$30-$40 Million Technology/Logistics Park Proposed Next to Airport

A new technology and logistics park – that could eventually feature over 200,000 square feet of distribution facilities, warehousing, light industrial, office, data processing, laboratories, and research-and-development tenants – is proposed on Cherry Capital Airport property near Costco. Todd Wyett of development firm Versa says the company could break ground on the first of multiple planned buildings in 2025, with the goal of investing $30 to $40 million building out the park over the next five years.

The zoning board of the Northwest Regional Airport Authority – the entity that oversees operations at Cherry Capital Airport – had a first look this week via a special land use permit (SLUP) application from Versa. Versa is proposing an expansive mixed-use development on vacant airport land east of Judson Street off South Airport Road (pictured). The firm initially considered developing both sides of Judson Street, but Wyett says the airport wanted to retain access to the land closest to Costco for future expansion.

Some uses that Versa considered – like a fuel farm and an education/training center – were ruled out early in the planning process. But numerous other office/commercial/industrial uses are permitted on the site, with Versa planning to construct a multi-building business park that could attract a wide variety of tenants. The plan is not to focus on public-facing or tourism businesses – Wyett rules out hotels, restaurants, and retail stores – but rather technology and logistics companies he says are lacking adequate space in Traverse City.

“Traverse City has become a big city, and it has very few open industrial buildings,” Wyett says. “It really needs more of today’s taller buildings, that are better built – not with metal, but more durable materials. People want them to be good-looking, more welcoming, and more modernized.” Wyett says taller in this case refers to a 28-foot clear height. That’s larger than many traditional industrial buildings and offers more flexibility in accommodating a variety of tenants.

While most park tenants likely won’t directly tie into airport operations/uses, Wyett envisions a symbiotic relationship between the two entities. “If you’re looking at logistics and how goods are getting into Traverse City, they could fly in and be easily distributed right there (by tenants),” he says. “Logistics right now is basically a little bit by plane and a lot by trucking. But by having this so close to the airport, people may reconsider and start using the airport for getting goods here.”

Versa hopes to kick-start the project by constructing an initial 20,000-30,000 square-foot “speculative building” with the design flexibility to accommodate one large tenant or multiple smaller tenants, Wyett says. That project could break ground in spring 2025, depending on the SLUP approval process. Once tenants are on site and Versa can demonstrate the viability of the project, the company would continue to construct multiple buildings over the next five years. That would expand Versa’s already extensive portfolio in Michigan, ranging from the Chick-fil-A development and Grand Traverse Shopping Mall (which houses Buffalo Wild Wings and other tenants) in Traverse City to the Innovation Interchange Technology and Industrial Park in Howell to retail centers in Charlevoix, Sault Ste. Marie, and Battle Creek.

Next steps will include obtaining approval from the airport zoning board and the Northwest Regional Airport Authority board. Like other airports, Cherry Capital Airport is unique in that it is not subject to local zoning regulations but follows its own zoning process. The airport’s buildings and grounds committee oversees all aeronautical development, while the zoning board oversees all non-aeronautical development. The zoning board will hold a public hearing and could vote on the Versa project on April 18, at which point it would head to the larger airport authority board for a public hearing and approval – potentially in May.

In addition to the next several months the SLUP process could take, Versa is also seeking a 90-year lease with Cherry Capital Airport. Any lease term beyond 50 years “would require submission of documentation to the Federal Aviation Administration for cost justification of the extended lease period,” according to Northwest Regional Airport Authority Zoning Administrator Bob Nelesen. Though federal review will further prolong the approval process, Wyett says Versa needs an extended lease given the level of investment going into the site.

“You don’t want to invest $30 to $40 million and then 50 years goes by like that,” he says. “Then all of the sudden you’ve lost the buildings because the lease is up.”

Another major consideration is nearby residential neighbors on George Street who directly border the proposed business park. Traverse City Planning Director Shawn Winter sits on the airport zoning board and notes Versa intends to orient its buildings in a north-south direction to be less impactful to the neighborhood. The existing tree buffer that surrounds the clear-cut land will also be retained, and other planned buffering – including higher fencing and stormwater retention areas – are intended to further minimize impacts. The only other real area of concern raised by the zoning board this week was the intersection of South Airport and Judson, Winter says. There could be a need for a traffic study or considering a signal for that intersection, depending on what uses emerge at the park, he says.

Winter and Grand Traverse County Commission Chair Rob Hentschel – who sits on both the airport zoning board and the Northwest Regional Airport Authority board – see the business park as an appropriate use for the site. Other uses – like residential or quieter commercial businesses – often don’t operate well in an airport environment, Winter notes. Wyett, a northern Michigan resident (he lives in Charlevoix), is sensitive to any neighbor concerns and plans to meet with them to address those. He believes, however, the business park will be significantly less impactful than a hotel or another major retailer would be.

Hentschel notes that the site has sat on the market for a number of years waiting for redevelopment. “I think it’s a good use of the property,” he says. Wyett also believes the business park is a good fit. “Once we break ground, businesses that are looking to be in Traverse City – and businesses that are in Traverse City looking to expand – are going to come knocking,” he says.