Proposals by community groups to take over the city's coal dock, historic Carnegie Building, and a Wellington Street warehouse have raised questions about the need for a consistent process to handle disposal of city-owned properties. Now Traverse City commissioners want to use the Carnegie Building as a “test run” for fleshing out such a protocol.

The city is juggling offers by Discovery Center Great Lakes to redevelop the former Traverse City Light & Power coal dock off M-22 into an educational marina district, Safe Harbor of Grand Traverse to convert a city-owned warehouse on Wellington Street into an emergency homeless shelter, and two proposals by the History Center and Artcenter Traverse City to use the Carnegie Building as a base of operations.

During last night's commission study session, City Manager Jered Ottenwess proposed “a more consistent approach to responding to proposals” and the possible disposal of city-owned property. The process would apply to the three properties now up for discussion, as well as any future inquiries, and establish an ad hoc committee to go through the following steps: identifying any restrictions on the property in question; establishing whether the city needs the property for its operations or wishes it to be used for a specific purpose; preparing a request for proposals (RFP) and a public bid process; determining the fair value of the property; and reviewing RFP responses and awarding a bid.

The process could also encompass discussions of whether the city wants to sell a piece of property out-right, or lease it to a local group.

Noting the time-sensitive nature of the Carnegie Building proposals – the History Center has informed the city it's unable to financially sustain operations at the facility and must either renegotiate or vacate or share the property with another tenant – several commissioners advocated for forming an ad hoc committee to review that property first per Ottenwess' recommended steps.

“I like the idea of a process (for these properties) because...we need to make decisions that are in the best interest of the city,” says Commissioner Barbara Budros. “The first proposal may not be in the best interest of city residents. We have to look at what all the possibilities are for the property.”

Mayor Michael Estes agrees, saying he believes it's possible to “entertain (both the History Center and Artcenter) as well as additional groups” at the Carnegie Building, and that the city's first step should be “to find out who all the potential users are” for the site. He also pointed out that in the past, the city would declare city-owned land “surplus” before it was ever put on the market for use – a step that hasn't yet occurred for any of the three properties in question, but which Estes believes should be part of the process.

The mayor also tells The Ticker he'd like to see city staff keep an ongoing inventory of excess property so commissioners can be prepared for – or seek out – bids on unused facilities. He adds that promoting “public awareness” of such property discussions should be a key area of focus for the city.

“When one proposal is submitted, it should be implied there's a willingness to look at others,” Estes says. “That hasn't happened with Wellington or Carnegie yet.”

Wellington could become the second site to go through the new review process, as at least two proposals may be forthcoming for the property. While the city commission encouraged Safe Harbor to apply for a Special Land Use Permit for the property at a July 14 meeting, NorthStar Soccer Inc. is also preparing a formal proposal to submit to the city to use the building for a multi-sport facility called Grand Traverse Sports Center. NorthStar President Darrell Rogers – who says the organization is awaiting final city approval on amending the zoning code to allow recreational facilities in several city districts – tells The Ticker a “detailed proposal...will absolutely be coming to the city soon."

Estes calls NorthStar's interest a “legitimate request” and says if the organization submits a formal proposal for the Wellington building, he will request it come before the commission for official review. In the meantime, commissioners – who did not vote on any motions last night since they were in study session – will formally move to create an ad hoc committee to study the Carnegie Building at next week's commission meeting.