City Commission to Decide of Union Contracts & Hovey Land Option Monday

IRONWOOD, MI - Sunday, June 07, 2009 - Prior to the beginning of the Ironwood City Commission's regularly scheduled meeting Monday, there will be a Public Hearing to hear comment relative to the Fiscal Year 2009-2010 Proposed Budget; Schedule of Rates for City Services; and the Property Tax Millage Rate levied to support the Proposed Budget. The Public Hearing will begin at 5:15 PM in the Commission Chambers on the second floor of the Memorial Building.

Immediately following the Public Hearing, the City Commission will hold their regularly scheduled meeting. The first order of business, following the Opening Prayer, the Pledge of Allegiance and the recording of the roll will be approval of the Consent Agenda. The Consent Agenda is a list of rather mundane or routine matters that need to be addressed, but generally require no discussion.

Under the Consent Agenda are the following items:

  1. Approval of Minutes - Special City Commission Meeting, May 8th & Regular City Commission meeting, May 26th.
  2. Review and Place on file meeting minutes for: (a) Pat O'Donnell Civic Center Board, Jan 28th, March 10th, and May 25th; and (b) Ironwood Planning Commission, May 6th.
  3. Approve re-appointment of Scott Erickson and Bob Tervonen to two-year terms on the Gogebic-Iron Wastewater Authority and Board ending June 30, 2011.
  4. Schedule a Public Hearing on Monday, June 22, 2009 at 5:10 PM to hear comment on an ordinance to vacate a portion of Hemlock Street.

After the Approval of the Consent Agenda, the Regular Agenda will be voted on, and citizens wishing to address the Commission on Agenda items will be given a chance.

The Commission will then consider the following issues under Old Business:

  1. Receive an update from the Gogebic-Iron Range Trail Authority on dust control for Trail Number 2 (Existing snowmobile trail adjacent to US-2).
  2. Review and consider a resolution approving an Appropriation Act for Fiscal Year 2009-2010 including approving Budget establishment of the 2009-2010 Millage; Rates for City Services; and authorizing the collection of a 1% Tax Administration Fee.
  3. Consider authorizing approval of amendments to the City of Ironwood's Economic Development Fund Reuse Plan and authorize submittal to the Michigan Economic Development Corporation (MEDC) for approval.
  4. Discuss and consider acceptance of the Community Development Block Grant (CDBG) Grant Agreement between the City of Ironwood and the Michigan State Housing Development Authority (MSHDA) in the amount of $170,700 and authorize the Mayor and the City Clerk to sign appropriate documents.
  5. Consider accepting MMRMA RAP Grant for building security projects.

Under New Business the Commission will consider the following issues:

  1. Consider awarding the lowest bid for demolition of three structures to Superior Excavating in the amount of $2,500 for 736 Celia Street; $2550 for 115 Rowe Street; and $3,600 for 602 East Oak Street.
  2. Consider action regarding Non-Union salary adjustments.
  3. Consider extension of Land Control Agreement with Hovey Company.
  4. Consider scheduling a Public Hearing for Monday, June 22, 2009, at 5:15 PM to hear comment on Ordinance #475, Book 4, an Ordinance to provide for a service charge in lieu of taxes for a proposed multiple family dwelling project for persons of low income, moderate income levels (HUD-2006) guidelines to be financed or assisted pursuant to the provisions of the State Housing Development Authority Act of 1966, as amended.
  5. Receive Manager's Report
  6. Hear Other Matters Commissioners may have.
  7. Allow Citizens to address the Commission on items not on the Agenda.
  8. Consider Closed Session to discuss the status of contract negotiations with AFSCME.
  9. Return to Open Session.
  10. Consider possible action with AFSCME, Local 1538 Union.
  11. Adjournment.

EDITOR'S NOTE: To better understand what a Payment in Lieu of Taxes (PILOT) is all about, please watch the following video. In the video's example, Hovey's Towering Pines is the "Big Box Store."  In the case of the Hovey apartment project, the City of Ironwood doesn't issue bonds. Funds come from MSHDA and they hold the title to the Hovey properties until their financial obligation is satisfied. What does the City gain with the sacrifice of hundreds of thousand of dollars worth of taxes? MSHDA and Hovey say it's the "City's contribution" to the project! I have no problem with free enterprise, but when taxpayers subsidize projects that hurt existing businesses, it is not right or fair. At the last Ironwood Planning Commission meeting the topic of O'Reilly's Auto Parts store came up. When Planning Commissioner Eric Lytwyniuk was asked how he felt about the project, considering he has a vested interest in an existing auto parts store, he said the City wasn't really gaining anything -- we were just going to replace an existing auto parts store with a new corporate store. The Hovey project will devastate existing landlords in the City. The project, if given the PILOT they are requesting will do nothing to help pay for our school system. It will not improve our economy -- rents will be sent out-of-town. And, ultimately, it will increase property taxes, as the project will require City services they aren't contributing towards since they will be tax exempt. I urge you to Google "Payments In Lieu of Taxes" to see what impact they generally have on communities.