Overcrowding, lack of workers, forces Cherry Republic expansion

New parking, septic, attainable housing and store slated for 2019

By Linda Alice Dewey
Sun contributor

On July 3, 4,000 customers passed through the doors of Glen Arbor’s Cherry Republic; 1,000 of those visited within an hour and 20 minutes. Outside on Lake Street, parking was a nightmare. Inside, the 1,400 square foot “Great Hall” was filled to capacity, its septic system pushed to its maximum, the hired help stretched to their limits.

Cherry Republic’s overcrowding problem has grown incrementally for years. As a result, owner Bob Sutherland has been eyeing possible solutions for some time. Always an innovator, he’s been considering options and alternatives, weighing and sifting each like a meticulous baker. Any solution to Cherry Republic’s overcrowding will be expensive. That, he knows.

Perhaps the most expensive issue for Sutherland is the septic situation. A new system requires land—lots of it, and Cherry Republic already uses all the land it owns. “There is nowhere on our property to put it,” he said.

Earlier this year, as he looked around at what might be available nearby, Sutherland took advantage of an available lot on the west side of M-22 at the end of State Street, and bought it. His plan is to remove the little brown house sitting there, create a drain field on a large portion of the property and pipe Cherry Republic’s effluent there, increasing his septic capacity more than four-fold. This project alone will cost Sutherland $400,000, including the lot.

Parking is also a major hurdle. For years, Cherry Republic has rented Dan Wiesen’s old cabinet-making shop, located next to LVR Realty on State Street, with the option to buy, which he finally did. There, he’ll create 22 new parking spaces and possibly add another 20 spaces by the drain field on M-22. (The parking areas also offer proximity to Glen Arbor’s public park and playground, which will be improved and expanded this fall and in 2018 following a successful millage vote on Aug. 8.)

Housing and retail space

Finding retail help is always a challenge for area employers due to a lack of local affordable housing. Sutherland is using single-pronged approach to ease that dilemma along with the lack of sufficient retail space. He has teamed up with Royal Oak architect Brian Power, who has worked on numerous Traverse City projects, including Cherry Republic’s store on Front St.

On Aug. 15, Power presented preliminary plans to the Glen Arbor Township Board at their monthly meeting. At this point, he cautions, everything is preliminary. Their concept is to create a new 4,000 square-foot building which would face the corner of Lake and State streets on an angle and would attach to the current winery. The first floor would be a split-level retail space, with half a level below the raised portion for storage.

The third floor might be comprised of four to six attainable housing apartments with balconies, topped by a shed roof and solar panels. (“Attainable” housing, a step up from “affordable” housing, requires that the renter is working and has an income above a certain level.) The second floor could be office space or more residences. Most would be single bedroom units geared to attract young workers looking to live in Leelanau County.

“I’d love to fill it with young 20-somethings that want to plant themselves in Glen Arbor,” said Sutherland. Rent may fall into the $750-$900 per month range.

Township zoning requires that buildings stay below heights of 40 feet, said Glen Arbor planning and zoning commissioner Bob Ihme. Le Bear fits that standard, he said. Chery Republic’s addition would not be the biggest commercial structure in the area, added Ihme.

“We’re going to make every effort to enhance our property and look (aesthetically),” said Sutherland. “What works and enhances Cherry Republic’s property and look will enhance the town’s look and feel.”

Financing

For the project to be financially viable, Sutherland will apply to the Michigan Economic Development Corporation for grant money; he has consulted community planner Bruce Johnston for help.

While Cherry Republic is a profitable business, Johnston explained why the grant money is necessary.

“If Bob was going to build this and put in high-end rentals, he wouldn’t need any money,” said Johnston. “But that’s not what he’s doing. He believes that one of the greatest needs is attainable housing.”

Johnston was director of housing and community development in Ingham County for 32 years. “I worked on small and medium sized cities,” he said. “I (saw) what could happen.” When he left the public sector in 2010, Johnston and a partner created Revitalize, LLC, to provide communities with “a helping hand in the grant process.”

Qualifying for grant money isn’t easy. Both Sutherland and Glen Arbor Township will have to jump through a few hoops. First, said Johnston, the state will want to see that the project is financially viable. Next, support is required from the county and township.

Unlike similar projects, Sutherland does have cash on hand to begin the project. “Bob will put in a substantial amount of money, far more than others,” he said. “But the grant will fill the gap to cover rents that are lower.”

Current estimates show that the project will begin to pay for itself in 20 years.

Community support

The state-run Michigan Economic Development Corporation will require backing at the county and township levels. Earlier in August, Leelanau County commissioners voted their unanimous support. Meanwhile, Glen Arbor Township is showing preliminary support by sending supervisor Peter Van Nort, and possibly planning and zoning commissioner Bob Ihme, to a two-day training which will certify the township as a “Redevelopment-Ready Community” (RRC), followed by the township taking subsequent steps to comply with this certification. RRC certification opens the door for others to receive future grant money as well.

The township must also show its support for Cherry Republic by charging a lower property tax rate on the new project at the outset, with the tax rate gradually increasing over a period of 10 years until it reaches the full rate.

Johnston and Sutherland anticipate that several aspects of this project—namely, attainable housing and the improved septic system—will be attractive to the state. “They’re also interested in the overall growth of creating more jobs,” said Sutherland. “So we’re going to turn the café into a full-blown brewery-restaurant.”

“For the past 100 years people have traveled to Leelanau to visit the dunes and Lake Michigan and Glen Lake, and when they are hungry they go to Glen Arbor to eat,” Sutherland noted. “Recently, more and more people have been coming to the dunes, but there’s been no increase in restaurant space. With some of the changes at The Homestead, we’ve actually lost a few restaurants [Beppi’s and Nona’s in the village at The Homestead are no longer open to the public for nightly restaurant service].

“We just want to accommodate the new folks who’ve been coming to Glen Arbor in the last decade,” said Sutherland. “In some ways, we are just trying to catch up.”

The Glen Arbor public will have an opportunity to contribute input and voice any concerns to the township before construction begins, said zoning administrator Tim Cypher.

Concerned with the saturation of tourists Glen Arbor already draws in the summer months, some may wonder if this project will invite more growth. “We (need) to deal with the buses that are already coming, and to make their experience good.” Sutherland said. “Right now, that’s really difficult, with 3,000 people (coming) through our store.”

“A lot of people who live around Glen Lake say, ‘oh, we don’t come into Glen Arbor anymore because the lines are too long’. I really want to improve the experience for everyone.”

“This project doesn’t create more congestion,” said Johnston. “It actually builds housing and space for there to be a lifting of that burden somewhat.”

“Personally, I think it’s important that we maintain an infrastructure,” said planning and zoning commissioner Ihme. “How can (Bob) support how many people are coming here with his current infrastructure? He can’t. What are his options to support it? I think he’s doing the right thing. It’s expensive, but it’s doing the right thing.”

Sutherland hopes to break ground on this project sometime next year. The added parking, new retail space and attainable housing could be ready by 2019.

“We’re just getting the numbers together now to see what is the best path,” Johnston cautioned. “We need to run it by the partners—the state, county and township—so that everyone will be happy with it.”

At this point, the township board appears to be on board.

“The board was very positive toward proceeding to support the development that he wants to do,” said township supervisor Peter Van Nort. “The concepts which he’s using, to me, are very positive—the kinds of things we should be looking at in the township.”