Traverse City planning commissioners Tuesday approved a special land use permit (SLUP) for a proposed nine-story, mixed-used development at Pine and Front streets – but developers could face a bumpy road to final zoning approvals.

Planning commissioners voted 5-2 – with commissioners Janet Fleshman and Bill Twietmeyer opposing – to allow Pine Street Development One to build two 96-foot buildings on a 1.6-acre site on the Boardman River adjacent to Riverview Terrace. The development would bring 162 residential units – including a combination of affordable housing apartments and high-end condos – and nearly 25,000 square feet of commercial and restaurant space to downtown Traverse City. A two-level parking deck would provide 177 auto parking spaces and 132 bicycle spaces for the development.

Traverse City Planning Director Russ Soyring recommended approving the SLUP provided several conditions were met, including the use of construction materials and colors that would “give the appearance of several individual buildings” rather than large monolithic structures, and requiring the developer to provide an easement and public access for a planned future city boardwalk along the Boardman River.

While the city’s master plan calls for “high intensity, regional, commercial activity” in the property's zoning district, over a dozen residents Tuesday expressed concerns the development was too large and would change the character of downtown Traverse City.

“You are going to redesign this city, I think, in this decision you are making,” said Traverse City attorney Grant Parsons. “This city is beautiful and growing, but not in the 'up' way. You’re doing to design a nine-story ghetto neighborhood down there. This is a huge change.” One Riverview Terrace resident, while acknowledging Traverse City was experiencing growth, asked commissioners: “How much of a sea change do we want?”

Project consultant Doug Mansfield defended the development plans, noting that the existing vacant lot is “not the prettiest thing in town” and that “a lot of people are looking for improvements to take place here, and some important ones at that.” He pointed out the significance of other tall buildings downtown, including the Park Place Hotel and Riverview Terrace, and said increased density was supported by the city’s zoning ordinance, master plan and community visioning.

“I have to go back to the Grand Vision that says let’s go up, let’s get these people downtown where they want to be living and working,” Mansfield said.

Other community leaders including Downtown Development Authority Executive Director Rob Bacigalupi, Grand Traverse County Deputy Director of Planning and Development Jean Derenzy and Bay Area Transportation Authority Executive Director Tom Menzel also spoke in support of the project, saying it would bring critically needed housing and density to downtown.

“This is the plan – we’ve been planning for this for 20 years,” DDA Chair Steve Constantin told commissioners. “Finally, we have someone who’s going to step forward and build it.”

While several planning commissioners also cited a need for density and smart growth in voting to approve the SLUP, the development’s height is likely to be a bigger point of contention with city commissioners, according to Traverse City Mayor Michael Estes. Other concerns that were touched on Tuesday – such as the development’s setback from the Boardman River – could also generate more intense scrutiny when the proposal comes to commissioners for final approval, he says.

“I think it will be a bumpier process at the city commission,” says Estes. “Without the affordable housing (component), I think this issue of nine floors would be dead on arrival. I haven’t seen the rationale yet to approve it. It sets a precedent…if we approve this, I don’t think we can turn down other developers that want to go up to nine stories in the future.”

Estes says he’s “willing to compromise” and will keep an open mind when the project comes before the commission, but anticipates there may be “substantial resistance” to the SLUP request among commissioners. “There are a whole host of issues to work out,” he says. “I’m not convinced this is going to be a slam dunk.”