Traverse City commissioners will tackle a busy agenda tonight (Monday) that includes a first look at the city’s 2016-17 budget, a proposed Costco store, and several Downtown Development Authority (DDA) projects. 

City Budget
City Manager Marty Colburn will present his first draft of the 2016-17 budget to city commissioners tonight. The board will have an opportunity to provide feedback on city spending and budgetary priorities in the coming year, which also includes fiscal plans for the DDA and Traverse City Light & Power. The city’s entire general fund budget last year was $15.58 million.

The draft budget won’t be released until tonight’s meeting, but Colburn tells The Ticker he’ll be “placing an emphasis” on spending in categories commissioners identified as priorities in recent city strategic planning sessions. Those include the environment, health and welfare, and infrastructure, with more specific projects including parks, stormwater, housing, sidewalks and streets. Colburn has also requested discussion tonight on improving walkability in the city, another initiative commissioners identified as a priority.

“I’m taking into consideration the recent established goals and objectives of the city commission as a whole, and weaving those into the budget,” Colburn explains.

Other agenda items tonight could also affect the upcoming budget. Colburn has requested a closed session to discuss “strategy in connection with collective bargaining agreement negotiations,” and is also seeking commission approval of a three-year contract with Grand Traverse County for Central Records services. The county has long contended the city does not pay its fair share to fund that department, which services both the Grand Traverse Sheriff’s Office and the Traverse City Police Department. The new proposed contract will increase the city’s share of Central Records’ budget from 17.8 percent to 22 percent, or $194,000 – an increase of roughly $20,000 annually.

Commissioners will further review the city budget at a study session next Monday (May 9), with a public hearing set for May 17. The board must approve a final version of the budget by June 6.

Costco
Commissioners appear likely to approve zoning changes tonight that will allow a proposed Costco store to proceed on South Airport Road. However, the board will also consider passing a resolution of support for state legislation that would clamp down on loopholes used by big-box stores like Costco to reduce their property taxes.

If approved by commissioners, a text amendment to the city’s zoning ordinance allowing new uses on the Cherry Capital Airport property – including retail stores, brewpubs, restaurants, theaters and commercial offices – would go into effect May 12. The amendment would pave the way for a 154,000 square-foot Costco store to be built on 18.3 acres of airport property. The 20-year store lease is valued at $3.3 million and is projected to bring 200 jobs to the area, according to airport officials.

But commissioners’ concerns about “dark store” taxes – a method by which stores can appeal to get their property taxes reduced – prompted the inclusion tonight of a resolution of support for House Bill 5578. That legislation proposes to close the tax loophole and charge retailers rates based on the “highest and best use” of their property. The legislation will ensure communities like Traverse City receive “equitable taxes” from such developments, according to the bill language.

DDA
Finally, commissioners will consider signing off on several DDA measures tonight forwarded by the downtown board. Those include a three percent salary increase for DDA Executive Director Rob Bacigalupi over each of the next three years, and nearly doubling parking lot usage fees for special events taking place on city lots.

The DDA board is also seeking approval to lease city space near the Pine Street Pedestrian Bridge to J&S Hamburg, which hopes to place 11 tables outside with seating for up to 40 diners during the summer months. Downtown and city arts commission officials have also requested approval to relocate a planned memorial for former DDA Executive Director Bryan Crough from Park Street’s Radio Centre III to the city-owned Lay Park on Union Street. According to officials, recent changes in the engineering plans for the Radio Centre III development will limit public interaction at the site, prompting the proposed move to Lay Park – another location that was a finalist for the memorial.

Traverse City commissioners will meet at 7pm tonight at the Governmental Center.