GRAND TRAVERSE COUNTY: Land Bank seeks to redevelop abandoned motel

Peter Kobs, The Record-Eagle, Traverse City, Mich.
·3 min read

Mar. 23—ACME — An abandoned hotel on U.S. 31 near Bunker Hill Road may be reborn as workforce housing for single people if all goes as planned.

The former Crestwood Motel at 5200 U.S. 31 in Acme is the focus of a new initiative by the Grand Traverse County Land Bank Authority, in cooperation with the Traverse City Housing Commission and State Land Bank Authority.

"It's very preliminary at this point, but the idea is for the county land bank to acquire some property close to the old motel, then move the [structure] there for rehabilitation into nine units of workforce housing," said Karl Fulmer, executive director of the TCHC.

"The existing units are small, so they'd probably need to be increased in size somewhat," he added. "A lot of service workers work in that area, and this might be a good solution for single people."

At the earliest, construction could begin in summer or fall 2025.

Providing more affordable workforce housing is a key goal of county and city officials. However, that doesn't always mean building large housing complexes with dozens of units.

"Smaller in-fill projects can help, too, and they have a lower impact on traffic," Fulmer said.

The site's close proximity to the TART Trail network is another big plus for the proposed redevelopment, he added.

Chris Forsyth, the county's deputy administrator, is a key driver of the proposal, officials said.

In a memo to GTCLB officials this week, Forsyth said the local land bank accepted a $500,000 grant from the state land bank authority in September 2023. Those so-called "Round 3" grants are financed by the federal government's American Rescue Plan Act, a massive $1.9 trillion economic stimulus package passed by Congress in 2021.

"Since the acceptance of the grant, the [state land bank] has published guidelines for the use of the funds," Forsyth wrote. "One allowable use of funds is rehabilitation of blighted and vacant publicly owned structures for the purpose of developing affordable housing."

Time is of the essence because project proposals must be submitted for pre-approval by March 31.

"Any money not included in a budget for an approved project will be re-allocated to an eligible project," state officials said.

To avoid missing out, Forsyth asked the local land bank board this week for authorization to submit the Crestwood Motel proposal before the deadline. Board members approved the request at a meeting on Friday morning.

Other members of the land bank board include: County Treasurer Sarah Gum, County Finance Director Dean Bott, County Equalization Director James Baker, County Commissioner Scott Sieffert and Gary Howe, vice chairman of the Brownfield Redevelopment Authority.

Land banks were first authorized by state legislation in 2003. Today, Michigan has 48 county land banks, one city land bank, and the state land bank, which serves the state's remaining 35 counties.

The mission of the Grand Traverse County land bank is "to utilize tax-reverted properties, acquired properties and other resources for affordable housing and economic development opportunities through collaboration with community organizations and local governmental units."

A tax-reverted property acquisition typically occurs when the property owner(s) fail to pay property taxes for 24 months or more.

In this area, officials try to work with tax-delinquent home and business owners to develop a payment plan instead of seizing a property through legal action, Gum said in a recent interview.

Local residents can learn more about the Grand Traverse Land Bank Authority online at https://www.gtcountymi.gov/660/Land-Bank-Authority

The land bank board meets on the last Friday of every month at 8 a.m. in the governmental center at 400 Boardman Ave. in downtown Traverse City. Meetings are open to the public.