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Residents seek alley paving; commission declines action after affordability concerns

Traverse City Commission · October 20, 2025
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Summary

After a public hearing on a proposed Special Improvement District to pave an alley, the Traverse City Commission declined to proceed because returned ballots indicated more opposition than support and commissioners expressed concerns about affordability for low-income homeowners.

A petition to form a Special Improvement District (SID) to pave an unpaved alley in a neighborhood came before the Traverse City Commission Oct. 20; the petition organizer, Michael Newman, urged approval, saying most users supported paving and noting potholes and poor conditions.

Staff reported voting tallies on mailed responses and commissioners reviewed the statutory thresholds for special assessments. Several commissioners raised affordability concerns; staff explained that the proposed assessment would translate to about $641 per year over a 10-year repayment period for affected homeowners and that unpaid assessments would become tax liens.

Commissioners discussed alternatives — expanding the district boundary, seeking state or other program support, or returning with a revised petition if neighbors wish to renegotiate cost-sharing — but concluded the current petition lacked enough affirmative support and would place a heavy burden on some homeowners on fixed incomes. The commission did not take an action to form the SID and encouraged petitioners to continue neighborhood outreach and to consult staff about options.

Michael Newman thanked staff for assistance and urged the commission to reconsider in the future with better neighborhood engagement.