U‑Haul pitches Kmart reuse at Crestview; commissioners warn gateway, vehicle-storage concerns

U‑Haul representatives told the Petoskey City Planning Commission on Aug. 20 that they are exploring purchase of the former Kmart at the Crestview Planned Unit Development to convert the large vacant space into a combination climate‑controlled indoor storage facility and a small retail showroom for moving supplies.

The presentation, led by John Gilmore (President, U‑Haul) and Jeff Stefani (Vice President, U‑Haul), described a reuse model U‑Haul has deployed at other former Kmart buildings and emphasized interior, climate‑controlled storage and a modest retail area. Staff explained that the Crestview PUD currently allows mixed commercial and multifamily uses but does not permit warehouse or storage and that accommodating U‑Haul would require a major amendment to the PUD and subsequent approval by the Planning Commission and City Council.

Why it matters: The Kmart site sits on a well‑traveled corridor the commission described as a gateway into Petoskey. Commissioners said any reuse must protect the visual character of the entry to town, avoid turning the parking area into a long‑term outdoor equipment yard visible from the road, and, if possible, increase active retail frontage to benefit neighboring businesses.

U‑Haul’s pitch and operations John Gilmore said U‑Haul is offering to buy the former Kmart and the two adjoining parking parcels and adapt the building rather than demolish it. "So what we're offering is essentially, if you got a chance to look at the packet, is a similar situation where we would we would take this dark building. We would revitalize it," Gilmore said.

He described the company’s product mix for similar conversions: interior, climate‑controlled storage with drive‑in bays for customer access, a roughly 4,000–5,000 square‑foot retail showroom for moving supplies, and options to offer vehicle and trailer rentals. On customer access he said, "You shut your car off, the door closes behind you. There are carts available for you to load and take your items directly to your unit, offload into your unit, open the door back up, and pull your car back out." The applicants said their market studies indicate a shortage of climate‑controlled storage in the area.

Planning, PUD and process City staff clarified that the Crestview PUD currently allows mixed commercial and multifamily uses; warehouse and outdoor storage would not be allowed without a major amendment to the PUD. Staff described the appearance of the meeting as exploratory: the applicants asked for the commission’s feedback before filing any formal application for a PUD amendment or site plan.

Commissioners’ feedback and concerns Commission discussion focused on three recurring themes: (1) how the reuse would affect the Crestview shopping strip’s activation and visibility for neighboring storefronts, (2) the location and visibility of vehicle and equipment storage, and (3) design elements to preserve the gateway view into Petoskey.

- Retail activation: Several commissioners urged the applicants to increase retail frontage along the building’s front to help draw traffic into the adjacent strip mall and said a more retail‑heavy front façade would be more compatible with the site’s role as a town gateway. Commissioners suggested locating more small retail units and visible storefronts at the north end of the building where it connects to the strip mall.

- Vehicle, equipment and “pod” storage: Commissioners repeatedly opposed prominent outdoor vehicle or equipment storage visible from the corridor. They asked whether U‑Haul would keep trucks, trailers or outdoor storage pods on site and urged that any equipment be tucked away or screened. In response, applicants said outdoor pods were part of their standard plan for recognition but that the project could be designed without outdoor pods or without trucks and trailers on the visible parking areas if necessary.

- Visual impacts and view shed: Commissioners raised the site’s grade and its role as a gateway to Petoskey, urging limits on building height and conspicuous outdoor storage so the bay view and approach to town are preserved. Applicants confirmed they do not plan to raise the building height or add a second story.

Design and sustainability suggestions Commissioners and members of the public suggested design tradeoffs that could make the proposal more acceptable: adding a retail strip along the front, placing customer parking and retail on the north end, locating any equipment storage in the south or more hidden lot, using landscaping and screening for any outdoor elements, and exploring rooftop solar where feasible. The applicants said they have staff and consultants who study sustainability and would research solar and other green building options.

Outcome and next steps No formal application, ordinance change, variance or vote occurred at the meeting. Both the applicants and staff treated the discussion as pre‑application feedback: U‑Haul said it would consider the commission’s suggestions and could revise the concept to emphasize retail along the front and reduce or remove visible outdoor vehicle storage. Staff reiterated that permitting any storage or vehicle yard would require an amendment to the Crestview PUD, Planning Commission review and final City Council approval.

Closing The commission did not vote on the concept; commissioners asked the applicants to return with a formal application if they decide to proceed and to incorporate the feedback on retail activation, equipment screening and gateway protections.