TRAVERSE CITY — Pandemic woes have cut into bottom lines everywhere, and Traverse City’s giving a few businesses and nonprofits that rent city spaces a break.
Downtown cafe Brew, handbags and luggage retailer Votruba Leather Goods, Great Lakes Bath and Body and seafood restaurant Scalawags are all set to get a 40 percent cut on their rent payments for November 2020 through April 2021 after city commissioners agreed as much at a recent meeting.
All four businesses lease space in city-owned buildings and got a little help from the city on rent before, documents show.
Commissioners previously agreed to hold off on collecting rents for April and May, and add them to the end of their leases — those two months will be discounted by 40 percent as well.
Crooked Tree Arts Center, while not part of the rent discount, will get a $4,000 break, documents show.
That’s from the city waiving part of its lease agreement, arts nonprofit Site Manager Megan Kelto said. Typically the center pays what amounts to 11 months of rent for the Carnegie Building, the city’s former library on Sixth Street, with the Festival of Trains taking over the space in December. The festival canceled over pandemic concerns, so the arts center would’ve had to pay for the additional month without commissioners’ intervention.
Kelto said the festival being canceled as of November left the arts center little time to come up with programming, or an extra month of rent. That’s especially true for a lean year that has many small businesses and nonprofits struggling.
“Every little bit helps us preserve our programming, and hopefully we can return from the pandemic at full strength,” she said.
The arts center remains closed through December, as it typically is for the Festival of Trains, Kelto said. Statewide closure orders ensured the center wouldn’t reopen for the rest of 2020. She’s focused on a year-end fundraising push that aims to capitalize on a donor’s $25,000 match.
The city also held off on collecting rent in April and May from the arts center and Grand Traverse Rock and Mineral Club, another Carnegie Building tenant, documents show.
Rents for the tenants typically range from $2,703.62 per month for Votruba Leather Goods to $4,534 per month for Great Lakes Bath and Body — Grand Traverse Rock and Mineral Club pays the equivalent of $100 per month and won’t get a discount.
Jean Derenzy, city Downtown Development Authority CEO, asked for commissioners’ support for the businesses, which are doing their best to adapt.
“They’re good tenants, they are a piece of the fabric of downtown and this consideration by you for 40 percent is definitely appreciated by each and every one of them,” she said.
Commissioner Brian McGillivary extended the same discount to Traverse City Whiskey Company, which will lease 2,520 square feet of city property for a shipping container converted into outdoor seating. Other city leaders agreed to knock the craft distillery’s payment for the year-long lease down to $1,905.12.
McGillivary argued the city needs to do whatever it can to help restaurants, and to consider future discounts on other leases — most would involve outdoor dining spots, he said.
Mayor Pro Tem Amy Shamroe agreed, adding it’s likely restaurants will need some time to recover even as a COVID-19 vaccine becomes available.
“If there’s things we can do to help anyone in the city to succeed right now, I think that is one of our top priorities, obviously, because we only thrive if our businesses and our downtown thrive,” she said.
“If there’s things we can do to help anyone in the city
to succeed right now, I think that is one of our top
priorities, obviously, because we only thrive if our
businesses and our downtown thrive.” Mayor Pro Tem Amy Shamroe
