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City approves $285,512 in CDBG awards after heated debate over Safe Harbor parking, generator and SLU rules
Summary
The Traverse City Commission authorized $285,512 in Community Development Block Grant (CDBG) contracts, including funding tied to Safe Harbor operations and a requested paved parking area. Commissioners debated stormwater, zoning rules for special land use permits (SLU), timing risks and program restrictions before approving the awards 6–1.
The Traverse City City Commission voted Jan. 21 to authorize contracts totaling up to $285,512 in federal Community Development Block Grant (CDBG) funds for local nonprofits, after extended discussion about one applicant's request to pave overflow parking at Safe Harbor of Grand Traverse.
Deputy Planning Director Leslie Slickerman reviewed the CDBG process and reminded commissioners that CDBG is a prescriptive federal program with strict spending categories and deadlines. Slickerman told the commission that Central United Methodist Church clarified earlier questions about staffing costs and that the applicant confirmed it could use the staffing funds within the current program year.
"They clarified that, actually, they can use all of those funds in this program year," Slickerman said.
At issue for several commissioners was Safe Harbor's request to pave an unpaved overflow parking area used by volunteers and staff and whether the city could accept unpaved parking under the special land use permit (SLU) rules. Staff and the city attorney said an amendment to the zoning ordinance or to SLU requirements would be required to accept unpaved parking; the attorney estimated such a change would take about three months and warned that approving an SLU that does not meet the city's enacted ordinance standards could invite legal challenge.
Commissioner Stanley highlighted the immediate timeline for Safe Harbor. "If we vote no on the parking, we have to accept as a possible outcome that Safe Harbor will close for the season on April 15, and there will not be overnight shelter available year round in Traverse City for 2025," Stanley said during deliberations. Staff confirmed April 15 as Safe Harbor's close date if year‑round approval is not granted.
City staff also noted CDBG deadlines: funds must be spent, not just allocated, by June 30 of the fiscal year; some limited carryover is possible but unspent or unallocated funds could be at risk if not supported by federal justification.
The commission debated other line items in the awards packet as well — including a generator and fossil‑fuel HVAC requests — with Commissioner Warner opposing fossil‑fuel heating and expressing preference for electrification and emissions‑free alternatives. Several public commenters urged the commission to approve the funding to avoid service interruptions for people experiencing homelessness; others suggested greener alternatives such as solar arrays and battery backup rather than a traditional generator.
After deliberation, Commissioner Stanley moved and Commissioner Treadwell seconded a motion authorizing the mayor and city clerk to execute contracts with Goodwill Northern Michigan, Northwest Michigan Supportive Housing, Central United Methodist Church outreach program and Safe Harbor of Grand Traverse, Inc., not to exceed $285,512 in total from CDBG funds as outlined in Deputy Planning Director Slickerman's January 2025 communication. The motion passed on a roll call vote: Commissioner Anderson — yes; Commissioner Shaw — yes (reluctantly); Commissioner Stanley — yes; Commissioner Treadwell — yes; Commissioner Werner — no; Mayor Pro Tem Wilson — yes; Mayor Amy Chamro — yes.
Commissioners and staff asked that lessons from this compressed first year of administering entitlement CDBG funds be used to improve timelines and outreach in future funding cycles.
