The City of Traverse City is preparing to renew a contract with Traverse Connect for another three years for economic development services. City commissioners met with Traverse Connect leaders this week to review priority areas – which mirror the city’s new strategic plan underway – that include developing an “equitable and sustainable future for city residents” and building “a thriving year-round economy.” Traverse Connect President and CEO Warren Call said the city faces key challenges, like rapid growth without an accompanying rise in employment and wage benefits – but also has opportunities, particularly when it comes to taking a leadership role in regional collaboration.

Traverse Connect’s proposed contract extension will be included in this year’s city budget, which commissioners will vote to finalize by June. Under the three-year agreement, the city will pay Traverse Connect for economic development services at a rate of $52,500 in 2025, $54,075 in 2026, and $55,697 in 2027 – a three percent annual increase.

Under its contract, Traverse Connect is required to provide both written and verbal updates to city leaders throughout the year on economic development efforts, with agreed-upon focus areas outlined in the terms. Camille Hoisington of Traverse Connect noted this week that the organization’s restructuring in 2019 – when it merged with the Traverse City Area Chamber of Commerce – was undertaken specifically because the city lacked an economic development department. The organization now helps “serve as an extension for the public sector and for the city’s team,” she said.

Hoisington said feedback from city residents about the desired direction of Traverse City’s future – collected by consulting firm Future iQ as part of the city’s ongoing process to create a strategic plan – are “all key priority areas where we can help.” Those include issues like sustainable infrastructure and planning, regional partnerships, and a diversified economy. Both Hoisington and Call addressed Traverse City’s growth, about which many residents have expressed concerns. Hoisington said the goal isn’t just preparing for the future but addressing real needs now.

“We already know that we have development pressures here, they’re not going to go away,” she said. “We can help to shape that growth. We can be thoughtful and intentional about what type of growth we see and how we develop our region.”

Call also emphasized Traverse Connect doesn’t champion “unfettered growth,” adding that “a focus on collaborative, controlled, sustainable development is what garners community support.” In the last 25 years, Grand Traverse County has seen a population increase of 25 percent – a figure that jumps to nearly 250 percent since 1970. “The velocity of that, the trajectory of that, generates resistance, right?” Call said. “It’s hard to deal with, especially when it’s not always maybe the community’s preferred type of growth.” Making things doubly difficult, Traverse City has not realized the full economic benefits of that growth, Call said – citing data of lower compensation and lower real GDP per worker compared to other benchmark communities.

Call said part of Traverse Connect’s mission is to help build “family-sustaining careers across the spectrum.” Efforts include economic diversification in advanced industries, improved compensation and talent attraction, and support for technology development and sustainability. Call pointed to the organization’s partnership with Northwestern Michigan College to help northern Michigan become a center for the drones industry and work to attract electric boat technology among its projects. “We’re going to be one of the first places for drone-enabled water studies and rural health innovation anywhere in the country, which I think is pretty cool,” Call said.

In response to concerns from Commissioner Tim Werner that the city not only focus on attracting high-paying jobs but ensure those living and working here now making minimal or working-class wages can also benefit from economic development efforts, Call agreed and said the organization’s work encompasses a range of job types and salary levels. Traverse Connect was a lead advocate for securing funding for an educator housing pilot in Blair Township, Call said – a project that has the potential to be replicated at other local sites. Commissioner Mitch Treadwell said that “family-sustaining” isn’t just about wage levels but also issues like housing access and adequate childcare – issues for which Treadwell said Traverse Connect has also been an advocate.

Call said that when Traverse Connect launched its Michigan's Creative Coast Job Board in 2020, the site garnered 893 total job views. By 2024, that number had skyrocketed to 41,000 job views. While the site sees hits from interested job applicants in cities ranging from Houston to Dallas to Atlanta to Miami, the number one user group of the job board is Traverse City, Call said. Garfield Township is also in the top 10 list of users. Commissioner Heather Shaw said she believed that more high-paying jobs in diverse fields is a necessity for Traverse City, with the alternative being to let “tourism run us over.” She added: “It seems to me that trying to rely on tourism dollars to keep our economic development going is an inadequate response to our cultural and environmental legacy.”

Call said one of the most important steps Traverse City can take is becoming a more proactive leader in regional collaboration. “The city has not had as active of a voice over the last couple years,” he said. “There is concern in the community about every municipality having their own siloed approach.” FishPass and the Freshwater Research & Innovation Center are examples of projects benefiting from a highly collaborative approach between various local partners, Call said. Addressing housing and homelessness issues, infrastructure, roads, and legislative priorities and funding in Lansing are other areas where local municipalities could see improved results from stronger partnerships, according to Call. He cited long-term commitment and focus, willingness to challenge the status quo, sustained funding and resources, and public/private partnerships as important tools for implementing the city’s strategic plan and economic development priorities.

City Manager Liz Vogel said it was a “heavy lift” to address all the major issues Traverse City faces in the coming years. “In order to have this regional collaboration, we need a strategic partner who’s going to help get us there,” she said. “I really feel like Traverse Connect is keyed in.” Shaw also said she wants to see the city get out of its comfort zone and work more closely with other municipalities to plan for the region’s future. “We need to work together, or we may be left behind,” she said.