Petoskey Council frees parking-fee revenue to repair downtown lots, rescinds 2018 direction

Petoskey City Council voted 3-0 on Feb. 3 to adopt a resolution directing that revenues in the city parking fund be used for maintenance and reconstruction of downtown surface parking lots rather than being held for a future parking structure.

The council’s action rescinds a December 2018 resolution that had set aside revenues from meter-rate increases for a possible parking ramp. City Manager Shane Horne said council and the Downtown Management Board concluded the city does not currently have the resources or immediate need for a multi‑million dollar ramp and that the money is better used to sustain existing lots and related downtown amenities.

“ I think it would be best to always take care of what you have first,” City Manager Shane Horne said during discussion, arguing for incremental investment in lot reconstruction, lighting, landscaping and other infrastructure.

The downtown manager (name not specified in the meeting record) told council the parking fund balance is about $1,500,000. Council members asked whether using those reserves would simply shift routine maintenance costs away from the general fund; the downtown manager said the parking fund already pays for lot operations and additional beautification projects and that capital work planned for the next two to three years would require drawing on that balance unless the city delayed projects.

Council discussion noted the parking fund also pays for the trolley, wayfinding signage and other place‑making items. Councilmember Nachtrob said the remaining balance is insufficient to fund a ramp (which council discussed in 2018 as a $10–$20 million project) and described the resolution as clarifying how the funds should be used now that a ramp is not imminent. Councilmember DeMour added the change gives clearer direction to the Downtown Management Board.

The motion was made and seconded and the roll call vote was Nachtrob — aye; DeMour — aye; Murphy — yes. Motion passes 3–0.

Council and staff said the action will allow planned work on specific flat lots (including the Seville lot) to move forward through the city’s capital improvement plan over the next several years. City staff said projects will be phased rather than all done at once and that the council may revisit priorities as needed.

The resolution rescinds the 12/17/2018 direction and replaces it with the updated guidance on use of parking‑fund revenues. The council did not specify detailed project schedules or a precise multi‑year spending plan during the Feb. 3 meeting; staff said those details will be included in forthcoming capital budget materials.