News that national retailer Costco is seeking a 20-year lease to open a 154,000 square-foot store on South Airport Road drew enthusiastic responses from Traverse City shoppers in October. But before the project can move forward, local planning officials must tackle a host of issues related to the development, including zoning approvals, traffic impacts, future business growth and the “rural character” of the South Airport corridor from Garfield Avenue to Three Mile Road.

Traverse City planning commissioners will have their first discussion about the project tonight (Tuesday) at 7:30pm at the Governmental Center. “The big issue (at this stage) is does the planning commission and the city commission find this an appropriate place for a big-box store?” says City Planning Director Russ Soyring. “It’s not allowed by our zoning right now. So we’d have to look at the different approaches that could allow for a Costco development.”

The 18.3 acres Costco seeks to lease from Cherry Capital Airport falls within city limits, meaning the city has “total jurisdiction” over project approvals, according to Soyring. Airport property is currently designated “transportation” in the city’s zoning code, a category that does not allow for commercial or retail use.

Commissioners could agree to rezone the property to allow Costco to build, or could set “conditional” requirements on a rezoning request. In the latter scenario, the retailer would agree to certain terms in exchange for approval, such as conforming to the architectural and design standards of the adjacent airport, maintaining natural tree buffers, and/or contributing to building sidewalks and bike lanes. Commissioners could also flesh out a “campus plan” for the airport property in the city’s Master Plan covering desired uses and businesses for the site, similar to campus plans for Munson Medical Center and Northwestern Michigan College.

At least one important distinction will exist between Cherry Capital Airport and any businesses to be built on its property: Though the airport is tax-exempt, commercial sites like Costco would pay property taxes, Soyring says.

While city officials will take the lead in reviewing the development, Costco’s proposed location is set to impact several other municipalities. City limits end at South Airport Road – a county-maintained road – with East Bay Township and Garfield Township split by Townline Road directly on the other side. Accordingly, Grand Traverse County Planning Director John Sych recently convened a meeting of city, county, township and airport planning officials to “coordinate communication and planning” efforts for the entire corridor.

“A Costco going in that location could really start changing the character of the corridor,” says Sych. “Right now it’s primarily a two-lane road with some light industrial activity, which fades into single-family residential. But once you get a sizable development in there, you get the potential for other development pressure along that corridor.”

Sych says the Grand Traverse County Road Commission, which “requires developers to conduct traffic studies," will mandate the same for Costco. That study would determine if South Airport needs to be widened, restriped or otherwise improved between Garfield and Three Mile to accommodate store traffic. A possible roundabout instead of a traffic light at the airport entrance could help keep vehicles moving, says Soyring, who adds that a Costco has the potential to almost double daily trips along that stretch of road.

Sych says a Costco could ultimately prove to be a good fit for the corridor, concentrating development within city limits instead of sprawling further outward. However, he says area planners need to ensure “there’s proper infrastructure in place as land use changes are made” along South Airport Road, and that the “rustic character” of the corridor is protected to the greatest extent possible.

“If you look at the entry way to the airport – the sign, the fountain, the trees – it says something to visitors coming here from all over the world about who we are as a community," Sych says. “It says we care about the natural environment. It’s really important to find a way to buffer that area so we can keep that unique character.”