Addressing Challenges and Ensuring Sustainable Growth

As Munising experiences a surge in visitors, it also faces challenges that come with increased tourism. Managing the delicate balance between accommodating visitors and preserving the natural environment is of utmost importance.

Tom Nemacheck, Executive Director of Upper Peninsula Travel and Recreation, emphasized the importance of balancing growth with environmental conservation. “Pictured Rocks sets a tone for environmental consciousness, encouraging visitors to embrace sustainable practices,” said Nemacheck. This approach is crucial in preserving the natural beauty that attracts visitors to the area.

Nemacheck pointed out Munising’s pivotal role in the Upper Peninsula’s tourism landscape, as it is the #1 tourist destination in the Upper Peninsula. The economic growth spurred by tourism, including job creation, local business development, and downtown revitalization, underscores the sector’s significance not just for Munising, but for the entire region. Strategic marketing and development efforts are crucial to maximizing this potential.

The local government, represented by Devin Olson, the City Manager of Munising, is actively involved in strategic planning to address challenges such as housing and infrastructure, which have been exacerbated by the influx of tourists. “We’ve been working closely with developers, adjusting zoning to support projects like the Munising Marketplace, which includes residential units and commercial spaces,” explains Olson. This proactive approach aims to enhance local amenities and address housing needs while maintaining a balance between tourism growth and community well-being.

The housing aspect, however, is often criticized for its “abundance of short-term rentals,” but according to Olson, this isn’t actually the case in the neighborhood areas of Munising. “While we are aggressive in pursuing this issue, none of our traditional neighborhood areas permit short-term rentals,” said Olson. He points out that out of over 700 housing parcels in the city, only 38 have received approved permits for such use.

Patricia Downs, Executive Director of the Munising Housing Commission and Vice President of the Michigan Housing Directors Association (MHDA), discussed the challenges and opportunities facing public housing in Munising. She highlighted the limitations imposed by the Faircloth Amendment, which restricts the expansion of public housing units. Despite these constraints, Downs emphasized the commission’s commitment to providing quality, affordable housing, managing 74 public housing units and 28 Section 8 vouchers in Alger County.

“Currently, we have 74 public housing units that include 1, 2, & 3 bedrooms,” Patricia Downs shared. “We also have 28 Section 8 vouchers that can be used with private landlords in the Alger County area. The tenant’s rent is 30% of their income, and the housing commission pays the landlord 70%. If the tenant has no income, we pay 100% of their rent.”

Downs pointed out a pressing issue: the lack of available landlords to lease out additional Section 8 vouchers. Currently, the Munising Housing Commission has five vouchers awaiting leasing due to this shortage, resulting in unutilized funds. She stressed the importance of attracting more landlords willing to participate in the program, which would enable the commission to better serve its community and fully utilize its resources.

Regarding tenant screening and due diligence, Downs stated, “Landlords should be doing landlord references to ensure a quality renter. We do background checks on the tenants, but it’s up to the landlord to do their due diligence and get previous landlord references.”

Highlighting the positive impact of increased tourism in Munising, Downs said, “The positives are it provides jobs for our tenants. Our tenants are either on fixed income like disability or a good percentage are employed in the tourism sector. If their hours are reduced, their income goes down, and their rent goes down.”

Discussing the broader housing landscape in Michigan, Downs emphasized the common challenges faced by housing commissions across the state, not only in the Upper Peninsula but throughout Michigan. “Lack of housing isn’t only in the UP but the state of Michigan. It really is a nationwide problem,” she remarked. With over 100 housing commissions navigating housing shortages, innovative solutions and increased landlord participation are crucial. Downs also noted Michigan’s unique terminology, distinguishing between Commissions and Authorities, a distinction not found in other states. Despite these challenges, housing commissions like those in Sault Ste. Marie and Marquette continue to manage large portfolios, overseeing more than 250 units each.

Join us next week for Part 5: Community Perspectives and Future Outlook.