Planning Commission Special Meeting

Traverse City Planning Commission Special Meeting Tuesday, July 21, 2026 6:00 PM 2nd Floor Commission Chambers, Governmental Center 400 Boardman Avenue Traverse City, Michigan 49684 Posted: Thursday, July 16, 2026 5:47 PM The City of Traverse City does not discriminate on the basis of disability in the admission to, access to, treatment in, or employment in, its programs or activities. City Manager's Office, 400 Boardman Avenue, Traverse City, Michigan 49684, phone 231- 922-4440, TDD/TTY 231-922-4412, VRS 231-421-7008, has been designated to coordinate compliance with the non-discrimination requirements contained in Section 35.107 of the Department of Justice regulations. Information concerning the provisions of the Americans with Disabilities Act, and the rights provided thereunder, are available from the ADA Coordinator. If you are planning to attend and you have a disability requiring any special assistance at the meeting and/or if you have any concerns, please immediately notify the ADA Coordinator. The City of Traverse City is committed to a dialog that is constructive, respectful and civil. We ask that all individuals interacting verbally or in writing with the Commission honor these values. Planning Commission: c/o Shawn Winter, Planning Director (231) 922-4778 Web: www.traversecitymi.gov 400 Boardman Avenue Traverse City, MI 49684 Page 1 of 29  Welcome to the Traverse City Planning Commission meeting! Agenda Page 1. CALL TO ORDER 2. LAND ACKNOWLEDGMENT 3. ROLL CALL 4. ANNOUNCEMENTS 5. TOPICS FOR CONSIDERATION A. Introduction of a Rezoning Application for 314 E. Eighth Street from 5- 14 C-2 to R-3 Introduction of a Rezoning Application for 314 E. Eighth Street from C-2 to R-3 - Pdf B. EV Parking Standards 15 - 18 EV Parking Standards - Pdf C. ADU Regulation Updates Discussion 19 - 21 ADU Regulation Updates Discussion - Pdf D. Proposed Child Care Zoning Amendments 23 - 28 Proposed Child Care Zoning Amendments - Pdf 6. REPORTS A. Update from the City Commission B. Update from the Planning Department C. Update from the Grand Traverse Commons Joint Planning Commission D. Update from the Riparian Buffer Committee E. Update from the Board of Zoning Appeals F. Update from Grand Traverse County 7. RECEIVE AND FILE A. Acme Township - Notice of Planning Commission Approval of Master 29 Plan 2026. The Acme Township master plan documents can be Follow us on Facebook, Twitter, and Instagram - CityofTC - www.traversecitymi.gov Page 2 of 29  found HERE. Acme Township - Notice of Planning Commission Approval of Master Plan 2026 8. PUBLIC COMMENT 9. ADJOURNMENT Follow us on Facebook, Twitter, and Instagram - CityofTC - www.traversecitymi.gov Page 3 of 29 Page 4 of 29  Staff Report TO: City Planning Commission COPY: FROM: Leslie Sickterman, Deputy City Planner/Sustainability Coordinator MEMO DATE: July 16, 2026 SUBJECT: Introduction of a Rezoning Application for 314 E. Eighth Street from C-2 to R-3 EXECUTIVE SUMMARY: Maxwell Cameron, as a representative of the Grand Traverse County Land Bank Authority, the owner of record for the property located at 314 E. Eighth Street has applied to rezone the subject property from C-2 Neighborhood Center District to R-3 Multiple-Family Dwelling District. Attached is the staff report and application materials for consideration. Page 5 of 29  Traverse City Planning Department Leslie Sickterman, AICP, Deputy Planning Director Created 07.16.2026 REZONING REQUEST STAFF REPORT 314 Eighth Street C-2 to R-3 EXECUTIVE SUMMARY: Maxwell Cameron, representing the Grand Traverse County Land Bank Authority has requested rezoning of the subject property located at 314 Eighth Street from C2: Neighborhood Center to the R-3: Multiple Family Dwelling district. This request is supported by the Master Plan in that this area is identified as Neighborhood Center that supports residential use as part of mixed use neighborhood hubs. An analysis of the application request follows. PROPERTY INFORMATION: Address: 314 Eighth Street Parcel Nos.: 28-51-682-005-00 Owner(s): Grand Traverse County Land Bank Authority Applicant: Maxwell Cameron, Grand Traverse County Land Bank Authority Area: Approximately 0.307 acres / 16,117 square feet C-2: Office/Service (vacant) Current Zoning / Land Use: North: D-1: residential/commercial East: R-3: residential Surrounding Zoning / Land Use: South: R-3: residential/public utilities West: R-3: residential/public utilities Page 1 of 9 Page 6 of 29  Traverse City Planning Department Leslie Sickterman, AICP, Deputy Planning Director Created 07.16.2026 Aerial Map: ZONING AND LAND USE: The subject property is part of a tract of land assembled by the Land Bank Authority in cooperation with the City of Traverse City and the Traverse City Housing Commission. The intention for this tract is to construct a low/moderate income housing development to be held and managed by the Traverse City Housing Authority. Other than 314 E. Eighth Street, lands that will make up this development site are all currently zoned R-3. If this rezoning is approved, it will create an area south of 8th Street and east of Lake Avenue that is all consistently zoned R-3. The current zoning classification is C-2 Neighborhood Center. The district’s intent as stated in the Zoning Ordinance “…is for the purpose of accommodating small businesses primarily serving adjacent neighborhoods with day-to-day retail goods and services. These small centers are comprised of residentially-scaled buildings with limited parking areas and a strong pedestrian orientation. Among other uses, this district permits by right residential uses, offices, personal services, vacation home rentals. drinking establishments (with restrictions), grocery stores, hardware stores, laundromats, and marihuana retailers and provisioning centers. Buildings are limited to 6,000 square feet in floor area (per floor) and are subject to a number of design regulations that promote lively spaces. Page 2 of 9 Page 7 of 29  Traverse City Planning Department Leslie Sickterman, AICP, Deputy Planning Director Created 07.16.2026 The proposed R-3 Multiple-Family Dwelling district’s intent is to “allow for multiple family uses in varying densities, have pedestrian scale and are located in close proximity to major activity and employment centers, on transit routes, or in transitional areas”. In addition to the single family uses and accessory dwelling units, all levels of residential uses (duplexes, tri- plexes, quadplexes, and multiple family) are permitted uses MASTER PLAN RECOMMENDATION: The Master Plan Future Land Use Map (FLUM) designates this area as part of the Neighborhood Center FLUM category, which is the same designation found throughout this stretch and other stretches of 8th Street, 14th Street, Front Street west of Division, and other key nodes. The description of this category is: Neighborhood Centers are a mix of residential, retail, entertainment, office, and mixed-use land uses. The balanced mix of land uses provides a lively atmosphere that is essential for the function of the Neighborhood Centers. The Neighborhood Centers are intended to provide a variety of “third places” in Traverse City, or spaces to gather outside of an individual’s home and place of work. Third spaces are vital for the function of the social fabric of the City. The four pages from the Master Plan on this FLUM category have been attached for reference. It does state in the “Existing Zoning Districts” section that the D Development districts are most similar to the intended function Page 3 of 9 Page 8 of 29  Traverse City Planning Department Leslie Sickterman, AICP, Deputy Planning Director Created 07.16.2026 of the Neighborhood Centers. Further, that residential uses are to be combined with shopping, restaurant, office and entertainment uses to create a village-like atmosphere. ZONING DISTRICT COMPARISON: The rezoning application does not correspond to any proposed development at this time. This is good in that the request should be considered comprehensively, with all district uses and zoning standards considered, since all would be applicable to future development. The following tables summarize the zoning standards for comparison: Standard C-2 Neighborhood Center District R-3 Multiple-Family Dwelling District Intent The Hotel Resort (HR) District is for the The Multiple-Family Dwelling districts allow purpose of accommodating tourist-related for multiple family uses in varying densities, land uses along the major routes near have pedestrian scale and are located in tourist attractions. It is important that close proximity to major activity and motor vehicle access be limited and land employment centers, on transit routes, or in uses are compatible with peak traffic flows. transitional areas. Uses for these zones include multi-family housing, lodging facilities, accessory offices, and limited uses that are functionally integrated as part of the development. Uses Allowed  C-1 District uses except drive-throughs;  Accessory dwelling units by Right [note: this includes all R-3 uses]  Adult foster care family home and small  Adult Use Marihuana Retailer group home;  Boat liveries  Art galleries in non-residential buildings  Brew pubs built prior to October 16, 2003  Convenience stores  Boat houses  Drinking places without entertainment  Coffee houses and family or fine food  Drinking places with entertainment if the restaurants in non-residential buildings use is not likely to create a noise built prior to October 16, 2003 disturbance under City ordinances and if  Child care organization the building is provided with a central air  Community Gardens; conditioning system  Dwellings, single-family;  Florists  Dwellings, two-family;  Fruit and vegetable markets, but not  Dwellings, duplex public or municipal markets  Dwellings, triple  Grocery stores  Dwellings, quadplex  Hardware stores  Dwellings, multiple family;  Laundromats  Essential services;  Marinas  Family child care home  Medical Marihuana Provisioning Centers  Group child care home  Movie rental stores  Home occupations  News dealers and news stands  Parks  Parcel packing services  Playgrounds Page 4 of 9 Page 9 of 29  Traverse City Planning Department Leslie Sickterman, AICP, Deputy Planning Director Created 07.16.2026 Standard C-2 Neighborhood Center District R-3 Multiple-Family Dwelling District  Pet grooming services without outdoor  Private clubs, lodges, fraternities or runs or kennels sororities, if located on an arterial or  Radio, television and consumer collector street electronics stores  Rooming houses  Restaurants, family, fine and fast (except  Tourist homes drive-through and drive-ins)  Service stations and repair stations with no more than 2 bays; with or without fuel dispensing  Stores, retail, miscellaneous  Theatrical producers, entertainers, bands and orchestras  Parking areas, public, Uses Allowed  Residential care & treatment facilities  Essential services buildings; by SLUP  Schools  Places of worship;  Transitional housing & emergency shelters  Residential care & treatment facilities  Emergency shelters  Schools  Wind energy building-mount  Theaters, live, and performance art centers Lot Width Minimum: 20 ft Minimum: 50 feet Lot Area Minimum: 3,750 sf Minimum: 7,500 sf Density Maximum: n/a Maximum: n/a Imp. Surface Maximum: 70% Maximum: 70% Front Setback Building: the lesser of 8 feet or the average Building: Within 4 feet of the average of principal buildings on the same face block. setback of principal buildings on the same Max of 25 feet side of the street in the same face block, but Parking: To the side or rear of the principal not less than 19 feet from the edge of the building and set back a distance at least street curb or edge of the pavement if there equal to the principal building or 25 feet, is no curb. whichever is greater. For through lots, Parking area: To the side or rear of the parking may be provided streetward of the principal building and set back a distance at principal building on the street that carries least equal to the principal building or 25 less traffic, but in no case closer than 25 feet feet, whichever is greater. For through lots, from the front property line parking may be provided streetward of the principal building on the street that carries less traffic, but in no case closer than 25 feet from the front property line. Side Setback Building: One side/aggregate: None, except a Building: One side: 6 feet minimum 10-foot side setback is required on Aggregate: 14 feet; for structures above a side abutting or across a public alley from grade on lots or tracts of land on Grand an R-District. Traverse Bay, the side setback is the greater Parking area: 5 feet, except a minimum 10- of 30 percent of the lot width or 14 feet. foot side setback is required on any side Parking area: If contiguous to an R-district, a abutting or across a public alley from an R minimum of 10 feet. Otherwise, 5 feet. If District shared parking is developed, these setbacks Page 5 of 9 Page 10 of 29  Traverse City Planning Department Leslie Sickterman, AICP, Deputy Planning Director Created 07.16.2026 Standard C-2 Neighborhood Center District R-3 Multiple-Family Dwelling District would affect only the perimeter of the combined parcels. Rear Setback Building: 5 feet, except a minimum 20-foot Building: 25 feet rear setback is required if adjacent to or Parking: 5 feet, except 20 feet when abutting across an alley from a residential district. or across an alley from an R-district Parking area: 5 feet; 20 feet if abutting, adjacent to or across an alley from an R- District. Building Maximum: 30 feet (residential uses); 45 ft Maximum: 45ft Height Special (1) A building shall not exceed 6,000 square (1) In the Boardman and Central Requirements feet in gross floor area per floor. Neighborhood Historic Districts, (2) No use shall be open to the public attached garages for parcels with alley between the hours of 2:00 a.m. and 6:00 access shall be prohibited. a.m. (2) In the Boardman and Central (3) The predominant building wall and Neighborhood Historic Districts, the entryway shall face the street. distance between dwellings and (4) Unless determine to be impractical by the accessory buildings greater than 200 Planning Director, the building width shall square feet that have alley access shall not be less than 80 percent of the not be less than 30 feet. The 30 foot property width at the street. separation between dwellings and (5) Vertical building modulation shall be used accessory buildings can be reduced to 20 to add variety and interest and to make a feet if it is determined to be impractical large building appear to be an by the Planning Director. aggregation of smaller units relief from a (3) The street-facing facade shall include at continuous street facing wall may be least one pedestrian entrance for achieved with wall offsets in combination common use of the residents and shall with pilasters, corbeling or other provide a direct connection to the street permanent architectural elements, sidewalk. If no common pedestrian however, offsets in any wall shall not be entrance is provided for on the street- less than 8 inches from the subject plane. facing facade, then each ground floor (6) Window glazing shall be recessed from dwelling unit on the street-facing facade the outside of all building walls. shall provide a private pedestrian (7) Clear or lightly tinted transparent glass entrance with a direct connection to the shall be used for all windows facing a street sidewalk. At a minimum, public street. Decorative stained glass pedestrian entrances shall be provided may be used for accents. Mirrored, for every 90 feet of linear building smoked and darkly tinted glass is frontage along the street right-of-way. prohibited. (4) The street-facing façade shall provide (8) Street-facing building facades shall windows to the dwelling units on each incorporate permanent architectural floor. elements which create shadow patterns (5) For buildings with 5 or more dwelling and surface textures which, in turn, units, vertical building modulation shall enhance visual interest. be used to add variety and interest and (9) Except for buildings that are solely to make a large building appear to be an residential, windows or street level aggregation of smaller units. Relief from activities are required on 50 percent of a continuous street facing wall may be Page 6 of 9 Page 11 of 29  Traverse City Planning Department Leslie Sickterman, AICP, Deputy Planning Director Created 07.16.2026 Standard C-2 Neighborhood Center District R-3 Multiple-Family Dwelling District the first story street wall facing any public achieved with wall offsets in street. Street level activities include combination with pilasters, corbeling or public display space, public atriums, other permanent architectural elements; pedestrian entrances and interior however, offsets in any wall shall not be circulation and windows with views into less than 8 inches from the subject any designated street level use. plane. (10)For each 90 feet of linear building (6) For buildings with 5 or more dwelling frontage, pedestrian entrances will be units, horizontal building modulation like required. Pedestrian entrances may open awnings, balconies and roof features onto the sidewalk or mid-block passages shall be used to reduce the perceived or walkways leading to the public right- mass of a large building. of-way. Entries must be prominently (7) Buildings on corner lots or on lots with a identified and must not interfere with front loaded driveway shall have a safe pedestrian passage along walkways. clipped or recessed corner for the height Primary entries must set back a minimum of the first floor level if the building 4 feet from the facade, however the facade is within 20 feet of the street or Planning Director may reduce or waive driveway/street intersection. These this requirement if no pedestrian zone building corners shall be recessed at conflicts are identified by the placement least 5 feet from the planes of the of the building. building if such building is located less (11)The spacing and shape of windows and than 20 feet from the edge of street or openings on the building shall closely driveway intersection. The predominant reflect the fenestration of any adjacent building wall and entryway shall face the historic buildings. Brick, stone, wood or a public or private street. combination thereof, compatible with (8) Any rooftop equipment shall be enclosed adjacent historic buildings, shall be used. or screened from street level view using (12)Fenestration, cornices and other primarily the same materials used for the building horizontal architectural elements walls or a material which is approved by incorporated in new buildings or the Planning Director as visually additions to existing buildings shall be in compatible with the building. context with historic buildings in the area. (13)Any rooftop equipment shall be enclosed or screened from street level view using the same materials used for the building walls or a material which is approved by the Planning Director as visually compatible with the building. (14)All buildings that front the street, except for parking structures, accessory and utility buildings and buildings that are intended and designed to be exclusively developed for residential use shall have a minimum height of 14 feet measured from the street level entrance level to the next finished level or roof structure. The Planning Director may grant a first floor building height exception if it has been Page 7 of 9 Page 12 of 29  Traverse City Planning Department Leslie Sickterman, AICP, Deputy Planning Director Created 07.16.2026 Standard C-2 Neighborhood Center District R-3 Multiple-Family Dwelling District clearly demonstrated that such provision is unnecessary or that such requirements would create a practical difficulty, as contrasted merely granting an advantage or convenience. (15)Buildings on corner lots or on lots with a front loaded driveway shall have clipped or recessed corners for the heights of the first floor level if the building facade is within 20 feet of the street or driveway/street intersection. These building corners shall be recessed at least 5 feet from the planes of the building if such building is located not less than 20 feet from the edge of street or driveway intersection. ANALYSIS OF REQUEST: Rezonings are legislative decisions and should be based on sound planning principles. The following questions have traditionally been provided to the Planning Commission for consideration of rezoning requests. Points and information have been provided by staff to help facilitate the discussion. 1. Is the current C-2 Neighborhood Center District reasonable for the land and location?  The current zoning is compatible with the existing uses in the area and reasonable for this location.  The current zoning could be considered a spot zoning as all surrounding properties immediately adjacent to this property are zoned R-3. 2. Is the rezoning request consistent with the goals and policies of the future land use plan of the Master Plan?  As seen with a prior rezoning application, this FLU district does not align exactly with existing zoning districts. However, the goals of the Master Plan for this district are consistent with the proposed R-3 Multiple Dwelling district. 3. Would the parcel size and environmental conditions accommodate the R-3 Multiple Dwelling District uses?  Because this proposal is essentially a down-zoning from a commercial to a residential district, all uses in the R-3 district proposed are already permitted in the existing C-2 Neighborhood Center District.  Although many of the R-3 setbacks and other requirements are more restrictive than the under the existing zoning district, the applicant has developed a site plan that can meet the R-3 standards. 4. Are the uses allowed in the proposed zoning district compatible with the surrounding uses?  The uses under the R-3 zoning district are fully compatible with the surrounding uses. 5. Are there adequate utilities and capacity on the adjacent streets to serve the site?  There are no known capacity limitations and the current use and structure are adequately served. 6. Are there sufficient demands for additional R-3: Multiple Family Dwelling District zoning classifications?  The primary use permitted in this district is residential, including multiple family dwellings. Housing, especially below market rents and rental properties within the core development area of the City Page 8 of 9 Page 13 of 29  Traverse City Planning Department Leslie Sickterman, AICP, Deputy Planning Director Created 07.16.2026 with immediate access to services, employment centers, and transportation systems are in great demand. REQUESTED ACTION: No formal action is requested at this time. The required public hearing will be held at the Planning Commission Regular meeting on Wednesday, August 5, 2026 at 6:00pm. Page 9 of 9 Page 14 of 29  Staff Report TO: Planning Commission COPY: Evan McGhee, Planning Intern FROM: Leslie Sickterman, Deputy City Planner/Sustainability Coordinator MEMO DATE: July 14, 2026 SUBJECT: EV Parking Standards EXECUTIVE SUMMARY: To promote long-term public health and environmental sustainability for residents, the Strategic Action Plan recommends the implementation of sustainability best practices. Incorporating Electric Vehicle (EV) charging station mandates for new construction projects is an increasingly common approach among cities in Michigan. By expanding EV infrastructure, Traverse City can establish a support framework for residents switching from gas-powered vehicles to electric alternatives, making the transition significantly more feasible. The City has recently received some recommended considerations for EV parking standards through the Energy Navigators program. The program’s recommendations are summarized below. Staff is seeking some direction from the Planning Commission on this topic so that a detailed ordinance amendment can be prepared for Planning Commission consideration. Page 15 of 29 ANALYSIS: Recommended Amendments 1. Amend Chapter 1374 to include general EV parking ordinance provisions, to include: a. Permit EV charging as an allowable accessory-use to parking lots in all zoning districts, by right. b. Allow EV parking to count towards minimum parking requirements. c. Adopt EVSE accessibility standards in line with the U.S. Access Board or state-level accessibility standards. 2. Amend the zoning ordinance to define and allow EVSE as a distinct primary use of property. Identify appropriate zoning districts for this use, the recommendation is that this be an allowed use in all commercial and industrial zoning districts as a use by right. 3. Amend the chart of minimum parking requirements in Chapter 1374 to include the minimum percentage of EV capable, EV ready, and EV installed spaces. Preliminary recommendations are included in the following table. 4. Amend Chapter 1320 to clearly define EV terminology including the following: Electric Vehicle Terminology These definitions were provided from the Great Plains Institute based on personalized recommendations for the adoption of EV policy in Traverse City.  Electric Vehicle (EV): A vehicle that is at least partially powered by one or more electric motors using electricity stored in rechargeable batteries.  Battery Electric Vehicle (BEV): An electric vehicle (EV) that operates entirely on electricity from an onboard battery. BEVs have an electric engine and produce no tailpipe emissions.  Plug-in Hybrid Electric Vehicle (PHEV): A vehicle that combines an internal combustion engine with an electric motor and a rechargeable battery. PHEVs can operate in all-electric mode for a certain range before switching to the combustion engine or hybrid mode.  Electric Vehicle Supply Equipment (EVSE): The hardware and infrastructure used for charging EVs. This typically consists of charging stations, connectors and cables, power management, payment systems, and grid integration.  Charging Station: Specialized infrastructure supplied with a charging port that allows EVs to recharge their batteries. The speed that the EV charges at depends on which of the three levels of chargers (Level 1, Level 2, or direct current fast charger) is being used.  Level 1 Charger: Charging through a common residential 120-volt (120V) AC outlet  Level 2 Charger: Higher-rate AC charging through 240V or 208V electrical outlets, and is common for home, and public charging.  Level 3 Charger or Direct Current Fast Charging (DCFC): DCFC delivers direct current (DC) energy to a vehicle's battery, with AC-to-DC conversion occurring in Page 16 of 29  the charging equipment rather than the vehicle. This allows for more rapid charging than level 2 chargers.  EV Capable: A location or parking space that has the infrastructure necessary to support the future installation of EV charging equipment. In an EV-capable location, components are designed or upgraded to accommodate EV charging stations in the future.  EV Ready: A step above EV-capable, EV-ready sites also include dedicated electric outlets, panels, or conduits specifically designed for EV charging stations, but charging stations are not yet installed.  EV Installed: Sites with an EV charging station, along with all the infrastructure, charging equipment, and electrical connections needed for users to charge their cars. Parking Requirements Potential amendments (highlighted text) to the minimum parking requirements under Chapter 1374. Minimum Required Required Minimum EV Spaces Land Use Category Parking As a Percent of total spaces provided Spaces EV Installed EV Ready EV Capable No minimum No minimum No minimum Residential 100% requirement requirement requirement Specialized Housing 1 per 3 No minimum No minimum Adult foster care home 100% residents requirement requirement 1 per 10 No minimum No minimum Child care center 100% children requirement requirement Residential care and treatment No minimum No minimum 1 per 3 beds 100% facilities requirement requirement No minimum No minimum No minimum Independent living 100% requirement requirement requirement Institutions 3 per 10 No minimum High schools, colleges 10% 25% students requirement 1.5 per No minimum All other schools 10% 25% classroom requirement 1 per 4 seats No minimum Places of worship in main area 10% 25% requirement of worship 1 per 400 square feet Hospitals 10% 25% 25% gross floor area 1 per 400 Governmental offices, post offices 10% 25% 25% square feet Auditoriums (excluding schools) 1 per 3 seats 10% 25% 25% Page 17 of 29 Commercial 1 per 350 square feet gross floor Office, financial institutions, retail 10% 10% 25% area (Max. 1 per 250 sq. feet) 1 per 300 square feet gross floor No minimum Medical office 10% 25% area (Max. 1 requirement per 250 sq. feet) 1 per 850 square feet No minimum Furniture, antique and bicycle shops 10% 25% gross floor requirement area No minimum Theaters 1 per 3 seats 10% 25% requirement 0.4 per seat No minimum Restaurants Family (alt. 2 for 10% 25% requirement every 5 seats) 0.7 per seat No minimum Fine/Banquet Halls/Fast Food (alt. 3 for 10% 25% requirement every 4 seats) 1 per room or Lodging facilities 10% 25% 25% suite Marinas 1 per boat slip 10% 25% 25% 1 per 325 square feet gross floor No minimum Grocery, hardware/all other uses 10% 25% area (Max. 1 requirement per 250 sq. feet) Industrial 1 per 350 square feet Office 10% 10% 25% gross floor area 1 per 600 square feet Assembly/Warehouse/Manufacturing 10% 10% 25% gross floor area Page 18 of 29  Staff Report TO: Planning Commission COPY: FROM: Leslie Sickterman, Deputy City Planner/Sustainability Coordinator MEMO DATE: July 16, 2026 SUBJECT: ADU Regulation Updates Discussion ANALYSIS: The high cost and low availability of housing has become an issue nationwide and is acutely experienced throughout the region and especially in Traverse City. Housing experts suggest that this housing crisis stems from a range of circumstances beyond our direct local-control, like high interest rates, high materials costs, high fuel costs, low housing stock due to past recessions, change in household size and demographics, aging housing stock, property tax structure, and lack of construction tradespeople. However, there are some things that the City has more direct control over that may lower barriers and ultimately may lower costs and increase housing supply. Some actions that the City has taken include:  Beginning in 2015 and continuing through 2025, the City approved zoning reforms to support infill housing. These reforms included allowing accessory dwelling units (ADUs), lowering minimum lot sizes, and increasing the allowable number of housing units per lot. The impact of these changes have been incremental but significant. Since 2015, 100 ADUs have been approved. Since 2024, 17 second dwelling units have been approved under the new zoning rules.  Last year, the Planning Commission recommended changes to the allowable ratio of short term rentals. Among other concerns, these recommended short term rental changes were predicated on the desire to provide more multiple family units as long term rentals.  The City Commission recently approved offering property tax exemptions for new and rehabilitated housing units under Michigan’s Attainable Housing Facilities Act. Certificates may be granted to owners of these newly built or renovated units that are rented to income-qualified households at or below 30% of the renter’s income. This program applies to developments of up to 4 units. Page 19 of 29 The City’s Strategic Plan and OKRs specifically target further amendments to the ADU zoning standards and related non-zoning regulations such as parking rules. The Planning Commission’s goals for 2026 include a broad goal to “continue to pursue reforms and support initiatives to broaden housing opportunities throughout 2026”. Recommendations Based on the foregoing, and following discussions with the Zoning Administrator, staff recommends that the Planning Commission consider the following zoning revisions and provide preferred direction so that staff can prepare more detailed proposed text amendments. Removal of the ADU option in the R-1 districts: This option recognizes that new ADUs have almost completely been replaced by the 2023 zoning reforms allowing two principal dwellings on a single parcel. Totally eliminating this option does pose some concerns:  The second dwelling option only applies on properties that are at least twice the lot area of that required in the district (14,000 sq. ft. in the R-1a district and 8,000 sq. ft. in the R-1b district). Not all parcels meet this standard so the second dwelling option does not work for all properties in this district.  The second dwelling is subject to the setbacks for a primary residence (25’ rear setback instead of the accessory dwelling setbacks of 4’ to any property line). Again, this option does not work for all situations. Lessen the restrictions for the ADU option in the R-1 districts: This option leaves both the second dwelling option and the ADU option open for property owners but removes some barriers. Suggested amendments to the ADU regulations include the following:  Remove the restriction on the location of the entrances for an ADU.  Remove the requirement that the accessory dwelling be “clearly incidental to the principal dwelling unit and the structure’s exterior appears to be single- family”.  Remove the 800 square foot size restriction on an ADU, instead limiting the size to a percentage of the primary dwelling.  Eliminate the requirement that one of the units be owner-occupied.  Consider eliminating the annual registration requirement. Combine ADU and second unit options and relax standards. It is difficult to discuss ADU regulation reforms without also discussing second dwelling unit standards. Again, these two options under the City’s zoning ordinance start to merge as the standards are relaxed. There are those that do not have the lot area for a second unit and struggle with the size and design restrictions of an ADU and there are those with enough lot area for a second unit but are not able or willing to meet the higher setbacks standards (especially from the rear, or alley side lot line). Page 20 of 29   Based on this conflict, an option is to consider eliminating ADUs and instead allowing a second unit with no minimum lot size standard and smaller minimum setbacks (4’ from the rear line in line with current ADU standards). The side setbacks and maximum lot coverage restrictions would remain. Additional Considerations Pattern book tie in. The Master Plan also calls for the City to pursue offering “pattern book” home design options. These pre-approved plans can be designed specifically to fit common lot sizes and configurations in the City. Pattern book designs for ADUs or second dwellings can also be included in the suite of pre- approved offerings. These plans should be designed to easily meet the zoning ordinance requirements and be pre-approved by Grand Traverse Construction Code. Careful timing and coordination of these designs and any related zoning amendments should be considered. Impact on parking rules. Residential uses are not subject to minimum parking standards under the zoning ordinance. Overnight parking on any street is restricted under the City’s Traffic Code seasonally. As zoning reforms allow for more dwellings on individual lots, each with a potential for at least one vehicle, providing off-street parking becomes more difficult. The changes discussed here should be made with parking rules in mind. The Planning Commission does not have direct review over the Traffic Code, but could make a recommendation in this regard to the City Commission. Page 21 of 29 Page 22 of 29  Staff Report TO: Planning Commission COPY: Evan McGgee, Planning Intern FROM: Leslie Sickterman, Deputy City Planner/Sustainability Coordinator MEMO DATE: July 13, 2026 SUBJECT: Proposed Child Care Zoning Amendments EXECUTIVE SUMMARY: Robust child care services are the foundation of a thriving community. They support young families by creating an environment where they can live and grow within established social networks, allowing for long term neighborhood stability. The City of Traverse City presently permits small-scale child care services to exist in many neighborhoods, but there are zoning barriers that may impede the availability and expansion of essential child care services in the future. The city has recently seen interest in child care services being provided at the Civic Center, located in an Open Space (OS) zoning district; however, OS districts don’t currently permit any type of child care services. The following proposal intends to address this issue and expand opportunities for daycares by broadly lowering zoning restrictions. Updating child care zoning regulations would target these three Strategic Pillars listed in the City of Traverse City’s Strategic Action Plan: 1. Building Thriving Year-Round Economy  Expand business diversity and innovation capability to build a year-round economy 2. Creating a Complete Community  Build socio-economic systems and amenities that foster demographic balance 3. Strengthening Place-making and Neighborhood Character  Protecting the character of downtown and neighborhoods Page 23 of 29 RECOMMENDATION: If the Planning Commission concurs with the following analysis and recommendation, it is appropriate to adopt a motion instructing staff to prepare complete ordinance amendment language and further to set a public hearing for the regular August 2026 Planning Commission meeting. ANALYSIS: Current Use Standards and Allowed Districts Child care facilities currently appear in the zoning ordinance as three separate categories: child care organizations, family child care homes, and group child care homes; each with functional differences (see definitions at the end of this document). As shown in the matrix on the next page, each category is subject to varying zoning restrictions depending on the zoning district and type of child care facility. Page 24 of 29 Figure 1. Current Child Care Zoning Matrix Type of Facility Residential Child Care Facility Zoning District Child Care Organization Family Child Group Child Care Home Care Home RC R-1a and R-1b Allowed by Right (school or place of worship) R-2 R-3 HR Allowed by C-1 Land Use Permit Required* Right C-2 Allowed by Right C-3 C-4 D-1,2,3 I GP Not Allowed Not Allowed T Allowed by Right H-1 H-2 NMC-1 Allowed by Land Use Permit Required* Right NMC-2 OS Not Allowed Not Allowed Not Allowed Page 25 of 29  *Group child care home, as defined by MCL 722.111 et seq., as amended, subject to the following conditions:  All necessary licenses are obtained and maintained. Expiration or revocation of a license automatically terminates the land use permit and a change in the licensee requires a land use permit renewal.  The lot is not located within 150 feet of another lot devoted to such use. The distances required shall be measured along any private or public street.  A fenced outside recreation area shall be located on premise where it will most effectively shield neighboring properties from noise and visual disruptions. Play equipment shall not be placed streetward of the principal structure unless specifically allowed by the Planning Commission for unique circumstance.  The use does not exceed 16 hours of operation during a 24-hour period.  No additional parking is required for the group child care home provided on-street parking is allowed adjacent to the property. If on-street parking is not allowed, 2 parking spaces shall be provided on premise.  A Group child care home requires the issuance of a Land Use Permit. As part of the application, a site plan shall be submitted showing the designated outside play area, primary drop-off/pick-up entrance and parking spaces. Related Definitions The zoning ordinance currently includes definitions consistent with state law for home day care facilities and for (non-home based) child care centers. Under the Zoning Enabling Act, home child care centers are considered a residential use of property. Accordingly, family child care homes (caring for 6 or fewer children) cannot be subject to any local zoning restrictions. Further, group child care homes (caring for 7-12 children) may be further regulated or restricted (but not required to be) in cities and villages in Michigan. The City’s current zoning definitions for these uses include: "Family child care home" means a private home in which 1 but fewer than 7 minor children are received for care and supervision for compensation for periods of less than 24 hours a day, unattended by a parent or legal guardian, except children related to an adult member of the household. Family child care home includes a home in which care is given to an unrelated minor child for more than 4 weeks during a calendar year. A family child care home does not include an individual providing babysitting services for another individual. As used in this subparagraph, "providing babysitting services" means caring for a child on behalf of the child's parent or guardian if the annual compensation for providing those services does not equal or exceed $600.00 or an amount that would according to the internal revenue code of 1986 obligate the child's parent or guardian to provide a form 1099-MISC to the individual for compensation paid during the calendar year for those services. Family child care home includes a private home with increased capacity. Page 26 of 29  "Group child care home" means a private home in which more than 6 but not more than 12 minor children are given care and supervision for periods of less than 24 hours a day unattended by a parent or legal guardian, except children related to an adult member of the household. Group child care home includes a home in which care is given to an unrelated minor child for more than 4 weeks during a calendar year. Group child care home includes a private home with increased capacity. "Child care organization" means a governmental or nongovernmental organization having as its principal function receiving minor children for care, maintenance, training, and supervision, notwithstanding that educational instruction may be given. Child care organization includes organizations commonly described as child caring institutions, child placing agencies, children's camps, children's campsites, children's therapeutic group homes, child care centers, day care centers, nursery schools, parent cooperative preschools, foster homes, group homes, or child care homes. Child care organization does not include a governmental or nongovernmental organization that does either of the following: (i) Provides care exclusively to minors who have been emancipated by court order under section 4(3) of 1968 PA 293, MCL 722.4. (ii) Provides care exclusively to individuals who are 18 years of age or older and to minors who have been emancipated by court order under section 4(3) of 1968 PA 293, MCL 722.4, at the same location. It appears that the definition of “child care organization” as used in the ordinance was intended to address non-residential day care facilities. This is actually a more encompassing term that covers all types of child care organizations. There is a more appropriate definition for “child care center” found in the State laws that better fits the ordinance intention. Recommended Amendments 1. Allow child care organizations, family child care homes, and group child care homes by right in every zoning district. 2. Remove most of the standards for group child care homes. A land use permit will still be required in order to demonstrate zoning compliance to the state licensing officials, but no spacing standards, parking restrictions, outdoor play area standards, or operational hour restrictions. This removes barriers and allows more flexibility. The rigorous licensing requirements imposed by the state will remain in effect. 3. Remove the requirement that child care organizations be associated with a school or place of worship in residential and commercial districts. This use is consistent with a residential neighborhood whether or not it is co-located within a church or school. 4. Change the name and definition from “child care organization” to child care center. This is more in line with state law definitions and eliminates the confusing umbrella terminology for Page 27 of 29 these commercial/non-residential child care facilities. Replace child care organization with child care center throughout the ordinance and replace the definition as follows. “Child care center” means a facility, other than a private residence, receiving 1 or more children under 13 years of age for care for periods of less than 24 hours a day, where the parents or guardians are not immediately available to the child. Child care center includes a facility that provides care for not less than 2 consecutive weeks, regardless of the number of hours of care per day. The facility is generally described as a child care center, day care center, day nursery, nursery school, parent cooperative preschool, play group, before- or after-school program, or drop-in center. Child care center does not include any of the following: (i) A Sunday school, a vacation bible school, or a religious instructional class that is conducted by a religious organization where children are attending for not more than 3 hours per day for an indefinite period or for not more than 8 hours per day for a period not to exceed 4 weeks during a 12-month period. (ii) A facility operated by a religious organization where children are in the religious organization’s care for not more than 3 hours while persons responsible for the children are attending religious services. (iii) A program that is primarily supervised, school-age-child-focused training in a specific subject, including, but not limited to, dancing, drama, music, or religion. This exclusion applies only to the time a child is involved in supervised, school-age-child-focused training. (iv) A program that is primarily an incident of group athletic or social activities for school-age children sponsored by or under the supervision of an organized club or hobby group, including, but not limited to, youth clubs, scouting, and school-age recreational or supplementary education programs. This exclusion applies only to the time the school-age child is engaged in the group athletic or social activities and if the school-age child can come and go at will. (v) A program that primarily provides therapeutic services to a child. Page 28 of 29  Planning & Zoning 6100 US 31 N | Williamsburg, MI | 49690 Phone: [231) 938-1350 Fax: (231) 938—1510 Web: www.acmetownshin.org NOTICE OF ADOPTION On June 15, 2026, after a 63-day review period, the Acme Township Planning Commission unanimously approved the 2026 Draft Master Plan / Master Plan Update in accordance with the Michigan Planning Enabling Act (MCL 125.3801...125.3885). Updates include: Housing Data, Housing Chapter 8 oldentified a need for more diverse housing types, including townhomes, smaller homes and rental options. Economic output has more than doubled between 2018 and 2022, and growing business requires residents to fill positions. -Introduced strategies to support housing affordability to support an increasing portion of younger residents and families in the Township. Transportation Data, Transportation Chapter 9 oEmphasized the having a balance ofmotorized and nonmotorized transportation options. Future Land Use oRefined Future Land Use categories to better align with existing development patterns. -lntroduced the Equestrian Overlay District to support the agricultural economy. -Strengthened alignment between the Master Plan and Zoning Ordinance. oReinforced the importance of coordinating growth with available water, sewer and transportation infrastructure. Community Priorities cUpdated goals and objectives to re?ect current community needs and regional trends. *The full DraftMaster Plan should be reviewed for complete context. This list is provided as a guide to updates and does not replace thefulldocument. A copy ofthe document can befoundhere: https: Z/www.acmetownship.0rg/d0cuments—-master-plans.html For questions please contact: Lindsey Wolf, Planning 8; Zoning Administrator Phone: 231-938—1350 Ext. 106 RECEIVE D JUL1020 Email: zoning@ acmetownshiporg PLANNING& ZONING City of Traverse City Page 29 of 29