Traverse City considers Parkway Theatre lease for Con Foster Building

Traverse City’s next move on the Con Foster Building could decide whether one of its most visible waterfront-adjacent properties stays broadly public or shifts toward a more restricted private use. City Manager Benjamin Marentette said he is ready to negotiate a lease with Parkway Theatre at 181 E. Grandview Parkway if the Traverse City Commission directs him to do so, after the city reviewed the only two proposals submitted.

That choice carries real financial consequences for taxpayers and for the city’s control over a longtime civic asset. The city’s request for proposals did not set a lease rate, instead expecting tenants to cover operating costs, leaving the final terms, timeline and obligations to be worked out later. Parkway Theatre’s proposal would keep the building in theater use for live music, film, comedy, all-ages shows and community rentals, with an estimated $120,000 buildout.

The other proposal, from Paper Birch Properties, would turn the former theater into a wellness and relaxation center with soaking pools, a sauna, steam room and cold plunge. City staff flagged concerns about that plan because it included age restrictions, membership fees and a 20-year lease request. The contrast between the two bids goes to the heart of the city’s decision: whether a public building on the bayfront should remain broadly accessible or become a more limited destination use.

The building has already lived several civic lives. It was renovated in 2013 into the Bijou by the Bay after sitting vacant for years, creating a 150-seat nonprofit theater in the old Con Foster Museum building. Traverse City Film Festival used the space until its lease ended at the end of 2024, and the building has remained empty since then. City staff have said the structure is in relatively good condition, but its auditorium-style layout would make non-theater reuse harder and more expensive.

The site itself reaches back to the 1930s, when it was built under a federal public works program. Conrad Foster, a Traverse City park commissioner, had imagined a lakeshore civic park with a zoo, beach house and museum, and the building became part of that broader public landscape. Discussions about future uses for the Bijou, the Con Foster Building and Carnegie began in late 2025, and the current lease choice will help determine what kind of public presence remains on this stretch of Grand Traverse Bay for years to come.