The Grand Traverse Band of Ottawa & Chippewa Indians has become the outright owner of the Grand Traverse Town Center development on M-72 in Acme, and has simultaneously applied with the U.S. Department of Interior to put the 160-acre parcel into trust status. If approved, the property and any future developments there would come off the property tax rolls.

In its application to the Department of Interior, the tribe says it seeks to accelerate development on the site, and aims to build housing and add more retail to the corridor.

“The Grand Traverse Band has plans to immediately develop…consistent with the fully-permitted, state authorized Planned Unit Development (PUD). The tribe fully intends to work with Grand Traverse County officials in a collaborative process,” the document says.

The purchase and trust application do not apply to the Meijer store that opened last year; Meijer owns its property on the site.

Over the past fifteen years, the development been the subject of lawsuits, bitter political battles, and environmental violations. Steven Smith, the original developer of the property, could not be reached for comment.

Last year, Smith told Northern Express, “Very honestly, I would like to just move on with my life because this last 14 years has been absolutely terrible — the stress, the money I’ve spent.”

The tribe had purchased a minority interest from Smith in July 2015; terms of the sale of the remainder of the property were not disclosed.

Rich Bailey, CEO of the Grand Traverse Band’s Economic Development Corporation, tells The Ticker “the tribe has watched for 14 years the previous owners hit with obstacle after obstacle and mired in local politics. So after 14 years and becoming a partner, we have some different avenues available to us.”

Bailey adds that it is “very important to the tribe that we will honor the spirit of the Special Use Permit and we intend to use all the appropriate agencies during construction and inspection phase” of any new development.

Putting the land into trust could have significant tax implications. Lands held in trust status become the jurisdiction of the tribe and would not be subject to traditional federal, state and local taxing authorities.

According to Acme Township tax records, the current assessed value of the vacant parcel is $5,217,900; the taxable value is $871,871. Annual property taxes on the land have totaled approximately $40,000; adding a large, mixed-use development would increase the value and tax base of the property significantly.

Local officials have yet to review the trust application. Acme Township Supervisor Jay Zollinger tells The Ticker, “My reaction is that it’s interesting. I won’t have much more to say until I read it. Obviously some people in the public arena will try to make some quick judgments. But I will say the tribe has always worked well with our township.”

Grand Traverse County Commissioner Carol Crawford, who represents Acme, says, "I don’t have a problem with it at all. It’s theirs, and this is something that by law they’re allowed to do. They paid for the property. It would take some future development off the tax rolls, so we wouldn’t get tax money for that. But my personal opinion is we get far more benefit from what they do for our community than we would ever get in tax dollars...You can’t always look at what you’re losing. You have to look at what you’re gaining on the other side. Those [new stores] will bring a lot of jobs, and those people will likely live in Acme or Grand Traverse County and be taxpayers."

The move is part of the Grand Traverse Band’s efforts to diversify its economy beyond gaming. In addition to Turtle Creek and Leelanau Sands Casinos, the tribe owns and operates Grand Traverse Resort & Spa. One of its holding companies recently opened Harpo’s Coffee Café in Traverse City. A mixed-use development in Acme could deliver jobs, housing, and revenue to tribal members.

With Turtle Creek on one end, the Resort on the other and Grand Traverse Town Center in the middle, the tribe would also be in a position to control much of the M-72 corridor that’s a high-traffic gateway into Traverse City.

Says Tribal Chairman Thurlow “Sam” McClellan, “This fee-to-trust process is the first step in a well-developed and well-recognized diversification project…”

The Department of Interior review process can take anywhere from several months to more than a year.