City Sells Coal Dock, Approves Eighth Restriping

Traverse City commissioners agreed to sell the former Traverse City Light & Power coal dock to Rotary Charities and approved continuing the experimental three-lane configuration on Eighth Street at their Monday night meeting.

Commissioners voted 6-1 to accept Rotary’s $1 million offer for the coal dock property on Grand Traverse Bay, a deal that includes several deed restrictions to protect public, tall-ship and deepwater port access at the site. Commissioner Tim Werner was the sole no vote against the purchase offer, citing his concern that the city was subsidizing Rotary’s project by not seeking the full appraised $2.8 million value of the property.

But other commissioners noted the deed restrictions significantly reduced the site’s market value, and called the project a “win-win” for residents. “Could we sell it for more money (on the public market)? Of course we could,” said Commissioner Ross Richardson. “But do we want to be like Naples, Florida, where you can’t see the ocean for the 20-story condo buildings? Or do we want to try and keep it for a public purpose?”

Rotary has committed to investing $500,000 in improvements at the site, and has stated that as a “matter of general practice, the dock will be open dawn to dusk from spring until fall” for public use once renovated. Commissioners will decide at a future date how city proceeds from the sale will be directed.

Commissioners Monday also voted 6-1 to continue the experimental three-lane configuration on Eighth Street. The board authorized a $30,000 service order with PK Contracting to repaint the lanes before winter hits, add crosswalk markings at Franklin Street and Boardman Avenue and increase the turning capacities at the intersections of Boardman and Woodmere avenues. The work order also includes recessing the lines in the concrete section of the corridor to better hold the paint, which disappeared last winter due to plow blades scraping against the markings.

Richardson opposed extending the experiment, citing safety concerns over the configuration as well as public criticism of the project. “It’s going to be at least three years before we rebuild the street,” he said, referring to the planned total reconstruction of Eighth Street in 2018. “Are we going to make the driving public of this whole city put up with this for three more years while we try to figure out what we’re going to do with it? Because that’s basically what it’s going to be.”

Traverse City Mayor Michael Estes commented that he didn’t “like the configuration either,” but pointed out that for public safety, the city needed to get the lanes repainted before snowfall began. Commissioner Barbara Budros said she believes the new tweaks to the configuration “should improve (the corridor) in a lot of respects" and called the restriping a “good project for Eighth Street." However, Budros criticized city staff for poor execution on certain aspects of the project.

“This is a lesson for the commission, for the city manager, for city staff,” Budros said. “When the city commission says they want to do something, they want it done and they want it done right and they want it done well. They don’t want to get a half-assed job and then have everybody in town complaining about it and blaming the city commission.”

Commissioners also questioned city staff about concessions and equipment rental bids for Clinch Park and Hickory Hills Ski Area. Staff had recommended commissioners award Edany B.L.T. a three-year $73,500 concessions contract for both parks, and award TC Watersports a three-year $92,250 equipment rental contract at Clinch Park. However, the highest bids for both contracts were submitted by existing vendor The River, which bid $90,000 for the concessions contract and $150,000 for the equipment rental contract.

In a memo sent to city commissioners before Monday’s meeting, City Manager Marty Colburn explained staff disqualified The River owner Mike Sutherland over “liabilities” they believed could “jeopardize his ability to provide the services required under the contract.” Colburn said staff performed background checks on all bidders, and found that Sutherland had default judgments against him totaling $48,273 in Grand Traverse County’s 86th District Court. A separate complaint pending in federal district court against Sutherland seeks $2.1 million in statutory damages. Staff also said Sutherland booked a wedding at Clinch Park and sought to charge $2,000 for subleasing the site. The park’s vendor contract prohibits subleasing; Colburn also noted city park permits for weddings are $25.

Dane Moeggenberg, a partner at The River, told commissioners Monday that “if the reason for the disqualification is Mike Sutherland’s involvement or any outstanding legal issues he may have, he is prepared to sell the company and its assets outright” to the remaining partners. Moeggenberg argued the company was never notified it had been disqualifed from the bidding process, nor was it invited for an interview, at which time the partners could have presented the company’s planned restructuring to staff.

In response to Moeggenberg's comments, commissioners initially voted to send the bids back for further staff review. However, the board reversed its decision when City Attorney Lauren Trible-Laucht explained it was Sutherland specifically – not his partners – who submitted and signed the bids, and that her opinion about disqualifying them was unlikely to change. The board voted 5-2 to approve the new vendor contracts, with Estes and Commissioner Gary Howe opposed.

Commissioners Monday also approved a resolution recognizing the rights of people experiencing homelessness; a Public Art Master Plan; and new guidelines for disposing of city property.