view archived features Holding Its Own: Downtown Petoskey Plans to Rise Above its Challenges Robert Downes
It was a good news/bad news summer for merchants and restaurateurs in Northern Michigan: On one hand, the rainy, cool weather kept the lid on tourism; but those who came here spent more of their time shopping than at the beach. Such was the case in Petoskey, where the downtown district is adapting to the challenges of increased development in the area. “Rain and cool weather are not bad things for retail,” notes Carlin Smith, executive director of the Petoskey Regional Chamber of Commerce. “Petoskey did pretty good this summer – golf courses and some other outdoor businesses suffered, but retail benefited. We certainly didn’t have a record year for tourism, but we had a decent year.” Petoskey’s ace in the hole with tourism lies in the fact that the city has benefited from the tradition of a large summer resident contingent that dates back more than 100 years. At enclaves such as Bay View, summer cottagers from Chicago, Detroit, St. Louis, Indianapolis and other midwestern communities return each year as faithfully as swallows. “Our summer residents are invested in this area for the long run,” Smith says. “Gas could go to $5 a gallon and it could rain every day and they’d still come here all summer. They do all kinds of spending beyond the tourist trade – even buying cars – and that really benefits Petoskey.”
CHALLENGES But Petoskey faces a number of challenges in the years ahead, most notably the shift in the region’s shopping area to a commercial strip south of town. Recently, the Emmet County Board of Commissioners approved the settlement of a lawsuit that will allow the Petoskey Investment Group to develop 89 acres as a big box store center and housing complex near Wal-Mart in Bear Creek Township. The outer rim development is a cause for concern downtown. “I don’t want to be negative about new development and growth, but it will clearly present some challenges for downtown as that corridor becomes even more of a commerce center,” Smith notes. He says that similar developments involving strip malls and big box stores have been a challenge for downtowns across the country. “We’ve had a few vacancies downtown and we’re kind of in an in-between period, holding our own.” Downtown Petoskey is responding to external pressures by developing its own niche in art, jewelry, boutique clothing, restaurants, bookstores, gourmet food and even Native American collectibles. “We have a great niche in recreational shopping that brings people downtown. People don’t recreational shop at stores like Wal-Mart.”
COMEBACK TRAIL Smith says a new downtown development project at the site of a former film theater could help the city center. “The chamber of commerce is very supportive of the project but it’s facing a lot of fierce opposition from opponents who fear that it will change the character of downtown,” he notes. The Lake Street project would add a new hotel, condos, shops, a bank and an open-air plaza to downtown’s mix, bringing the buying power of new residents to the city’s core. “I’m most excited about the conference and meeting center that’s planned there because it would bring a lot of visitors downtown,” Smith says. Although the new downtown development has received the approval of the Petoskey Planning Commission, the project is still tied up at city hall over issues regarding financing, parking and the use of city land.
CALENDAR OF EVENTS Another area downtown is staking its hopes on an aggressive calendar of events such as the Festival on the Bay which had its second annual outing last month. “The Festival on the Bay was outstanding with the crowds being up considerably over last year,” Smith says. “We sold out all of the bay cruises and it was an active, vibrant weekend. “We want this to become a signature event that Petoskey can become known for,” he adds. “We don’t want it to become as big as the Cherry Festival, but we would like it to be an identifier for Petoskey. There’s a special feeling here for the bay, and that’s what we want to become known for.” Smith is also looking forward to a new “Shopping Scramble” set for Saturday, Oct. 2, which will be patterned after a golf tournament. “Shoppers will gather at the Crooked Tree Arts Center in the morning to enjoy lattes, cappuccinos, and breakfast treats,” states a release from the chamber. “From there, they will head out to shop the front nine in downtown Petoskey. Each foursome will be encouraged to visit at least nine businesses before they break for lunch. Following lunch, the shoppers will head to Bay Harbor to shop the back nine. After visiting at least nine businesses there, they will end the day at the 19th Hole Party with great food and lots of wonderful prizes.” The cost to participate in the Shopping Scramble – which is a benefit for the Crooked Tree Arts Center – will be $50 per person or $200 per foursome. The cost includes breakfast, lunch, hors d’oeuvres, and gifts. Registration for the event is now open with a deadline of Sept. 30. To register, call the Crooked Tree Arts Center at 231-347-4337.
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