Brown Bridge Trailhead Project, Housing Programs on City Agenda

Traverse City commissioners will vote tonight (Tuesday) to approve work for a new trailhead project along Hobbs Highway at the expanded Brown Bridge Quiet Area. Commissioners will also tackle several housing-related issues, including holding a public hearing for a new attainable housing district program – which residents were recently notified about by certified mail – and a payment-in-lieu-of-taxes (PILOT) request from the Traverse City Housing Commission for a workforce housing project on Eighth Street.  

BBQA Trailhead
Commissioners will vote tonight to approve a not-to-exceed contract of $92,782 – which includes a 15 percent contingency – with Gourdie Fraser for a new trailhead project at the Brown Bridge Quiet Area (BBQA).

The city recently closed on the acquisition of 528 acres of land adjacent to the BBQA, significantly expanding the nature preserve. Residents voted in 2023 to approve using Brown Bridge Trust Fund (BBTF) dollars as a city match for a state grant for the property purchase. Access to the new property is initially being offered through existing trailheads along Ranch Rudolf Road and trail connections from Grand Traverse County's Camp Greilick property. However, there is currently no dedicated public access point to the new parcel.

That will change with the construction of a new trailhead along Hobbs Highway. Planned improvements include “parking, restroom facilities, a universally accessible trail, a viewing platform overlooking Spring Lake, and connections to the expanded trail system,” according to the city’s Bay Brief. The Gourdie Fraser contract will cover engineering, design, and construction management services. The total project budget is estimated at $350,000 and is also covered by the BBTF as part of a list of projects approved by voters last fall to receive funding.

Gourdie Fraser was one of four bidders on the contract. Parks and Recreation Director Michelle Hunt says the firm’s qualifications are “particularly well aligned with this project,” as Gourdie Fraser served as the engineer of record on several other recent local trail projects and has an established relationship with the Grand Traverse Conservation District, which manages the BBQA. “This existing familiarity with the property and project partners is expected to provide value as the project moves from design through construction,” she says.

Construction on the new trailhead is expected to begin next spring.

Attainable Housing District
Commissioners will hold a public hearing tonight on establishing an Attainable Housing District, which is a designated area where property owners can apply to receive tax incentives in exchange for providing rental housing.

The city already sent notices by certified mail to property owners who would be eligible for the program, which along with the public hearing is a required step under state law for the program. “The program is intended to help reduce the cost of creating, renovating, and preserving smaller-scale rental housing while encouraging continued investment in the community’s housing supply,” according to the Bay Brief.

Owners of eligible rental properties with up to four units can receive a reduced property tax rate for 1-12 years. Applications must be approved by both the city and the State Tax Commission. Details on the program are available on the city's website.

PILOT
Commissioners will receive an overview tonight on the city’s payment-in-lieu-of-taxes (PILOT) program and consider approving a request for a PILOT by the Traverse City Housing Commission (TCHC) for a workforce apartment complex planned on Eighth Street.

City Assessor Amy Robbins will give an update on the PILOT program, which is “an arrangement where property owners or government bodies make a set fee payment to a local municipality instead of paying standard ad valorem taxes,” Robbins explains. Offered as an incentive to encourage workforce housing, a PILOT often sees a developer pay a defined percentage of net shelter rents to the local municipality as well as some type of fee for municipal services.

Commissioners will weigh in on whether they want to cap the number of PILOTs in the city and whether the city’s scoring criteria and rubric should be updated. Following the presentation, commissioners will consider a TCHC request for a PILOT for a development on the former Copy Central property on Eighth Street. The site is planned to host a four-story building with 43 low-income units, including 29 one-bedroom and 14 two-bedroom units.

All unit rents will be targeted to tenants earning between 30 and 80 percent of the area median income (AMI), according to Robbins, with seven units “reserved for extremely low-income residents with disabilities utilizing the HUD Section 811 program.” The proposed gross rents for one-bedroom units will range between $641 (30 percent AMI) and $1,710 (80 percent AMI), while two-bedroom units will range between $769 (30 percent AMI) and $2,052 (80 percent AMI).

The four percent PILOT agreement is proposed for 45 years, which would lock in that AMI range for tenants for the duration of the contract. Robbins notes the development is “intended to address the lack of attainable housing in the region and have a significant, positive impact,” highlighting its location near trails, grocery stores, transportation corridors, and other amenities in the city core. Construction is slated to begin next August, with leasing to begin in December 2028.

Photo credit: City of Traverse City