A lawsuit has not stopped the clock on a controversial housing project in East Grand Rapids

The East Grand Rapids Planning Commission heard the latest details on a proposed 40-unit residential development in Gaslight Village last week. The project is moving forward even as neighbors continue a lawsuit challenging how the city approved the concept plan.

Developers from Gaslight Investors presented architectural renderings and site plans for phase one to the commission. The first phase would add three buildings with 40 residential units and 118 parking spaces at 515 Lakeside Drive, near the intersection of Reeds Lake Boulevard. The site was formerly the Ramona Medical Center.

"Several people have asked how this matter is up for consideration tonight when there's a lawsuit pending regarding this development," City Attorney John Huff told the commission, according to WGVU News. "That choice to proceed is the developer's choice, not the city's choice."

The legal challenge

The lawsuit was filed last year by neighbors organized under Gaslight Village Responsible Development, led by resident David Decker. The case centers on the Michigan Zoning Enablement Act and a protest petition filed by residents.

The petition sought to require a five-to-two supermajority vote for concept plan approval. The City Commission passed the project on a four-to-three vote in October 2025, falling short of the supermajority threshold the petition demanded.

"The plaintiffs have not challenged the preliminary site plan approval. Plaintiffs have not challenged the substance of the project itself," City Manager Shea Charles said, according to FOX 17. "Instead, plaintiffs have challenged whether the City followed proper procedure in denying the protest and referendum petitions."

Decker said the case is currently in discovery. Either party has until September 16 to file for summary disposition, according to WGVU News.

Why the city keeps moving

City leaders say they cannot halt the planning process without a court order. Charles warned that the city could face liability from the developer if it unilaterally chose to stop the project.

Huff added that the financial risk of proceeding falls on the developer, not the city.

"If a court subsequently intervenes or makes a ruling that's contrary to the developer's interest, the developer's the one who's spent the time, interest, and expense in proceeding," Huff said.

What neighbors are saying

Residents who oppose the project argue it does not fit the character of East Grand Rapids. They have raised concerns about building height, density, traffic, and insufficient green space.

Jerry Anderson, a neighbor who spoke at the commission meeting, questioned why the city is advancing a proposal he said the majority of residents oppose.

"When you have a proposal that's highly divisive, that 80% of the residents who've spoken on it have said that they don't like the way the current proposal fits the atmosphere of the community, why are they moving forward with it?" Anderson asked, according to FOX 17.

Anderson said public input has been limited to three-minute comments at commission meetings where questions are not allowed. He said residents want the city to work toward consensus on a development the community can support.

"All anybody wants is a development that a consensus of the residents of East Grand Rapids will agree is beneficial to our community," Anderson said.

What happens next

The Planning Commission met Tuesday night for an introductory discussion. No vote was expected at that meeting. The commission scheduled a public hearing for June 9.

Phase one would be privately funded. City documents show the developer will submit a Housing TIF request this summer for the overall project, according to FOX 17. A traffic study reviewed by the commission found the development would not create significant traffic impacts.

Scott Wierda, the developer with Gaslight Investors, attended the meeting and said there is demand for additional housing in the community, according to FOX 17. Gaslight Investors say construction can begin once the city approves the project.

The outcome of the lawsuit could reshape how East Grand Rapids handles contested development proposals in the future. Until then, the city says the planning process continues.