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Ferndale — Two local businesses are suing the city, claiming a planned unit development (PUD) slated to replace a nearby parking lot violates the city’s own parking ordinance.
Sturgeon Bay Partners’ PUD proposal for a mixed-use development at 141 Vester Ave. was approved by the Ferndale City Council in February of 2022. The Detroit-based development firm plans to redevelop the privately owned off-street parking lot that currently sits at the downtown location, meaning the site was rezoned from vehicular parking to a central business district.
Nearby businesses Howe’s Bayou and Belle’s Lounge by Valentine Distilling Co. say this violates the city’s parking ordinance and are seeking a temporary restraining order to stop development until the parking issue is settled as well as damages for the harm they will suffer due to a loss of customers.
According to the city’s municipal code, “an area designated as required off-street parking shall not be changed to another use unless equal facilities are provided elsewhere.”
“We want parking for our customers, just equivalent to what we have now,” said Rifino Valentine, owner of Valentine Distilling Co. “We’re not against development or even this development if there’s a solution for parking.”
Ferndale had not been served with the lawsuit as of Monday afternoon although City Manager Joseph Gacioch was aware of the details of the complaint, spokeswoman Kara Sokol said.
“Once he (Gacioch) receives the filing or official notice, the City will review and assign legal counsel to respond accordingly,” Sokol said.
At a special city council meeting scheduled for Monday night prior to the regular City Council meeting, officials were set to go into closed session to consult with the city’s attorney regarding trial strategy in connection to the lawsuit.
Going through with the development without replacing the parking threatens Howe and Valentine’s businesses, according to their attorney Kyle Konwinski, a lawyer at Varnum LLP.
“If the city is going to go through with approving this project without providing for adequate parking for the current businesses, then they (the businesses) do want to ensure that their interests are adequately protected if that might mean money damages,” Konwinski said.
The parking lot at 141 Vester Ave. contains 76 parking spaces that Valentine and Howe’s employees and customers rely on, according to the complaint filed in the Oakland County Circuit Court on May 31.
There is not enough street parking, Valentine said. “Parking was always an issue before, now it’s just going to be exacerbated. … The other public lots, the city-owned lots, are not really an option because there’s no space left in them.”
Valentine has looked into creating a valet service for his customers but said there aren’t any reasonable parking options for that nearby.
“What we know as business owners is you take away parking you take away our customers,” Valentine said.
The two business owners previously asked the Ferndale City Planning Commission and the council to resolve the parking issue before they approved the PUD last year.
Sturgeon Bay Partners’ PUD also does not include enough parking for the number of proposed housing units that the development includes, worsening the parking situation for downtown visitors, Konwinski said.
“If you’re going to have new residences in the area, if you don’t provide for parking, they’re going to take up all the street parking,” Konwinski said.
The development will include 72 residential units and 52 on-site parking spaces, according to the PUD agreement. Upper-level residential units in non-residential districts are required to provide one parking space per dwelling unit, according to the city’s municipal code.
The developer agreed to provide alternative parking arrangements to mitigate the onsite spot deficiency, including paying $66,000 to Ferndale’s parking fund, providing extra bike storage spaces and using shared parking in the area. The developer also agreed to delay construction for 14 months after the City Council’s approval to allow for the construction of a parking deck nearby at 180 Vester Ave., the site of Ferndale Collision auto body shop.
The potential parking deck at 180 Vester was proposed as a solution to the development’s parking problems in response to feedback from Ferndale businesses, according to city documents.
“We thought we were working with the city and the developer, probably at least the last year and a half. … And we thought we were working with them to come up with some sort of solution,” Valentine said. “Earlier this year, we find out that (the 180 Vester project is) dead and that’s off the table and it’s not going to happen.”
Residents of the development would have been allowed to lease monthly parking at the proposed parking deck.
“The project applicant of the 180 Vester property has expressed positive interest in investing in this area of the city,” Sokol said. “However, the applicant has not submitted any further project documents since their April 2022 Special Land Use approval.”
There were not enough financial incentives to make the 180 Vester parking structure project feasible, according to Valentine and Howe’s court filing.
One of the defendants’ other allegations is that the city didn’t release a study of downtown parking commissioned in 2006 in its entirety after they submitted a FOIA request for it, according to the complaint. Gacioch said he hopes to conduct an updated study of parking in downtown Ferndale and that the city has made other efforts to increase the amount of off-street parking.
“In 2020, the City opened The dot, a financed 383-parking space garage, and is in the process of collaborating with MDOT to narrow Woodward Avenue in Ferndale’s downtown with the goals of reducing crossing times at pedestrian crosswalks, promoting multiple modes of transportation, and enhancing pedestrian safety,” Gacioch said.
hmackay@detroitnews.com
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