Superior Chronicle -- City Commission

IRONWOOD, MI - Tuesday, November 25, 2008 - Last night's Ironwood City Commission meeting was preceded by a brief public hearing to receive comment relative to an application for an Industrial Facilities Tax Exemption (IFT) Certificate filed by Jacquart Fabric Products, 1238 Wall Street, Ironwood.

City Assessor/Building Inspector Dennis Hewitt introduced the issue to those in attendance. He explained that the IFT was an instrument commonly used to stimulate and encourage industrial business within a community. He explained that most of the current businesses in the industrial park are currently received personal property tax relief through the IFT. The application by Jacquarts represents a fifteen year exemption on all personal property (equipment).

Mayor Bruce Noren questioned the 15-year term stating that most of those he remembered were only 12 years. Hewitt explained that there are two separate programs available. The 12-year IFT's represent a 50% reduction in millage rate on personal property, and the one Jacquart was applying for through Public Act 328 and it represented a 100% exemption on all personal property. Hewitt pointed out that several other businesses in the industrial park are currently under the 15-year exemption as well.

Mr. Bob Jacquart addressed the Commission explaining that his company has never applied for "blanket" personal property exemption in the past. He pointed out that his company has been rather aggressive even though the economy has been relatively flat. He said his company has had reasonable success purchasing other smaller companies and incorporating them into his existing operations. He sited the Stormy Kromer and the canopies used for Rainbow Play Systems businesses as examples. He explained that buying existing businesses is much easier than trying to establish new products and attempting to build new customer bases.

He told the Commission that Jacquarts -- roughly two weeks ago -- purchased a company that manufactures most of the hard cases for most of the nation's major fishing rods. He explained that his company hired four new people as a result of the expansion. He said Jacquarts is currently manufacturing seat covers for the private jet industry. According to Jacquart, a special cutter needed for the seat covers is one of the pieces of equipment his company will need to purchase. He said in the past, his company has had exemptions on individual pieces of equipment, but the proposed IFT will make it possible for them to purchase equipment as needed without coming before the Commission after each new purchase.

Leroy Johnson spoke up in favor of the IFT. He explained that Jacquarts Fabric Products has been one of the area's major employers for years. Mr. Johnson told the Commission that Jacquarts was building their business and they are trying to keep their operations right here in Ironwood. He said if a tax exemption will help Jacquarts grow and continue to provide new jobs here, he supported the idea.

Howard Aspinwall echoed Johnsons support of Jacquarts, but he questioned what would happen to the equipment if the project didn't work out. Mayor Noren explained that it would be up to Jacquarts to decide what action was necessary under such circumstances.

Jackie Powers questioned how much money was involved. In other words, what would the City be passing up as for as tax revenues was concerned. Dennis Hewitt explained that it would be $70 per $1000 of evaluation. He said that many times companies simply cannot afford to pay for both the expensive equipment and the high taxes on the equipment.

John Wyssling supported the IFT. He said that he's watched Jacquarts grow over the years, and he said it was nice to see that he is expanding his business here and not somewhere else. He said that the City needs to continue this kind of support for area industries.

This reporter pointed out to the Commission that Jacquarts total payroll in the City was over $3 million, and payroll represents a big part of our City's local economy. I told the Commission that I fully supported the proposed IFT for Jacquarts.

During the regular meeting, the Commission unanimously (4-0) approved the application for the IFT.

NOTE: The reason only four votes were cast is because Commissioner Tom Laabs is out-of-state hunting and was excused from the meeting.

[AUDIO]

REGULAR MEETING

At 5:30 PM the regular meeting of the City Commission was called to order by Mayor Bruce Noren. Following the opening prayer and the Pledge of Allegiance, City Clerk Karen Gullan recorded the roll. Four of the five Commissioners were present for Monday night's meeting. Mayor Bruce Noren; Bob Burchell; Gemma Lamb; and Susanne Toth were in attendance. Commission Tom Laabs was excused as he is out-of-state.

The first order of business for the Commission was to vote on the Consent Agenda. One item appeared on the agenda -- approval of the minutes from the previous City Commission meeting. The Consent Agenda was unanimously approved by the Commission without discussion.

Financial Director Julie Frederickson presented the Statement of Revenue and Expenditures and the Monthly Cash Reports to the Commission. The Commission unanimously agreed to place the reports on file without any questions.

INDUSTRIAL FACILITIES TAX EXEMPTION FOR JACQUARTS

As previously mentioned, the Commission unanimously approved the IFT for Jacquarts. A motion was made by Gemma Lamb to approve the application, it was seconded by Bob Burchell and unanimously approved by the Commission.

PUBLIC HEARING FOR HOVEY'S TOWERING PINES

At the beginning of the meeting, several audience members expressed an interest in voicing their opinions regarding a second public hearing to consider the proposed PILOT (Payment In Lieu of Taxes Exemption) ordinance for Hovey's Towering Pines. Prior to the last City Commission meeting, fourteen people voiced opposition to the PILOT. Only one person spoke in favor of the proposed project.

Before hearing comments from the audience, Mayor Noren and City Manager Scott Erickson explained that, due to something Leroy Johnson pointed out at the previous public hearing, a decision was made to hold another hearing. Johnson pointed out that the City was trying to renew an ordinance that was expired and that was not possible. A new ordinance would need to be presented and voted on. To avoid potential problems in the future and in order to "play it safe" the City Attorney Dennis Cossi and the City Manager believed it was best to hold a second hearing to consider a "new" PILOT ordinance.

It was pointed out that the comments made at the previous public hearing would be considered when the Commission ultimately votes on the issue. Considering the circumstances, several of the people wishing to voice in on the issue, withdrew their request to speak.

The Commission unanimously decided to schedule a Public Hearing for December 8th, 2008 at 5:15 PM to discuss the ordinance.

EXTENTION OF BALLOON CLAUSE IN TOOHEY REVOLVING LOAN

After very little discussion, the Commission unanimously agreed to change the due date on a balloon payment due on Dr. Marcia Toohey's revolving loan. Dr. Toohey has faithfully made her regular monthly payments on the loan, but due to family health concerns, she felt that she would not be able to make the large balloon payment that was require. The Ironwood Economic Development Corporation (IEDC) suggested giving Dr. Toohey more time to allow her a chance to stabilize her financial affairs. Dr. Toohey's balloon payment will now be due in June of 2010. She will have an opportunity to renegotiate at that time as well, provided she maintains her excellent payment history.

REZONING AYER STREET

Ironwood businessman Jerry Pisani has been trying, for some time, to purchase a piece of open City-owned land along Ayer Street, to build a new commercial storage facility there. Originally, former Community Development Director Pat Merrill suggested the property to Pisani. According to Pisani, Merrill lead him to believe that there would be little of no objection to his purchase of the property, and that the deal could be quickly enacted. Months later, Pisani is still trying to purchase the property and zoning issues have seemed to stall any development in the area.

The Planning Commission, the Parks and Recreation Committee, and the City Commission have all been involved in the process. After several meetings and public hearings, the Planning Commission presented a recommendation to the City Commission. Their recommendation was for the City to leave the land open and not to rezone any of the property along Ayer. The Parks and Recreation Committee has plotted out a trail system along the south side and the middle of the massive stretch of open land.

Emotions ran high as several people spoke on the issue Monday night. Howard Aspinwall, Keith Johnson, and Leroy Johnson all spoke in support of Mr. Pisani's efforts. John Wyssling, Chairman of the Planning Commision and member of the Parks and Recreation Committee, defended the actions of the Planning Commission on the matter. He explained that there was no conspiracy or attempt at any wrongdoing. He explained that his only concern was to do what is best for the community. He reflected on the chain events that occurred and he explained how the Planning Commission came to its decision to leave the land open. He explained that the Parks and Recreation Committee played a huge roll in the Planning Commission's decision due to the fact that the Parks and Recreation Committee was in the process of establishing a trail system throughout the City that could eventually link to existing trails throughout the entire region.

Marion True stood up and supported rezoning the area and selling the property to Pisani. He said he would like to see the property zoned "light industrial." Jackie Powers pointed out to Mr. True that the City had no such property zoning designation as "light industrial." He then said he would like it to be zoned "industrial/recreational." Powers told True that there was no "industrial/recreational" designation either. True said he wanted the property to be rezoned because the area needs jobs.

Downtown Ironwood Development Authority (DIDA) Member Steve Frank addressed the Commission on the matter. He told the Commission that the situation brought to light many related issues. He suggested that Mr. Pisani was owed an apology for the long string of delays that resulted in his bid to purchase the Ayer Street property. He said Mr. Pisani's problems demonstrated that the City needs to examine the way they conduct business.

"With that said," Frank continued, "That's the last time Mr. Pisani's name should be mentioned. If it is not Mr. Pisani's property, it is not Mr. Pisani's project. We are here to night, it is your job to focus on what is best for the City of Ironwood -- not for Mr. Pisani."

"With that said, we look at what should we do with this property." Frank remarked. "Obviously, we need a long-term plan for the City and I do think the Planning Commission is working towards that with the Parks and Recreation Committee, so we're not in an individual situation like this again."

"When we were originally going to rezone a few parcels there, it was brought up that we don't want to start "spot zoning" something. That's why we changed our minds here and decided we wanted to look at the entire property. So, in a way, what we are doing right now is "spot zoning" for one particular idea of what should be done there -- instead of looking at what's best for the property for the community at large."

He went on to say that the City doesn't have a "light industrial" zoning designation. He also doesn't understand why anybody would ever bid on a piece of "open" land because nothing can be done on open land without a conditional use permit. He then pointed out that zoning it, just for the sake of zoning it makes very little sense.

He went through all of the various zoning designations and he pointed out that there are many opportunities to elsewhere in town to develop in each of the designations. He referenced the Rebecca Ryan presentation and the fact that she pointed out that people don't like to travel large distances to buy what they need. He suggested that the City is becoming too scattered and there needs to be some order -- some plan -- for the betterment of the community.

Greg Pisani spoke up stating that nobody wanted the property until Jerry expressed interest in it. He said his brother was not being properly treated and he couldn't understand why the City wouldn't jump at the chance to sell the land; have it developed and have taxes paid on it.

Commissioner Burchell told the Commission that plans were in the works to incorporate the ABR trail system with areas throughout town to create a 42k trail that could host a big event similar to the Birkebeiner. He pointed out that such an event could mean huge money to the area. He said he had nothing against Mr. Pisani, however, there is other property available in the City that would be suitable for a project like he proposes.

After much discussion and a long debate, the City Commission voted 3 to one to leave the property open as recommended by the Planning Commission. Essentially, the vote left the door open to readdress the issue yet again in the near future.

MANAGER'S REPORT

City Manager Scott Erickson presented his report to the Commission. The following items were included in his report:

Accurate Appraisal has completed the field work for the State-mandated city-wide appraisal of real property. They are currently compiling all of their data and they are working with the State verifying their information. In February there will be an open house where taxpayers and homeowners can meeting with the company and discuss their property values. In March, there will be another Board of Review for those that believe their taxes need adjusting.
Karen Gullan and Julie Frederickson have worked with several contributors to create the latest city newsletter.
On Wednesday, November 26, 2008, The Ironwood Theatre is presenting Church Basement Ladies at 2:00 PM and 7:30 PM.
Monday, December 01, 2008, at 5:00 PM there will be a public input meeting presented by the Parks and Recreation Committee regarding snowmobile access to residential homes.
There will be a “Next Generation” follow-up session to the October 29th Rebecca Ryan presentation on Wednesday, December 10th, 2008, starting at 6:00 PM, in the Gogebic Community College cafeteria.
Jack Frost Festival of Lights Parade, Friday, December 05, 2008, 6:00 PM, Downtown Ironwood, Live on Charter, Cable with hosts, Chuck Gervasio & Laura Keller.
Julie Frederickson has been busy working with the City auditors.
December 6th and 7th, 2008, Superior SnoCross Midwest Regional Race, Mt. Zion Ski Hill.
December 12th through the 14th, 2008, ISOC National SnoCross Race, Mt. Zion Ski Hill.

[AUDIO]


Ayer Street Development Is Hot Topic for City Commission
IRONWOOD, MI - Tuesday, November 25, 2008 - Last night's Ironwood City Commission meeting was preceded by a brief public hearing to receive comment relative to an application for an Industrial Facilities Tax Exemption (IFT) Certificate filed by Jacquart Fabric Products, 1238 Wall Street, Ironwood. City Assessor/Building Inspector Dennis Hewitt introduced the issue to those in attendance. He explained that the IFT was an instrument commonly used to stimulate and encourage industrial business within a community. He explained that most of the current businesses in the industrial park are currently received personal property tax relief through the IFT. The application by Jacquarts represents a fifteen year exemption on all personal property (equipment). Mayor Bruce Noren questioned the 15-year term stating that most of those he remembered were only 12 years. Hewitt explained that there are two separate programs available. The 12-year IFT's represent a 50% reduction in millage rate on personal property, and the one Jacquart was applying for through Public Act 328 and it represented a 100% exemption on all personal property. Hewitt pointed out that several other businesses in the industrial park are currently under the 15-year exemption as well. Mr. Bob Jacquart addressed the Commission explaining that his company has never applied for "blanket" personal property exemption in the past. He pointed out that his company has been rather aggressive even though the economy has been relatively flat. He said his company has had reasonable success purchasing other smaller companies and incorporating them into his existing operations. He sited the Stormy Kromer and the canopies used for Rainbow Play Systems businesses as examples. He explained that buying existing businesses is much easier than trying to establish new products and attempting to build new customer bases. He told the Commission that Jacquarts -- roughly two weeks ago -- purchased a company that manufactures most of the hard cases for most of the nation's major fishing rods. He explained that his company hired four new people as a result of the expansion. He said Jacquarts is currently manufacturing seat covers for the private jet industry. According to Jacquart, a special cutter needed for the seat covers is one of the pieces of equipment his company will need to purchase. He said in the past, his company has had exemptions on individual pieces of equipment, but the proposed IFT will make it possible for them to purchase equipment as needed without coming before the Commission after each new purchase. Leroy Johnson spoke up in favor of the IFT. He explained that Jacquarts Fabric Products has been one of the area's major employers for years. Mr. Johnson told the Commission that Jacquarts was building their business and they are trying to keep their operations right here in Ironwood. He said if a tax exemption will help Jacquarts grow and continue to provide new jobs here, he supported the idea. Howard Aspinwall echoed Johnsons support of Jacquarts, but he questioned what would happen to the equipment if the project didn't work out. Mayor Noren explained that it would be up to Jacquarts to decide what action was necessary under such circumstances. Jackie Powers questioned how much money was involved. In other words, what would the City be passing up as for as tax revenues was concerned. Dennis Hewitt explained that it would be $70 per $1000 of evaluation. He said that many times companies simply cannot afford to pay for both the expensive equipment and the high taxes on the equipment. John Wyssling supported the IFT. He said that he's watched Jacquarts grow over the years, and he said it was nice to see that he is expanding his business here and not somewhere else. He said that the City needs to continue this kind of support for area industries. This reporter pointed out to the Commission that Jacquarts total payroll in the City was over $3 million, and payroll represents a big part of our City's local economy. I told the Commission that I fully supported the proposed IFT for Jacquarts. During the regular meeting, the Commission unanimously (4-0) approved the application for the IFT. NOTE: The reason only four votes were cast is because Commissioner Tom Laabs is out-of-state hunting and was excused from the meeting. [AUDIO] REGULAR MEETING At 5:30 PM the regular meeting of the City Commission was called to order by Mayor Bruce Noren. Following the opening prayer and the Pledge of Allegiance, City Clerk Karen Gullan recorded the roll. Four of the five Commissioners were present for Monday night's meeting. Mayor Bruce Noren; Bob Burchell; Gemma Lamb; and Susanne Toth were in attendance. Commission Tom Laabs was excused as he is out-of-state. The first order of business for the Commission was to vote on the Consent Agenda. One item appeared on the agenda -- approval of the minutes from the previous City Commission meeting. The Consent Agenda was unanimously approved by the Commission without discussion. Financial Director Julie Frederickson presented the Statement of Revenue and Expenditures and the Monthly Cash Reports to the Commission. The Commission unanimously agreed to place the reports on file without any questions. INDUSTRIAL FACILITIES TAX EXEMPTION FOR JACQUARTS As previously mentioned, the Commission unanimously approved the IFT for Jacquarts. A motion was made by Gemma Lamb to approve the application, it was seconded by Bob Burchell and unanimously approved by the Commission. PUBLIC HEARING FOR HOVEY'S TOWERING PINES At the beginning of the meeting, several audience members expressed an interest in voicing their opinions regarding a second public hearing to consider the proposed PILOT (Payment In Lieu of Taxes Exemption) ordinance for Hovey's Towering Pines. Prior to the last City Commission meeting, fourteen people voiced opposition to the PILOT. Only one person spoke in favor of the proposed project. Before hearing comments from the audience, Mayor Noren and City Manager Scott Erickson explained that, due to something Leroy Johnson pointed out at the previous public hearing, a decision was made to hold another hearing. Johnson pointed out that the City was trying to renew an ordinance that was expired and that was not possible. A new ordinance would need to be presented and voted on. To avoid potential problems in the future and in order to "play it safe" the City Attorney Dennis Cossi and the City Manager believed it was best to hold a second hearing to consider a "new" PILOT ordinance. It was pointed out that the comments made at the previous public hearing would be considered when the Commission ultimately votes on the issue. Considering the circumstances, several of the people wishing to voice in on the issue, withdrew their request to speak. The Commission unanimously decided to schedule a Public Hearing for December 8th, 2008 at 5:15 PM to discuss the ordinance. EXTENTION OF BALLOON CLAUSE IN TOOHEY REVOLVING LOAN After very little discussion, the Commission unanimously agreed to change the due date on a balloon payment due on Dr. Marcia Toohey's revolving loan. Dr. Toohey has faithfully made her regular monthly payments on the loan, but due to family health concerns, she felt that she would not be able to make the large balloon payment that was require. The Ironwood Economic Development Corporation (IEDC) suggested giving Dr. Toohey more time to allow her a chance to stabilize her financial affairs. Dr. Toohey's balloon payment will now be due in June of 2010. She will have an opportunity to renegotiate at that time as well, provided she maintains her excellent payment history. REZONING AYER STREET Ironwood businessman Jerry Pisani has been trying, for some time, to purchase a piece of open City-owned land along Ayer Street, to build a new commercial storage facility there. Originally, former Community Development Director Pat Merrill suggested the property to Pisani. According to Pisani, Merrill lead him to believe that there would be little of no objection to his purchase of the property, and that the deal could be quickly enacted. Months later, Pisani is still trying to purchase the property and zoning issues have seemed to stall any development in the area. The Planning Commission, the Parks and Recreation Committee, and the City Commission have all been involved in the process. After several meetings and public hearings, the Planning Commission presented a recommendation to the City Commission. Their recommendation was for the City to leave the land open and not to rezone any of the property along Ayer. The Parks and Recreation Committee has plotted out a trail system along the south side and the middle of the massive stretch of open land. Emotions ran high as several people spoke on the issue Monday night. Howard Aspinwall, Keith Johnson, and Leroy Johnson all spoke in support of Mr. Pisani's efforts. John Wyssling, Chairman of the Planning Commision and member of the Parks and Recreation Committee, defended the actions of the Planning Commission on the matter. He explained that there was no conspiracy or attempt at any wrongdoing. He explained that his only concern was to do what is best for the community. He reflected on the chain events that occurred and he explained how the Planning Commission came to its decision to leave the land open. He explained that the Parks and Recreation Committee played a huge roll in the Planning Commission's decision due to the fact that the Parks and Recreation Committee was in the process of establishing a trail system throughout the City that could eventually link to existing trails throughout the entire region. Marion True stood up and supported rezoning the area and selling the property to Pisani. He said he would like to see the property zoned "light industrial." Jackie Powers pointed out to Mr. True that the City had no such property zoning designation as "light industrial." He then said he would like it to be zoned "industrial/recreational." Powers told True that there was no "industrial/recreational" designation either. True said he wanted the property to be rezoned because the area needs jobs. Downtown Ironwood Development Authority (DIDA) Member Steve Frank addressed the Commission on the matter. He told the Commission that the situation brought to light many related issues. He suggested that Mr. Pisani was owed an apology for the long string of delays that resulted in his bid to purchase the Ayer Street property. He said Mr. Pisani's problems demonstrated that the City needs to examine the way they conduct business. "With that said," Frank continued, "That's the last time Mr. Pisani's name should be mentioned. If it is not Mr. Pisani's property, it is not Mr. Pisani's project. We are here to night, it is your job to focus on what is best for the City of Ironwood -- not for Mr. Pisani." "With that said, we look at what should we do with this property." Frank remarked. "Obviously, we need a long-term plan for the City and I do think the Planning Commission is working towards that with the Parks and Recreation Committee, so we're not in an individual situation like this again." "When we were originally going to rezone a few parcels there, it was brought up that we don't want to start "spot zoning" something. That's why we changed our minds here and decided we wanted to look at the entire property. So, in a way, what we are doing right now is "spot zoning" for one particular idea of what should be done there -- instead of looking at what's best for the property for the community at large." He went on to say that the City doesn't have a "light industrial" zoning designation. He also doesn't understand why anybody would ever bid on a piece of "open" land because nothing can be done on open land without a conditional use permit. He then pointed out that zoning it, just for the sake of zoning it makes very little sense. He went through all of the various zoning designations and he pointed out that there are many opportunities to elsewhere in town to develop in each of the designations. He referenced the Rebecca Ryan presentation and the fact that she pointed out that people don't like to travel large distances to buy what they need. He suggested that the City is becoming too scattered and there needs to be some order -- some plan -- for the betterment of the community. Greg Pisani spoke up stating that nobody wanted the property until Jerry expressed interest in it. He said his brother was not being properly treated and he couldn't understand why the City wouldn't jump at the chance to sell the land; have it developed and have taxes paid on it. Commissioner Burchell told the Commission that plans were in the works to incorporate the ABR trail system with areas throughout town to create a 42k trail that could host a big event similar to the Birkebeiner. He pointed out that such an event could mean huge money to the area. He said he had nothing against Mr. Pisani, however, there is other property available in the City that would be suitable for a project like he proposes. After much discussion and a long debate, the City Commission voted 3 to one to leave the property open as recommended by the Planning Commission. Essentially, the vote left the door open to readdress the issue yet again in the near future. MANAGER'S REPORT City Manager Scott Erickson presented his report to the Commission. The following items were included in his report: Accurate Appraisal has completed the field work for the State-mandated city-wide appraisal of real property. They are currently compiling all of their data and they are working with the State verifying their information. In February there will be an open house where taxpayers and homeowners can meeting with the company and discuss their property values. In March, there will be another Board of Review for those that believe their taxes need adjusting. Karen Gullan and Julie Frederickson have worked with several contributors to create the latest city newsletter. On Wednesday, November 26, 2008, The Ironwood Theatre is presenting Church Basement Ladies at 2:00 PM and 7:30 PM. Monday, December 01, 2008, at 5:00 PM there will be a public input meeting presented by the Parks and Recreation Committee regarding snowmobile access to residential homes. There will be a “Next Generation” follow-up session to the October 29th Rebecca Ryan presentation on Wednesday, December 10th, 2008, starting at 6:00 PM, in the Gogebic Community College cafeteria. Jack Frost Festival of Lights Parade, Friday, December 05, 2008, 6:00 PM, Downtown Ironwood, Live on Charter, Cable with hosts, Chuck Gervasio & Laura Keller. Julie Frederickson has been busy working with the City auditors. December 6th and 7th, 2008, Superior SnoCross Midwest Regional Race, Mt. Zion Ski Hill. December 12th through the 14th, 2008, ISOC National SnoCross Race, Mt. Zion Ski Hill. [AUDIO]

Ayer Street Development Is Hot Topic for City Commission