The Grand Traverse Band of Ottawa and Chippewa Indians is seeking to put 73 acres of property on Herkner Road in Garfield Township into federal trust – a move that could pave the way for a housing development at the site.

Grand Traverse County commissioners will discuss the request at their 6pm board meeting tonight (Wednesday) at the Governmental Center. While the United States Department of the Interior has final authority over approving or denying the trust request, both Grand Traverse County and Garfield Township can provide input on the proposal to the Interior.

Attorney Bill Rastetter of Olson, Bzdok & Howard represents the Band and explains that putting the property – which lies just south of North Long Lake Road near Traverse City West Senior High School – into trust would “enable the Tribe to take advantage of federal programs specifically (designated) for trust properties,” such as mortgage financing and infrastructure improvements.

“But there has to be a justification for it,” Rastetter adds. “In this case, the justification is that this development is needed for housing purposes.”

The site would be the first location for tribal housing in Grand Traverse County. Rastetter says the Band already has housing in Leelanau, Benzie and Charlevoix counties, but not enough to meet the demand for its members. “More tribal members live in Grand Traverse County and there’s more demand here…there’s a very distinct need for housing,” he says.

Putting the property into trust would remove the parcel from county and township taxrolls, and also free it from zoning restrictions on the site. In a memo to county commissioners, County Planning Director John Sych noted that previous Band trust requests were approved in 2006, 2008 and 2012 in Acme and Whitewater Townships, and said both the Garfield Township and Grand Traverse County master plans supported housing at the Herkner property.

However, Sych said the county and township would likely need to work out an arrangement with the Band to offset the increased demand in municipal services created by the housing development. Though taxes on the property amounted to less than $8,000 in 2014, taxable value would significantly increase should the site be developed – a loss that's more difficult for the county to quantify, Sych says.

“An agreement is necessary…to offset the expected increase (in) demand for services and infrastructure in this area and other areas in trust,” Sych wrote.

Rastetter notes the Band has contributed over $15 million to governmental entities in Grand Traverse County since 1994 through its two-percent allocation. He says such payments “far outweigh the lost taxes” from lands put into trust.

However, Rastetter agrees there would “likely be cooperative agreements” with local governments drawn up to cover costs for sewer, water and other infrastructure services. While plans for the housing development have not yet been finalized – federal funding exists to cover the design phase of the project if the trust request is approved, Rastetter says – the development would likely be comprised of single-family homes and potentially some “apartment-type” facilities, according to the attorney.

Sych tells The Ticker there’s a “precedent of positive relationships” between Grand Traverse County and the Band, and that past boards have “typically” taken advantage of the opportunity to weigh in on trust requests. According to a letter from the U.S. Department of the Interior, commissioners have until August 15 to provide comments on the proposal. Should the board provide such input tonight, commissioners will receive official notification when the Interior makes its final determination on the trust status.