New Downtown Market Planned in Lot O Development

Plans are taking shape for a new mixed-use development on Lot O, the parking lot at the corner of State and Cass streets next to The Omelette Shoppe. In addition to 44 income-restricted apartments on the upper floors, the ground floor is envisioned to be a 4,000-square-foot market featuring fresh produce seven days a week from local farmers, a hot/cold deli, coffee bar, rotating food stalls, grocery staples, fresh sushi, to-go beverages, and potential curbside and delivery service.

Traverse City Downtown Development Authority (DDA) board members will hear an update on the Lot O project (pictured, rendering) at their 9am meeting Friday at the Governmental Center. It’s the first time details are being shared on the ground-floor commercial space, which the nonprofit group HomeStretch previously only described as a “local food market.” That market has now been announced as a partnership with Harvest Food Systems of Tamarack Holdings, a family of local food companies that includes Cherry Capital Foods, Great Lakes Farm to Freezer, and Food For Thought.

Cherry Capital City Market, as the space is called, would provide access to local farmers seven days a week in conjunction with the Sara Hardy Downtown Farmers Market. DDA Executive Director Harry Burkholder says details of that partnership are still being finalized, which will define how active of a role the DDA/Downtown Traverse City Association plays in operations. That could include simply providing a pipeline for farmers market vendors to participate in the city market – “facilitating the conversation,” Burkholder says – or SEEDS, which runs the farmers market for the DDA, helping run the city market.

The goal is to ensure downtown visitors and residents can purchase fresh produce and proteins daily. Project documents state that “products will be priced competitively” based on a consignment model, with farmers receiving 60-70 percent of the retail price. The market – modeled after the Grand Rapids Downtown Market – would also offer fresh sushi, a coffee bar, healthy specialty food products, core food/grocery staples, basic personal hygiene items, a limited selection of local beer/wine/NA beverages, ready-to-make-and-eat items, and a hot/cold deli. A food hall area will allow for a rotation of local chefs/pop-up restaurants to be featured in 3-6-month stints, says Tamarack Holdings CEO Michael Lahti.

A single point-of-sale system would allow customers to check out with all their goods, rather than having to purchase from individual areas. With rolling garage doors and adaptable indoor/outdoor seating, the footprint will be flexible across all four seasons. While other stores operate on the perimeter of downtown – such as Oryana, Family Fare, Tom’s, and Burritt’s – none of those businesses are located within DDA boundaries. Lahti says Cherry Capital City Market will “fill a long-time need for a centralized downtown market option.” Its model can be adjusted to accommodate the influx of millions of summer visitors – allowing tourists to pop up from Clinch Park or the marina to grab food/drinks and head straight back to the boat or beach – but is “generally focused on those who reside in or around downtown,” Lahti says.

Cherry Capital City Market is seen as an important resource for tenants who will be living upstairs, as the project has emphasized the ability to be carless if desired and walk and bike to essential services. HomeStretch and multiple project partners are building out the residential portion, which has been in the works for several years. HomeStretch previously reached a deal to purchase the city-owned parking lot for $470,000 to build out the five-story project. City commissioners approved a payment-in-lieu-of-taxes (PILOT) agreement this spring and awarded $143,110 in Community Development Block Grant funds to the project in August. The Lot O development is estimated to cost over $19.5 million, with a variety of other state and federal funding sources backing the project.

According to HomeStretch presentation materials, the latest residential configuration means the average income for a tenant in one of the 44 apartments will be under 53 percent of the area median income (AMI). Eleven units are slated for 30 percent AMI – an annual gross household income level of $22,900-$31,830 – with an estimated rent range of $452-$573. Another 12 units are targeted to 40 percent AMI – an annual gross household income level of $29,720-$42,440 – with an estimated rent range of $638-$812. Fifteen units are geared toward 80 percent AMI – an annual gross household income level of $59,440-$84,880 – with an estimated rent range of $1,230-$1,625. Six one-bedroom market-rate units will also be in the building at an estimated rent range of $1,600.

Project documents list a planned fall 2026 groundbreaking on the building, with construction continuing through 2027. Cherry Capital City Market hopes to host its grand opening in fall 2027. “After the loss of Maxbauer, I think this is a great opportunity not only for the people who visit downtown and work downtown, but also those who live downtown,” says Burkholder.

Photo credit: Integrated Architecture