A New Day for Old Town?

August 13, 2026 - 04:37

More than a year has passed since Traverse City leaders signed off on zoning changes meant to spark fresh investment along the Union Street corridor in Old Town. So far, the results are hard to see. Storefronts still sit dark, and vacant lots remain untouched, waiting for the district's next chapter to begin.

The most visible sign of the stalled momentum is a cluster of three high-profile properties in the 400 block of South Union Street. These buildings, which once housed active businesses, now stand empty. Together they form a triangle of missed potential in a neighborhood that has long been talked about as a future hub for mixed-use development and foot traffic.

The zoning update was supposed to make it easier for developers to build taller, denser projects with a mix of residential and commercial space. City officials hoped the new rules would attract private money and turn Old Town into a more lively, walkable area. But the market has not responded the way some expected. High construction costs, interest rates, and a cautious lending environment have slowed projects across the region, and Old Town has not been spared.

Still, there is no shortage of ideas for what could go on those lots. Local advocates talk about apartments above shops, a small grocery store, or a community gathering space. But talk is cheap, and the buildings remain quiet. For now, the district waits. The zoning is in place, the vision is clear, and the property owners are holding on. What is missing is the right developer with the right plan at the right time. Until then, Old Town's big moment stays just out of reach.