After 47 years as a shopping and social attraction, Lakeside Mall’s days are finally numbered.
The Sterling Heights shopping center’s owner and city officials on Wednesday announced it will permanently close on July 1.
Officials plan to launch a massive $1 billion redevelopment that they say will transform the area on Hall Road and Schoenherr Road into a new neighborhood consisting of homes, parks, shops, restaurants, and other community venues in the coming years.
“Lakeside Mall’s closure marks the beginning of an exciting transformation,” said Allison Greenfield, chief development officer of Lionheart Capital, a Miami-based real estate development which owns the property with capital investment firm’s retail subsidiary Out of the Box Ventures.
“We are committed to collaborating with the City of Sterling Heights to create a vibrant urban center that celebrates the area’s unique character and history,” Greenfield said.
Groundbreaking for the new development is expected in late 2025.
According to Lionheart, the decision to close Lakeside Mall comes with after several years of study, planning and consideration by an “army” of stakeholders.
The mall will be replaced with Lakeside Town Center, a bustling complex with shops, offices, coffee houses, and restaurants, officials say will create a lively atmosphere.
A central park, featuring restaurants and outdoor seating, will serve as a focal point for community gatherings, music, art, and events. A two-story community center that will anchor the park will provide recreational amenities such as pools, fitness facilities, and lending libraries.
Sterling Heights Mayor Michael Taylor said the city “eagerly anticipates” implementation of the development plan.
“As this transformative project unfolds, making sure our residents are consistently informed and actively engaged in the process will be a top priority,” the mayor said.
In 2022, the City Council approved a memorandum of understanding with Out of the Box Ventures, the private owners of the mall, to redevelop the 110-acre site into a revived area of dining, retail, residences, parks, office space and a hotel.
The mall owners plan to demolish much of the existing structure, and create a Town Center, consisting of new offices, apartments, retail space, a 120-room hotel with attached parking deck, restaurants, recreational amenities, and more along M-59, which is known locally at the Golden Corridor.
The mall will be supported by the developer and a variety of tax incentive plans that will pay for the infrastructure to create a town center. Officials say the entire process will probably take 10-15 years.
According to a news release, a network of “great streets” will crisscross the area, each with its own character. Surrounding the town center will be the Lyrical Loop, a one-and-a-half-mile encircling greenbelt designed to promote active lifestyles and wellness for residents.
Construction of a two-and half-mile bike/hike trail will begin this year connecting the Lakeside Town Center development to the Iron Belle Trail, Freedom Trail and Dodge Park Trail. This network of pathways converging in Sterling Heights connects Belle Isle, Lake St. Clair, and Iron Wood to this transformative development.
The Town Center is scheduled to be constructed in phases. It would eventually include:
- 2,219 units of housing (including 750 units of independent living and assisted living)
- About 180,000 square feet of retail and food and beverage spaces
- A 120-room hotel with attached parking deck
- Approximately 70,000 square-feet of office space.
Tenants have been informed they have until July 1 to move out, officials said, and plans for vacating are underway to facilitate the next phase of the project.
Building a downtown
Opened in 1976. the Alfred Taubman-built Lakeside Mall was expanded in 1990 and last renovated in 2007. But Lakeside experienced a trail of tenant departures in recent years as shoppers turned their attention to online retail experiences.
Once the mall is closed, it will sit vacant for roughly 18 months as demolition is expected to begin in the latter part of 2025, officials said.
“The next step of this process will be the actual demolition of the mall and moving forward with construction,” said Sterling Heights City Manager Mark Vanderpool.
Building a new town, from the ground up, will proceed over the next 10-15 years, he added.
After the demolished remains are cleared, crews will start work on grid systems for underground sewage systems, roads, and sidewalks, before the physical buildings take shape.
In the meantime,Vanderpool said Lionheart Capital will submit its planned unit development and site plan to the city for review.
The private owner will apply for a transformational brownfield through the state. The brownfield will capture local and state-level taxes over 30 years that are generated by a new development. It’s a process similar to the one being used for the 45-floor skyscraper and neighboring 12-story office block under construction at the Hudson’s site in downtown Detroit.
Also on the checklist is completion of a corridor improvement authority (CIA). A CIA board will be set up and members recruited to oversee the finances.
Vanderpool said it’s a complex process, but one that’s exciting.
“Lionheart is going to build a downtown for Sterling Heights,” the city manager said. “That’s something you rarely ever get to do. This is something that will serve as an everlasting investment not only for Sterling Heights, but for Macomb County and the state of Michigan.”
County Executive Mark Hackel agreed. He said local labor union will play a “pivotal” role in the equation.
The project is designed to be financially self-sustaining, funded by new property tax revenue generated by the development, ensuring minimal impact on city taxes, officials said in a news release.
“Working together, we ensure that this site will bolster our local economy and be a model for strategic redevelopment and job creation,” Hackel said in the release.
Economic engine for the region
Sterling Heights officials say although the mall is in a state of decline, the immediate area around Lakeside Mall at M-59 and Schoenherr is thriving. Over the past few years, it has become host to a number of new restaurants and developments.
Lakeside Town Center eventually will add to that vibrancy, city officials anticipate.
According to the city, Lakeside at its peak was a top economic engine for the area. The mall was also once one of the city’s largest taxpayers, contributing $1.5 million to Sterling Heights alone. Today, it generates about $300,000 and “is still declining,” Vanderpool said.
“The mall has struggled mightily,” he said. “This plan will return Lakeside to its former economic glory in a reimagined way.”
Mall holdouts expected to remain
The Macomb Daily reported the Sterling Heights City Council last month voted to accept a $3 million grant from the Michigan Economic Development Corp. to help with acquiring properties around the derelict mall in support of the redevelopment.
The properties are the former Sears and Lord & Taylor department stores. Sterling Heights officials have described the owners of those shuttered stores as “holdouts” who have yet to agree to sell.
According to Sterling Heights officials, JC Penney and Macy’s owners have reached agreements to sell, but the owners of the former Lord & Taylor and Sears spaces still have not. The holdouts are blocking the project from moving forward, officials said.
But this week, city officials said it’s possible, if not likely, JC Penney and Macy’s will be part of the new retail shopping outlets as part of the reimagined downtown.
