Sterling Heights City Council approves tax plan to redevelop former Lakeside Mall

The Sterling Heights City Council on Tuesday unanimously approved tax incentives for the $1 billion development of the old Lakeside Mall, overcoming a major hurdle.

Officials say the Brownfield Tax Increment Financing and Transformational Brownfield Program would still need approval from the Michigan Strategic Fund Board. Officials say project leads will not have to present the brownfield plan to the board, as they seek $270 million in tax incentives.

 City Manager Mark Vanderpool says residents will not see any rate hikes to pay for the incentives.  

"Most of that comes from state capture, sales tax, income tax, and also property tax capture as well, but no one else in the community is burdened by increased taxes; it's only new taxes created by this development," Vanderpool said.

Vanderpool says he is excited that the plans are moving forward after the city approved the incentives. The project will transform the shuttered mall into Lakeside Town Center, a mixed-use development featuring 1,500 residential units, 180 senior housing units, and 150,000 square feet of retail space.

The project will be developed by Miami-based Lionheart Capital, and the first phase is set to begin in early 2027.

"State participation is particularly important to fund foundational elements like the town center and internal street network—key components that will enable phased, walkable development over time," said Luke Bonner, Sterling Heights senior economic development advisor.