DIDA's Incubator Plan Unfair Competition

EDITORIAL - Monday, April 13, 2009 - When a city is growing by leaps and bounds, it can easily outgrow its footprint. Many times large cities get larger as they are forced to push their outer boundaries farther and farther to accommodate a rapid growth in business. In order to check urban sprawl Downtown Development Authorities (DDA's) throughout the nation have initiated "incubator programs" that will either rehab old buildings or raze them in order to build new structures to house upstart small businesses.

Ironwood's Downtown Business District is not, by any means growing. There are over fifty empty buildings in the downtown district and the surrounding areas. Many of these buildings are so run down that little can be done to save them. Most of these extremely dilapidated buildings are either tax foreclosed, or have been recently purchased by out-of-town speculators hoping to make quick profits by flipping tax sale properties.

As a businessman and a TIF taxpayer, (TIF taxes are special taxes that downtown businesses pay on their business property to fund the DIDA) I am deeply offended that our DIDA has the nerve to even suggest rehabbing severely blighted buildings downtown. Like me, many of the business owners in the downtown district have been paying their taxes, and have been trying their hardest to rent their vacant commercial spaces. The DIDA should be working with existing long-term property owners within the City to HELP them instead of trying to dress up buildings at taxpayer expense to put them dangerously at risk of going out of business.

For the past thirty-five years I have paid thousands of dollars in property taxes to the City. I have provided literally hundreds of jobs to young people in this community. When I was able to keep my commercial space rented, each of the businesses that operated in my building also provided employment and added to the Ironwood economy. What thanks do I get? This city wants to build new apartments (in the form of Towering Pines) so that I lose my residential tenants; and now they want to go into the commercial real estate business to make it nearly impossible for me to rent my commercial spaces.

Where on earth would any rational person get the idea to rehab a tax foreclosed building to put further hardship on existing downtown building owners? Believe it or not, I was dumb enough to mention to the DIDA that they have power to make changes. I cited, as an example, that they have the right to purchase property; issues bonds; start incubator programs... So instead of doing something positive and practical for the downtown, our DIDA Chairman got a bug in his hinder to purchase Sharon's building and rehab it.

The City's downtown real estate owners don't need more competition, especially unfair competition that makes it nearly impossible to operate. Things are tough enough as it is. What the City needs to do is to enact laws that force new owners to bring buildings up to code after they have purchased them. We need laws that prevent speculators from buying buildings, sight unseen, at tax auction with hopes to make a quick profit.

The DIDA should be offering a helping hand to existing businesses -- not a slap in the face. If the DIDA is so hell bent on creating and attracting incubator businesses I have the perfect building for them! There are many other buildings that deserve some TLC from the DIDA. When owners have abandoned their buildings and done nothing to maintain them... force them to be torn down. When owners are trying, but struggling to survive... work with them... help them to improve their properties and make them suitable for new businesses.

Sharon's building is in such poor condition, a wrecking ball is what it really needs. The Pamida building would make a very nice hardware store; a nice grocery store; a good variety store; it would be a better location for a furniture store than most of the downtown's furniture stores! Help Roy Ahonen dress his building. The former City News building is owned by Jerry Taplin. Say what you want, he has tried to improve his property and he has been paying his taxes. Help him find tenants in his building. Why does this city insist on constantly hurting those who live here and pay taxes here?

We need MORE commercial rentals downtown like we need another whole in our head. The City needs MORE residential rentals because over 500 vacant homes simply is not enough! It's time for this City to quit dancing around the issues. We need to start finding the right direction -- the right path -- and we need to start following that path.

My sub shop and the former From House to Home Furniture Store spaces have been empty for almost 4 years. The City has done NOTHING to help me find suitable tenants. The City has done NOTHING to make the Downtown an attractive option.

By the way, here's something we need to consider. Ronnie Suprenant and Kenny Aho will both be retiring soon. That represents two more businesses the downtown will be losing. Mike Mezzano is fed up with the State of Michigan's regulations and he's moving his tattoo shop to Hurley -- one more business lost. Our DIDA has lost opportunity after opportunity to help build the City's Downtown by not taking action. If someone would have approached Goody Two Shoes and showed them the financial benefits of moving to the Downtown... they might have located here. The same could be said for Ticklebelly's! I heard Trifles has closed on the highway. Why is there never an effort to try to bring these places from the highway to the downtown?

We don't need a Downtown Blueprint Plan -- we've had AT LEAST six such plans and none of them have ever been followed. We need to borrow Hurley's plan and we need to start asking key people across the river what they did to make their city something to be proud of. What we have done didn't work; what we are doing isn't working; and what we're planning to do will not work.

Jim Albert