Area Business Owners Gather to Hear Blueprint Presentation

IRONWOOD, MI - Friday, July 31, 2009 - Last night the Downtown Ironwood Development Authority (DIDA) hosted a gathering of Downtown businesspeople at Tacconelli's Down Towne to receive their input on the Blueprint Program. When DIDA members first proposed a gathering, they suggested that it be a very informal social gathering that allowed for open discussion. When Community Development Director Dan Petersen began the evening with a PowerPoint presentation highlighting the Downtown Blueprint Plan, it quickly became apparent that the gathering was going to morph into a class-room style lecture.

When Petersen started discussing public restrooms, Eva Smith-Furgason, member of the DIDA and the manager of Northwind Natural Foods pointed out that Hyett-Palma's Blueprint Plan clearly opposes the creation of City-owned public restroom facilities. Such facilities are invitations for crime; they are a huge liability risk; and they are very costly to repair and maintain. She pointed out that many people stop into her store to use their restroom facilities, and she said Hyett-Palma encourages businesses to make their facilities open to the general public. She suggested that the City give water rate breaks to businesses that offer public restrooms and perhaps even discount coupons for toilet paper. Smith-Furgason said the biggest problem with downtown business restrooms is that many of them are not handicap-accessible. She said that the Blueprint Plan offers several suggestions regarding the use of business restrooms for the general public.

Elaine Erickson, Librarian for the Ironwood Carnegie Library, explained the difference between "public restrooms" -- facilities created and publicly owned in a separate building -- and "restrooms for public use" -- restrooms in existing buildings being opened to the general public. She explained that many people use the Library's restroom, but many are very unhappy about having to walk all the way up to the Library because a local business wouldn't allow them to use their facilities.

George Goerig, DIDA Chairman, owner of DLG Services, and City Commission candidate, addressed the crowd to discuss code enforcement, litter and blight.

"I'm a little lax, myself, on it as far as beautification of -- trying to keep up buildings. And everybody here's, you know, a businessperson and they're busy -- we're trying to run our businesses, and some of the more mundane things we kinda get laxed at. If but, what Hyett-Palma suggests, and I mean, everybody suggests, and we should be doing it anyway, is that like our store fronts... take a little bit of time and, uh, you know, sweep the store front and the walkways because, you know, litter get's blown in by the wind and everything and, but,  you know, take a little bit of time and keep your storefronts clean on the outside, also, you know try to there are grants available  or with your own money like, you know, a lot of people do too, but try to improve your storefronts a little bit. I mean, I know the economy's a little tough right now, but you gotta take pride in the downtown. We all have a vested interest in downtown because we're all business owners and we want to see downtown survive. And so you gotta take pride in it and that goes a long ways once, we, you know you take a little pride everything else will fall into place. And right now, you know, everybody is kinda -- there's a lot of older businesses right here in town that have been here when the heyday when it was really thriving and they seen the thriving, you know go down! And everything!

But I moved here from Houston, Texas, and I wouldn't have moved here if I thought Ironwood was a dying community. I have a skill that I could go anywhere. I moved here because I see that Ironwood is not a dying community, and that it's, uh, it hit rock bottom already. It's on its way back up. It's gonna hit on a plateau, but nobody really knows where it's gonna fall, but it's not going to be like it used to be. It won't have twenty thirty thousand people here in town. But everybody could agree to that."

Goerig went on to say that he moved here and he invested into the community. He said everybody in the room has invested into the community. He lectured the crowd saying they they need to have a positive attitude and they need to start taking pride into the community. He went on to explain that many downtown business owners have been complaining about the parking problem downtown. We went on to incorrectly re-tell a parking-related story Doyle Hyett told a gathering at the Gogebic Community College when he first presented the finished Blueprint Plan. Hyett's story was about how he nearly lost his job parking in the front of his bosses store. Goerig tried to explain how limited on-street parking in front of businesses should be left open and available for customers at all times. The Goerig confessed that he's guilty of parking in front of his business as well.

"As far as the litter and blight we have, you know, weeds and different kinds of plants growing out of the sidewalks in front of our buildings and around the sides of the building and it only takes a little bit of time to take a weed whacker and whack 'em off or what I do a lot is a gallon of Round Up which is about $10 to $12 goes a long ways. And you spray it on those weeds and a couple days later they'll disappear. But to try to make the downtown more aesthetically nice, and everything. Cause it does when you have weeds growing out in front of the sidewalks, it's just a, it's a distraction to your business.

Another item that I'd like to discuss is also snow removal. The City is gonna try diligently to get the banks off the sidewalks, and everything. It's all a matter of budgeting, and everything too, but Hyett-Palma did really strongly suggest to keep the sidewalks clear."

He then lectured the local business owners to do their part to shovel their sidewalks. He said the City will also work with building owners to make sure their buildings are kept shoveled.

This reporter sharply criticized Mr. Goerig stating that his lecture was insulting to the area businesses. I told Goerig that he talked down to the audience as if they were children. I asked where the City's pride has been. It's easy to criticize local businesses for not taking pride in their property -- shouldn't the City display that same kind of pride? Where are our benches? Why are our streets and sidewalks in such disrepair. Why are vacant, sub-standard code buildings allowed to deteriorate without City intervention?

Elaine Erickson openly invited area businesses the opportunity place flyers, displays, and brochures in the Library. Dan Petersen then said the Welcome Center on US-2 will also allow brochures to be placed there. He was quickly corrected by a member of the audience. She stated that she tried to have them display her brochure but they refused.

Eva Smith-Furgason pointed out that part of the parking problem is the fact that our City parking lots have more pot holes than pavement.

This reporter pointed out to Mr. Petersen and the City that the City of Ironwood initially created the decline of the downtown. When K-Mart relocated into the plaza, the City actively recruited downtown businesses to move there. Local business owners were told that they would be able to triple their profits. The plaza was a feather in the City's hat because it created new tax revenues. When downtown businesses moved to the plaza, downtown buildings were left vacant, and unattended.

Joanne Kuula from the Fabric Patch pointed out the this summer has been her best summer ever. Becky Schwartz from Creative Spirits agreed. Both specialty stores attract a large amount of business from out of the area. They both do a good job of self-promotion through selective advertising and internet presence. Other businesses in the downtown are also doing quite well. The purpose of the Blueprint Plan is to bring back a well-rounded diversified business district where businesses can play off of one another. It's a safe bet to say that many of the same customers the Fabric Patch attracts, for example, also shop at Creative Spirits. Likewise, it is highly likely that Constantini's customers; Hitt's customers; and Al's customers check out all three stores when they are in town. It is very likely that people buy furniture from all three stores -- seeing something at each that they would like to bring home.

Stores that often struggle in a drained business district are stores that can't feed off of other existing businesses, and/or stores that depend almost entirely on the local economy.

Dan Petersen notified the crowd of business owners that the DIDA currently has two openings. In less than three weeks, three members of the DIDA have become disgusted and resigned. Petersen went on to demonstrate how to access the minutes and agendas from the DIDA meetings from the City website. He also showed that a copy of the Blueprint plan is available on the City site.

Elaine Erickson told the crowd that a copy of the Blueprint Plan is also available for inspection at the Library as are CD's containing information about City assistance that is available to local businesses.

Jerry Taplin asked Petersen if MSHDA and the MEDC are onboard and anxious to help the City with financing for the Blueprint plan. Petersen said that both agencies are willing to work with Ironwood, and he believes that the recent blighted structure grant that the City received could have been a result of the City's participation in the Blueprint plan.

Phil Kucera, Managing Director of the Ironwood Theatre asked what the City's plans were involving the Sharon's Place lot. Petersen explained that the property is owned by the County and it will be put up for tax auction. He said the costs of the demolition will be added to the price of the opening bid. If, however, the property doesn't sell at the first auction, it will go up for bids in a no reserve auction in October. Smith-Furgason pointed out that the DIDA voted to actively pursue the purchase of the property.

Kucera asked who paid for the demolition. Petersen explained that the City paid to raze the building. Smith-Furgason corrected Petersen stating that the DIDA paid $5,000 of the costs and the City will pay approximately $10,000.

Steve Frank asked, "In the event that the City does not bid on the Sharon's Place lot or is unsuccessful in winning that bid, what steps have you taken to stop speculation that will result in an unused vacant lot, that will continue to cycle through the back-tax auction system?"

Dan Petersen said the reason the City decided to raze the building is because is was in such bad shape. Rehabbing the building "was out of the question" Petersen said, "Unless you were planning on a downtown water park!"

Frank repeated his question stating that Petersen's answer didn't address the issue.

"What we did though, what we did, the building that Steve's talking about, and I'll answer his question to the best of ability... we had stopped. By razing that building, we have stopped the speculators from bidding on a blighted building that is not rehab, you can't rehab it, it's cost effective, you can't do anything with it. It's better to have a vacant lot, than it is to have a building that is falling down, where it's a, just a haven for rodents, pigeons, every kind of varment that's imaginable. It was completely filled with mold. The roof, you could see the, the little raindrops coming through. There was holes in the roof that you could fall through, I mean you could see the sun, stars the moon and everything else. We stopped that process. It's better to have a lot there that has a building in the shape that it was in. It was a distraction to our core area, our main street. It was a distraction to the downtown. It was a distraction to the both businesses that are on each side of that, that building. And so, as far as a vacant lot, we'll come to that once we get into the bidding process and once we get into the auction process." Goerig said.

He said that speculators would easily purchse a building in a downtown for $6,000 thinking they were getting a real bargain. Once the see the property, Goerig said, they simply let it go back for taxes.

"It's a three year cycle!" Goerig said, "We stopped that three year cycle!"

"But, again you haven't. That's the short answer to that, I guess." Frank said, "Following up..."

"Does anyone else have any questions?" Goerig interrupted.

"I still have several questions here!" Frank continued, "Following up on the Sharon's Place lot..."

"We want to stick to the Blueprint Program!" Petersen interrupted.

"I am!" Frank replied, "I am specifically sticking to the Blueprint Program! Now that the City has received nearly $320,000 to demolish blighted properties, have you requested that the $5,000 the DIDA contributed to the demolition of Sharon's Place be returned so it can be used to implement the Blueprint Program?"

Petersen explained no request was made. He also explained that the grant was "largely" for residential structures.

"But the City has been budgeting $30,000 to $40,000 per year for blight. It would seem to me that they could now afford to give the $5,000 back to the DIDA which has very limited funding." Frank responded.

Then he asked, "You've indicated that it's very important for downtown business owners to become actively involved in implementing the Blueprint. When some of these individuals, and there are two at this meeting tonight, attend DIDA meetings why do you refuse to listen to what they have to say?"

After a long pause and blank stares from both Petersen and Goerig, Goerig said, "Nobody refuses to listen to any, uh, anything anybody has to say!"

This reporter interjected, "I beg to differ with you, George! I was one of them..."

Elaine Erickson interrupted, "Can we get back to the subject of this meeting?"

"This is the subject of the meeting! This is why things are they way they are!" I replied.

"I would like to touch on one aspect of the, as far as the blight, and everything" Goerig changed the subject with more of his word salad, "The City Staff has been diligently very aggressive on getting these grants to combat blight; to combat a lot of the different aspects of the, the, you know, money's tight, and everything. And we have an aggressive City staff that's going after funding, and we're receiving funding, Ironwood's receiving funding, more funding than others communities in the area are receiving. So you have to put your hats off to the, the City Staff for doing this. And, I can't stress more that it's a positive attitude that's going to revitalize downtown. You know, it will take money, but it will take money from both the government sector as far as grants and stuff like that, but it will also takes private investment. And the private investment will, is a lot quicker than trying to work with the government."

When asked if the grants were "free money" Petersen responded that a lien is placed on the residential property that reduces by 20% annually.

Petersen was asked how many businesses owned their buildings and how many were merely renting. He was also asked how many out-of-town owners really care if their buildings or sidewalks are maintained. Petersen admitted the City doesn't know who owns downtown buildings but this was something that could be examined.

Jerry Taplin said he owns a building downtown and he doesn't live here. He also stated he's not making a dime on his investment in Downtown Ironwood. He explained that his utilities, expenses, and taxes are higher than his building's income. He thanked the City for their help in renovating his apartments. Petersen indicated that more rental rehab is in the works.

This reporter asked who decided to raze Sharon's Place. I explained that I have attended virtually every DIDA meeting and I never heard the membership of the Authority discuss what Blueprint actions were to be taken -- which ones are priorities and which ones can wait. I explained that things always seem to suddenly appear on the DIDA agenda without any discussion from DIDA members.

After another lengthy pause and no response from either Dan Petersen or George Goerig, Elaine Erickson asked if that question couldn't be asked at another forum.

"This is the forum it should be answered in," I responded, "And these are the people it affects! That's $5,000 of DIDA money and $10,000 of general tax dollars! All of it is our tax dollars!"

"There are a lot of issues that are put on the agenda, the DIDA's agenda by outside sources, by, uh, you know, uh, concerned citizens, and it gets on the agenda." Goerig said.

"Who placed that particular item on the agenda?" I repeated.

"City Staff is the one who prepares the agenda!" Petersen responded.

"I think it was Steve Frank that set it on the agenda!" Joe Karius interjected, "Way back when!"

"NO!" Frank insisted. For some time now, the general excuse for the ineffectiveness of the DIDA has been that the Authority is powerless to do anything about City problems. Frank has repeatedly pointed out to the DIDA that Downtown Development Districts throughout the state have exercised their powers and accomplished many good things. In describing the powers of DDA's, Frank explained that Downtown Development Authorities have the right to condemn buildings; purchase buildings; rehabilitate buildings; issue bonds; tear down blighted structures; etc. At no time did Steve Frank ever place razing Sharon's Place on the DIDA agenda.

Speaking to George Goerig, I said, "Originally you wanted to rehab that building. You thought it was salvageable."

"Before we'd gone in!" Petersen interjected.

I went on to explain that many of the DIDA members and other individuals tried to explain that the building was in very poor shape... it does need to come down, but not at the taxpayers' expense when the City doesn't even gain possession of the lot.

"Who made the ultimate decision to raze the building?" I asked again.

"Well, the City Commission made the ultimate decision." Goerig responded.

"Who initially put it on the agenda?" I asked for a fourth time.

"Well, let's move on..." Dan Petersen said.

Petersen was then asked what area is considered downtown. Petersen produced a map that was featured in the Blueprint Plan.

Becky Schwartz pointed out that there are no flowers on the majority of streets in the downtown. They can only be found on Suffolk and Aurora. She said that two streets don't constitute the downtown. Petersen agreed and he explained that this is one of the issues that is addressed in the Blueprint plan. She also complained that she only knew about the gathering because she saw it in the Chronicle. She said that a comment was made that a business-to-business effort was made to contact all downtown business owners. She said Joanne was never told either.

Goerig apologized for missing their businesses.

Schwartz says you need to contact everybody if you want everybody to come onboard with the plan.

Lily Palmer asked Petersen to explain when DIDA meetings are held so that businesses can participate in the meetings. Petersen said the meetings are held on the fourth Thursday of each month at 8:00 AM. Eva Smith-Furgason reminded the crowd that there are currently two openings on the board.

Steve Frank asked Dan Petersen to pull up the minutes from the last meeting on his computer. He suggested that people might like to know what things actually are discussed at the meetings. Petersen explained that they are not posted because they are yet to be approved by the DIDA or the City Commission. He said they are available for viewing at any time at the Memorial Building.

With that, the meeting was adjourned.