Traverse City commissioners Tuesday agreed to extend a pilot project converting State Street, Pine Street, and Boardman Avenue to two-way traffic through the end of 2025. Commissioners also voted unanimously to adopt a notice of intent resolution that would allow the city to issue up to $42 million in sewer system revenue bonds, as well as to contribute land to a planned Traverse City Housing Commission project on East Eighth Street.

The commission agreed in a 5-2 vote - with Commissioners Tim Werner and Jackie Anderson opposed - to extend the downtown two-way pilot project through the end of this year. The Traverse City Downtown Development Authority (DDA) board recommended extending the pilot for two years, but some commissioners were skeptical about such an extended time period.

Werner said he felt the pilot was a "waste of time and effort," with Anderson also wanting to end the project immediately and revert back to one-way traffic. However, most commissioners were interested in collecting more data for another year to review the efficacy of the pilot and determine whether to make any changes permanent. As part of the motion, commissioners agreed to look at forming an ad hoc committee at their March meeting to study and make recommendations on potential improvements in the pilot project area, such as converting some intersections to four-way stops instead of signalized intersections.

Commissioners Tuesday also unanimously adopted a notice of intent resolution that will allow the city to issue up to $42 million in sewer system revenue bonds for upcoming sewer projects. Commissioners previously approved issuing up to $30 million in bonds, but higher-than-expected construction costs plus engineering and contingency fees now put the total estimated price tag at over $41 million. The resolution gives the city the ability to bond up to $42 million but doesn’t obligate it to do so if final costs come in under budget, noted City Director of Municipal Utilities Art Krueger.

The project will cover major improvements to the wastewater treatment plant headworks and UV systems. The sewer system bonds will be repaid over time through user fees. Following commission approval of the notice of intent resolution, a public notice will now be published that gives voters a 45-day period in which they can file referendum petitions calling for an election before the bonds can be issued. If the referendum period passes with no petitions filed, city commissioners will be asked – likely in July – to adopt an ordinance authorizing the actual issuance of the bonds, according to City Manager Liz Vogel.

Finally, commissioners unanimously agreed Tuesday to contribute land towards a new workforce housing project near the intersection of East Eighth Street and Lake Avenue. The Traverse City Housing Commission (TCHC) hopes to partner with the city, the Grand Traverse County Land Bank Authority, and S B K Properties LLC – the private property owner of the former Copy Central building – to cobble together several parcels needed for the project, which could bring 40-50 income-restricted apartments to the downtown area.

TCHC asked to acquire a small (0.05-acre) triangle of property the city owns just west of the Copy Central building. Under the motion approved by commissioners, the city would also relinquish its property interest in a portion of Land Bank Authority land that runs parallel to Lake Avenue from East Eighth Street down past Oryana. That land was once envisioned to be used for a new city road connecting Fourteenth Street to Eighth Street, but those plans were abandoned years ago. Werner attached a condition to the motion asking TCHC to work to "the extent possible" to designate at least 10 percent of the units for permanent supportive housing. However, because TCHC is currently capped on those kinds of housing vouchers, that condition is not a binding requirement. Werner also noted at the meeting that the city land conveyance will require TCHC to follow the city's policy to electrify the new housing development.

According to TCHC, next steps for the housing project – called “Cityview Apartments” – will include completing environmental due diligence and lining up funding. Possible funding sources include the Michigan State Housing Development Authority (MSHDA), brownfield funds, and a payment-in-lieu-of-taxes (PILOT) agreement with the city, among others. TCHC said it also plans to investigate a new employer-assisted housing program recently announced by Governor Gretchen Whitmer. Prior to construction, possible environmental clean-up and the relocation of power lines – a condition of state funding – will need to occur at the site, TCHC noted.