City of Grayling Grayling Main Street DDA · 2018. 4. 16. · parking lot) to the southeasterly...

1GRAYLING DOWNTOWN REVITALIZATION PLAN

Downtown Revitalization Plan

City of GraylingGrayling Main Street DDA

July 2017

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Table of Contents

I. Overview……………………………………………………………………………4 District Description District Map II. Mission & Vision……………………………………………………………………7

III. Current State of Downtown..……………………………………………………9 IV. Future Projects…………………………………………………………………….12 a. Revitalize Shoppenagon’s and Bicycle Shop b.UpperFloorHousing/IncreasingDensity/InfillOpportunities c. Façade Improvements d. Reorienting Development Along M-72, Improve City Parking Lots e. Streetscape and Pedestrian Improvements f. Solidify funding stream for Grayling Main Street/DDA V. Important Market Data …………….……………………………………....…..20

VI. Implementation Plans……………………………………………………………22

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I. Overview

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Overview

BeginningattheintersectionofM-72W&M-93centerlineandtheeastR.O.W.LineoftheLakeStatesRailwayCompany(LSRC)R.O.W,thencesoutheasterlytothesouthlineofparcelEoftheGoodale’saddition,thenceeasterlytotheintersectionofthecenterlinesofM-72E.,James(BL-75)andStateStreets,thencenortherlytointersectionofthecenterlinesofStateandOliverStreets,thencenorthwesterlytotheintersectionofthecenterlinesofOliverandCharlesStreets,thencesouthwesterlytotheintersectionsofJames(BL-75)andCharlesStreets,thencenorthwesterlytotheintersectionoftheJames(BL-75)andtheInghamStreetR.O.W.,thencenorthwesterlyalongtherearpropertylinesofParcels(SunocoServicestationandFarmBureauInsurance)throughtheIoniaStreetR.O.W.continuingnorthwesterlyalongtherearpropertylinesofParcels(FormerlyLittleCeasar’sandKissMagicNails)tothesouthwestpropertycornerofParcel(GaleEnterprises),Thencenortheasterlyalongthesoutherlyproper-tylineofParcel(GaleEnterprises)throughthePeninsularStreetR.O.W.continuingeasterlyalongthesoutherlypropertylinesofParcels(U.S.PostOffice,RialtoTheatreandKeyport)totheSpruceStreetR.O.W.,thencenorthwesterlytothenortheastpropertycornerofParcel(Citizen’sBank),thencesoutheasterlyalongthenortherlypropertylineofParcel(HuntingtonBank)throughthePeninsularStreetR.O.W.,thencenortheasterlytothenortheasterlypropertycornerofParcel(Bear’sDenetcparkinglot)tothesoutheasterlypropertycornerofParcel(Bear’sDenetcparkinglot),thencenortheasterlyalongtherearpropertylinesofParcels(Verizon)throughtheOttawaStreetR.O.W.tothenortheasterlypropertycornerofParcel(TheMedicineShoppe),thencenortheasterlyalongtherearpropertylineofParcel(TheMedicineShoppe)tothenortheasterlypropertycornerofParcel(Rochette’s),thencenorthwesterlytotheintersectionoftheOgemawStreetR.O.W.,thencenorthwesterlytothenortheasterlypropertycornerofParcel(vacantDiscountMart),thencenorthwesterlyalongthenortheasterlypropertylinesofparcels(Fenton’sAuto,CedarMotelandClarkGasStation)totheintersectionofthecenterlineofLakeStreet,thencesouthwesterlytothepointofbeginning.

District Description

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Overview

District Map

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II. Mission & Vision

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Mission & Vision

Mission Statement

ThemissionofGraylingMainStreetistobeaneconomicdevelopmentprogram that uses historic preservation and community collaboration in DowntownGraylingtopromoteourartisanandgreatoutdoorsrecreationalresources.

Vision Statement

ThevisionofDowntownGraylingistobeaneconomicallyviabledistrict,supported by the business community, that is aesthetically engaging and

encourages a grand sense of pride in residents.

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III. Current State of Downtown

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Current State of Downtown

Historically,thecommercialcenterofthecity,thedowntownhasseenmore recent investments after several decades of disinvestment and growingcompetitionbyretailontheoutskirtsoftown.Beyonditsownpopulation,DowntownGraylinghasthedistinctadvantageofbeinglocatedalongastatetrunkline(M-72)offofamajorinterstate(I-75)andoneofthemainroutestravelersfromdownstateandbeyondgothroughontheirwaytootherpopularnorthwestMichigandestinationslikeTraverseCity,Charlevoix,Petoskey,andothers.Thislocation,inadditiontothebeautifulAuSable River, give it a distinct advantage in their ability to attract attention by people traveling through the area.

Thedowntownhasseveralnaturalandman-madeassetsinitseffortstorevitalize.First,istheaforementionedAuSableRiver.Thisbeautiful,windingrivermakesitswaythroughdowntownandisapopularspotforcanoers,kayakers,andanglers.DowntownGraylingservesashosttotheAuSable River Canoe Marathon each year, as canoers from around the worldflocktodowntownforthestartoftherace.Inadditiontotheriver,ithasatraditionaldowntownbuildingstock,withnumeroushistoricpropertiesincludingafirst-runmovietheater.Morerecently,severalmicro-brewestablishmentshavemadedowntownhomeincludingPaddleHardBrewery(twolocationsdowntown)andRollingOakBrewing.Downtownhas several strong retailers including a Michigan-product themed store, a combinationflowerandcoffeeshop,aflyfishingretailerandtwoartgalleriestonameafew.Recentstreetscapinghashelpedmakepartsofthedowntownlookmoreattractive,asdocolorfulbannersandseasonalflowersthroughoutthedowntown.

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Current State of Downtown

DowntownGraylingcertainlyhaschallenges.Thedowntown’scurrentandhistoric vacancy rate is cause for concern, as is the condition of its public parkinglotsandfacadesofmanybuildings.Furthermore,thedowntownlacksdensityseeninnumerousotherdowntownsintheregion,withmanybuildingsinthedowntownonlyhavingonelevel,reducingtheopportunityforhousinginthedowntown.Inadditiontothevacancyrate,akeyareaofconcerniswhichpropertiesarecurrentlyvacant.TheformermotorlodgeandattachedrestaurantknownasChiefShoppenagon’s,whichisthelargestbuildingdowntown,aswellastheformerbicycleshop,whichsitsprominentlyatthecornerofMichiganAvenueandM-72/BL-75attheheartofdowntown,arethetwomostvisibleandimpactfulvacanciesdowntown.FurthervacanciessuchastheformerSawmillTavernandoldrecordstoreaswellasseveralothersarealsosignificantandnoticeablydetractingfromdowntown.

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IV. Future Projects

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Future Projects

ToassistdowntownGraylinginitsrevitalization,wearerecommendingprojectstoaddressthebiggestissuesthatarefacingdowntowntoday:

A. Revitalize Shoppenagon’s and Bicycle Shop

B.UpperFloorHousing/IncreasingDensity/InfillOpportunities C. Façade Improvements D.ReorientingDevelopmentAlongM-72/BL-75 Improve City Parking Lots E.StreetscapeandPedestrianImprovements F. Solidify funding stream for Grayling Main Street/DDA

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Future Projects

A. Revitalize Shoppenagon’s and Bicycle Shop Whilethereareanumberofvacanciesindowntownthatcouldbebeneficialiffilled,thesetwopropertiesarethemostkeyinfurtherrevitalizingDowntownGrayling.

TheformerChief Shoppenagon’s Motor Inn is the largest building in downtownandhasbecomeablightedanchoronthecommunity.Tomany,itservesasareminderofGrayling’spast,whileofferinglittlehopeforthefuture.However,becauseofitssize,italsooffersthelargestopportunityinthecommunity. In need of extensive interior and exterior improvements, its revitalizationwillnotbeasmallundertaking.

Therearetwopotentialusesforthisproperty,assumingthehistoricbuildingcanbesaved.Thefirst,wouldbetheexplorationoftheneedforaboutiquehotel.Afeasibilitystudywouldneedtobeconductedtodetermine:1)ifthemarketwouldsupportasmall,boutiquehotel-mostlikelycateringtooutdoorlifestyleenthusiastsand2)whattheaveragenightlyroomrate,orrackrate,wouldbeforsuchafacility.Thesecondoptionwouldbeaconversionoftheupperfloorsintoapartmentsandthefirstfloorintoretail.Arecenttargetmarketanalysisrevealstherearecurrentlynomulti-familydwellingsinthecity.Furthermore,conversationswithCampGraylingandMunsonHospitalrevealtheneedforhigher-end,longer-termtemporaryaccommodations(6-12months,)forvisitingcommandstaff,doctorsandotherdignitaries.Conversationswitharchitectsandconstructionexpertsshouldbehadinorder to develop a pro forma for the conversion of these units to residential to determine feasibility.

TheDDAcanassisttheprojectthroughpublicparkingandfacadeimprovements.

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Future Projects

A. Revitalize Shoppenagon’s and Bicycle Shop SituatedatthecornerofM-72/BL-75andMichiganAvenue,theformerbicycleshopisbyfarthemostvisiblevacancyindowntownGrayling.Assuch,andinorder to make an impact on both current residents and prospective customers, the redevelopment of the bicycle shop should be a priority for DowntownGrayling.Thebuildingitselfappearstobeingoodcondition,butis in need of a façade renovation, including the removal of the covering of the secondfloor,whichwouldallowforthecreationof1-3apartments.Theretailspaceonthefirstfloor,extendsbeyondtheoriginalfootprintofthebuildingand into a smaller, single story building behind it. Both of these buildings have sidesfacingM-72,thehighesttraffickedroadinthecounty.Revitalizingthisbuildingwillsendastrongvisualmessagetothecommunity,andeveryonetravelingthroughDowntownGrayling,thatpositivethingsarehappening.

TheDDAcouldassisttheprojectthroughfacadeimprovements.

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Future Projects

B. Upper Floor Housing/Increasing Density/Infill Opportunities

Untilrecently,localzoningdidnotallowforupperfloorresidentialopportunitiesindowntown.Nowthatthosezoningregulationshavebeenchanged,downtownshouldaggressivelybepursuingoptionsforredevelopinganyspacesthatwouldallowupperfloorhousingdowntown.Inaddition,avastmajorityofthedowntownareaisonestory.Asappropriate,thesebuildingsshouldbeevaluatedtodetermineifadditionalfloorscouldbeaddedtocreatemoreresidentialunitsdowntown.Furthermore,thereareseveralvacantparcelswithinthedowntownarea,particularlyalongM-72.Effortsshouldbemadewiththesepropertyownerstocreatemulti-story,mixed-usebuildingsontheseparcelstoeithercomplimentorreplacethosebuildingswithlargersetbacksfromtheroad.Byincreasingdensityindowntownthroughupperfloorresidentialandbuildingmixed-usebuildingsinvacantorunderusedparcels,thisallowsthecitytomaximizetheinfrastructurethatalreadyexistsdowntownwithoutdrasticexpansionandongoingcostsofmaintainingnewinfrastructuretogreenfieldsites,creatingamuchgreaterReturnonInvestment for public dollars.

TheDDAcouldassisttheseprojectsthroughfacadeimprovementsandpublic infrastructure support.

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Future Projects

C. Façade ImprovementsNumerousfaçadesdowntownappeardatedandmanyeitherinstalledmansardroofsalongthesidewalkorhavecovereduptheupperfloorsofthebuildingsinordertomake,whatwasoriginallythoughtofas,a“clean”look.Thesemansardroofsrarelyprotectcustomersfromtheelementsandthecoveringoftheupperfloorsnegatesthebuilding’sabilitytohaveupperfloorhousingasanegressfromthefloorviawindowisrequired.Additionally,updated facades, like those recently completed at Paddle Hard, make a tremendousimpactontheimageofdowntownandmakethepropertymorevaluabletoprospectiveowners.

D. Reorienting Development Along M-72, Improve City Parking Lots

As recommended in item B, reorienting development along M-72 through downtownshouldoccurtoeliminatelarge,suburbanstylesetbacksandcreateamoredowntownfeeltothethoroughfarebyencouragingmixed-usedevelopment.Thiscanbeaccomplishedthroughchangesinzoningrequirementsandsomecreativelandswappingbetweenthecityandprivatelandowners.Itisunderstoodthecitywantstoretainownershipofthelots,but but the orientation of those lots can be altered to create more density and tax base to the community. In addition to the reorientation, improvements tothepublicparkingareasofdowntownshouldbemade.Pavingofthecity-ownedlotsshouldbethefirstgoal,withattractivelandscapingaroundthem.Thecitycanandshouldsetahigherstandardfordevelopmentandqualityforthecommunity.Thatbeginswiththecity’sleadershipthroughitsparkinglots.Keepinmind,thisdoesnotmeanoverlyexpensivelandscaping,justahigherqualitythatmatchesthestreetscapethathasalreadybeencompleted.

By reorienting development along M-72, Grayling can create more tax base using the same amount of infrastructure.

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Future Projects

E. Streetscape ImprovementsThisrecommendationistiedtoFutureProjectD.AsdevelopmentreorientsalongM-72,improvedinfrastructurewillhelpmakeabetterconnectiontoMichiganAvenue(andcomplimentrecentstreetscapeimprovements)andmakeM-72morepedestrianfriendly.MDOTenhancementgrantscanbeleveraged by local funds to create a bigger bang for dollar and make an impactfulandpositivephysicalchangetodowntownthatwillbenoticedbytravelers on M-72. In addition, these pedestrian/streetscape improvements should extend to and connect other areas immediate to the DDA district like the former Fred Bear property and former Pro Build site.

F. Funding Stream for Grayling Main Street/DDATheDowntownDevelopmentAuthority(DDA)actallowstwopossiblefundingstreamsfordowntownactivities:TaxIncrementFinancing(TIF)anda2-millassessmentonpropertyownersforoperations.WhileGraylinghashadaDDAforseveralyears,ithasnotactivatedeitherofthesetwofundingstreams. Given the rebound in the real estate market after the Great Recession,nowwouldbeanexcellenttimetocreateaTIFplanandbegincapturingthatincrementtobeusedfortheprojectsabove.Inaddition,theGraylingMainStreetprogram,whichutilizesthecity’sDDAasanorganizingmechanism,hasprovidedagreatbenefittothedowntown,yetfewbusinessorpropertyownerscontributetotheorganization.Itisstronglyrecommended that the city either implements this 2-mill assessment, or exploresthecreationofaPrincipleShoppingDistrict(PSD)whichcanalsospeciallyassesstoraisefundsforongoingmarketingeffortsforthedowntown.

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Future Projects

Estimated Project CostsBelowarecostsestimatedforeachoftheprojectsidentified:

A. Revitalize Shoppenagon’s and Bicycle Shop i.Shoppenagon’s-RehabCost:Unknown AdditionalResources:U.S.DepartmentofAgriculture-RuralDevelopmentAdaptiveReuseFeasibilityStudy; MichiganEconomicDevelopmentCorporation(MEDC)CommunityDevelopmentBlockGrant(CDBG)forfacade improvements,possiblebuildingacquisition,publicinfrastructureimprovements ii.BicycleShop-RehabCost:Unknown AdditionalResources:MEDC-CDBGforfacadeimprovements,publicinfrastructureimprovements MEDC-Brownfieldforpublicinfrastructureimprovements

B.UpperFloorHousing/IncreasingDensity/InfillOpportunities-Cost:Variesbybuilding AdditionalResources:MEDC-CDBGforfacadeimprovements,publicinfrastructureimprovements MEDC-Brownfieldforpublicinfrastructureimprovements

C.FaçadeImprovements-Cost:$10,000-20,000annuallyasmatch AdditionalResources:MEDC-CDBGforfacadeimprovements D.ReorientingDevelopmentAlongM-72,ImproveCityParkingLots-Cost:$400,000-750,000 AdditionalResources:MEDC-CDBGand/orBrownfieldforpublicinfrastructureimprovements MichiganDepartmentofTransportation(MDOT)-TransportationEnhancementGrantsforstreetscape,otherpublic infrastructure improvements E.StreetscapeandPedestrianImprovements-Cost:$500,000-650,000 AdditionalResources:MEDC-CDBGand/orBrownfieldforpublicinfrastructureimprovements MDOT-TransportationEnhancementGrantsforstreetscape,otherpublicinfrastructureimprovements

F.SolidifyfundingstreamforGraylingMainStreet/DDA-Cost:$80,000-100,000annually

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V. Important Market Data

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Important Market Data

In2016,aTargetMarketAnalysis(TMA)forCrawfordCountywasconductedbyLandUseUSA,commissionedbytheMichiganStateHousingDevelopmentAuthority(MSHDA.)ThisTMAprovidesthecommunitywithestimatesofthenumberandtypesofhousingthereiscurrentdemandforoverthenextfiveyears.

It is important to note these numbers do not include the additionalimpactthenewAraucoNorthAmericafacilitywillhaveonhousingdemandinthearea.Thisfacilityisexpectedtocreateroughly1,000constructionjobsand200full-timejobsonceoperational.Thiswillonlyincreasedemandacrossallofthesesectors.

ThemostimportantpartofthisdatainrelationtoDowntownGraylingisinTable6(right.)Thisdatasuggests34-57TownhouseorLive/Workunitsand11-19SmallMultiplexunits.Bothbuildingtypeswouldbeconsistentwithdowntownandprovidesopportunitiesforbothexistingbuildingswithupperfloorsaswellasinfillbuildings.

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VI. Implementation Plan

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