Facing intense organized pushback from local business owners, the East Lansing City Council blocked a subsidized housing project from moving forward downtown.
The council voted 3-2 Tuesday to reject the 530 Albert St. development, citing concerns that businesses would struggle to remain open without enough vehicle parking to attract customers.
Conceived as a five-story building with 122 units of affordable rental units, the 530 Albert project would have redeveloped an existing parking lot near Bailey Street behind the 500 block of Grand River Avenue.
Councilmember Noel Garcia Jr. expressed some concern that the decision would expand density downtown and present a safety risk, particularly on days when there's a large student presence like St. Patrick's Day or football matches.
Garcia said he was in favor of expanding low-income housing options in East Lansing. But he added the message from residents was clear — the reduced surface parking would be too much to bear for nearby restaurants and shops.
"The main reason that I'm going to vote against this is I really don't feel like we're listening to our businesses, and I'm not going to vote for something where businesses are going to suffer," he said.
Scrutiny of the plan began at initial public hearings, with many objecting to the potential loss of car parking.
Businesses and residents in the Bailey Street neighborhood organized as the Citizens to Protect East Lansing Access, whose purpose is to stop the development from moving forward.
The group rejected claims of mounting a “not in my backyard” campaign, saying it supports affordable housing, but rejects decisions that jeopardize East Lansing’s accommodations for visitors who drive to local businesses.
“We're losing the parking, which will cause us to lose customers, which will cause us to lose money,” said Mike Krueger, owner of the Peanut Barrel on Grand River Avenue. "Not only for us, but for all of our employees and their families."
Kreuger also chairs the city’s Downtown Development Authority.
“We do want workforce housing near us, just not at the cost of potentially losing our customer bases,” he added.
City officials previously cited a study that indicates parking ramps are being underutilized, with only 65% of spots being used on peak occupancy days.
The proposed development would be adjacent to both parking ramps on both Charles and Bailey Streets, locations business owners argue are too far from businesses and difficult for senior customers to access.
American Community Developers, the housing company that submitted the 530 Albert proposal, framed the project as a destination for young professionals hoping to move to East Lansing.
According to city documents, the complex would contain mostly studios and one-bedroom apartments, with a handful of two-bedroom units. About 1,100 square feet had been reserved for commercial space on the ground floor.
Most students would not have qualified for the housing unless they receive federal assistance.
“Added permanent residents to the Downtown will create more foot traffic and visibility for the commercial business,” said American Community Developers in a document sent to the East Lansing Planning Commission. “It will help counter the seasonal nature of the MSU student population. Our residents will live, work, and play within the community.”
American Community Developers was using low-income housing tax credits for the project. Under state and federal affordable housing restrictions, units would be limited to individuals earning between 40% to 80% of Lansing’s area median income (AMI).
Developers claimed a one-bedroom apartment for an individual living at 60% AMI assumes a maximum income of $42,480 and places the upper limit of monthly rent at $914.
Supporters of the development argued the increased housing would have generated more activity from residents, pointing to several nearby restaurants and businesses that currently lack access to convenient surface parking.
"This project provides increased opportunities for all downtown businesses in every block,” said Roy Saper, who owns an art gallery downtown. “Having 130-plus new residents in downtown is good for business and for all of East Lansing.”
Mayor Ron Bacon also voted against the proposal over parking concerns. But he maintained the city and private owners of the downtown parking lot still intend to repurpose the lot going forward.
"The surface parking's going away," Bacon said. "I would prepare for whatever that conversation is had in the business community, I don't see how that survives this long term."
