Traverse City News and Events

East Bay Township Approves 101-Home Subdivision, Extension of STR Moratorium

By Beth Milligan | May 10, 2023

East Bay Township trustees this week approved plans for a new 101-home subdivision to be built on the east side of Three Mile Road between Potter Road and Eikey Road, and approved extending a moratorium on new short-term rental licenses for another four months. Trustees also addressed concerns from Pine Grove residents about an adult foster care facility opening in the neighborhood for individuals with mental illness and/or developmental disabilities.

Victoria Farms Subdivision
The O’Grady Development Company received unanimous trustee approval Monday to develop a new subdivision with 101 single-family homes on Three Mile Road. The 119-acre parcel is the former location of Dreves Farm and has direct access from Three Mile Road and future access from the Cinnamon Ridge subdivision (pictured, map). The site is being proposed as a residential cluster subdivision, a designation that “allows some flexibility with smaller lot sizes with larger amounts of open space preservation,” according to Township Director of Planning & Zoning Claire Karner.

Kyle O’Grady previously told planning commissioners the new subdivision will be similar to surrounding developments, with home sizes roughly ranging from 2,400 to 3,200 square feet at prices similar to Cinnamon Ridge. Homes in that neighborhood range from $230,000 to $590,000, real estate listings show. The project – formerly called Hayfield Manors, now named Victoria Farms – is proposed to be built in two phases. The first phase, which will front Three Mile Road, will include 48 homes, while the second phase will include 53 homes.

Several conditions were attached to the township board’s approval. All construction traffic to the new development will be limited to using the Three Mile Road entrance, the developers must provide road connections to Cinnamon Ridge and pave a road to connect to the public road Saffron Circle, and traffic calming and landscaping amenities must be installed to provide a buffer to neighboring residents. Township officials commended the developers for modifying their plans to address concerns from neighbors about the impacts of the new neighborhood, with Trustee Mindy Walters saying the final plan represented a “good compromise.”

Short-Term Rental Moratorium
Trustees voted Monday – with two opposed, Walters and Matt Cook – to extend the township’s moratorium on new short-term rental (STR) licenses for another four months. East Bay first enacted an moratorium last June – and has already extended it once – while the board works to finalize a new set of rules regulating STRs. Monday’s decision now extends the moratorium into early September, with trustees hoping to vote in August to approve the new rules. The moratorium extension carved out exemptions for some license holders who previously held valid licenses but accidentally let them lapse and two applicants who were in the queue for township approval when the moratorium was issued. Individuals who meet specific criteria in those two categories are now eligible to obtain licenses.

Trustees discussed the latest draft of the new STR ordinance this week. While there seemed to be board consensus on many issues – ranging from enacting a 1,000-foot buffer between new rentals to setting a capped number of licenses on an annual basis to scheduling license renewals to all take place at the same time each year – other areas were more divisive. Trustees were particularly torn on proposed language stipulating rentals can only be turned over a maximum of once every seven days (the previous restriction was once every four days).

Multiple STR owners said in public comment that the change would essentially cut their rentals in half and significantly impact their income and that of their employees, such as house cleaners. Some trustees felt limiting rental turnovers would provide breathing room to neighbors and minimize neighborhood impacts. Other trustees didn’t see an issue sticking with the current four-day language, saying the township hadn’t received complaints about turnover and could have challenges enforcing date restrictions anyway. Trustees agreed to discuss the issue on its own at their June meeting to try and reach a consensus on the rule.

Adult Foster Care Home
Finally, township trustees and staff addressed concerns from Pine Grove residents Monday about a new adult foster care home opening in their neighborhood. The property, located on Indian Trail Boulevard, has previously been used as an adult foster care facility, but is under new ownership through the Hope Network. That organization has obtained a state license to provide voluntary adult foster care for up to six individuals who have been diagnosed as developmentally disabled or mentally ill.

That is a change in focus from the type of patients who were at the former adult foster care facility, which primarily provided senior care. Neighborhood resident Michelle Witkop said she understood the importance of mental health facilities, but questioned the appropriateness of locating one within a residential neighborhood next to a public park. “How safe is that going to be for our neighborhood?” she asked, adding that admission parameters for the facility weren’t clear and worrying it could include people experiencing psychosis or violent or predatory behaviors.

Township Zoning Administrator Preston Taylor and township attorney Peter Wendling both said they had extensively reviewed the project. Taylor spoke with the state licensing department, which confirmed the license was appropriate for the site’s intended use. There will be no substance abuse disorder treatment at the facility, Taylor noted. Wendling said that under state regulations, the facility is still considered an adult foster care home the same as it was previously. He also pointed out that the state has carved out special regulations for such facilities, making it difficult for townships to regulate them on a local level. “There’s not a whole lot under zoning that a municipality can do,” he said.

Wendling said he was still vetting a few aspects of the project, such as confirming with the state whether there are any specific rules about required lengths of stay for patients. However, barring any answers from the state that conflict with the facility’s plans or any future violations, the home is free to operate under state law, township officials said.

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