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Planning commission to discuss code changes allowing lower-level commercial and living space in downtown Petoskey
Summary
City staff told the Downtown Management Board the planning commission will begin a multi-step process — initial discussion, language edits, public hearing, and city council review — to address code silence on lower-level uses, prompted by interest in redeveloping the Leo’s building.
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City staff told the Downtown Management Board that the Planning Commission will consider code amendments for the Central Business District to clarify permissible uses in lower-level spaces.
Ms. Wheaton explained the city code is “currently silent on the lower level,” addressing ground-level and upper-level uses but not the lower or basement level, and the issue was prompted by redevelopment interest in the Leo’s building. The developer has proposed two potential lower-level uses: a bar or “speakeasy”-style venue and living space. Staff said the commission’s initial discussion is scheduled for the meeting tomorrow and the process will likely include drafting language over one or two meetings, scheduling a public hearing, and ultimately referring the change to city council.
Ms. Wheaton said the immediate goal is to allow activation of lower-level space for commercial use and potentially for residential use if the proposals meet fire and building-code requirements. She said the board will likely be asked for a letter of support after the commission refines draft language and schedules a public hearing.
Board members asked about timing; staff reiterated the sequence of steps and emphasized this will be a multi-month process before any code amendment is adopted.

