Traverse City commissioners voted unanimously Monday to seek workforce housing proposals for two contiguous city-owned properties at 715 Beitner Street and 535 Woodmere Avenue. Some commissioners raised concerns about the viability of the land for housing – especially given its location between railroad tracks and a city garage that operates 24/7 – but agreed to issue a request-for-proposals (RFP) with language specifying that “appropriate soundproofing” be included in any project submissions.

Commissioners have discussed potentially using the properties – as well as a third adjacent parcel at 723 Beitner Street – for housing for over two years. The three parcels were identified in a list of city properties in 2022 that could be suitable for residential use. However, several issues have delayed commissioners moving forward with the site. To start, the city agreed to a contract term when it purchased the parcels that prevented a resale for five years, meaning commissioners couldn’t sell the land outright to any developer for housing until after October 2023.

Two consecutive city managers have also flagged concerns about the properties. Former City Manager Marty Colburn worried about potential environmental contamination on the site, as well as the city’s current use of the property for construction staging and snow storage. He said the city’s Department of Public Services (DPS) would likely need to grow in the future, and that there would be “no better location for the future expansion of DPS operations” than the parcels proposed for housing. The surrounding active rail corridor could also “create a very disruptive environment for housing and could contribute to a negative quality of life,” Colburn shared as another concern.

Despite those objections, an ad hoc committee of commissioners subsequently worked on a draft RFP that could be used to solicit housing proposals. When it came before the board for consideration last year, Interim City Manager Nate Geinzer echoed Colburn’s concerns. He also noted that the City of Traverse City and Grand Traverse County were in the process of completing a joint facilities master plan. That plan could eventually see county staff relocated to LaFranier and the law enforcement center on Woodmere Avenue decommissioned, and/or the city need to consider new options for public safety services in the corridor, such as a new fire station.

“There is very strong consensus amongst the city/county teams that the DPS Woodmere property should be retained (including the Beitner piece) for future operational redevelopment,” Geinzer wrote to commissioners at the time. Commissioners voted down a motion last October to issue an RPF for housing proposals, with only Commissioners Tim Werner and Mark Wilson in support and the remaining five commissioners opposed.

One year later, Werner asked to put the RFP on the agenda again for consideration Monday. He said that with city strategic planning sessions last week showing “the community’s strong continued interest in workforce housing” and the Northwest Michigan Housing Summit scheduled to take place this week, “there is no better time for Traverse City to show its commitment by taking action.”

“This city commission has had addressing the housing crisis as a top priority for many years,” Werner wrote in a memo. “Before us is an opportunity for this body to move the RFP forward and add needed workforce housing in Traverse City.”

Mayor Amy Shamroe expressed wariness about pursuing housing for the site, saying that the railroad tracks, the nearby wastewater treatment plant, and multiple other low-income housing projects located nearby means “there is virtually no possibility we’re going to get MSHDA (Michigan State Housing Development Authority) funding for that property.” MSHDA officials have told her as much in meetings that Werner has also attended, Shamroe said. She added that the idea that affordable housing projects should continue to be clustered along the noisy railroad tracks “smacks” of privilege. “I want to see more (city) properties go to affordable housing,” she said. “I don’t think this is the property for it.”

Other commissioners, however, said that the low cost of issuing an RFP – through a not-to-exceed contract of $500 with consulting firm Mission North – was worth it to at least explore options for the site. “This is a very modest ask,” said Commissioner Heather Shaw. “I think that we can afford to look at the possibility of housing on those properties for $500 while the facilities master plan is ongoing.” Werner pointed out that other residential homes are located near the parcels and that nobody would be forced to live at the site if they didn’t want to. “It’s not going to solve the problem. This will be one small piece of housing in a huge, enormous need for housing in our community,” he said. “But sitting here for another year won’t solve the problem either.”

Shamroe said she’d support the RFP process if language was included that specified housing proposals should address options for “appropriate soundproofing” within the project plans. With that modification included, commissioners unanimously approved the motion to issue an RFP for workforce housing (Commissioner Mi Stanley was absent). The parcel at 723 Beitner Street will not be included in the RFP because it’s being used for construction staging for FishPass, meaning it will likely be tied up at least two more years. Commissioners noted that issuing an RFP doesn’t commit them to accepting any of the housing proposals if they don’t fit what the board is looking for. They also expressed an interest in revisiting other previously discussed city parcels – such as Lot G next to Mode’s – for potential redevelopment.