In the small town of Harbor Springs, a progressive land use experiment is under way. Amid the quaint charm of this resort community that overlooks Lake Michigan’s Little Traverse Bay, craftsmen are busy putting together the Bay Street Cottages, an innovative development that combines the best of high density smart growth, reuse of a former commercial site and environmental conservation.

Developer Rob Mossburg, of The Cottage Company of Harbor Springs, is building 18 luxury condominiums on the 11/4-acre former location of an aging motel that his company razed.

Mossburg’s cottages are stand-alone condominium cottages designed in a cluster, with pedestrians in mind. Buyers can choose between two compact, energy efficient designs: the 975-square-foot “Bliss Cottage,” or the 1,200-square-foot “Friendship Cottage.” Each cottage has a garage and parking space tucked away from street view, a location near the central business district and across from a public beach that diminishes downtown traffic congestion.

In a picturesque town that city officials have said is 90 to 95 percent built-out, sprawl isn’t an option, which is why so many developers and REALTORS® across the country are watching with keen interest what Mossburg is doing.

And, so far, it’s been nothing short of sensational.

“ I think most developers before me looked at this site in terms of a conventional condominium project,” Mossburg said. “Using ‘old urbanist’ principles and a high-density, environmentally friendly design approach, however, has both market and personal appeal to me.”

The prices for the luxury cottages are from $455,000 to $575,000.

What the cottages and the project are doing for developers across the state is priceless in terms of how to create a win/win situation for developers, REALTORS® and city officials.
“ This development fits in perfectly with Harbor Springs,” said REALTOR® Andrew Bowman, Emmet County Association of REALTORS®. “The reuse of that property really makes sense for this community, and it’s a very popular project. We’re all proud to be associated with it.”

MAR President Gil White has cited the development numerous times in his many speeches across the state. White, a member of Gov. Jennifer Granholm’s Leadership Council, called Mossburg’s project a perfect model of smart land use.

“ This is a great example of what happens when local leaders embrace a healthy balance of low-, medium- and high-density projects that provide the kind of unique neighborhoods that attract homeowners,” he said. “Higher densities mean less land per unit, reduced site preparation and lower per-unit infrastructure costs.”

In other words, Mossburg’s project is a shining example of smart, innovative development that can, and will, trickle down from the luxury construction to middle- and lower-income developments.

Here’s what is making the project so unique and the experiment a success:

• The downtown location and reuse of a former commercial site promotes pedestrian movement and is a classic example of high-density, smart growth.
• Much of the concrete, asphalt and construction material from the demolition and preparation of the site has been recycled. Even a grand pine tree removed from the site was reused as the city’s official Christmas tree.
• The storm water system is funneled through an intense underground filter before being released into the Bay.
• The cottages are extremely well-designed in a sensible scale, using sustainable materials and efficient heating and cooling systems. Mossburg said he’s pursing a five-star energy efficiency rating from the government.
• The Cottage Company, on behalf of the purchasers of Bay Street Cottages, is using a percentage of its profits from each sale to purchase a conservation easement on the locally known Ruonavaara Farm. This centennial farm, rich in Native American history, is in the path of natural sprawl, but will remain undeveloped forever because of the easement.
• The Cottage Company plants, or permanently protects, an equal amount of board feet of timber that was used to construct the cottages.

Mossburg said that the development, from initial pitch to groundbreaking shovel, went smoothly and credits open communication between his company and city officials as the primary reason. He said there was plenty of give and take, but by keeping the best interest of the city and its residents in mind was paramount. Mossburg’s track record with other renovations around the town also facilitated the approval process.

“ It’s no secret most people in Harbor Springs look upon change with reluctance — and they should,” he said. “We have a very unique community, both architecturally and emotionally, and we all feel passionately about protecting it.”

“ I’m continually amazed to hear the stories of developers who create wonderful, smart plans and refuse to budge on them when approaching city officials,” he added. “Any good plan can become even better. We view the regulatory authorities as customers as well as neighbors. Why wouldn’t you want to take an opportunity to satisfy a customer? Better yet, why not exceed expectations?”

The challenge for REALTORS® and developers who plan to use this project as an example is to translate the Bay Street Cottages’ success into smart developments with a much lower price tag.

It’s a challenge that Mossburg believes many developers can overcome.
“ There’s always the ability to reuse or recycle products, and that is becoming more economical than ever,” he said. “Then there’s the idea that bigger is better. That’s not the case at all. Building to a smaller scale, with smart design, saves material, space and cost.”

As Harbor Springs awakens to the summer crowds and warm weather, Mossburg and Bowman anticipate plenty of interest in the remaining units. Bowman said that when his agency, Graham Real Estate, 198 E. Main Street, Harbor Springs, held an open house when the first unit opened, more than 140 people walked through.

“ In our market we typically don’t see a great deal of activity during an open house,” Bowman said. “But with that kind of turnout and all the positive feedback we’re hearing about this project, it was a welcome surprise.”