Franchise Ordinance To Be Proposed To 'Protect Mackinac Island's Charm'
By Ryan Schlehuber

Regulating franchise businesses on Mackinac Island will be the aim of new regulations soon to be introduced by the city's Ordinance Committee, addressing concerns that franchises operations could dilute the Island's charm as a small, historic resort island.

As soon as Wednesday, April 23, City Council may hear proposed amendments to its zoning ordinance that focus on franchises, initially discussed at the city's ordinance committee meeting April 16.

Council would likely turn the matter over to the Planning Commission for further review and a public hearing to review and discuss its recommendation.

The commission would then recommend action to the city council, which would have final authority in the matter.

Franchisers can demand strict standards for daily operations, product promotion, and visibility, such as signage and building ornamentation, although many respect community zoning and sign restrictions, if they exist and are backed up with a solid master plan.

Mackinac Island's master plan, adopted in 1999, lacks a policy on franchises.

Dennis Cawthorne, attorney for Kelley Cawthorne law firm in Lansing and a businessman on Mackinac Island, sent a memorandum to the committee outlining two types of ordinances that could be used as addendums to the exising zoning ordinance, "Formula Businesses," including all chain businesses, and "Formula Food Restaurant," targeting chain restaurants.

Under Formula Businesses, a franchise business like a Taco Bell or a Motel 6 could operate on the Island, but would be required to conform to the city's zoning regulations.

If a McDonald's restaurant were to come in, for example, it could be restricted from displaying its trademark golden arches or have a wall menu, said city attorney Tom Evashevski at the committee meeting.

While wall menus facilitate counter ordering and, therefore, are used by many fast-food restaurants, they are also used by gourmet restaurants and other eateries where the menu is changed daily. Island restaurants also use wall menus to announce daily specials, and wall menus could even have been popular during Mackinac's early resort era, so planning officials will need to be specific about what they would like to allow and what they would like to prohibit.

Franchised businesses have been operating on Mackinac Island for at least a half-century, but have not dominated the downtown because franchisers often require high, year-around traffic. Mr. Dombroski said he believes franchisees probably are hesitant to invest in areas where the tourist season lasts only six months of the year.

Nevertheless, over the years the Island has hosted well-known burger, ice cream, pizza, electronics, T-shirt, coffee, and even fudge franchises and chains.

Last May, a new Starbucks coffee shop reminded officials that the city lacked any way to deal with franchises, and people feared this would open the door to more franchises, said Dennis Dombroski, the city's building inspector.

"There was a perception by the public that there was a franchise ordinance already in place, which wasn't true," he said during an interview with Mackinac Island Town Crier Thursday, April 17.

In this case, the shop conformed to Mackinac Island's zoning and sign regulations, and, at any rate, the new proposal is not a reaction to Starbucks, Mayor Margaret Doud said. The proposal has been recently dusted off owing to new knowledge that Mr. Cawthorne has provided to the committee, she said.

"I've had people asking for it for a long time now," said Mayor Doud. "Before, we weren't sure if we could do it. Now we know we have options."

"We need to protect our uniqueness," said Mayor Doud, during the ordinance committee meeting. "We don't want to be like every place else."

Mayor Doud said she does not know how people or the city would react to a chain restaurant or hotel that adopted its design and operations to Mackinac Island's architectural and cultural environment.

The ordinance proposal that creates an umbrella policy over all franchises has been subject to legal challenges under the Federal Commerce Clause and federal and state Equal Protection Clauses, Mr. Cawthorne pointed out, however, there have been cases where cities have successfully defended their ordinances against those challenges from fast food and retail franchises.

Mr. Cawthorne, in his memorandum to the committee, named several cities that have successfully implemented such ordinances and withstood legal challenges, which could be used as models for Mackinac Island.

They include Cannon Beach in Oregon, Bainbridge Island in California, San Francisco, York in Maine, and Carmel-By-The-Sea in California.

Existing businesses could be exempt from any new restrictions, as they have already been established and approved by the city, said Mr. Evashevski.