Traverse City commissioners will consider caps on short-term rentals that could significantly reduce the number allowed in different zoning districts. That’s one of several issues they plan to tackle as they work with staff to implement the city’s new strategic action plan and objectives and key results (OKRs). Removing barriers to childcare and housing and holding more joint meetings with other boards to encourage better collaboration are also on the list.

Commissioners Monday received their first quarterly update since adopting OKRs – a list of targeted goals and outcomes for the city’s recently adopted strategic action plan – in March. City Director of Communications & Strategic Initiatives Colleen Paveglio sought input from commissioners on next steps for the “ambitious” list of near and mid-term goals.

Short-term rentals (STRs) stood out because it’s a “hot topic in the community,” Paveglio said. When the city was creating its strategic action plan, resident input reflected a strong desire to address STRs. “There was a level of boldness that the public wanted to see,” Paveglio said. Commissioners Monday agreed to revisit a proposal created by the city’s planning commission last year to alter the maximum number of STRs allowed in a given building in different zoning districts.

As proposed by the planning commission, the number of allowable units would remain the same in some districts – including 25 percent in the C-1 (Office Service), C-2 (Neighborhood Center), and D-2 (Development) districts. The level would also stay the same at 100 percent in the HR (Hotel Resort) district, because that district is specifically designed for hospitality units.

But other districts could see significant reductions in the number of STRs allowed. That includes going from 100 percent to 0 percent in I (Industrial) and 100 percent to 25 percent in the D-3 (Development), D-1 (Development), and C-4c (Regional Center) districts. Both the C-4a and C-4b (Regional Center) districts would be reduced from 100 percent to 50 percent, while C-3 (Community Center) would be reduced from 100 percent to 35 percent. City Planning Director Shawn Winter previously noted that percentages are higher in some districts in the heart of downtown because those areas seem more appropriate for commercial tourist activity.

In addition to considering those caps, commissioners may look at other STR issues – ranging from fee structures to regulatory tools to enforcement – once the city has new legal counsel in place. City Manager Benjamin Marentette also said the city is working to “bring all the destination communities in Michigan together to advocate collectively for change in legislation to help offset the burden that our local taxpayers endure as a result of the substantial amount of tourism we have.” He said the “collective heft” of municipalities collaborating could help bring about changes to the law. “It will take some time, but it's important,” Marentette said.

Also related to OKRs, commissioners supported having staff begin reviewing the city’s childcare-related ordinances “to identify and evaluate potential barriers to expanding childcare opportunities within the city,” as described in a memo from Paveglio. Working with employers on childcare solutions will be an important part of that process, commissioners agreed. The board also gave staff the green light to review city ordinances to “identify opportunities and reduce barriers to housing,” according to the memo. That could include changing parking regulations and relaxing rules for accessory dwelling units (ADUs) to allow more units to be built in the city.

Commissioners also agreed to hold more joint meetings with other boards to encourage better coordination. That includes a minimum of two joint meetings annually with the TC Downtown Development Authority, two joint meetings annually with the city planning commission, and at least one joint meeting each with TC Light & Power and Parks and Recreation. City and planning commissioners are expected to jointly discuss a plan to create zoning overlay districts and to prioritize key corridors in the city’s capital improvements plan, such as Seventh Street, Fourteenth Street, and East Front Street.

Paveglio noted that several OKR items will take time to review, with discussions and then action steps likely to extend into 2027 and beyond. Staff will continue providing quarterly updates and plan to also soon launch public-facing software that will allow residents to track the city’s progress. Marentette said commission feedback helps staff prioritize what to tackle first in a long list of ambitious goals.

“We’re trying to properly populate the queue and have a cadence that's sustainable,” he said.