Traverse City’s Development Boom

Aug. 27, 2015

The Grand Traverse region is experiencing one of the most intensive development booms in decades, thanks to a recovering economy, strong population growth and high demand for housing and commercial real estate.

"This is probably one of the most active times I can remember with all the development going on," says Grand Traverse County Deputy Director of Planning and Development Jean Derenzy. "I think right now the economy is right.

With the different financing packages available, things seem to be loosening up for the developers."

With hundreds of millions of dollars of new investment pouring into Traverse City and its surroundings, Northern Express provides a guide to the latest news on the development front.

Meijer Superstore

One of the largest commercial projects in the region is approaching its grand opening date. Acme’s Meijer Superstore – a combination grocery and department store slated to open in November – will cover 196,000 square feet and is the first of many tenants planned to inhabit the 180- acre Grand Traverse Town Center. The Grand Traverse Band of Ottawa and Chippewa Indians also recently obtained a "significant minority interest" in the development, according to sources familiar with the deal.

The master plan for the property includes 1.5 million square feet of commercial buildings and 650 residential units. Construction underway on nearby M-72 to accommodate the anticipated increase in traffic includes the installation of three new roundabouts and a tunnel to allow pedestrians to cross from Grand Traverse Resort & Spa to the Town Center. Road work is expected to be complete by the end of September.

Lucky's Market

Another grocery store will enter the Traverse City market when Colorado-based chain Lucky’s Market opens its doors in the first quarter of 2016. The 26,000 squarefoot organic and natural foods store will take the place vacated by Carmike Horizon Cinemas when the movie chain moves across the parking lot at Buffalo Ridge Center, formerly the Horizon Outlet Mall (see below). Among the store's planned offerings: in-house cured and smoked bacon, ready-to-eat meals, a juice bar, beer and wine, fresh seafood, a bakery, and more.

Lucky's strives to combine fresh and organic food with competitive prices; typically more than 20 percent of the store is dedicated to fresh produce, with dozens of local food offerings on hand. A store representative said Lucky's will hold a series of special events leading up to its grand opening, a celebration that will include the distribution of grants to local nonprofit organizations.

Cherry Blossom 14/IMAX

A new 14-screen Carmike Cinemas multiplex called Cherry Blossom 14 will anchor the remodeled Buffalo Ridge Center on US-31 – a development that will bring the first IMAX theater to northern Michigan. While a "BigD" screen – Carmike's version of IMAX – was originally slated to be built on the property, Property Manager Joe Sarafa confirmed in December the development was able to secure an official IMAX license. The 484-seat theater – which will feature a 36-foot high, 65-foot wide screen – will be the only IMAX facility north of Grand Rapids in Michigan. Construction on the 60,000 square-feet multiplex is now underway, with the theater expected to open by Christmas.

Hotel Indigo

After years of delays – from financial to environmental – Grand Rapids-based developer Jeff Schmitz will finally see the completion this year of the Hotel Indigo, an upscale, 107-room hotel across from the Open Space and West Grand Traverse Bay slated to open just before Christmas (the hotel is accepting reservations now).

But construction activity will not go away with the hotel's completion. Next door, a 130,000 square-foot development is also planned, featuring the Grandview Market – a giant market offering retail, restaurants, vendors selling wine, cheese produce and more – as well as condominiums.

East Bay Plaza

Developer Tom McIntyre is in the midst of finalizing a 10-year master plan to completely redevelop his East Bay Plaza on Munson Avenue and Airport Access Road. A long-time home to Tom's Food Market, Jo-Ann Fabrics and Dunham's, the site hosted openings in August of new BIG- GBY COFFEE and Domino's Pizza locations. Basic Communications also recently opened in the plaza. McIntyre says his long-term plan includes the potential acquisition of nearby properties and the introduction of a big-box store or restaurant, as well as possible affordable housing.

Sheffer Farm

A major proposed planned unit development (PUD) on the corner of Zimmerman and North Long Lake roads will soon head to Garfield Township officials for final review. The 52-acre project, overseen by Doug Mansfield, would introduce 58 single-family homes, a 70-unit senior living facility, 26 senior cottages and three 12-unit apartment buildings to the area. While a gas station and financial institution were part of the original plans, those aspects of the development have since been dropped from the project.

Brookside Commons/ Boardman Lake Apartments

The Woda Group and Wolverine Building Group are partnering to bring two modern affordable housing complexes to Traverse City. The first, the 80,000 square-foot Brookside Commons, is located on the corner of Zimmerman and North Long Lake Road (adjacent to the planned Sheffer Farm) and will consist of nine residential, eight-unit apartment buildings. The 72 units will include one, two and three-bedroom floors plans, with 11 barrier-free residents. A community center will offer a fitness center, media room, kitchenette and leasing office.

Renovations are also underway at the affordable housing complex Boardman Lake Apartments on Boardman Lake. Improvements to 112 residential units in eight buildings will include new fixtures, appliances, flooring and paint, as well as lighting, mechanical, plumbing and electrical upgrades. There will also be a new community center, playgrounds and landscaping. The renovated Boardman Lake Apartments are expected to be complete this fall.

The Moorings

The earth is moving on The Moorings, a "neighborhood community" with 91 single family homes and 54 condominium units on 44 acres in Traverse City and Elmwood Township – just beyond the Tom’s West Bay Shopping Center off M-72.

Projects developers are Bob Brick and Ted Lockwood of RE/MAX Bayshore Properties, Traverse City, and Mark Johnson and Jason Warren of MI Local Investments, also of Traverse City.

The plan includes up to 35 lots featuring panoramic views of West Grand Traverse Bay. The 56 condos will offer singlelevel living. There will also be a public walk along M-72 and a raised boardwalk through one of the property’s wetlands, as well as a trail that will connect to the TART trail. The subdivision should be ready for home construction by late fall. So far, 16 of the homes have been reserved with deposits.

Downtown Housing

The growing demand for downtown living in Traverse City has resulted in several projects in various stages of development. They include:

Uptown Riverfront Townhomes

The Boardman River is getting a new neighbor downtown. Uptown, at the corner of Pine and State streets, featuring condos that overlook the Boardman River. When all three phases are complete, the project will include 15 condos with eight facing the river and the others along State Street. There will also be street level commercial space. Developer Midtown Development broke ground in October 2014 and expects to complete the third phase by the fall of 2016.

Washington Place

Washington Place, at the corner of Washington and Cass Streets, is a five-story building with commercial space planned for the street level and 15 residential condos on the upper four floors. Condo prices range from $282,600 to $637,500. Developer Tom McIntyre and his wife Sheila, are spearheading the project.

200 River Place

The overgrown, long-vacant parcel between the Traverse City Record-Eagle and J&S Hamburg will finally see action this fall. Construction is slated to begin on a five-story, mixed-use building by Great Lakes Central Properties (formerly Federated Properties) that will rise along the Boardman River with 12,000 square feet of retail and restaurant space on the street level and 47 modern, luxury residential units above. A Pine Street pedestrian bridge will offer connection from the development to the Warehouse District.

537 Bay Street

Just 300 feet from West Grand Traverse Bay will be 537 Bay Street, a residential project led by Mansfield Land Use Consultants that will feature 15 units in a pair of connected four-story buildings. Each building will be roughly 13,500 square feet, with each condo unit featuring a balcony with a view of the bay. Some will have covered parking, while others will use a surface lot. Prices have not been finalized.

Windward Condominiums

Across the street from 537 Bay Street, TC-based Socks Construction is moving forward with its latest project on Randolph between Bay Bread and Tilley’s Party Store. The three-story, 27,555 square-foot building will include commercial space on the first level and residential on the top two floors.

The one-story residences, Windward Condominiums, will be 1,600 square feet with two bedrooms and two bathrooms and are listed for $489,000. The first units are slated to be move-in ready by Spring 2016. Details on the commercial portion of the project are still forthcoming.

In The Proposal Stages...

Pine and Front Street

Two nine-story, mixed-use buildings could be constructed at the corner of Pine and Front streets adjacent to Riverview Terrace if city commissioners approve a special land use permit (SLUP) for the project at a September 21 public hearing. Property owners Joe Sarafa and Erik Falconer need the SLUP in order to build up to 96 feet instead of the 60 feet allowed by right on the property. The $45 million project is expected to bring 162 residential units – including 64 affordable housing apartments – and 25,000 square feet of commercial and restaurant space to downtown Traverse City.

Park Place Hotel Redevelopment

A major project that could (if a lot of moving pieces and Brownfield funding fall into place) dramatically change the look of downtown Traverse City is a $50 million, four-phase development proposed by Regency Midwest Ventures – owners of the Park Place Hotel. It’s envisioned as a public-private partnership affecting the Park Place, an adjacent State Street property and the Governmental Center.

In phase one, the Park Place Dome would be demolished to make way for an upscale conference center that could host events all year round. Bender Midwest Development would partner on phase two, which proposes a 400-space parking garage and 30 row housestyle apartments along Washington Street in the current Park Place parking lot. Phase three calls for redeveloping the Governmental Center parking lot along Eighth Street into a mixed-use development with two floors of commercial units, residential condos and multiple parking levels. Phase four would redevelop a single-story office building next to the Park Place into a multi-story, mixed-used development with two floors of commercial units, residential condos and multiple parking levels.

Aero Park Drive

Traverse Development Group is aiming to bring 150 residential units in five buildings and a deli/store to the industrial park on Aero Park Drive near Parsons Road. The company estimates that 60 percent of the units would be one-bedroom and the rest two-bedroom, designed to serve workers in the industrial park businesses and Northwestern Michigan College students. The project would require rezoning of four parcels from industrial to community commercial, which city planners are expect to review in coming months.

Fourteenth Street

Also in the early stages of development is a project by Socks Construction that would result in 12 residences at 209 Fourteenth Street. It would also require a rezoning of the site from multiple-family dwelling to office service.

Maple Ridge

Groundbreaking for Maple Ridge, a 232-unit apartment complex planned for LaFranier Road north of Hammond Road in Garfield Township, could take place late this year or early in 2016. Early units could be available in 2017. The complex will include 76 onebedroom units, 136 two-bedroom units and 20 threebedroom units, plus a children’s play area, walking trails, a fire pit, a club house with a fitness center, an outdoor swimming pool and hot tub area, a dog park and sidewalks within the site and along LaFranier Road. Plans call for Maple Ridge to include nine buildings, some three stories tall, over roughly 22 acres of the 30-acre location, which features a number of mature maple and beech trees.

Kalkaska WalMart

In Kalkaska, the village planning commission has approved a site plan for a new WalMart store to be built on a 22-acre site along US 131. It still needs approval from county officials, the Michigan Department of Transportation and the Department of Environmental Quality. The 124,000-square foot store would include a gas station. Company officials estimate the store would employee up to 300 workers and anticipate its opening sometime in 2017.