LOT O & BEITNER HOUSING OPPORTUNITIES

HOMESTRETCH UPDATE

The City continues to explore opportunities to transform underutilized properties into sustainable affordable housing. Lot O, a surface parking lot at 159 East State Street, remains in the feasibility stage with Homestretch Housing, a local nonprofit, now advancing plans for a mixed-use project featuring 39 affordable units for individuals with mixed incomes.

Additionally, in 2024, the City Commission approved issuing a Request for Proposals (RFP) for the Beitner Road property near Woodmere Avenue to explore future housing opportunities. Homestretch has submitted a response to the RFP as part of its ongoing commitment to expanding affordable housing in the community.

At their Monday, February 24, 2025 meeting, the City Commission will be presented an update on both projects.

Parking Lot O

Homestretch has made significant progress on the Lot O mixed-use affordable housing project. To date, $65,000 has been invested on pre-development work, and an agreement has been secured with a local food curator to lease the ground-floor commercial space as a fresh produce and food market. This initiative has attracted interest from MEDC for revitalization and placemaking grants.

To address financing challenges, Homestretch has partnered with Wallick Communities, a multi-state affordable housing developer, which has helped lower the project budget to $15 million.

Efforts to secure funding include:

• A $2.4M MEDC RAP 3.0 grant (spring 2025 award timeframe).
• A $9.4M MSHDA 9% LIHTC (April 1 cycle).
• A partnership with Merchants Bank as the LIHTC buyer and lender.

The project will include 39 residential units that meet MSHDA’s Design Standards:

• 8 studios (450 sq. ft.), 26 one-bedrooms (600 sq. ft.), and 5 two-bedrooms (850 sq. ft.)
• Average tenant AMI of 60%
• Site plan is ready for City Planning Department review

To address access issues to local businesses along the corridor, a tunnel has been designed to accommodate staff parking, deliveries, and waste hauling. The logistics of constructing this tunnel early in the project are being explored.

With an updated design, revised budget, and a strong development partnership, Homestretch is preparing to submit a PILOT application for City review next month. Meetings with the City Planning and Engineering Departments are ongoing for site plan approval, and efforts are focused on securing MSHDA and MEDC grants this spring.

Project Timeline:

• Funding: 2026
• Construction: 2026-2027
• Opening: 2028

Beitner Road Proposal

Homestretch Housing has submitted a proposal in response to the City’s RFP for the Beitner Road property near Woodmere Avenue. The proposed development aims to address the community’s need for affordable housing through a collaborative and community-focused approach.

The $4.6 million project includes 18 residential units and is designed to serve individuals and families with mixed incomes. Rental units will be available for households earning 60% to 120% of the Area Median Income (AMI), with a blended average of 65% AMI based on square footage.

A key component of the project is a partnership with Goodwill Northern Michigan to provide Permanent Supportive Housing, offering stable, long-term housing paired with supportive services for individuals facing housing insecurity.

Potential funding sources for the project include MSHDA (Michigan State Housing Development Authority), MEDC (Michigan Economic Development Corporation), Goodwill, and EGLE (Michigan Department of Environment, Great Lakes, and Energy). Homestretch will also seek the City’s support through a 4% Payment in Lieu of Taxes (PILOT) agreement and consideration of a parcel donation to support project viability.

Proposed Project Timeline:

• Funding: 2026
• Construction: 2026-2027
• Opening: 2027

2025 PAVEMENT PRESERVATION & RECONSTRUCTION PROJECTS

OPEN HOUSE ON MARCH 6TH

At a recent Study Session, City staff presented plans for the 2025 Pavement Preservation and Reconstruction Projects. Each year, the Department of Public Services' Streets and Asset Management Divisions, along with Department of Municipal Utilities, review potential streets for preservation and reconstruction based on their condition, utility replacement needs, and other factors. The City utilized Pavement Surface Evaluation and Rating (PASER) software to assess street conditions, with ratings ranging from 1 (very poor) to 10 (excellent).

2025 Proposed Projects

The City identified streets for reconstruction and repair for the 2025 construction season, evaluating their PASER ratings and necessary utility improvements. Additionally, some of these streets were part of the City's Mobility Action Plan, meaning they could see enhancements beyond basic resurfacing as part of the “Proposed Vision Bike Network.”

Improvements are being planned for the following streets.

• E. Ninth Street (Union Street to Cass Street)
• Eleventh Street (Pine Street to Lake Avenue)
• E. Twelfth Street (Union Street to Cass Street)
• Fulton Street (Jefferson Avenue to Randolph Street)
• Griffin Street (Pine Street to Locust Street)

Community Open House

The City is hosting an Open House on March 6, 2025 at the Governmental Center to seek input from residents impacted by the 2025 Pavement Project.

2025 Pavement Preservation & Reconstruction Open House

March 6, 2025

4 - 6 pm

Governmental Center, Training Room

400 Boardman Avenue

Pavement Asset Management Plan

The development of a Pavement Asset Management Plan is currently underway to better guide pavement preservation efforts over the next five years. The plan is intended to be completed in 2025 and presented to the City Commission for future adoption.

TELL US ABOUT PARKS

SEEKING INPUT ON CITY PARKS IMPROVEMENTS

The Brown Bridge Trust Fund Ad Hoc Committee is seeking suggestions from residents regarding their desired improvements to parks and accessibility to parks. The input process is simple, consisting of a single question asking what improvements you would like to see.

Background

In 2019, a ballot proposal passed with 75.89% support, allowing the City Commission to use the Brown Bridge Trust Fund principal exceeding $12,000,000 for City park capital improvements and property acquisition for parklands for five years. This allowance expired on November 4, 2024.

In June 2024, the City Commission established an Ad Hoc Committee to explore the possibility of placing a new proposal before voters in November 2025.

Next Steps

The Ad Hoc Committee is currently evaluating how to propose the use of the funds, with a focus on park and recreational improvements. A key priority is enhancing access to parks to ensure they are more inclusive and accessible for all. The Committee plans to finalize the proposal language by May 2025.

THE PERFORMANCE 2024 AT A GLANCE

INFRASTRUCTURE IMPROVEMENTS

The City has published The Performance, the 2024 annual report, highlighting the significant progress and accomplishments in the past year.

The City's infrastructure improvement projects in 2024 reflect its commitment to sustainability, accessibility, and long-term functionality. The Performance outlines key developments, including roadwork, waterway restoration, and facility enhancements.

FishPass Project: Reconnecting the Boardman/Ottaway River

The $30 million FishPass Project replaces the Union Street Dam with an advanced fish-sorting system, balancing ecological restoration and invasive species control. Construction began in 2024, with completion expected in 2027. The City contributed $285,000 toward this pioneering effort.

Pavement Preservation: Enhancing City Streets

Launched in 2023, this $2.57 million project improved road safety and longevity through resurfacing, targeted street reconstructions, and stormwater infiltration upgrades. Project included the Cass and Union Street intersections at Eighth Street, Maple Street, Parking Lots C & G, Twelfth Street, Eastern Avenue, and Railroad Avenue. Funding came from the Road Commission Millage Fund, Capital Projects Fund, and DDA Tax Increment Financing (TIF) Funds.

Veterans Drive Reconstruction: Roadway & Utility Upgrades

From July to October 2024, Veterans Drive underwent a full reconstruction, improving pavement, drainage, and utilities. The $2.6 million project was backed by federal, MDOT, and City funds. Key improvements included new bike lanes, sidewalks, and pedestrian-friendly crossings.

New Senior Center: A Long-Awaited Community Hub

A decades-long vision became reality with the 2024 completion of a new Senior Center, expanding from 5,780 to over 18,000 square feet. This $10 million project, funded by the State of Michigan, City ARPA funds, Brown Bridge Trust Fund, and private donations, features:

Sustainability: Electrification with no natural gas running to the building, geothermal systems. green roofs, and pervious pavement.

Accessibility: Enhanced beach access, outdoor spaces, and modern restrooms.

Recreation & Facilities: Tennis/pickleball courts, a fitness room, meeting space, a commercial kitchen, and covered drop-off zones.

Parking Structure Restoration: Extending Facility Lifespan

Between May and November 2024, the Hardy and Old Town Parking Structures underwent $909,180 in critical repairs, including concrete restoration, traffic coatings, and tower improvements. Funded by the Parking Fund, this is the first phase of a 5-year, $2.1 million restoration plan.

Bridge Inspections & Streets Division Efforts

Routine and underwater bridge inspections were conducted to ensure compliance with MDOT/FHWA standards. The Streets Division continues year-round maintenance of roads, sidewalks, alleys, and trails, ensuring a safe and accessible community environment.

STRATEGIC PLANNING SURVEY EXTENDED

The community survey for the Strategic Action Plan has been extended through February 28, 2025, to gather valuable input on the community’s vision for the future. Designed for City of Traverse City residents and those with a direct connection to the community, the survey aims to understand perspectives on life in Traverse City and shape the City's long-term direction.

The City has already surpassed 1,000 submissions and hopes to gather even more! The survey is open to all ages, so consider making it a household activity and sharing it with friends and neighbors.

As the Strategic Action Planning process moves forward, community engagement is essential. Stay informed by visiting the project portal and joining the mailing list for updates and opportunities to get involved.

IMAGINE ROTARY SQUARE

OPEN HOUSE

The DDA invites the community to an "Imagine Rotary Square" open house on Thursday, February 27, 2025, from 5:30-6:30 pm at the City Opera House (106 E Front St). Attendees can review survey findings, participate in activities, and ask questions about the project.

Envisioned in the TIF-97 Plan, Rotary Square began taking shape when the DDA purchased the former Chemical Bank property at State and Union in 2019 with funding from the State of Michigan ($2M) and Rotary Charities ($1M). While the space has hosted events, community input is essential for its future.

This open house is part of the "Imagine Rotary Square" initiative, with a preliminary design expected by June 2025.