Traverse City planning commissioners voted Tuesday to support plans for a new mixed-use development at the former TC Millworks property on Woodmere Avenue and to rezone the 300 and 400 blocks of South Union Street. Both proposals now head to city commissioners for final approval.

Mill District
After several months of review with city staff and planning commissioners, a proposed redevelopment of the former TC Millworks property at 1032 Woodmere Avenue received a key green light to move forward Tuesday. Planning commissioners voted unanimously (with Jess Heller absent) to support the planned unit development (PUD) application for the Mill District, as the project is being called. Owner Tim Pulliam of Keen Technical Solutions and his partners are planning to build a mixed-use development on the site with four buildings, including one commercial building and three residential buildings.

The southernmost commercial building (pictured, rendering) is envisioned to house an “adventure hub” that will serve as the new long-term home of Brick Wheels, bike and paddleboard rentals, and a potential café/restaurant/brewery space. Pulliam said Tuesday that the commercial building will be the first one constructed, with a targeted early 2027 completion date. Phase two will consist of three buildings – three to four stories high – containing multi-family market-rate residential units with underground parking.

A new non-motorized trail connection from Carver Street to the Boardman Lake Loop Trail, sidewalk along Carver Street, and the paving of Sheffer Street with public on-street parking are also included in the project plans. Planning commissioners added a condition to their support requiring those improvements to be completed before any occupancy permits can be issued. TART Trails submitted a letter of support for the project, saying it appreciated “the Mill District’s emphasis on community benefits, particularly the improvements in non-motorized connectivity and the creation of vibrant public spaces that reflect our shared values.” The opportunity to improve access “to the Boardman Lake Loop Trail, extending beyond the Mill District to the Traverse Heights neighborhood, is particularly exciting,” TART Trails wrote.

City Planning Director Shawn Winter said city staff met with the Watershed Center to address concerns from that organization about potential work in the riparian area. Winter said he thought those concerns were now resolved, given that a waterfront pavilion initially included in the PUD is not moving forward at this time. All work being proposed is upland of the existing trail, Winter added. In response to questions about water service at the site, Winter said that City Director of Municipal Utilities Art Krueger confirmed there is sufficient capacity with existing infrastructure to serve the property.
The Mill District PUD now heads to city commissioners for approval. It will need to go through at least two meetings, including an introduction and then a public hearing and approval vote.

Union Street Rezoning
Planning commissioners voted 7-1 Tuesday – with Jackie Anderson opposed – to support rezoning the 300 and 400 blocks of South Union Street between Sixth and Eighth streets from C-2 (Neighborhood Center District) to C-4a (Regional Center District).

The proposal has been discussed on and off for several years but came to the fore in May after a developer sought to rezone 418 and 420 Union Street – one parcel currently a vacant lot, the other a building that houses a hair salon that would be demolished for the project – and combine the properties into one site. A new mixed-use development there would have ground-floor commercial units and 24 residential units on the upper floors. Winter previously said that rezoning those two properties alone would likely constitute “spot zoning” and be opposed by the city attorney. However, since rezoning Union Street in general has long been discussed and is supported in the city’s new master plan, planning commissioners took the opportunity to look at the larger corridor.

While the maximum building height is the same under both zoning designations – 45 feet – C-2 has a key clause that has been restricting growth in Old Town, Winter previously said. That clause states buildings can only go to 45 feet if one floor is residential – otherwise, the building height is limited to 30 feet. That restriction forced Kuhn Rogers to move out of Old Town to accommodate the firm’s growth after more than 100 years downtown. Other Union Street property owners have expressed support for the rezoning. Developer Terry Beia – who owns multiple properties in the corridor – said rezoning would help “accelerate” the goal of making the Old Town district “a vibrant part of our downtown living and retail/dining community.”

Todd McMillen of McMillen’s Custom Framing – located on the 300 block of Union – said the change will “benefit the community of Union Street and allow property owners better development opportunities.” He added: “With the Civic Square and FishPass connectivity, Union Street can develop a new look within Old Town – and rezoning this district can make the growth and density more of a reality.” Representatives from Alward Fisher (400 block) and MSU Federal Credit Union (300 block) also wrote to support the rezoning.

Winter noted that most properties in the two blocks are non-conforming with the current C-2 standards, so if the corridor was destroyed for some reason it couldn’t even be rebuilt as it is today. The new C-4a designation will help create consistent standards and bring buildings into zoning compliance, Winter said, writing that “much of the existing development pattern aligns more with the proposed zoning district than what it is classified as today.”

Planning commissioners previously also considered rezoning the 500 block of Union south of Eighth Street but ultimately moved forward just with the 300 and 400 blocks. The 500 block is more transitional into residential neighborhoods and received pushback for that reason. Winter said the city could always revisit the issue if there was support in the future for changing the 500 block. The rezoning recommendation now heads to city commissioners for approval.