DIDA Removes Depot Park Improvements from Grant Request

IRONWOOD, MI - Friday, October 23, 2009 - The Downtown Ironwood Development Authority held their regular monthly meeting yesterday morning. Five of the remaining seven DIDA members were in attendance. According to City Ordinance and State Law, the Authority is to be staffed with nine members.

1. Call to Order - DIDA Chairman George Goerig called yesterday's meeting to order at approximately 8:00 AM.

2. Recording of the Roll  - Dan Petersen recorded the roll. Petersen told the Chairman that the following DIDA members were present: Louise Demasi; Joe Karius; George Goerig; Eva Smith-Furgason; and Gail Johnston. Mayor Bruce Noren and Corey Gresham were excused, and there still remains two vacancies on the Authority. Reporters for the Globe and the Chronicle were present at the meeting. There were no private citizens or business representatives attending.

3. Consider approval of the October 1, 2009 re-scheduled Regular Meeting - Joe Karius moved to approve the minutes. Louise Demasi seconded his motion and the minutes were unanimously approved by the DIDA.

4. Approval of the Docket - Dan Petersen asked that two items be added to the DIDA's agenda: Item 6(d) Community Development Block Grant (CDBG) Reorganization and also 9(a) Wreath lights were added. The amended agenda was unanimously approved by the Authority.

Louise Demasi pointed out that she would be leaving early because she had a funeral to attend, and she asked if there were any issues that needed to be voted on. Goerig quickly skipped to Item 9(a) to accommodate Demasi.

5. Citizens wishing to address the Authority on Agenda Items - After voting on the wreath lights, Chairman Goerig asked if there were any Citizens present who wanted to address the Authority. There were no requests by the audience. In fact, the only "audience" present were the reporter for the Globe and this reporter.

6. Update on Blueprint Implementation - Dan Petersen updated the Authority on the items listed below.

a) Discuss and consider action on Tax Increment Financing (TIF) within the DIDA District - Petersen told the Authority that he has not heard back from the State of Michigan on how to proceed with the process to re-establish the TIF District. He noted that the issue wasn't very urgent. Petersen explained that the DIDA is the only DDA statewide that has allowed their TIF District to go dormant. He said Ironwood's DDA was a unique case and that it would be the first time a previously established District would have to be re-established. He said if the DIDA wanted to continue with the baseline that it had when the District lapsed in 1994, it wouldn't be as big of an issue. But since the DIDA is trying to re-establish the base year to the current year, it is very important to get the State's blessing.

Goerig tried to explain that re-establishing to the current year would capture more tax revenue.

Joe Karius asked what will happen with communications between the State and the City after Petersen leaves his position next week. Petersen explained that City Manager Scott Erickson would be the "primary contact" and that Jane Bowman and Dennis Hewitt would be the "secondary contacts" until a new Community Development Director was appointed. Petersen explained that this would be an opportunity for DIDA members to take a "more active roll" in the Blueprint process.

Demasi said that Scott Erickson could not handle this matter alone because he has too many responsibilities as it is. She warned that, without help, the City could "kiss the Blueprint plan goodbye!"

b) Update from Downtown Promotional Brochure Committee - Eva Smith-Furgason presented a sample "Lure Brochure" for the Authority to critique. She explained that the sample was not intended to be a final draft and that changes could easily be made. She welcomed input from the other Authority members and asked for the members to participate in any improvements to the document. She asked that Jane Bowman seek bids from local print shops to produce the brochures once the final draft has been created.

Joe Karius offered the Globe's assistance in creating a final draft of the document. Karius told the Authority that the Globe has very good graphics capabilities and the paper would be happy to assist in this effort. Smith-Furgason said she would prefer to have whomever was awarded the bid for printing to do the final graphics work. That's not to say that the Globe can't bid for the job.

Smith-Furgason explained that the photos in the brochure were captured via the Internet, and said she would like to see better photos included in the brochure. Karius pointed out that having people in the photos suggests that the downtown is bustling and alive. He suggested that photos include people.

Smith-Furgason also pointed out that the mileages listed on the brochure were incorrect and that the correct distances from major cities would need to be included.  Karius also asked if the focus is going to be "Downtown" Ironwood and if the word "Downtown" should appear on the brochure. Smith-Furgason suggested leaving "Welcome to Ironwood" on the front of the brochure, but adding the word "Downtown" to the inside of the handout.

The Authority agreed to email Smith-Furgason suggestions or to stop by her store with any ideas.

c) Discuss "Top Business List" - Petersen mentioned that the "Top Business List" was briefly discussed at the last DIDA meeting. He urged the members to give him suggestions of businesses they would like to see move to Downtown Ironwood.

George Goerig said he thought the Army/Navy Store in Ashland might consider a second location in Ironwood. He said that would be a nice addition to our downtown.

It was agreed that the members would send lists of business ideas to Dan Petersen or Jane Bowman so they would be on file.

Eva Smith-Furgason pointed out that a building inventory was a very important tool that the City of Ironwood lacked. Smith-Furgason has been urging the Authority since she became a member to develop such an inventory.

Several months ago, a developer expressed interest in locating a Mexican restaurant in Downtown Ironwood. Eva Smith-Furgason said it would be nice to have an inventory that would show what buildings in the downtown were suitable for such a business. The inventory could show photos of the buildings; square footage; venting; ownership; contact information; possibly rental prices or asking prices for the properties; so that potential developers can easily weed out the buildings that might not be suitable for their needs.

Goerig suggested that the local real estate agencies would show the properties. He said the City isn't in the real estate business. Smith-Furgason said if you want to recruit businesses to the area, you need to show them what's available.

Karius questioned the cost of creating the inventory. He said he could see the value in such a tool, but he said a lot of research would need to be done in order to make it a useful tool. He went on to say that any developer coming to the City usually walks through the downtown with a member of City staff to see the condition of the buildings and what is available. Smith-Furgason said the ownership of the property should be easy to ascertain using City tax records. Karius said somebody would need to do the research. Smith-Furgason said it's easy research and considering how few buildings there are downtown, it shouldn't take more than three days to establish a list.

She went on to say that three days of work upfront could save many hours of work down the line. She explained that she was discussing the Mexican restaurant with Petersen on the phone trying to determine what building would be suitable. One of the things the developer wanted was a place for outdoor seating. She said that, even though they were both able to list off buildings, she said they couldn't determine which properties could qualify because they didn't have any information.

Smith-Furgason pointed out that former DIDA member Wayne Ozark repeatedly urged the City to initiate mandatory inspections any time property is transferred in Ironwood. These inspections would not only insure that buildings are up to minimum code standards, it would also give the City an opportunity to catalog the buildings for a comprehensive inventory.

Smith-Furgason told the Authority that failing to have an inventory makes business recruitment an incredibly difficult task. She said the person doing the recruiting needs to have as much information as possible in order to adequately do the job.

Karius said that many of the buildings have out-of-town owners and finding out the condition of the buildings is a difficult task. He questioned the value of the inventory if it doesn't spell out things like building conditions. Smith-Furgason said, at least you would instantly have contact information so that the developer could  deal directly with the building owners.

Before she would continue with you plea for a building inventory, Goerig interrupted saying that the issue should be brought up once the City hires a new Community Development Director. He said the City lacks staffing, and right now Petersen is leaving.

d) Community Development Block Grant (CDBG) Reorganization -  Dan Petersen explained that the State was looking at the City's CDBG request and they said that most of the City-related issues were eligible, but the Theatre improvements and the Library expansion were not. Nonetheless, City work could still be done at a 10% match.

Petersen went on to say that the most money the grant can provide is $650,000. He said without the Theatre and the Library the City's initial request totals $854,500, so $204,000 worth of projects needed to be eliminated.

Chairman Goerig said, the easiest thing would be to eliminate the Depot Park. He said that the most important things to keep were banners, signage, benches, etc. downtown. He also said that updating the City's parking situation was also a priority.

Vice-Chairman Karius agreed saying that there was no reason why Depot Park improvements can't be made at a later date. Petersen pointed out that part of the park improvements are also included in an application for a Michigan Department of Natural Resources (MDNR) grant.

Smith-Furgason disagreed with Goerig and Karius, stating that there were several items in the request that were in opposition to Blueprint Plan or were simply unnecessary. She suggested that, instead of removing the Depot Park improvements, the following items be removed: Parking Adjacent to the Memorial Building ($95,000); Public Rest Rooms ($50,000); Street Striping Removal ($8,000); and Wrought Iron Banners ($74,500 including posts and hangers).

Smith-Furgason argued that, while adding parking to the Memorial Building would be nice, it's not going to greatly impact the Downtown Business District if that parking wasn't available. She pointed out that Hyett-Palma, the consultants the City paid $30,000 to hire, were strongly opposed to creating stand-along public rest rooms. She suggested that removing street striping was foolish considering the striping disappears on its own every other year, and she suggested that the wrought iron banners would look nice, but the City could be adequately dressed up without them.

Removing the Depot Park improvements would eliminate $204,000 from the CDBG request (the remaining $40,000 would be shifted to "Miscellaneous" items). Eva-Smith Furgason's proposal would allow for the Depot Park improvements and would eliminate $204,000 from the CDBG as well ($23,500 could be moved to "Miscellaneous" items with her proposal). 

Karius said that the items Eva proposed were important to the overall improvement of the City. He said that doing some of the smaller items on the list would show the grant writers and the citizens that the City was trying to move forward with the Blueprint plan. He favored elimination of the Depot Park improvements.

Smith-Furgason offered a second proposal that included removal of the following: Commission Public Art (sculpture) in the Depot Park ($50,000); Removing Striping on City Streets ($8,000); Commission Public Art in Pocket Park ($20,000); Parking Lot Adjacent to the Memorial Building ($95.000); and Public Restrooms ($50,000). This proposal would allow for the Depot Park improvements and would trim $223,000 from the CDBG request.

In the end, Louise Demasi made a rather wordy motion to eliminate the Depot Park improvements from the CDBG request, provided there was a stipulation that other funding for the park be sought, and that the City contact the "railroad people" to see about moving small depot along Suffolk Street. After Dan Petersen pointed out that the remaining $40,000 could be shifted to "Miscellaneous" items, her motion was reworded to reflect that.

The Authority voted 4 to 1 to pass Demasi's motion. Smith-Furgason was the only DIDA member in opposition.

7. Approval to order DIDA Envelopes and Stationary - Dan Petersen informed the Authority that Jane Bowman received one bid from the Print Shop for $95.00 to purchase enough envelopes and stationery to last a year. Demasi made a motion to approve the bid. It was seconded and a roll call vote was taken. The Authority unanimously approved the $95.00 purchase.

8. Discuss and consider action on purchasing ad for Historic Ironwood Theatre Playbill - Dan Petersen told the Authority that the cost for the 1/8 page ad would be $125/year to be in the inside of the Theatre's playbill. Goerig pointed out that Jackie Powers was on the Theatre Board last year and she was able to give the DIDA a complimentary ad. The matter failed to get a motion, so no action was taken.

9. Update on the SISU Ski Fest - Dan Petersen told the Authority that the SISU Ski Fest Committee continues to meet and they are moving forward. The end-line for the race was finalized. It will be located at the corner of Norfolk and Aurora Street (right in front of the Library).

He went on to say that the need for a DIDA welcome tent was discussed and it was the consensus of the Committee that such a tent wasn't one of the needs identified by the group. Petersen continued by saying that the Memorial Building would serve as the Expo area. The race Committee suggested that the DIDA have a booth there.

Smith-Furgason asked if there was going to be any kind of warming tent. Petersen said that issue wasn't discussed by the Committee.  Smith-Furgason expressed concern that the DIDA will not have a presence at the event. When she began to stress the importance of tent to the Authority, Demasi suggested that she go seek donations and do it herself. Smith-Furgason started to respond to Demasi and she was immediately interrupted by Goerig, "Let's move on to Item #10."

Dan Petersen told the Authority that the event was now being advertised in silent sports magazines.

a) Wreath Lights - Dan Petersen said he was seeking the Authority's approval to purchase "cheap" wreath lights so that the wreaths can be erected. Eva Smith-Furgason asked Petersen if there was a cost estimate. Demasi told her that they were "about $2.49/box."  Petersen added, "It will be about fifty bucks!" The Authority unanimously voted to approve the purchase.

10. Staff Updates - (1) Next Meeting Date - Dan Petersen pointed out that the next meeting of the DIDA would fall on Thanksgiving. He asked how the Authority wanted to deal with that issue. He explained that last year the meeting November and December meetings were combined and the single meeting was held on the first Thursday in December.

Smith-Furgason expressed concern that there would only be one meeting before the SISU Ski Fest and that no decision would be able to be made regarding the brochures until December.

Demasi proposed having a quick meeting on the brochures only prior to Thanksgiving. Smith-Furgason suggested the week before Thanksgiving as the next meeting date. Demasi suggested a meeting on November 12th for the brochures and a combined meeting on December 3rd. The DIDA voted unanimously to approve that motion.

(2) Pocket Park Decorating - Petersen reminded the DIDA that it's the time of the year to start thinking about decorating the Pocket Park for the Holiday Season. Demasi said she'd try to recruit the people who decorated the Park last year. Petersen asked if a date should be set. Demasi said she would contact the volunteers from last year and let him know when they can do it.

(3) Sharon's Place Property Sold - Petersen informed the Authority that the Sharon's Place property sold at the October tax sale auction to an out-of-town buyer. He said the City bid $4,900 was was outbid by the eventual buyer with a $5,000 bid.

Smith-Furagson asked who purchased the property. Joe Karius read from a Globe article that the new owner was Kevin Bilant from Ohio.

Goerig boasted that "only good thing" about the auction results is that the property is now on the tax rolls.

The City of Ironwood spent $14,000 ($5,000 from the DIDA budget and $9,000 from the general budget) of taxpayers' money to tear down the former Sharon's/Powers Place building. Over $6,000 was owed to the State in taxes, so the City received nothing from the sale of the property. Although the property sold for $5,000, the the taxable value is only $3,200.

The following chart represents the total annual taxes Mr. Bilant will be paying on the Sharon's Place property.

TAXING UNIT	MILLS	TAX
City Operating Funds	19.20000	61.44
City Library	0.9549	3.04
City Police & Fire Pension	6.10000	19.52
Memorial Building Renovations	2.10000	6.72
Civic Center	1.00000	3.20
TOTAL CITY TAXES	29.3549	93.92
Downtown Development Authority Taxes	1.94140	6.21
TOTAL DIDA TAXES	1.94140	6.21
School Operating Funds	17.98920	57.57
State Education	6.00000	19.20
Intermediate School District	3.26240	10.44
School Construction Bond	1.67070	5.37
TOTAL SCHOOL TAXES	28.9223	92.58
Gogebic County	6.68000	21.38
Gogebic County Transit	0.32320	1.03
Gogebic Medical Care M.O.E.	0.38630	1.24
Gogebic Community College	2.71310	8.68
Animal Control	0.19860	0.64
Senior Programs	0.60000	1.92
Gogebic Medical Care Building	0.39720	1.27
OTHER TAXES	11.2951	36.16
TOTAL TAXES	71.517	228.85

Considering the City's "investment" into the property was $9,000 and their annual "return" through taxes will be $93.92, the City will recoup their initial investment in just under 96 years. The rate of return for the City's share to raze the building is 1.04%.

The DIDA's "investment" into the property was $5,000 and their annual "return" through taxes will be $6.21. The rate of return for the DIDA's investment into this venture is 0.12%. At that rate, the DIDA will recover their $5,000 investment in just over 805 years.

11. Citizens wishing to address the Authority on Items not on the Agenda -

Kim Kolesar - Kim Kolesar briefly highlighted the Jack Frost Festival and asked the DIDA if the Authority was willing to do host the tree lighting ceremony like they did last year. She explained that the DIDA could make anything they wanted out of the tree lighting ceremony. She pointed out that last year's ceremony featured the school choir, a speech by the Mayor,  and Jackie Powers offered hot cider. Karius made a motion to take on the responsibility. Goerig made a motion to second Karius' motion. The Authority approved the motion.

Jim Albert - This reporter asked what the City spent to create the Blueprint Program. Dan Petersen responded with $30,000. I then asked how much money was spent by the City tearing down Sharon's Place. Dan Petersen stated that the City spent a total of about $14,000. I questioned logic of paying a consultant $30,000 for advice the DIDA refuses to follow. I also questioned the City's justifciation for spending $14,000 to tear down a building they didn't even own in order to receive a total of just over $100/year in taxes.

I pointed out that the Blueprint and Doyle Hyett made it very clear that restrooms were a bad investment for the City. They are costly to build; costly to maintain; and they are a haven for misfits, sex offenders, and other criminal activity. The Blueprint clearly states that the Depot Park concept was a key component of the plan. It also states the importance of a "building inventory," but the DIDA refuses to consider the idea. It makes little sense to pay for consultants and refuse to follow their advice.

I commented how odd it was that the Authority so quickly dismissed all of Eva Smith-Furgason's alternative plans for the CDBG request, but deliberated at length -- and even had a roll call vote to purchase $95 worth of envelopes and paper.

I expressed my frustration with the DIDA and I said it deeply bothers me that my TIF tax dollars are simply being pissed away on foolish things that will never benefit the downtown or Downtown Businesses.

When I finished my comments, Goerig thanked me and the Authority went on to Other Business.

12. Other Business - None of the Authority members had any other business to discuss, so a motion was made to adjourn.

13. Adjournment - After less than an hour, the meeting was adjourned.