More rental options could be headed to downtown Traverse City after city commissioners voted 4-3 Monday night to allow accessory dwelling units (ADUs) – or granny flats – within city limits.

The vote ends a nearly decade-long debate over whether city homeowners should be allowed to rent out secondary dwellings – such as garage, basement or attic units – on their property. Planning commissioners revived the proposal earlier this year to help relieve increasing housing demand in the community, voting 6-2 in February to forward the ordinance on to city commissioners for final approval.

Several stipulations were put on the latest iteration. Some residents have been concerned that ADUs would compromise the neighborhood character of downtown districts. Only 10 new ADU permits will be granted each year in single-family neighborhoods, with the owner required to live on-site. A minimum three-month rental period will be required – a restriction City Attorney Lauren Trible-Laucht has warned could prompt a legal challenge, as city home rentals have only a one-month minimum.

Despite the concessions, nearly two dozen people spoke out at Monday’s meeting about the proposal, the majority opposed to ADUs. “All I can see is my property value going down,” worried one resident. Grand Traverse County Commissioner Christine Maxbauer – a Central Neighborhood resident – summed up the feelings of many in the crowd when she pleaded: “It could change the character of our city. Please don’t do this.”

Commissioners Ross Richardson and Barbara Budros and Mayor Michael Estes sided with those opposed to the project, voting against the measure. Budros described the ordinance as “a disaster” that relied on “disingenuous” language to purport a preservation and maintenance of neighborhood character she believed ADUs would actually eliminate. “I think there are issues upon issues with this,” she said. Richardson said he believed ADUs would primarily benefit homeowners looking to “profit (off) of our prime neighborhoods.”

But other commissioners defended the policy, including Central Neighborhood resident Jim Carruthers. “I’m challenged tonight…every direct neighbor of mine has spoken against this,” he confessed, looking out at the audience. Carruthers continued that a lack of affordable housing options for working-class residents ultimately drove his support for ADUs. “Do we want this to be an exclusive town only for the wealthy?” he asked.

The new ADU ordinance will go into effect April 16. Permits will be available on a first-come, first-served basis to city homeowners who meet the program criteria.

Also at Monday Night’s Meeting…

City commissioners Monday approved a final budget and funding sources for a planned reconstruction of West Front Street this spring – with one notable exception. A motion to approve funding for a planned traffic signal at the corner of Front and Hall streets failed in a tie vote after several residents expressed concern the new light would divert traffic into Central Neighborhood.

While City Engineer Tim Lodge strongly argued in favor of the light, noting that “this particular location has the highest incident of angled crashes (along Front),” several commissioners expressed skepticism over the need for the signal, instead preferring to study the intersection further and delay a light installation. The signal failed to gain the five majority votes required to proceed. The remaining $2.2 million budget for West Front was approved, with construction on the project expected to begin this month.

City commissioners also approved scheduling interviews for the position of city manager for May 1-2 and spending up to $1,200 per candidate to cover travel and lodging costs. A new agreement with the National Cherry Festival (NCF) for 2015 was also approved. It eliminates a previous $45,000 cap on the festival’s annual reimbursement for city costs and instead see NCF pay the city for its actual out-of-pocket costs this summer, estimated at close to $63,000. NCF also agreed to reduce its park usage to 13 days (including set-up and tear-down) in 2015 and to double the amount of handicap parking offered this year.