Traverse City commissioners Monday expressed unanimous support for using a request-for-proposals (RFP) process to solicit interested tenants for the Bijou by the Bay in Clinch Park and the Carnegie Building on Sixth Street – citing a strong preference for proposals from nonprofits with arts, culture, or environmental focuses. Commissioners also discussed the future of the aging City Opera House, which has significant maintenance needs.

The facilities discussion capped a busy study session agenda for commissioners Monday, which also covered proposed tax incentives for housing, a complete streets policy, and 2026 infrastructure projects. Deputy City Manager Deb Allen said she’s been working for over a year to assess leases for city-owned buildings, the terms and enforcement of which have often varied wildly and – until the recent hiring of Facilities Manager Dave Wohlfert – lacked a dedicated staff member managing them.

The Bijou, Carnegie Building, and City Opera House represent the most “public-facing buildings that we have,” Allen said. The 2,800-square-foot Bijou building (also called the Con Foster building) has sat vacant since the Traverse City Film Festival ended its lease at the end of 2024. It costs the city approximately $17,000 to operate annually and is in good-to-fair condition, according to staff. However, converting the building from a theater to another use could cost anywhere from $100,000 to $500,000, Allen estimated. That is a “legitimate concern” affecting the potential future of the building, she said.

The Bijou also sits on city parkland. Under the city charter, that means the building can’t be sold or used for a non-parkland use without a vote of residents. City Attorney Lauren Trible-Laucht said uses allowed under the parkland category are “wide,” however, including a theater. Allen said the city could always “reclaim” the Bijou for its own city park use, reinforcing the public connection to Clinch Park and the waterfront. However, owner Brian Chamberlain of Eugene’s Record Co-op advocated during public comment to keep the Bijou as an entertainment venue, preferably one that could serve as a “live performance space” for a variety of community shows and events.

The 11,500-square-foot Carnegie Building – built in 1905 and expanded in 1966 – is leased to Crooked Tree Arts Center through the end of October 2026. The building also houses the Grand Traverse Area Rock and Mineral Club and the city’s Con Foster collection. While the city takes in $55,000 annually from the lease, the building costs about $62,000 annually to operate. The Carnegie Building also has nearly $600,000 in needed repairs, including upgrading the HVAC system and the historic windows. The city sought funding recently through a historic grant application but was unsuccessful; staff said they will try again in a future round.

With multiple potential tenants expressing interest in city buildings, officials previously said some type of fair process – like an RFP – was needed to determine who gets to use those valuable spaces. All seven commissioners expressed support Monday for using an RFP process for both the Bijou and Carnegie buildings. Kristi Wodek of Crooked Tree – which has faced competing interest from Traverse Area District Library for the Carnegie space – said she supported an RFP process, which she called “important for transparency.” However, she advocated for Crooked Tree’s consideration in that process, noting the nonprofit has never defaulted on its rent and has nearly 160 artists who exhibit in the space and earn revenue through sales. Crooked Tree paid out over $100,000 this year to artists “primarily in this community,” Wodek said. “So when you are looking at this…it’s the ripple effect. It’s not just us.”

Commissioners did not vote on a motion since they were in study session, but with their verbal support staff said they will bring a proposed RFP back at an upcoming meeting for approval. Staff would then issue that RFP, collect and vet proposals, and ultimately present them to commissioners for consideration – a process that typically takes at least a few months to complete. Commissioners cited a preference for proposals from nonprofits working in arts, culture, or the environment, as well as for proposals where the lease terms would cover the city’s actual building expenses. While Commissioner Ken Funk pointed out that major infrastructure repairs fall to the city as landlord, he agreed with Mayor Pro Tem Laura Ness's statement that “rents should cover operating costs.”

Commissioners also discussed the City Opera House Monday. Built in 1892, the 21,440-square-foot historic building houses the City Opera House Heritage Association under a $1/year annual lease through 2068. As part of that structure, three commercial tenants also rent space on the ground floor: Outpost, Votruba Leather, and Great Lakes Bath & Body. While building operations have historically been self-sustaining through those leases, maintenance needs continue to climb at the facility. Those include water damage repairs, structural flooring issues that will be addressed in January, and a full roof replacement planned for this spring at an estimated $150,000 cost.

Commissioners said they may revisit the retail leases when they come up for renewal over the next several years, but were generally satisfied with the operating arrangement at the Opera House. However, Allen said in a memo that the lease terms with the City Opera House Heritage Association should be updated to “address the true cost of operating” the building. Funk noted that all three buildings discussed Monday fall within the TC Downtown Development Authority’s (DDA’s) boundaries and asked about potential DDA support for building repairs. Allen said she’s had that conversation with the DDA, which expressed an “openness” to that conversation but asked the city to submit a formal funding request for review.