Keel Capital, the development group behind a proposal to convert the former Traverse Bay United Methodist Church on Ramsdell into a housing development, has withdrawn the project from city consideration.

Traverse City planning commissioners voted 6-1 last week to reject supporting Keel Capital's request to reduce the minimum lot size for a planned unit development (PUD) – a zoning plan tailored to a specific property – to redevelop the site into a mix of 18 townhomes and an 18-unit condo building. Planning Commissioner Anna Dituri was the sole 'yes' vote on the request. The city’s zoning ordinance requires a minimum lot size of three acres for a PUD, but the church property is 2.31 acres. City commissioners, however, can authorize PUD applications for properties under three acres, which they recently did in 2024 for the 1.16-acre Mill District development on Woodmere Avenue. 

The planning commission meeting was a tense affair with backlash from residents opposed to the development and terse words exchanged among some board members. Planning commissioners ultimately rejected the request because several felt that the developers did not adequately articulate why they needed a PUD, which is typically granted to properties that are uniquely challenging to develop.

"The applicant has failed to present to me an argument that shows why this should be considered," said Planning Commissioner Brian McGillivary. Others, like Chair Debbie Hershey, reluctantly agreed while still emphasizing the need for more housing projects in the city. 

Because planning commissioners only make a recommendation on the PUD waiver, the request would normally still go to city commissioners for consideration. However, Interim City Manager Benjamin Marentette said at Monday's city commission meeting that Keel Capital has "rescinded their request."

"So that will not be coming in front of the city commission," Marentette said. "They may or may not propose some other concept at some time in the future. They certainly have that right and that option." Marentette added that Keel Capital also still has the option to "pursue something that doesn't require a planned unit development."