East Bay Township trustees will tackle a busy agenda tonight (Monday) at 6:30pm that includes a public hearing on a proposed new corridor improvement authority – or TIF district – on US-31, a brownfield plan for a 240-unit housing project on Three Mile Road, an intent-to-bond resolution for the East Bay/Acme sewer project, and resolutions supporting a grant application to acquire The Ridge and to establish a school speed zone around the Hammond/Three Mile intersection.

TIF Public Hearing
Trustees will hold a public hearing tonight on forming a corridor improvement authority (CIA) – a tax increment financing (TIF) district that operates similarly to a DDA and would cover the township’s Beach District along US-31, helping fund improvements like pedestrian crossings, sidewalks, streetscaping, and a public pier. Trustees won’t take any action on the plan tonight but instead gather public feedback following two informational open houses in July.

Potential action on the plan is slated for the board’s September meeting, at which they could vote to establish the CIA and appoint a CIA board. “A future step this fall will be consideration of establishing a (TIF) plan for the corridor to help fund public infrastructure priorities that have been identified through the visioning process,” according to a staff memo. The boundaries of the CIA would run the entire length of US-31 in East Bay Township, as well as extend up Three Mile and Four roads and along the TART Trail (pictured, map).

Just like a DDA TIF, the CIA would work by capturing rising property tax values within the district boundaries – leaving the baseline tax revenues in place to continue going back to local jurisdictions – and using those funds to pay for public improvement projects. It is not a tax increase, township officials explained in a project overview, and does not apply to any properties outside the CIA boundaries. Township officials have discussed the possibility of the CIA helping fund a replacement bridge on US-31 for the Traverse City State Park pedestrian bridge slated for removal, among other projects.

Housing Project
Trustees will vote tonight on supporting a brownfield plan for a 240-unit apartment complex called Traverse City-Central Park LLC on a 20-acre parcel on Three Mile Road just north of the Meadowlands Industrial Park. The project from development group Krimson will include 10 three-story buildings with 24 units each, with apartments ranging from 647 square feet (one-bedroom) to 1,389 square feet (three-bedroom). Proposed amenities include a clubhouse, carport parking, two dog parks, a playground, bus stop, and a system of walking paths and outdoor picnic areas. East Bay’s planning commission unanimously approved the project site plan in March.

The bulk of the units – 190, or 79 percent – will be reserved for residents earning up to 100 percent of the area median income (AMI). Rent with utilities included for those units is expected to range from $1,285 for a one-bedroom apartment to $2,079 for a two-bedroom apartment, according to the brownfield plan. To create that “missing middle” housing, Krimson CEO Steve Calverley said he needs to seek brownfield TIF reimbursement for the project, which is allowed under recent changes to Michigan brownfield rules. The reimbursement is intended to offset the lost revenue developers could have otherwise earned if they built market-rate housing.

The brownfield plan for Traverse City-Central Park LLC covers approximately $20 million in reimbursable expenses over the 30-year lifespan of the plan. Trustees in July also established a Residential Housing District for the property, which will allow Krimson to apply for a temporary tax abatement for the site – another way to offset costs for workforce housing. That abatement will require the 50 market-rate units to be priced below 120 percent AMI for the first 12 years. If supported by township trustees, the brownfield plan will next go to Grand Traverse County commissioners and the county Brownfield Redevelopment Authority for approval.

Sewer Bonds
Trustees tonight will vote to adopt a notice of intent resolution that would allow the township to issue up to $6.5 million in bonds for a joint East Bay/Acme sewer project – building a new main to replace a crucial but severely corroded line that carries all the wastewater for both townships to the treatment plant in Traverse City. The project cost is estimated at $11.4 million, which will be covered by a combination of grants and a cost-sharing agreement between East Bay and Acme in roughly a 60-40 split, respectively.

The resolution gives East Bay the ability to bond up to $6.5 million but doesn’t obligate it to do so if final costs come in under budget. Following board approval of the notice of intent resolution, a public notice will be published that gives voters a 45-day period in which they can file referendum petitions calling for an election before the bonds can be issued. If the referendum period passes with no petitions filed, the township can proceed with bonding.

The Ridge
Trustees tonight will consider approving a resolution of support for a collaborative application with the Grand Traverse Regional Land Conservancy to the Michigan Natural Resources Trust Fund for the Conservancy’s acquisition of the property known as The Ridge between Four and Five Mile roads. The property – a steep, wooded ridge of over 300 acres with expansive views stretching as far as Sugar Loaf in Leelanau County – houses key wetlands and spans two sub-watersheds of the Grand Traverse Bay watershed, including Mitchell Creek and the East Bay Shoreline. A small portion that is not ecologically sensitive is being explored for community housing.

Trustees previously issued a resolution of support for the grant application in February but are raising the amount sought tonight after an appraisal produced a higher-than-expected property value. The total project cost is now just over $10 million, about $2 million more than first estimated. The grant funding being sought is approximately $4.8 million, with the Conservancy to secure the remaining $5.2 million in matching funds.

Speed Zone
Finally, trustees tonight will vote on a resolution to establish a school speed zone around the Hammond/Three Mile intersection. The speed limit, which would be in effect during school hours, would be reduced to 35 miles per hour along Hammond and Three Mile for a distance of 1,000 feet from each nearest school property line. School districts are also requested to support the speed zone, which is approved by the Michigan Department of Transportation (MDOT) and Michigan State Police. Pedestrian improvements around the intersection are planned in 2026 as part of Safe Routes to School, with township staff stating that the lower speed limit will help serve those improvements.