Traverse City’s leadership is taking a firm stance against settlement discussions in a contentious lawsuit over building height regulations. The recent decision highlights the city’s commitment to maintaining strict control over its architectural landscape.
Closed Session Vote Sparks Controversy
On Monday, Traverse City commissioners voted 5-2 to enter a closed session to discuss a confidential memo from City Attorney Lauren Trible-Laucht regarding a federal lawsuit filed by 326 Land Company. This company, actively constructing the Peninsula Place project on State Street adjacent to the Park Place Hotel, is challenging the city’s mandate that any new building exceeding 60 feet must receive voter approval.
The move to a closed session follows intense deliberations aimed at safeguarding sensitive legal strategies. However, not all commissioners were on board.

Opposition from Key Commissioners
Commissioners Heather Shaw and Jackie Anderson consistently opposed the motion to hold closed sessions. Their resistance stems from a desire for greater transparency and accountability in the decision-making process. During Monday’s meeting, they attempted to amend the motion to ensure that if a closed session were to occur, the commission would later waive their privilege and publicly release the attorney-client memo.
Unfortunately for Shaw and Anderson, their amendment was rejected in a close 4-3 vote. Commissioner Tim Werner joined them in supporting the amendment, highlighting concerns about the lack of public oversight.
Mayor Directs Against Settlement Discussions
Following the closed session, the commissioners reconvened in an open session. Here, Mayor Amy Shamroe took a decisive step by instructing the city’s legal counsel not to engage in any settlement discussions or mediation regarding the lawsuit. This directive underscores the administration’s determination to uphold the city’s regulations without compromising through negotiations.
“This decision reflects our commitment to maintaining the integrity of our building codes and ensuring that any changes undergo the proper democratic process,” Mayor Shamroe stated. She emphasized that settling the lawsuit without voter approval would set a concerning precedent for future developments.
Implications for Future Developments
The ongoing dispute with 326 Land Company highlights the broader tensions between private developers and municipal regulations. As Traverse City continues to grow, balancing economic development with community standards remains a critical challenge.
Potential Outcomes:
- Strict Enforcement: Upholding the 60-foot rule could limit high-rise developments, preserving the city’s skyline.
- Legal Precedents: The outcome of this lawsuit may influence similar cases in other municipalities.
- Community Involvement: Increased public engagement in zoning decisions to reflect the residents’ preferences.
Commissioners Shaw and Anderson argue that transparency is essential for public trust. They believe that any agreement or settlement should be subject to public scrutiny to ensure that the community’s voice is heard.
Meanwhile, Mayor Shamroe and the majority of the commission maintain that the current legal approach best serves the city’s long-term interests. They argue that opening negotiations could undermine the established building regulations and lead to inconsistent enforcement.