A nearly 50-acre vacant site once used for the disposal of coal ash from the former Bayside Power Plant could soon host a new Traverse City neighborhood featuring a mix of 73 residential units, playgrounds, public trails, and a community garden. Traverse City Light & Power (TCLP) board members voted Tuesday to accept an $850,000 offer for the site – located on Cedar Run Road just west of Barney Road – from LivWell Homes, which plans to redevelop the property.

TCLP put the property on the market earlier this year after city commissioners agreed in August to certify the site as surplus land that could be sold. The property was used for coal ash disposal from the Bayside Power Plant until the mid-1990s. Property acreage where the dumping was concentrated has an underground lining and has been sealed off at the surface to contain the contaminants. Due to the contamination, however, only 33.5 of the nearly 50 acres are useable.

TCLP has considered several options for the property in recent years, from installing a solar array to exploring various developments that could work on the site. TCLP CFO Karla Myers-Beman previously told board members the topography of the property ultimately made a solar array unfeasible. Residents and community groups expressed interest in seeing the property become a public park, but no bids were submitted when TCLP issued a request-for-proposals (RFP) from nonprofits or governmental entities.

Because of the lack of responses, TCLP next went to forming an ad hoc committee focused on disposing of the property and listed the site on the market. This fall, the committee reviewed proposals and supported a recommendation to enter into a purchase agreement with LivWell Homes, a Traverse City firm founded by Chad Kotlarz in 2014 focused on building “modern, efficient” homes in northern Michigan.

In partnership with First Holding Management Company, LivWell Homes is planning a “hybrid development” for the site featuring a mix of attached townhome-style units – approximately 48 – and 25 single-family lots. First Holding Management Company has experience with numerous housing projects across Michigan, including The Harborage & Harborage Park in Boyne City, Flats at Iron Ridge in Ferndale, Daisy Square Condominiums in Plymouth, and Vaughan Ridge Condominiums in Bloomfield Hills.

A presentation to the TCLP board describes the new neighborhood planned for Traverse City as an “organic arrangement of mixed unit types to preserve natural resources and foster community engagement.” Dwellings will be focused on “eco-friendly, sustainable architecture which utilizes the latest in building technology,” the presentation states. LivWell Homes has a development philosophy focused on “designs that are cohesive, balanced, and emphasize timelessness and longevity,” according to the presentation.

LivWell Homes also highlighted green space and parkland amenities in its proposal. “Significant portions of gross land area” will be preserved for community-centered green spaces and multi-use trails, with “intermingled playgrounds, dog parks, gazebos, picnic areas, and parking within the green space areas,” according to the presentation. The company will also prioritize “restoration of disturbed areas with native plantings/trees to enrich ecosystems and attract pollinators,” the presentation states.

The firm plans to address zoning for the property – currently designated agricultural – by seeking approval for the site to become a planned urban residential district (PURD) from Garfield Township. PURD zoning provides “a degree of flexibility and creativity in the planning and design of residential development projects,” according to the township’s zoning ordinance, inviting “efficient, clustered development on portions of a site so that developers are better able to provide amenities and infrastructure improvements.”

The zoning ordinance states that such projects “should be developed using clustered methods and innovative design while providing desirable open space and pedestrian connectivity.” In exchange, the township "may authorize reductions in minimum lot size and increases in maximum density which would otherwise apply,” according to the ordinance. Garfield Township planning staff noted during a township meeting Wednesday night that they have not yet received an application for a PURD or any other plans for the property, but that they would seek to connect with developers on the project. Any rezoning request would have to go through the township approval process starting with the planning commission, staff noted.

TCLP leaders said the project aligns with the city-owned utility’s goals in several ways. For one, the LivWell Homes development will be fully electrified, aligning with the city’s recently adopted building electrification policy. The purchase contract stipulates that “any and all new buildings shall be fully electric in that electricity is used to power all its functions, including heating, cooling, cooking, and hot water, with no reliance on fossil fuels like natural gas or propane. This restriction shall be in place through December 31, 2040.”

The proceeds associated with the $850,000 property sale will also “support TCLP’s climate action plan programs and initiatives, i.e. renewable investments and cost savings for customers,” according to the utility. The project’s emphasis on eco-friendly building practices, significant green space, native ecosystems, and sustainable energy systems made the proposal a winner for TCLP, utility leaders stated.

"We are excited to see this property put to use in a way that not only addresses the growing housing demand in our region but also honors our commitment to environmental stewardship," says TCLP Executive Director Brandie Ekren. "This development aligns with our vision of balancing community growth with sustainability."