Traverse City News and Events

Commissioners Debate Costco Zoning

April 19, 2016

A proposed text amendment to the city’s zoning code that would allow a Costco store to proceed on South Airport Road generated concerns - and some sharp words – among city commissioners Monday.

The proposed amendment would expand zoning regulations in the city’s transportation district – which encompasses the Cherry Capital Airport property on which Costco is planned – to allow for a wide variety of uses, including retail stores, brew pubs, restaurants, theaters and commercial offices. Noting that the amendment would pave the way not only for Costco, but potentially a variety of big-box stores on the property, Commissioner Gary Howe asked to temporarily table the amendment until city staff could add language requiring such stores to go through a special land use permit (SLUP) process with the city.

“(The amendment) needs a little more safeguarding of the city and also adjacent taxing jurisdictions,” Howe said. “It’s really about scale. We have a SLUP that’s required for vertical scale. I think we should have a SLUP or some other considerations for horizontal scale as well.” Howe expressed concerns big-box stores could impact city infrastructure and services and warranted review by city staff before being built.

Commissioner Ross Richardson, who sits on the city planning commission along with Howe, criticized Howe for not raising his concerns at the planning commission level and for missing a meeting in which the text amendment was reviewed by that body. “It really just looks like you’re trying to scuttle (the project),” said Richardson, saying he believed the city risked losing Costco if it dragged out the approval process. Richardson noted that Costco would be required to pay for a traffic study on South Airport Road, and that Cherry Capital Airport officials have stated they would participate in costs to improve the corridor if required. “I’m just saying you haven’t done your research,” Richardson told Howe. “You don’t know your s***. I’m sorry.”

But other commissioners expressed similar concerns as Howe. “I’m all for Costco coming to town, but if it’s our first big-box store…let’s make sure it’s done well,” said Commissioner Tim Werner. “If the potential deal is so fragile that it falls apart because we’ve asked for information and a little bit more time to look at it…maybe it wasn’t meant to be.” Commissioner Richard Lewis also pointed out that while planning commissioners had reviewed the possible zoning amendment at several meetings, Monday marked the first time the issue had come before city commissioners. "While I appreciate the comment this has been going on for quite some time, I got here in November. Just because it's been on your all's agenda for 6-8 months, it's just now been on mine since Thursday," Lewis said - referring to when city commission packets were distributed last week.

A motion to temporarily table the amendment and bring it back to city commissioners no later than June 20 failed by a 3-4 vote, with Howe, Werner and Brian Haas in favor, and Lewis, Richardson, Amy Shamroe and Jim Carruthers opposed. A second motion to schedule the zoning amendment for possible enactment May 2 – with the caveat that city commissioners discuss the changes in more detail at their study session next Monday – then passed unanimously.

Cherry Capital Airport Director Kevin Klein encouraged city commissioners going forward to consider the economic impact and new jobs Costco would create. The retailer’s proposed 20-year lease is valued at $3.3 million, Klein said, with the store expected to bring 200 jobs to the area and $500,000 in annual income to the airport. “This is a non-taxable area we’re going to make taxable,” Klein said.

Attorney Chuck Judson, who represents the Northwest Region Airport Commission (NRAC), also cautioned commissioners that Cherry Capital Airport is one of the few airports in the country not currently in control of its own zoning. Judson said unnecessary land restrictions placed on the airport by the city limiting the airport’s ability to generate income could draw the ire of the Federal Aviation Administration, which could take the extreme step of restricting public use of the airport.

“This is what is happening at airports across the country,” Judson said of commercial retail developments. “It’s allowing airports of our size to stay self-sufficient.”

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