Why Lakeside Mall redevelopment is delayed in Sterling Heights

Plans to create city center behind schedule

Lakeside Mall in Sterling Heights (WDIV)

STERLING HEIGHTS, Mich. – Gone is the Lakeside Mall that has been a staple for Metro Detroit shoppers for decades. The space is heading for redevelopment -- but that project is taking longer than planned.

There are plans to turn Lakeside Mall into a Sterling Heights city center that will feature residences, parks, hotel space, retail, dining, and more. Those plans are about a year behind schedule, according to city officials.

“Any project of this size is going to have some delays and some hiccups,” said Michael Taylor, Sterling Heights mayor.

Before the COVID pandemic, the mall was purchased by Out of the Box Ventures, a subsidiary of Lionheart Capital. There were fun plans in the works for the mall then, including a synthetic ice skating rink -- but that all changed with the pandemic.

In late 2022, the city of Sterling Heights approved Out of the Box Ventures’ plan to demolish the mall and redevelop it into a mixed-use city center. The plan hasn’t made much progress since then, though.

Officials say the delay is caused by Lord & Taylor and Sears: two major department stores that are holding out on selling their storefronts.

“Out of the Box Ventures is acquiring the department stores at Lakeside Mall [and[ that’s taken longer than anticipated,” Taylor said. “Once the department stores are under contract, then things are going to start moving very quickly.”

The other two department store spaces, Macy’s and JCPenny, have already agreed to a deal with Out of the Box Ventures.

The Sterling Heights City Council recently voted to use $3 million of grant money to purchase the department stores and speed up the process. However, it still needs to be determined when those deals will be finalized.

Taylor said the city center project will take about 10 years to complete once demolition and construction begin.

---> From 2022: What’s next for $1B redevelopment plan for Lakeside Mall in Macomb County

Watch Jacqueline Francis’ full report below.

About the Author

Jacqueline Francis is an award-winning journalist who joined the WDIV team in September 2022. Prior to Local 4, she reported for the NBC affiliate in West Michigan. When she’s not on the job, Jacqueline enjoys taking advantage of all the wonders Michigan has to offer, from ski trips up north to beach days with her dog, Ace.

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