If They Didn't Weigh the Evidence Before... Why Would They Next Time?

EDITORIAL by Jim Albert - Thursday, October 29, 2009 - I know, as I get older, my memory seems to fade a bit, but I read the Candidate Forum in the Globe and I couldn't believe what Tom Laabs and Suzanne Toth were trying to pass off as truth.

Laabs pointed out that the former Commission approved Towering Pines three years ago, and he claims "major changes in the economy" have postponed the construction of the project. Oh Really?

He also states that he will weigh the merits of another Hovey proposal should one come before the Commission.

Toth states that she was initially for the proposal, but "many things have changed" and she claims that "community support for the project has disappeared."

She states she would have to have all of the information in front of her before she were to make an informed decision on any future Hovey proposals.

First of all, it wasn't the economy change that postponed Hovey's Towering Pines project and community support for the project didn't suddenly disappear. At each and every meeting citizens in opposition to the project filled the Commission Chambers to overflowing. In the dozen or so meetings held regarding the project, I could count on one hand the number of people who supported the idea.

Initial letters of support for Towering Pines were solicited and many of the people submitting the letters didn't understand what they were really supporting. Tim Hunnicutt, representative of the Hovey Companies, LLC, was selling the City a bill of goods and three members of the City Commission bought into the snake oil salesman's pitch -- hook, line and sinker -- Noren, Laabs and Toth.

Hunnicutt and Hovey told so many lies regarding the Towering Pines project they couldn't even keep track of them. Originally, the project was being touted as a luxury, high-end, market-rate complex with NO SUBSIDES. At the very next meeting, the complex turned into a mix of market-rate apartments and low-income subsidized units. The last time Hunnicutt addressed the Commission, the Towering Pines Complex had turned into a Section 8 Housing Project that is 100% subsidized through the Michigan State Housing Development Authority (MSHDA).

Both Laabs and Toth state they would have the weigh the merits of any new Hovey proposals put before them. Really? Is that what they did when they wholeheartedly supported the Towering Pines project in the first place? I find it hard to believe that any rational human being would ever consider the project based on information presented in this case.

· By Hovey's own admission NO NEW JOBS WILL BE CREATED.

· 100% of the rent generated through the project goes directly to Hovey headquarters in DeWitt, MI. Local landlords spend their money locally.

· NO LOCAL CONTRACTORS will be hired to build the complex.

· The $5 million project would not be obligated to pay a penny in property taxes. The schools, the county, the State, the College, Hope, the Gogebic Community College, the Civic Center, Gogebic Medical Care Facility, and every other entity supported by property taxes would receive NOTHING from the project. If Hovey paid taxes like the rest of us do, their tax obligation would be nearly $90,000/year.

· Instead of having to pay property taxes of nearly $90,000/year, Hovey would pay the City a ridiculously low Payment in Lieu of Taxes (PILOT). The PILOT provision would allow Hovey to deduct the cost of utilities from their income. They would also be able to subtract losses from unrented units before they calculate their PILOT payment. If there is a high vacancy rate or if the utilities are high enough, Hovey will pay next to nothing to the City. The MOST they will ever pay is $9,600/year.

· The City will be responsible for all infrastructure -- water mains, meters, etc.

· When pressed by citizens to show the benefits of the Towering Pines to the community, Tim Hunnicutt told the Commissioners that Hovey will host pancake breakfast fundraisers and will work with tenants to provide tutoring services. WOW -- don't be too generous!

· Hovey's Market Survey made dozens of ridiculous claims to show there is a need for the complex. Claims like Fred Gygi has over 165 employees.

· There are over 600 empty houses in Ironwood. Our population is declining. There are fewer and fewer jobs in the area. There is no need for more rentals.

· Hovey's Market Survey claimed that there is a dire need for new apartments. They never surveyed a single local landlord regarding their vacancy rates.

· Evidence exists that shows the property earmarked for Towering Pines is subsiding. The Commission was presented with that evidence on several occasions.

· The City illegally sold the property without having it appraised. The document the City used to prove an appraisal was done was 10 years old and it clearly states that it is a "Market Analysis" and the last line says, "This is NOT an appraisal."

Anyone who would "weigh the evidence" in this case and still support the project is either extremely naive or is genuinely corrupt. Hovey lied to the Commission; they lied to the citizens of Ironwood; and they lied to MSHDA. The evidence is very clear and it is very abundant.

When a Commissioner considers an issue as important as the Towering Pines project, his only concern needs to be the best interest of the people. Laabs and Toth do not belong on the City Commission. They are not concerned about what is best for this community. When a Commissioner votes in favor of a project for no other reason than to "get even" with an individual or a group he doesn't like -- he doesn't belong in public office.

Jim Albert