Business owners along East Lansing's Grand River Avenue say the loss of a large portion of the Bailey Street Parking Lot's public parking Friday, Oct. 2, could drive away customers they can't afford to lose.

The western portion of the Bailey Street Parking Lot at 139 Bailey St., privately owned by the Metzger and Fabian families, will close to the public after the families exercised a 30-day termination clause on their lease with the city, according to a city press release. Only 34 city-owned spaces will remain. Two of those are ADA spots.

Business owners in the 500 block say the closure escalates a years-long development dispute over the lot's future, The State News reported. The lot has served Grand River Avenue businesses for 26 years.

Mike Krueger, owner of The Peanut Barrel at 521 E. Grand River Ave. and chair for property and business interests on the East Lansing Downtown Development Authority, has been the point person for affected businesses. He told The State News he has pushed for cheaper parking validations or free vouchers the shops could hand to customers.

Jon Howard, owner of Flat Black and Circular, acknowledged his record store is somewhat insulated because customers often make quick drop-offs in the alley. Still, he said the dispute has dragged on.

"We're just watching two children fight at this point," Howard told The State News.

Kris Lachance, owner of Splash of Color Tattoo & Piercing Studio, described her shop as a "destination business" whose clients often need several hours of parking. She said she first learned about the closure from a flyer on a sandwich board on her way into work, before receiving an email from the city. Lachance told The State News the lost spots would discourage visitors who can't find parking nearby.

Al Bay, owner of the Wild Goose Inn, told WLNS the families' decision was made out of "spite" after the city council repeatedly denied development plans. Bay said the back-and-forth has lasted five years.

The dispute escalated in August 2026 when the East Lansing City Council voted 4-1 to reject a 10-story, 205-unit building proposed by Minnesota-based Tareen Development Partners for the lot site at 530 Albert Ave., WILX reported. Tareen has since sued the city over a string of rejected proposals, according to Lansing City Pulse, which reviewed court filings first reported by East Lansing Info.

East Lansing Interim City Manager Annette Irwin told WLNS the council has never rejected a proposal that included on-site public parking. She said the city had scheduled a hearing for one such proposal, but the developer changed plans and canceled.

The city signed a one-year extension with the Metzger and Fabian families with the understanding they would continue leasing, the press release said. Instead, the families invoked the termination clause.

Permit holders in the Bailey Street lot can switch to other city facilities, including the Division Street Garage. Monthly permits become invalid after Wednesday, Sept. 30, according to WLNS.