BAY CITY, MI – A popular Halloween light display that spans nearly an entire block in Bay City faces a potential shutdown by the city over insurance and permit concerns, disappointing residents who have created what they call a neighborhood tradition.
Matt Aikens, who started the elaborate display that has grown to include 10 houses in the 1700 block of Chilson Avenue about five years ago, said he and his neighbors were disappointed to have received notice from the city that they had until Oct. 3 to remove parts of the display or else they could face a nuisance fee of $100 per day.
“Our complaint is that the city of Bay City is making us take our Halloween lights down that hundreds of kids and families come to see every year,” Aikens wrote in a social media post. “We received a letter this week stating that we broke an ordinance that has to do with encroachment. It’s an ordinance that we didn’t even know existed, and we’ve been doing this for years.”
The letter from the city indicated that Aikens and others were in violation for having encroachments and building materials on public property, referring to displays above the sidewalk and into the easement between the sidewalk and the city street.
“On September 17, 2025, the Bay City Engineering Division was notified that there were wood posts and a structure in the city’s right of way of S. Chilson Street, creating a safety hazard,” the letter from the city reads, in part. “This work was done without an Encroachment Permit from the City.”
In an email to MLive/The Bay City Times, Bay City Manager Dana Muscott said the city is not trying to prevent anyone from celebrating Halloween or decorating for the season. However, the Chilson Street situation involves decorations that are placed in the city’s right-of-way, which requires an encroachment permit to ensure public safety and proper use of public space.
“This isn’t about discouraging Halloween celebrations; it’s simply about following the standard process when using public space,” Muscott said.
Aikens said the neighborhood display features more than 50,000 lights, holograms, projections and fog effects that cover a three-block radius.
“Last year, we had almost 900 kids come through,” Aikens told MLive. “We’ve been doing this quite some time now, and it’s just getting bigger and bigger, and it’s kind of become like a city tradition.”
The city became involved after the display was reported. Despite initial positive reactions from code enforcement officials, the situation escalated through multiple city departments. Aikens said he complied with some city requests, including removing a tunnel that went over the sidewalk.
“I received a phone call from code enforcement. They thought it was great. The one lady I talked to thought everything looked amazing, and she couldn’t wait to see it,” Aikens said. “But, I mean, it’s, it’s quite amazing that after so many years of doing this, and then just all of a sudden it’s gone, or, you know, one person is trying to take it all away.”
Bay City’s 7th Ward Commissioner Chris Runberg said the main obstacles are insurance requirements and special event permitting.
He said he plans to introduce a resolution to waive the permit fees required by the residents and to retroactively waive any fees accumulated by the residents ahead of the city commission’s Oct. 6 meeting.
“Right now, the hiccup is, (the city) won’t budge on it unless they’re able to get somebody to insure the event, and that they do a special events permit,” Runberg said. “And that’s the tricky part now is finding somebody that will insure it, you know?”
Runberg said he explored alternatives, including street closures, but was told special event insurance would still be required. He plans to work with residents and other commissioners to find a solution before the deadline.
“I want to figure out a way to have this be allowed, to have this event this year, and then we’ll come up with a way of trying to support them going forward,” Runberg said.
The display began as a friendly competition between neighbors that expanded over time. Aikens said the elaborate setup creates a unique experience for children that cannot be found elsewhere in the city.
“We continue to build it, because every year we see new faces, new kids, new costumes. We hear, you know, kids screaming. We hear them laughing,” Aikens said. “It takes the kids away from, you know, just the normal life, and just lets them be kids.”
Despite the current challenges, Aikens remains determined to continue the tradition.
“Our lights will be back one way or another,” he said. “Eventually we will get them back, even if we have to remove them this year.”
A Bay City neighborhood’s Halloween tradition is in limbo over permit, insurance requirements
