TRAVERSE CITY — The Traverse City Commission will meet Tuesday, Feb. 17, to discuss a formal public process for developing six city-owned properties on the west end of downtown. The parcels, which were purchased for approximately $7.6 million, are being considered for a mixed-use project that includes workforce housing and public parking.
City Manager Benjamin Marentette has engaged the consulting firm Mission North to assist in creating a Request for Proposals (RFP) or Request for Qualifications (RFQ) for the sites. This move follows a January commission meeting where officials decided to pursue a public process to evaluate multiple developer proposals rather than moving forward with a single private offer.
The six properties, located near the intersection of West State and Pine streets, were originally purchased for approximately $7.6 million using funds from the city parking system. The Downtown Development Authority has sought to build a parking garage in this area since 1997. In 2023, the engineering firm Fishbeck designed a mixed-use concept for the site featuring 56 residential units and 534 parking spaces, though the project was later removed from the authority’s primary development plan.
In December 2025, ShoreNorth Development presented a proposal to the City Commission for a building that would include workforce housing and 534 parking spaces. Under that proposal, one-third of the parking would remain public. The developers requested to purchase the land for $1 and sought a payment in lieu of taxes or tax abatement, along with access to environmental assessment grants.
Rob Bacigalupi, the owner of Mission North and former executive director of the Downtown Development Authority, is assisting the city in evaluating these options. Bacigalupi holds a Master of Science in Real Estate and Construction Management and has worked with a design team to identify how the project aligns with the city’s strategic goals. These objectives include protecting downtown character and increasing the year-round population in core neighborhoods.
“The City’s parking system is one of the few ways it can generate revenue from tourists to fund tourism-related services and infrastructure,” Bacigalupi stated in a memo to city officials. He noted that the parking fund currently pays for services like downtown snow removal and sidewalk maintenance.
Technical considerations for the site include a state environmental grant with approximately $800,000 remaining. Bacigalupi noted that this grant from the Michigan Department of Environment, Great Lakes and Energy expires at the end of August 2026. Delaying a decision on the development properties could result in the reallocation of those funds to other projects.
The commission is also evaluating the financial impact of public versus private parking ownership. While private ownership reduces the city’s risk of issuing bonds, the parking would become subject to property taxes. Bacigalupi explained that these taxes could add hundreds of dollars in monthly costs per space, which is why city-controlled parking rates are typically lower than private ones.
Bacigalupi will provide an assessment of the properties to the City Commission during its meeting on Feb. 17, 2026. Following that discussion, the city plans to develop a formal Request for Proposals or Request for Qualifications in February. Proposals from developers would be due in May 2026, with the commission scheduled to consider final approval in June 2026.