As we gear up for another unforgettable summer season on Little Traverse Bay, it’s the perfect time to reflect on the remarkable transformation of Bay Harbor. What was once the site of a massive cement manufacturing facility has become one of Northern Michigan’s most luxurious residential and resort communities.
Industrial Beginnings
The site now known as Bay Harbor was originally home to the Petoskey Portland Cement Company, established in the 1920s. This facility began as a two-kiln plant with a capacity of producing 2,500 barrels of crushed limestone daily. In 1924, efforts commenced to double the plant’s capacity. By 1952, the plant was producing 1,600,000 barrels of cement annually. In 1955, the facility was sold to Penn-Dixie Cement Company. The cement plant operated until 1981, closing its doors following Penn-Dixie’s bankruptcy filing in 1979.
Despite the site’s prime location on Little Traverse Bay, attempts to redevelop the land continually failed until 1993.
A Vision for Redevelopment
That year, David V. Johnson—Chairman and CEO of Victor International Corporation—envisioned something no one else could: a luxurious residential haven that would repair the environmental damage and restore the land’s natural beauty. His vision aligned perfectly with that of William T. McCormick Jr., then CEO of CMS Energy Corporation. Together, they formed Bay Harbor Company.
The expansive 1,200-acre property, featuring five miles of frontage on Little Traverse Bay, included a ¾-mile-long, 60-80 feet deep limestone quarry and vast areas filled with discarded materials from cement production. Approximately 300 acres were owned by Consumers Energy, with the remaining 900 acres under the ownership of Holnam Corp, the cement plant’s parent company.
William T. McCormick Jr., retired Chairman and CEO of CMS Energy Corp and Consumers Energy Company, recognized the site’s potential during a visit. Reflecting on his experience, McCormick noted, “After my site visit, we concluded that our company should find a way to develop it—it was just too unique.” Collaborating with local leaders and the chairman of the Little Traverse Conservancy, initial plans considered a high-density condominium project. However, after community consultations, the vision shifted towards a low-density, high-quality development.
A Dream in Motion
On July 12, 1994, before a crowd of thousands and with Governor John Engler in attendance, the industrial smokestacks came down in a symbolic demolition that marked the beginning of Bay Harbor. A significant early construction feat was the creation of Bay Harbor Lake, transforming the existing limestone quarry into a navigable waterway in March 1995. Originally a ¾-mile-long, 60- to 80-foot-deep limestone quarry left over from decades of cement production, the pit was transformed into a stunning inland lake connected to Little Traverse Bay. To accomplish this, a channel approximately 120 feet wide and 250 feet long had to be excavated to link the quarry to the open water. Initially, plans called for a dramatic explosion to rapidly fill the lake, but environmental concerns raised by the Michigan Department of Natural Resources—particularly the potential harm to local fish populations—prompted a more measured approach. Instead, crews used a backhoe to gradually remove the final barrier, leaving just a 50-foot-wide, one-foot-thick section separating the quarry from the bay. Even with this cautious method, Bay Harbor Lake filled in less than 24 hours. This engineering feat not only marked a pivotal moment in the site’s transformation but also laid the foundation for the waterfront lifestyle that defines Bay Harbor today. This was the creation of what Johnson envisioned as the “Nautical Center of the Great Lakes.”
A Lifestyle Like No Other
The Master Plan—finalized in the summer of 1994—outlined a vibrant community anchored by a deep-water marina, private yacht club, boutique shopping, equestrian center, and a premier golf course with more water frontage than any course in North America. Spanning 32 distinct neighborhoods, Bay Harbor offers a diversity of experiences—from the tranquil, wooded surroundings of The Preserve to the Victorian charm of Village Beach. All were built with sustainability and legacy in mind, designed to be passed from one generation to the next.
Bay Harbor Yacht Club: The Heart of the Harbor
Construction of the Bay Harbor Yacht Club (BHYC) began in June 1995, bringing to life a 20,000-square-foot Victorian-inspired building that would soon become the social and recreational hub of the community. The Club officially opened on August 2, 1996, setting the tone for what Bay Harbor living would represent—elegance, camaraderie, and world-class amenities.
Under the leadership of its first General Manager, Kathleen Muneio, BHYC transitioned to member ownership in 2001 and underwent major expansions, including the Lange Center in 2009 and a $13 million renovation in 2021. Martin Leemaster, who started as a dockhand in 2000, now serves as Harbor Master and General Manager of Bay Harbor Lake Marina, continuing the legacy of exceptional service.
The Power of Culture and Community
The establishment of the Great Lakes Center for the Arts brought a new dimension to Bay Harbor, transforming the cultural landscape of Northern Michigan. This state-of-the-art venue has welcomed world-class performances and educational programming, enriching the lives of residents and visitors alike. Its creation, like so many aspects of Bay Harbor, was made possible through the passion and generosity of community members committed to excellence in every form.
A Lasting Legacy
Celebrating 30 years of excellence, Bay Harbor stands today as a living testament to what’s possible when vision meets determination. What began as a scarred industrial site is now a shining jewel on the shores of Lake Michigan, offering unmatched beauty, lifestyle, and community spirit.
We extend our deepest gratitude to William T. McCormick Jr. and Samara Johnson, whose works—A Personal History of the Founding of Bay Harbor and We Did It… Vision… Creation… Lifestyle—offer invaluable insight into the creation of this extraordinary community. These publications can be found at the Yacht Club and Village Suites, respectively.
As another summer begins, we’re reminded not only of Bay Harbor’s beauty, but also of the bold visionaries and generous supporters who turned a dream into a lasting reality.
Bibliography
- McCormick, William T., Jr. “A Personal History of The Founding of Bay Harbor.” July 2019.
- Johnson, Samara. “We Did It… Vision… Creation… Lifestyle.” 2008.
- “Celebrating 25 Years of BHYC.” Bay Harbor Yacht Club.
- “New General Manager/COO Named at BHYC.” Bay Harbor Yacht Club.
- “Bay Harbor Yacht Club.” Club + Resort Business.
- “Bay Harbor History.” Bay Harbor Community. Accessed April 2025. https://www.bayharbor.com/about-bay-harbor/history/
- Pictures courtesy of Little Traverse Historical Society and Samara Johnson’s book, “We Did It.. Vision… Creation… Lifestyle.”
