As negotiations continue around three key city-owned properties, The Ticker reports on the latest developments at each site – and what’s likely to come next.

Carnegie Building
A committee of city commissioners reviewing potential Carnegie Building tenants appear close to securing their first occupant: Crooked Tree Arts Center.

Commissioner Ross Richardson says the committee has reached a “general agreement” with the nonprofit group on terms for a three-year lease for annual rent of $25,000. The Grand Traverse Rock & Mineral Club also appears likely to continue on in the building, with a proposed lease of $2,000 annually. Richardson says the lease agreements for both groups will likely head to the city commission for official approval in March.

As for the building’s existing primary occupant, the History Center of Traverse City – lease negotiations are “a little more shaky, a little more complicated,” says Commissioner Gary Howe. History Center Executive Director Maddie Lundy points to several sticking points that have held up negotiations, including what the group believed was an unfair price per square footage for rent compared to Crooked Tree’s lease, the timing of rent payments, and the History Center’s request to be able to terminate the lease with 30 days’ notice – a clause Lundy says existed in their previous city lease.

“The city did make the changes we requested in the most recent (lease) draft…it’s a lot better now,” she says, noting the latest agreement contains the 30-day exit clause and allows for monthly payments on the annual $5,800 rent. History Center board members will meet Tuesday night to vote on whether to move forward with the city.

517 Wellington Street/Safe Harbor
Another long-gestating project proposed for city property could also come back before commissioners in March. Safe Harbor of Grand Traverse – which was granted a special land use permit (SLUP) last fall to open an emergency homeless shelter at 517 Wellington Street – is now exploring the possibly of purchasing rather than leasing the property. After inspections revealed mold and roof leakage issues, Safe Harbor hired an architect to help price out various scenarios including remodeling versus rebuilding the facility and tackling renovations as an owner versus an occupant.

“There are different restrictions put on you as a tenant of a city-owned building versus as a private owner,” says Safe Harbor board member Christie Minervini. “You have to bid out the whole project, and you can’t use donated goods or services. That’s a big one for us, because the development would cost significantly less if we could accept (donated work)."

Minervini – who says Safe Harbor was encouraged by city staff to consider a purchase scenario – notes any sale would likely include a deed restriction that would revert the property to the city if Safe Harbor closed. The feasibility of a purchase will ultimately depend on commission approval of such an arrangement and settling on a “realistic” sales figure for the property, says Minervini.

520 West Front Street/Commission on Aging
After Mayor Michael Estes recently suggested selling or finding more profitable uses for a city-owned building at 520 West Front Street now housing the Grand Traverse County Commission on Aging (COA) and MSU Extension offices, county commissioners want to explore relocating those groups to the vacant basement floor of the Governmental Center.

“We’re paying very expensive rent to the city of Traverse City…and that building is costing us an excessive amount of money to heat and maintain,” said Commissioner Addison “Sonny” Wheelock at a February 11 board meeting. Other commissioners agreed, directing County Administrator Dave Benda to study the feasibility of moving COA and MSU-E to the Governmental Center, which is county-owned.

With a planned West Front Street reconstruction this spring, Estes has called the city parcel a “valuable piece of real estate” that could eventually be converted into a commercial or housing development.