Traverse City Record-Eagle

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August 18, 2012

Peddler fee may change

City to revisit fees for non-downtown food peddlers

TRAVERSE CITY — Food peddlers who operate outside the city's downtown could get a reprieve on an upcoming license fee hike.

Traverse City commissioners on Monday will discuss modifying a previously approved fee increase for one category of peddlers--those who sell food in commercial areas outside the Downtown Development Authority boundaries.

The commission in July voted to double fees charged to peddlers in commercial areas starting Sept. 15.

But before the new fees take effect, the city commission will revisit fees for non-downtown food vendors. City Clerk Benjamin Marentette recommends keeping those fees at $50 per day during the busy summer season and $50 per week the rest of the year instead of doubling them. He also suggested the city sell permits in yearly and quarterly increments. Fees still would increase for other transient merchants under the new proposal.

"This is a start to help those that are trying to run little businesses," said Commissioner Jim Carruthers, who opposed the initial hikes. "We were basically, I thought, sending a message with higher fees. We were basically saying, 'We don't want this in Traverse City.'"

City officials cited the cost to administer licenses and a desire to create a fair balance between peddlers and property tax-paying businesses as reasons for the increases. But peddlers and their supporters said the hike stifles entrepreneurship and discourages trendy, food-based tourism.

Before raising peddler rates, the city commission sought a recommendation from the DDA. The downtown group later indicated it didn't intend for its recommendation to apply to commercial areas outside the downtown. That prompted Carruthers and Commissioner Michael Gillman to ask for Monday's reconsideration of some fees.

Gillman said he's "generally supportive" of reversing the upcoming hike for food vendors outside downtown, given the DDA's clarified stance.

"We don't want to put our downtown merchants that are 12-month-a-year taxpayers at a disadvantage to people that come in on a short-term basis," Gillman said.

Leslie Narsisian runs a falafel cart near Munson Medical Center, outside downtown. She's preparing to stop vending in Traverse City once her fees double, but said if the city backtracks she'll continue to work here.

"It would impact me powerfully," she said of the proposed repeal. "If I knew it wasn't going to be $100, I would definitely come back every Tuesday."

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