Construction is planned to begin next fall on a 22-suite hotel and sixstore retail complex on Main Street on Mackinac Island, following approval of a zoning application, the first step required by the city for the development. McNally Cottage, which now sits on the property, either will be demolished or relocated before construction starts on the proposed threestory building.

The Mackinac Island Planning Commission approved the application Tuesday, October 20, for the Bicycle Street Inn, although before ground breaking begins, developer Ira Green, one of several investors in McNally Development LLC, also must meet other city requirements. Next, Mr. Green must apply for a building permit and have the project evaluated by the Department of Public Works to determine the residential equivalent units (REUs) needed. The city is monitoring water and wastewater use as its treatment plant is nearing capacity. Fees must be paid for the REUs before the actual building permit can be issued to the developers. An REU is the amount of water a typical four-person household would use and equals water used by 2.8 motel rooms or 250 square feet of restaurant space.

The project will receive a credit for REUs already allocated to McNally Cottage and Mr. Green estimates he will need about eight more for the project.

Each REU is sold to users for $6,023. The city is on an allocation program, with about 62 REUs remaining available before current wastewater plant capacity is reached. The city is applying for A total of 10 REUs are available each year, and nine remain for 2009. Of the 10, two must be rese rved for residential use. REUs are issued on a first-come basis.

Since the project was introduced to the planning commission in September, the front of the building has been modified by architect Barry Polzin of Marquette. The third floor balcony roof was removed to provide a more open view from the street below, he said, although the third floor of the building still remains. The change was in response to a comment made by several people at a September meeting regarding the first design. One of those commenting was Mayor Margaret Doud, who called the building's appearance "cookie-cutter." At Tuesday's meeting Mr. Polzin said he took her remark seriously and voluntarily made the change.

"It comes off as a two-story building," said Mr. Polzin. "And that was the idea, to diminish its mass on the street."

Mr. Green and Mr. Polzin submitted the plans to city architect Richard Neumann of Petoskey, who also made note of the third-floor modification.

"This last design best accomplishes the objective of scaling the building front to appear as a two-story building, creating a scale and rhythm to the facade which captures the spirit of some of the historic colonnaded store- fronts" on the street, noted Mr. Neumann in his review.

The proposed building is 38 feet high. Commercial zoning limits buildings to a maximum of 40 feet.

Project approval was granted in a 4-3 vote during the planning commission meeting, with commissioners Bruce LaPine and Mary Dufina absent. Supporting the application were Commissioners Lee Finkel, Bob Brown, Dan Wightman, and Jim Pettit. Voting against the request were Commissioners Michael Straus, Candy Dunnigan, and Trish Martin.

For nearly an hour before the vote, Messrs. Polzin and Green fielded a series of questions from Mrs. Dunnigan and Ms. Martin. The commissioners sought clarification on an entrance for bicycles , storage, trash storage, the courtyard, and more.

Mr. Polzin explained a freightsize elevator accessible through a center courtyard will allow building employees and residents to park their bicycles in the basement. Entrance to the courtyard, which consists of brick pavers, is from Main Street and open to the public, said Mr. Polzin. Entrance to some of the shops also would be from the courtyard. Trash will be stored in a separate room in the basement and removed from the building on the elevator.

Commission Chair Bob Brown read a letter written by Mr. Green defending his plans to develop the site and two letters against the project from attorney Eric Starck of Rhoades McKee of Grand Rapids. Mr. Starck represents the Save Our Island group, which wants to see the cottage saved from demolition. In both letters he asked commissioners to table any decision on the McNally project until their November meeting, allowing time for City Council to consider a proposed ordinance to establish a Historic District and to find a way to save the 119-year-old house from being torn down. Mr. Brown also read an e-mail from Walter Kutsop requesting the city stop the project.

Developers say they would prefer to move McNally Cottage, rather than demolish the structure.

"No one really wants to see it gone," said Mr. Polzin. "We're working very hard to make sure we're not tearing it down; we're going to move it somewhere. We're working on several options on that. Seriously, we considered very hard how we could incorporate it into the development. Rick Neumann and I spent quite a bit of time talking about that. We both came to the same conclusion, though. To use it, you would have to bring it down, close to street level. Well, as soon as you do that, you've now reduced its historic value."

Mr. Green said the building could be moved and he is open to any suggestions on a new location for the building

"All you need to do is give us a piece of dirt, and we will get it moved," he said.

A motion to table a decision failed by one vote. Voting to table consideration of the zoning application were commissioners Michael Straus, Candy Dunnigan, and Trish Martin. Those against tabling the matter were commissioners Lee Finkel, Bob Brown, Dan Wightman, and Jim Pettit.

In other business, the commission again tabled action on a Zoning Board of Appeals variance approved in August with the stipulation that a letter must be received stating Chambers Riding Stables supports commercial corral operations behind the Market Street home of James Chambers. This is the second time the request for the variance has been tabled. The Planning Commission is awaiting the letter before it considers a special land use request to use the land for a commercial corral.

The commission approved a one-year extension on a zoning permit issued to Marge and Rich Lind of Grand Rapids for construction of a house in Trillium Heights.

A zoning application was approved for Leslie Court Condominiums for additional decks on 10 of the units. Four decks already were approved and are in place.

Commissioners approved two fences. Resident Robert Deen was granted a zoning application for an accessory building and a stockadestyle fence on his Stonebrook Manor property. The Rowe Condominium Association received approval for a split-rail fence to be added to an extensive landscaping project that includes bushes and trees.

Ms. Martin asked for a progress update on the Master Plan. Zoning administrator Dennis Dombroski said the city is in the process of providing consultant Connie Dimond of JJR in Ann Arbor with potential build-out information on the village of Harrisonville, although he was unable to give a timetable when Ms. Dimond would have the plan back to the city. The Island has been working on updating its 1999 Master Plan for five years, but has met infrequently and last met in August.

"We need to get it done," said Ms. Martin of the update.

The planning commission next meets at 3 p.m. Tuesday, November 10, on the second floor of Community Hall.