Lansing City Council Monday moved forward on a redevelopment plan for the former hotel on Dunckel Road near US-127.
The site has been vacant for nearly 14 years.
A public hearing for the development has been scheduled for Sept. 30. The developer has also requested the property be rezoned from commercial to residential property.
Developer Keith Brenan with Chicago-based Weitzman Group said they plan to offer studio, one, and two bedroom units geared toward undergraduate and graduate students at Michigan State, Cooley Law, and Lansing Community College.
The complex will be called "The House" and will have a fitness center, indoor swimming pool, a dining room, and community kitchens.
Brenan said the space provided several unique opportunities for redevelopment to create a "very collegial social space."
While council member Brian Jeffries though the plan was a great use of space he did say he was concerned whether there would be enough demand in the marketplace for even more student housing.
"We've got a lot of housing development going on," he said. "You've got some increases in student population at MSU but it does cause some pause to make sure we can sustain it."
Brenan said they plan to starting leasing events this fall and are aiming to have people moving in by Aug. 2014.