06/07/2006

Would-be developer drops out

Company cites concerns about Elmwood zoning

BY BILL O'BRIEN

bobrien@record-eagle.com

TRAVERSE CITY — Another would-be developer pulled out of a major project in Elmwood Township over concerns about the township's zoning process.

Dallas-based developer Fritz Duda Jr. said his company dropped plans for a major overhaul of the Harleysville Insurance office building along M-22 in Greilickville for a pricey condominium development.

That follows last month's decision by developers of a proposed water park resort along M-72 to withdraw their project, where there was little movement by the township on the plans over the past year.

"We've terminated our interest in the (Harleysville) building," Duda said.

The plan needed changes to both the township's master plan and zoning ordinance, and Duda said he didn't see that happening any time soon.

"Our timeline really didn't match up with their timeline," Duda said.

Preliminary plans were presented in March for a $25 million-plus "adaptive re-use" to convert the 65,000-square-foot office building into approximately 70 condominiums in the $500,000 range.

But zoning was a problem. The township's Shoreline-Commercial zoning district limits the site to nine dwellings per acre, about 36 units on the four-acre site. Elmwood's master plan provides for up to 12 units per acre, still well short of the housing density developers said was needed to make the project financially viable.

Duda said his project had similarities with the water park in that neither developer saw the township taking action in the near future.

"I think we spent six months, and they spent 18," he said. "At the end of the day, we were both no closer to where we needed to go."

Township planner Bill Swanson said the township planning commission is "pretty comfortable" with present housing densities allowed in the M-22 corridor.

See related story:

• Condos eyed for office building - March 22, 2006