The GAD Top Three | December 25th, 2023

TC DDA Moving Downtown Forward TIF Financing Plan Amended and Passed, City of Cadillac Codifies Zoning Ordinance Interpretation of Short-Term Rental Locations, and Paradise Township Discusses Accessory Dwelling Amendment

Happy Holidays! We are firmly into the holiday season, yet local public policy changes and discussions keep rolling. First, the Traverse City Downtown Development Authority (DDA) passed an amended Moving Downtown Forward TIF Plan. This important consideration is likely to be a major topic of discussion in the Traverse City region for 2024. The City of Cadillac codified where short-term rentals are allowed to operate which will become effective in early 2024. Finally, considerations for allowing accessory dwelling units (ADUs) continue in our region with Paradise Township considering an amendment to allow them in their zoning ordinance. Have a wonderful holiday season, and see you in the New Year! 

1. TC DDA Moving Downtown Forward TIF Financing Plan Amended and Passed 

A first step was taken at the Friday, December 15th Traverse City Downtown Development Authority (DDA) Regular Meeting in the potential approval of an extension of the TIF 97 plan for another 30 years, which is currently set to expire at the end of 2027. At the Traverse City DDA meeting the amended Moving Downtown Forward TIF Plan and Development Plan was unanimously passed by the Traverse City DDA Board of Directors. The Moving Downtown Forward TIF Plan is based on the DDA’s guiding principles, which include:

  • Design a Great Place for All Ages and Future Generations
  • Advance Environmental Sustainability and Stewardship
  • Protect and Preserve Small Local Independent Businesses
  • Champion the Development of Attainable and Workforce Housing
  • Support Job Growth and Varied Career Opportunities

The Moving Downtown Forward TIF Plan also highlights specific public improvement goals, including:

  • Improvements to Streetscapes (curbs, sidewalks, brickwork, lighting, trees, transit improvements and other features)
  • Activation of the new Rotary Square at the corner of State and Union
  • Providing a mixed-use development of housing
  • Commercial and public parking at Pine and State Street
  • Undergrounding utilities and making alleyway placemaking opportunities
  • Supporting through the Lower Boardman/Ottaway Unified Plan the protection, accessibility of the River and implementation of the Unified Plan
  • Further the installation of a permanent Farmer’s Market structure 

The next steps in this process include a review of the new plan by a Development Area Citizen Council, consisting of nine residents who reside in the TIF district. The council will likely review and make a recommendation on the TIF plan in February and then go back to the Traverse City DDA Board for formal approval in March. If it is passed the plan will go to the Traverse City Commission first in April and then be scheduled for a public hearing and city commission vote in May. For more information on the Friday, Dec. 15th Traverse City DDA Regular meeting check out this article from the TC Ticker. View the full Moving Downtown Forward TIF Plan here (pages 25 to 43). For more background on the Moving Downtown Forward TIF Plan check out this article put together in June by Aspire North REALTORS member, Aspire North Public Policy Committee Chair, and Traverse City DDA Board Vice-Chair, Scott Hardy. 

2. City of Cadillac Codifies Zoning Ordinance Interpretation of Short-Term Rental Locations

At the December 18th City of Cadillac City Council Meeting and Public Hearing, a resolution was passed to codify the city’s interpretation of short-term rentals and will take effect in 20 days. This just locks in place how the City of Cadillac has already been handling short-term rentals. The resolution states:

  • Short-term rentals are only permitted in the TC (tourist service) and B-1 and B-2 (auxiliary and general business) districts
  • In the TS-1, TS-2, and B-1 Districts short-term rentals are permitted by right
  • In the B-2 District short-term rentals are permitted with an approved special use permit   

These actions by the City of Cadillac set the stage for zoning conversations that will occur in 2024 as during the public hearing at the City of Cadillac Council Meeting citizens spoke in support of a moratorium on short-term rentals for any districts outside of the tourist service, auxiliary, and general business areas and some spoke in support in support of all housing types, including temporary housing. View the resolution passed by the City of Cadillac here (pages 9 to 12). For more background on the Monday, Dec. 18th City of Cadillac Council Meeting, check out this article from the Cadillac News.

3. Paradise Township Discusses Accessory Dwelling Amendment 

At the December 13th Paradise Township Board Meeting discussion was had on a proposed accessory dwelling amendment. Some key aspects of this proposed amendment if it is adopted:

  • The primary structure of the accessory dwelling unit will need to be owner-occupied.
  • The total square footage of an accessory dwelling unit shall not exceed the square footage of the principal dwelling.
  • There shall be a minimum of one and a maximum of two designated parking spaces for the accessory dwelling unit.
  • No more than one accessory dwelling shall be permitted and the accessory dwelling unit shall not be sold separately from the principal dwelling.
  • The maximum parcel size to be considered for an accessory dwelling unit is five acres. 
  • If a property meets zoning ordinance requirements a future lot split of the dwellings is possible

Read the full proposed accessory dwelling amendment here (pages 31 and 32).