Lakeside Mall's $1 billion makeover: what is planned, who pays and when demolition could start

STERLING HEIGHTS, Mich. — The former Lakeside Mall site is quiet for now, but the paperwork to turn it into a new walkable neighborhood is largely done.

In June, the Michigan Strategic Fund board approved a $270,678,999 Transformational Brownfield Plan for the 100-acre site at M-59 and Schoenherr. The plan lets the developer recover eligible costs from future taxes the project generates. Mayor Michael Taylor told WWJ the vote cleared the last major hurdle after more than a decade of planning.

What's planned. Miami-based Lionheart Capital, through Lakeside OOTB Ventures LLC, plans about 1,545 homes in nine apartment buildings of four to five stories, 154,007 square feet of new retail, new streets and sidewalks, and a central park, ClickOnDetroit reported. The total investment is estimated at $621 million in capital costs, with backers calling it a $1 billion neighborhood when complete.

Who pays. Besides the state-approved brownfield capture, the city plans to issue about $27.6 million in bonds for roads, utilities and sewers on the site, according to ClickOnDetroit. Before any vertical construction, the city must build out that infrastructure.

When. In June, officials projected that demolition of the 1.5 million-square-foot building could begin in the fourth quarter of 2026 or the first quarter of 2027, WWJ reported; ClickOnDetroit put the projection at early 2027. The project would be built in two phases, starting on the east side, with the first phase taking four to five years, roughly through 2032.

"We wanted to control our destiny," City Manager Mark Vanderpool said in June. Residents have been split, with some missing the mall and others looking forward to a downtown-style district.

Large incentive packages like this one shift years of future tax growth to a private project. City leaders call it a once-in-a-generation investment; residents will want to watch whether the promised timeline and investment hold.

Sources:
ClickOnDetroit, “What's replacing Lakeside Mall? A $1 billion neighborhood -- and the funding just fell into place,” June 25, 2026, https://www.clickondetroit.com/news/local/2026/06/25/whats-replacing-lakeside-mall-a-1-billion-neighborhood-and-the-funding-just-fell-into-place/
WWJ Newsradio 950, “Lakeside redevelopment plan clears final 'biggest hurdle' as mayor hopes demolition will start this year,” June 23, 2026, https://www.audacy.com/wwjnewsradio/news/local/lakeside-redevelopment-plan-clears-final-biggest-hurdle-as-mayor-hopes-demolition-will-start-this-year
Michigan Economic Development Corp., “Projects in Southeast Michigan Support Placemaking, E&I, & Small Business,” June 2026, https://www.michiganbusiness.org/press-releases/2026/06/projects-in-southeast-michigan/
Photo: ajay_suresh, “Lakeside Mall - Sterling Heights (51788339753).jpg,” Dec. 29, 2021, Wikimedia Commons, CC BY 2.0, cropped and color-adjusted, https://commons.wikimedia.org/wiki/File:Lakeside_Mall_-_Sterling_Heights_(51788339753).jpg

Sterling Heights

Tags: Sterling Heights · Lakeside Mall · Development · Housing · Brownfield Incentives