State officials have cleared the way for the redevelopment of the former Lakeside Mall site in Sterling Heights.
The Michigan Strategic Fund Board on Tuesday approved a $270.7 million transformational brownfield incentive package for the mixed-use project, known as Lakeside City Center.
The incentives, requested by Lakeside OOTB Ventures LLC and the City of Sterling Heights Brownfield Redevelopment Authority, will help finance the $621 million project, which will span nearly 105 acres, officials said.
According to a briefing memo, the project calls for transforming the former mall on Hall Road and surrounding parking lots into a walkable district with about 1,545 residential units, more than 154,000 square feet of retail space, a six-story residential building for residents 55 and older and public green space.
The approval Tuesday marks a major milestone in a redevelopment effort that has been years in the making for the former Lakeside Mall property, which experienced years of vacancy and deterioration before closing in 2024.
Colin Carby with Lakeside OOTB Ventures LLC told the board Tuesday that Lakeside City Center will serve residents of all ages, while supporting the economic vitality of Sterling Heights and the surrounding region.
“Lakeside City Center represents the transformation of a functionally obsolescent and vacant regional asset, and turn it once again into a vibrant, well, now mixed-use destination centered around housing, hotel, office, public gathering spaces, walkability opportunities and pedestrian connectivities to all of the other state parks, sustainability principles, and definitely long-term community investment,” he said.
The project will be built in phases, with financing and feasibility evaluated separately for each stage, according to the briefing memo.
Sterling Heights Mayor Michael Taylor pointed to the property’s long history as a regional retail destination, noting its decline over time as consumer shopping habits changed and traditional shopping malls lost their appeal.
“(Lakeside City Center) provides a model for not just the city of Sterling Heights in Macomb County, but for other dying malls throughout the state of Michigan, and I’m incredibly excited about it,” he said.
The transformational brownfield award consists of $249 million in local and school property tax capture, a state capture cap of about $106.3 million, up to $12.4 million in construction-period sales and use tax exemptions and up to $9.26 million in construction-period tax capture revenues.
cwilliams@detroitnews.com
This article originally appeared on The Detroit News: State approves $270.7 million plan for Lakeside Mall redevelopment
Reporting by Candice Williams, The Detroit News / The Detroit News
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By Candice Williams, The Detroit News | USA TODAY Network
