Bob Sutherland, founder and owner of Cherry Republic, wants to build the ultimate cherry empire on one of downtown Traverse City’s most coveted – and currently under-developed – corners. But the longtime successful local entrepreneur is facing objections.

Sutherland has partnered with local developer Thom Darga of Dargaworks to redevelop the property at the corner of East Front and Cass by removing the existing three buildings and constructing a four-story 40,000 square-foot structure that will include a Cherry Republic retail center on the first two floors and 14 residential units above. Another 10,000 square feet will be used for underground parking. The overall construction cost is approximately $12.5 million.

Sutherland is seeking $2 million in brownfield funding from the state, money that will come from new tax revenue generated by the project (more than $15 million over 30 years). However, with those dollars comes a local investment requirement, and debate over that investment has the development (at least momentarily) in the pits.

The Ticker caught up with Sutherland to ask about this latest obstacle in his Cherry Republic expansion plans, frustrations and his next move, if any.

Ticker: Why this project?
Sutherland: Cherry Republic has been looking for a permanent home to make a “cherry destination” in the Cherry Capital of the World. This will be a working destination…people will be able to see how Cherry Republic gets it done.

Ticker: The City Commission derailed the project by a 4-3 vote last month. Why?
Sutherland: I think our commissioners feel they are being so fiscally responsible because we are seeking $2 million from the state. But are they? Rejecting the new taxes, the jobs, the millions of dollars coming back into our local economy. We’re received positive feedback from every governmental entity except the city commission. They are the only roadblock.

Ticker: In your opinion, what is the City Commission’s highest priority where this project is concerned?
Sutherland: Overall $5 million in new tax revenue would come directly to the city – $3 million to the DDA and $2 million to the city. The commission wants a very relevant use for the local matching public investment of just under $1 million. What might kill the project is if the city can’t decide how to spend it. [A proposed city square was shot down. The latest idea? Utility line burial and service upgrades downtown by TC Light & Power.]

Ticker: What do you feel is being overlooked in the public debate over this project?
Sutherland: This project keeps getting marked as requesting $2 million in state funds. Lost in the story is the economic development component. This project creates $300,000 annually in new taxes. (Currently, it’s creating $45,000.) It will create 200 construction jobs and 50 new jobs downtown – 25 that are consolidated from the company’s Glen Arbor location and 25 new ones – and long-term new cash flow in the community.

Ticker: What’s next, or are you throwing in the towel?
Sutherland: We have some hurdles to overcome. . . but we’ll continue to give our best to making this project happen. Right now we’re working on cost estimates with TC L&P and are scheduled to appear before the City Commission again on August 15.