Carnegie/Bijou RFP, Parking Projects, City Clerk Appointment Top City Agenda

Traverse City commissioners will kick off their first meeting of 2026 with a busy agenda tonight (Monday) that includes approving issuing a request-for-proposals (RFP) for the Carnegie Building and Bijou by the Bay, considering multiple parking-related projects, and appointing Sarah Lutz as the permanent city clerk, among other items.

Carnegie/Bijou RFP
After expressing support for the concept at a December study session, city commissioners will vote tonight to approve issuing a request-for-proposals to solicit interested tenants for the Carnegie Building on Sixth Street and Bijou by the Bay in Clinch Park. With multiple parties expressing interest in both city buildings, officials previously said some type of fair process – like an RFP – was needed to determine who gets to use those spaces. The Bijou by the Bay is vacant, while Crooked Tree Arts Center has a lease in the Carnegie Building that expires in October.

“Leasing these buildings ensures that public assets are not left vacant or underutilized, reduces the financial burden on the city, and allows creative, community-minded organizations to activate these spaces in ways that enrich the city for everyone,” the RFP states. Based on input from commissioners, the RFP process will prioritize applicants with an arts, cultural, or environmental focus. Commissioners also want to see leases that at a minimum cover the city’s building expenses. Neither building can be used for retail or restaurant operations, the RFP notes.

While commissioners could change the criteria tonight as part of their approval, staff are recommending applicants provide details on the following: proposed facility use and operations plan, community benefit and value, financial sustainability, organizational capacity and experience, environmental stewardship, accessibility and inclusivity, and community partnerships and engagement.

If approved, the RFP is expected to be issued this week, with a submittal deadline of February 4. The process would include mandatory site tours for interested applicants. Following interviews, a recommendation on tenants for both buildings would come to city commissioners for approval.

Parking Projects
Commissioners will discuss two parking-related proposals tonight. Following a recent presentation by developer John Socks proposing to partner with the city to build a public-private parking deck on State Street, commissioners will consider how to move forward tonight. City Manager Benjamin Marentette is recommending that if commissioners are interested in selling the city properties that would host the parking deck, they go through a request-for-qualifications (RFQ) process – similar to an RFP – so multiple developers could submit proposals “rather than solely negotiating with one party who approached us first.”

In an email to Socks, Marentette said he believed that approach would “serve the public interest the best.” The process would allow commissioners to “consider public input that would help shape what elements should be included in the RFQ,” he wrote, and “allow for multiple parties to pitch ideas.”

Commissioners tonight will also vote to approve a contract with Team Elmer’s for up to $170,000 to demolish two properties on State Street to expand parking lot P, the surface lot near the curve where State Street becomes Pine Street. The properties, which the city acquired for its stalled third downtown deck, are located at 120 and 122 West State Street and formerly housed Salamander Technologies and RSF Holdings.

“The proposed work includes asbestos abatement, universal waste disposal, and demolition of both structures,” according to the city’s Bay Brief. “Demolition is scheduled to begin in March 2026 and be completed by the end of April 2026, marking phase one of the broader parking lot P expansion project. Bid documents for the parking lot expansion itself are nearing completion, with the expanded lot targeting completion in July 2026.”

City Clerk/Deputy Clerk
Commissioners tonight will consider appointing Interim City Clerk Sarah Lutz as the permanent city clerk. Lutz, who previously served as deputy city clerk, was elevated to the interim role last summer when Marentette became interim city manager. That arrangement stipulated Marentette could step back into the city clerk role if commissioners chose another city manager long term. With Marentette recently appointed as the permanent city manager, Lutz can now become the permanent city clerk. The appointment requires five affirmative votes by commissioners. Commissioners tonight will also consider appointing Rebecca Adler as deputy city clerk.

Also on Tonight’s Agenda…
> Commissioners will consider approving a resolution of support for House Bill 5225. The proposed state legislation “would increase the maximum household income for summer tax deferments – available to qualifying seniors, veterans, and disabled homeowners – from $40,000 to $60,000, with automatic inflation resets every five years,” according to City Treasurer/Finance Director Heidi Scheppe. The bill “provides targeted relief, preserves the city’s revenue, and introduces only minimal cash-flow and administrative impacts,” Scheppe wrote. “Expanding deferment eligibility is a measured, fiscally responsible action that offers meaningful benefit to qualifying residents.”

> Commissioners will consider approving a one-year extension for operator Troy Daily to continue running his Kayak Bike & Brew and Paddle for Pints tours using Hull Park and American Legion Park in 2026. City officials are in the process of developing new policies for commercial operators using park space, but those guidelines aren’t expected to be ready for several months yet. The extension contract with Daily is “intentionally designed as a temporary, one-year bridge agreement to provide operational continuity without locking into terms that might conflict with the upcoming Parks Master Plan expected to be finalized late spring 2026,” Marentette wrote.

> Commissioners will consider approving an easement agreement with J.S. Capitol Group, the developer of a new Marriott Tribute Portfolio hotel in the Warehouse District, to install a six-foot-wide sidewalk on city property between that hotel and Hotel Indigo. Planning commissioners previously approved its design as consistent with the city’s master plan. The sidewalk is required by the fire department to provide a ground-floor emergency exit, but J.S. Capital Group plans to also use it as a placemaking project with lights, benches, landscaping, and public art. Staff previously said the sidewalk will provide a valuable pedestrian connection between Grandview Parkway and the Warehouse District/west side of downtown.