Carby responded. "It's extremely preliminary, it's a concept site plan."
Funding for the redevelopment project is complex. Lionheart Capital is committing $1 billion to the redevelopment. To help fund the project, the city approved a public bond of $45 million. Councilman Yanez did not support the bond.
"What we haven't talked about it the $45 million bond that the people of Sterling Heights are going to put up to basically help a private corporation maximize their profit," said Yanez.
In response to Councilman Yanez, Mayor Michael Taylor said an increase in property tax revenue from the new development will pay for the bond. He says any shortfall in that revenue will be covered by Lakeside OOTB. The mayor says Lakeside has also agreed to put up credit to ensure no money from the general fund or tax payers will pay for the bond.
"This is a $1 billion investment into our community," Mayor Taylor said. "This is taking a dying mall, this is taking 110 acres of the most underutilized property, perhaps in the entire state of Michigan, if not the Midwest, and proposing a billion dollars of investment to radically transform it into the most unique shopping, dining, residential experience in Metro Detroit, outside of probably The City of Detroit."
Development is expected to happen in phases over the next 12 years. The first stage of demolition could begin as early as the end of 2024.
