Iconic Leland restaurant to return

Mar. 17—LELAND — There are few businesses in northern Michigan woven into a community's fabric as much as the Bluebird restaurant in Leland.

Founded in 1927 by boat builder Martin Telgard and his wife Leone as a sandwich and soda shop, the Bluebird evolved over the past century into Leelanau County's best-known eatery — a comfortable and familiar gathering spot for locals, Leland's large seasonal population and the tens of thousands of tourists that descend on the small village each summer.

Third-generation owners Skip and Lynn Telgard and their family are building on that heritage with a eye to the future, embarking on a $3.6 million rebuild of the Bluebird that's underway and is slated for completion this fall. The 5,000-square foot facility will utilize the restaurant's frontage along the Leland River as its focal point, with outdoor seating for up to 100 patrons, another 100 seats inside, 15 boat slips on the river and two 600-plus square-foot retail spaces inside the building.

"It's the 100-year solution is what we call it," Skip Telgard said. "To build a sustainable operation we needed to build from the water back, and that's what we were able to do ... I'm really excited to get it going."

The early Bluebird, which Telgard described as a "snack bar and watering hole", also included a small beauty shop run by his aunt. It was eventually expanded into an 8,000-square foot operation to include a large 300-seat dining room on one side, and a popular tavern on the other. The business grew considerably under the ownership of Telgard's parents Jim and Nancy Telgard, highlighted by its signature offerings including fresh whitefish, smoked brisket sandwiches, a lavish Sunday brunch buffet and its fresh cinnamon rolls that were baked by the thousands.

"The Bird" — as it was widely known — also drew in some well-known patrons over the years. The accomplished late author and poet Jim Harrison was a regular there while he lived in Leelanau County, sometimes accompanied by his friend and musician Jimmy Buffett. Actress and comedian Vicki Lawrence was also an occasional guest, along with past governors of Ohio and Indiana who had summer homes near Leland. Michigan sports legends including former Detroit Tigers Norm Cash and Bill Freehan were also customers.

"We've had a lot of interesting people here over the years," Telgard said.

The Telgards took over the business from his parents in 1996 and it continued to grow, recording its busiest year ever in 2006. Leelanau County's tourism sector remained strong, and the efforts to preserve and restore historic Fishtown property on Lake Michigan also boosted the local economy.

The COVID-19 pandemic which started in early 2020 turned the restaurant world upside down, and the Bluebird was no exception. But Telgard said a "silver lining" of the pandemic was their decision to erect a large tent outside the restaurant that created 140 outdoor dining seats that were a hit with customers.

"It gave us a really cool service area," he said. "It gave us more waterfront seating than we ever had...it really convinced me that the waterfront seating was so important for us."

The success of its outdoor dining area was a driving force behind the new restaurant design. The Telgard's son-in-law, Michael Leaveck of LTD Architects, is leading the project's design, which includes two large sliding glass doors facing the river, and a hydraulic bar window that will provide outdoor bar seating on the expansive patio. Their son Derek has also returned to Leland to help run the business going forward.

The family also tapped various community resources to help finance the project. The Leelanau County Brownfield Development Authority approved almost $247,000 in brownfield reimbursement for building and site demolition, asbestos removal and related work at the site. The business also secured a $200,000 zero interest loan from Venture North in Traverse City, and another $150,000 loan from a revolving business loan fund operated by Cherryland Electric Cooperative. Those funds are being used for gap financing to assist the primary lender State Savings Bank in Traverse City.

"It's a really great project," said Laura Galbraith of Venture North, which has deployed more than $2.5 million in loans to 33 projects around the region in the past seven years. "They want to keep the business in the family and continue to serve the community."

Cherryland CEO Rachel Johnson said the new Bluebird is "a really cool fit" for its business loan program that's financed close to 50 projects totaling close to $5.5 million — even though the restaurant is not a Cherryland customer.

"Everything that helps the local economy helps the areas where we serve," Johnson said. "(The Telgards) have a deep personal commitment to Leland ... it was a privilege for Cherryland to be involved in the project."

Telgard said the assistance from Venture North and Cherryland was critical in piecing together the rebuild.

"Both of those entities were fantastic," he said. "They were really helpful in every way possible."

Telgard acknowledged there will be customers who will miss the expansive dining room and familiar tavern in the old Bluebird.

But there were operational challenges in the old building, he said.

Its energy efficiency was poor, and required two kitchens to serve each side of the restaurant.

"Now it's going to be one operation, with a vision and a purpose," he said.

The family will also continue the many traditions that put the Bluebird on the map — the fresh whitefish, their signature "peas and peanuts" salad, the jukebox in the tavern, and pop-up days featuring their traditional cinnamon rolls.

"We'll recreate the vibe of the tavern — there's a magic to that," Telgard said.