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Friday, April 10, 2026 at 4:50 PM

Township housing regulations eyed

Proceed with caution.

Peninsula Housing’s 980 Herman Road property, which is planned for “attainable and affordable housing,” moves forward as the Suttons Bay Township Planning Commission unanimously recommended approval of a text amendment creating a new zoning district along with an amended zoning map to change the property from agriculture to neighborhood residential zoning.

“Peninsula housing’s desire to move expeditiously is time critical to apply for substantial grants to do the first phase,” said applicant Larry Mawby of Peninsula Housing before the planners’ recommendation.

Failure to act by Tuesday, could result in a delay of the non-profits’ plans for housing.

A 2.5-hour meeting was greeted with support, disappointment, and confusion as residents agreed to disagree with nearly 40 people in attendance.

The proposal is now on its way to the Leelanau County Planning Commission for review, with a recommendation of approval, before being sent to Suttons Bay Township for a final judgment.

The 980 Herman Road property occupies 8.2 acres and would be the first property in a new neighborhood residential district that has been worked on for nearly two decades, according to the Suttons Bay Township master plan. No site plans have been reviewed by the township for a potential “affordable” development.

Suttons Bay Township’s desire is to keep development from sprawling outside of the reach of Suttons Bay Village. The district, which would include Peninsula Housing for the moment, raises concerns that developers are gobbling up land to build vacation homes or short-term rentals.

The planning commission consistently played with language to help stop that, but they were by no means close to a foolproof solution.

“What happens when someone buys the other lots?” planner John Clark said.

The board had concerns about short-term rentals, selling homes at market rate, and other issues about what creating a district like this could do.

Some of the other biggest talking points were short-term rentals and affordability safeguards, such as preventing property from being sold at a market rate that is currently hovering around $600,000 a house.

Planning commission member Tom Nixon wants to ensure that units in a new zoning district are not used for short-term rentals. Zoning consultant Donna Steinebach questions whether this potential zoning district can prevent housing near the village from simply becoming vacation homes.

“That language should be emphasized in this,” said Nixon and Steinebach added. “Do we accomplish our objective and can we control it?”

Mawby had this in response. “I’m not asking you to create a district that only works for us but for the township, and we want to build in that district, and we are going to do affordable,” he said.

Some mention of a squarefoot cap and ensuring buildings are no more than two stories was discussed.

This property has been envisioned for Mawby since at least 2021.

Mawby admits the expectation early on was that a new zoning ordinance was in the works and that the process has taken significantly more timethan anybody thought.

“At this point, we are really trying to make this district happen,” Mawby said.

The public certainly wanted their voices heard, both for and against a project of this kind.

Suttons Bay residents Jim White and Jeanie Aldridge questioned the vagueness of the terms attainable and affordable housing, while questioning where Mawby’s finances are coming from and his involvement with the Suttons Bay Public School property that has been a point of contention and abuts the 980 Herman property, but does not need to be rezoned.

“I would like to know the difference between attainable and affordable housing and the financials for Peninsula Housing. Where are financials coming from?” Aldridge said and White added. “What is the relationship between this one right across the street?”

Michelle Baldwin, who owns a parcel on Herman Road, has long wanted to see this happen.

“My heart is beating quickly, and I’ve been coming to meetings for six or seven years to make something happen, and as soon as it almost happens, people show up and go against it,” Baldwin said. “People should look up the definition of affordability and learn about brownfield development and what it can do for a community.”


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