Goerig-Karius Re-Elected to Head DIDA - Smith-Furgason Remains

IRONWOOD, MI - Friday, January 29, 2010 - The regular monthly meeting of the Downtown Ironwood Development Authority (DIDA) was held yesterday, Thursday, January 28, 2010, in the Women's Club Room on the second floor of the Ironwood Memorial Building, Ironwood.

ROUTINE BUSINESS

1. Call to Order - Chairman George Goerig called the meeting to order at 8:00 AM.

2. Recording of the Roll - DIDA Secretary Jane Bowman recorded the roll. When roll was initially recorded, all members (George Goerig, Chairman; Joe Karius, Vice-Chairman; Rick Tippett; Gail Johnstson; Corey Gresham; and Bill Penrose) except Mayor Bob Burchell and Eva Smith-Furgason were present. (There is one vacancy on the Authority). Mayor Burchell and Eva Smith Furgason arrived late due to the poor weather conditions. City Manager Scott Erickson was in attendance. Reporters present were Margaret Levra for the Daily Globe and yours truly.

3. Consider approval of the December 3, 2009 Joint Workshop/Re-Scheduled Meeting minutes - Shortly after roll was taken, Mayor Bob Burchell arrived for the meeting. Joe Karius made a motion to approve the minutes. Bill Penrose seconded the motion, and the Authority unanimously approved the motion.

4. Approval of the Docket - Vice-Chairman Joe Karius made a motion to approve the Docket. Corey Gresham seconded the motion, and the Authority unanimously approved the Docket.

5. Citizens wishing to address the Authority on Agenda Items (3 Minute Limit) - Chairman Goerig asked the audience if there were any citizens wishing to address the Authority on Agenda Items, reminding them that they had a three minute time limit for their comments. This reporter asked to speak on items #6 and #11. Steve Frank asked also to speak on those two items. There were no other requests to address the Authority on Agenda Items.

6. Election of Officers: Chairperson and Vice Chairperson -  Chairman Goerig gave audience members an opportunity to address the Authority regarding the Election of Officers. This reporter was the first to speak.

"I think before you even discuss the election of officers, you should probably be making sure that everybody is here, for one thing, and item #11 has a bearing on the issue." Eva Smith-Furgason had not yet arrived to the meeting.

"I don't think you're giving her enough time to even get here with the way the weather is."

Mayor Burchell explained that he, too, also had difficulties getting to the meeting.

"I'll echo pretty much what Jim said," Steve Frank told the Authority, "But many of you on this Authority are very new and there is a reason for that! There's been a large number of people resigning in the last couple of years. And that's because of your leadership. We've lost a lot of good people that could have contributed a lot and done a lot for Downtown Ironwood. But, because of the leadership, they are tired with dealing with the leadership. You have an opportunity right now to change that leadership."

Chairman Goerig thanked Frank for his comments and then moved on to the election of officers.

"Is there any nomination for the election of the officers?" Goerig questioned the Authority. "We'll go with the Chairman's position first."

"I'll nominate George Goerig for Chairman," declared Vice-Chairman Karius.

"Then, I guess, are there any other nominations?" Goerig asked. No one responded.

"Do we need a motion on that?" Goerig asked Bowman.

The DIDA secretary explained that a motion for unanimous support would be in order. Karius made the motion.

"Is there a motion, or nomination for Vice-Chairperson?" Goerig asked. After a short pause, Rick Tippett nominated Joe Karius. Bill Penrose the made a motion for unanimous consent.

"Alright then,  Joe Karius is Vice-Chair." Goerig exclaimed.

a. Goals and Objectives - Goerig explained the implementation of the Blueprint Plan is the goal of the Authority.

"But one of my main goals I'd like to see this year," Goerig told the DIDA, "Is a 'yes' 'no' or some kind of answer from Cathi Cole as far as reinstating the TIF District tax or capture that TIF District." Cathi Cole is the City's main contact with the Michigan Economic Development Corporation (MEDC).

Goerig went on to try to explain what that means. He said that a "base year" needs to be established or the City needs to create a new base year. Goerig told the Authority that he discussed the issue with City Manager Scott Erickson and the City is still waiting for that answer.  Goerig said he'd like to set that as a main goal because capturing the TIF District would create more revenue for the Authority.

Mayor Burchell asked if there was going to be a separate vote on the Goals and Objectives. Then he asked if a roll call vote was going to be taken regarding the election of officers, or if there was going to be any discussion on the matter.

"We can have a discussion on the election of the officers." Goerig stated.

"If we have a nomination and support," Burchell continued, "I'm just guessing we should have a discussion on it. And then have an 'all those in favor - all those opposed' unless that's not procedure..."

"That's fine!" Goerig noted, "I'm not familiar as to the procedure too or the proper procedure."

Goerig began the discussion by suggesting the position of the Chair was first to be discussed.

"I'm wondering if there's merit to the discussion as to whether or not there's been kind of a... not a cohesiveness of the group here over the past year." Burchell said, "It seems to me that there's been sort of a division on the DIDA and the comments from the audience indicate that there have been people leaving over the past two years that have expressed concern over the leadership here. I guess I would like to discuss that just a little bit. There's been a nomination and support and I guess I would like to hear from the other members to hear if they are all in support of this or not. And if there is no discussion, then I guess we'll take it to a vote."

Bill Penrose said the DIDA's vote on leadership positions should be unanimous or at least a 2/3 majority decision. He explained that he is fairly new on the Authority (stating this is only his third meeting) but the majority rules.

Burchell agreed, stating that he was also new to the DIDA.

Penrose went on to say, "If there's a division of power or whatever, we'll just have to work on that as we go!"

Burchell optimistically stated that he agreed with Penrose and he stated that he would hope that people on the Authority could put their differences aside and move on.

Rick Tippett told the Authority that he, too, was new to the group. He said that, since everybody gets their own vote, that shows how the group as a whole feels about any given issue. Tippett went on to say that he fells Goerig has done a fine job as Chairman since he's been on the Authority. "So I'm all for it!" Tippett declared, "Him staying on as a Chairperson!"

Eva Smith-Furgason explained, "I would have several strong objections. I feel that Chairman Goerig's leadership has been lacking and I also have several problems with the way he treats the taxpaying citizens that come to these meetings. I have seen him, on several occasions, cut people off and be short with them, or not allow them to speak at all. When they are business owners who actually should have a voice in the DIDA because the DIDA is a Downtown Ironwood Development Authority that is paid for by taxpayers and if those taxpayers come here to speak, they have every right to speak. We should listen to their concerns. I have seen their concerns being answered with 'Thank-you for your comments!' That is not appropriate at all for a chairman of board like this. The concerns should be answered with 'I hear your concerns! We're going to address them one way or another!' There should be some kind of addressing of the problems that are being brought up if we're going to be effective."

"I've also seen rude behavior and certainly giving the middle finger to somebody who is attending the meeting as a member of the public is not appropriate, and that has happened on several occasions now. I also feel that with proper leadership we should be much further ahead in the Blueprint Program that we have started." Smith-Furgason said.

"Unfortunately, every-body's playing nice! Every one's, 'Well, let's all be nice!' It's not about nice, it's about moving our town forward. I don't like being the only opposing voice on this board. But, I feel if it's going to be a divided board because every one's trying to play nice, then there's really no purpose for having it! We need to move forward. We've received our Blueprint Program goals and objectives in May and we haven't really moved much further on it."

"The other thing is there's a whole lot a things to you who are new to this that happen behind closed doors, and I think that happens with George's approval and I have a problem with that. I'll give you one specific example, that's  a pretty big example: The Community Block Grant application. We received the Blueprint Program objectives and goals in May from Hyatt-Palma. During the May meeting we didn't have a single word about the Community Block Grant. We divided the group into committees and one of the committees was the 'Beautification Committee' and that committee was supposed to get estimates on benches, trash receptacles, and signs. During the June meeting, there was no mention of the Community Block Grant application. During the July meeting, there was no mention of the Community Block Grant application. During the August meeting, and I'd have to check with Jane when it was first brought up, but I believe it was brought up at a special meeting in September, with two weeks notice. When I questioned, 'Who came up with the numbers?' I was told that was the Beautification Committee. That Grant is completely outside of the scope of the Beautification Committee. I was never discussed at a DIDA meeting -- ever -- until it was brought up to us as a 'done deal' -- 'fait accompli' -- if you want to be to be fancy. It was put on the table and we had to vote on it."

"I think, between the backdoor deals; the rudeness; the fact that the Chairperson refuses that answer the public's questions and cuts them off - I would like to put in my voice of opposition and say we desperately need  new leadership if we're going to move forward."

Mayor Burchell expressed concerns that no one else expressed an interest in assuming the roll as Chairperson. He said that he understood Ms. Smith-Furgason's comments, and that he was concerned about Item #11 on the Docket calling for the removal of Ms. Smith-Furgason for "insubordination."  Burchell said that any action on removing Eva from the DIDA will only create a bigger wedge within the group.

"We all have our passions and our interests, and I'd like to see if we go forward and if you are elected as the new Chairperson," Burchell said, referring to Goerig, "I think it would be a big move to move past that and accept some of her ideas as 'constructive.' Maybe you don't agree with them, but I think it would be reasonable to give her the benefit of the doubt when she brought an item before the City Commission when you felt it was not appropriate. It brought a number of things to the attention of the City Commission that we were not aware of otherwise."

Goerig then asked if there was any further discussion by DIDA members regarding the Chairperson position. There were none, so a roll call vote was called for. Goerig's nomination was approved by a vote of six to one, with the no vote coming from Smith-Furgason.

"Is there any discussion on the Vice-Chair's position?" Goerig asked. No discussion took place, so the Chair called for a roll call vote. The DIDA unanimously approved the nomination of Karius for the position of Vice-Chairman.

Following the vote of the Election of Officers, Joe Karius explained to the new Authority members that the DIDA was supposed to establish goals and objectives annually. He went on to say that the goals and objectives outlined in the Blueprint Plan should be the goals and objectives of the DIDA.

Goerig agreed and added that he would like to see the TIF issue addressed in the coming years.

Newly appointed member Bill Penrose asked if all members had the right to add issues to the agenda. Goerig told him that all members have that right. Jane Bowman told Penrose that items can be added by DIDA members one week before the meeting if there is an issue that they feel a need to discuss. Goerig also pointed out that items can be added at the beginning of the meeting by amending the docket.

Smith-Furgason asked if Jane Bowman could refresh the Authority regarding last year's goals and objectives. Bowman told Smith-Furgason that the Blueprint was last year's project as well.  She said that two years ago, other items like the Jack Frost Parade were on the list, but last  year was dedicated to the Blueprint Plan.

Goerig told Smith-Furgason that she has the right suggest prioritizing certain Blueprint Items so that they get accomplished this year.

Smith-Furgason explained that she recently went through her DIDA paperwork and she noticed that majority of the the goals and objectives of the Authority for the past several years (excepting last year) were never accomplished. She pointed out that the Wayfinder signs were one of the few goals that were even attempted. She then went on to ask how it was possible for the DIDA to implement the Blueprint Plan when the Authority has never sat down and had an organizational meeting to determine what items need to be the primary focus of the group.

Bob Burchell suggested that a Blueprint Implementation meeting be scheduled for the DIDA. Joe Karius suggested that the priorities of the Blueprint Plan have already been set by the Community Development Grant application recently submitted. He said that several meetings and workshops were held by the DIDA, and the City Commission that have established a list of items to be accomplished, but are dependent on the approval of the grant.

Eva Smith-Furgason said, "The grant lists off things that cost money. What I'm talking about is doing things that don't cost anything -- things that we've failed to do every time because we never had a meeting as a group. Specifically marketing out town which was a top priority of the Blueprint Program to Hyatt-Palma people. Doing something called Story Placement. (Story Placement is an advertising gimmick that gives people a reason to visit a community. Many times the story is something out of the community's past that creates an colorful, attractive image for the town. The "Home of Hiawatha" or "Michigan's Mining Capital" are possible stories that create an image for a community.) We've never even attempted to do anything about it and it's right in here (in the Blueprint Plan) in black and white and it's just about free to do. There are a number of things that we have not even touched, that they felt were priorities. If the Blueprint Plan hinged on how many millions of dollars we could get in grants... that would be one thing... but anyone who has read the first year implementation sequence would probably be able to find ten different things that could be accomplished with little or no money. Every time I bring this up at a meeting, people get their feathers all ruffled and don't want to have it. There's always 'Yes it's a good idea, but we're already doing it, so why bother?' I'm informing you... as the Vice-Chairperson... as part of our leadership... that we are not following the Blueprint Implementation Sequence."

Bob Burchell interrupted Ms. Smith-Furgason suggesting that the City and the DIDA doesn't have the manpower to accomplish the goals suggested in the Plan. He said that the DIDA members would need to take a more active roll in order to accomplish the goals set forth in the Implementation Sequence. He said he liked what she was saying, but he said the members need to actively participate and give more time in order to make the list of things happen. Burchell went on to say that he didn't thing the members of the Authority were physically prepared to take on that challenge.

Eva Smith-Furgason went on to quote from the Blueprint Plan's first page... "The DIDA should commit fully to implementing the program. Anyone not capable of putting in the time and the resources should resign from the DIDA and let someone else who is willing to do that have a chance." She said it states that directly in the Blueprint Program. She went on to say that Story Placement and Marketing Ironwood didn't necessarily have to be a full time job. Smith-Furgason went on to say, if these simple things are not done because of "lack of manpower" or time, then the Blueprint Plan will join the collection of similar previously purchased plans collecting dust on a shelf in the Community Development Director's office. She suggested that a two-hour special meeting be held to implement the low or no cost items in the Blueprint Plan.

Bill Penrose told the Authority that he favored the idea to go over the Plan and determine which items were feasible and which one's weren't.

Goerig suggested that the next regular meeting be reduced to a one-item meeting to discuss the Blueprint Implementation Sequence.

Mayor Burchell made a motion to have the goals and objectives for the year to encompass the TIF District issue and to hold a one-item monthly meeting to examine the Blueprint Implementation Sequence and determine what actions can first be taken. Rick Tippett seconded the motion and it was unanimously approved by the Authority.

7. Update on Community Development Block Grant Pre-Application - DIDA Chairman George Goerig turned the floor over to City Manager Scott Erickson for an update of the CDBG Pre-Application. According to Erickson, MEDC's Cathi Cole indicated that there will be a few things in the City's Pre-Application for Downtown Ironwood improvements that will have to be removed.

Erickson indicated that most of the request will remain intact and he state he was uncertain which items will be removed. Ms. Cole told Erickson that she would be willing to visit Ironwood in about two weeks to go over the Pre-Application with the City. Erickson told the Authority that the City would also like to examine the TIF District issue at the same time.

Erickson told the Authority that he will schedule an appointment with Ms. Cole. Erickson asked the Authority if they would prefer to have a few of the board members or the entire DIDA present for the meeting. Chairman Goerig said he would leave that decision up to the Authority.

Eva Smith-Furgason stated that she would like to be in on the meeting if possible.  Other members indicated that they would also like to attend. Vice-Chairman Joe Karius asked Erickson if he thought Ms. Cole would object to attending a special DIDA meeting for her presentation. Erickson told the Authority that he would contact Ms. Cole and ask her.

Erickson told the DIDA that the amount of the pre-application with a few deleted items appeared to be acceptable with the MEDC.

8. Update on Downtown Brochure -  Chairman Goerig turned the meeting over to Eva Smith-Furgason who was in charge of developing a Downtown "Lure" Brochure. The purpose of a Lure Brouchure is to attract people to Downtown Ironwood.

Smith-Furgason immediately turned the floor over to Bob Burchell who has been working with Eva on the Brochure.

Burchell handed out copies of the Brochure that his son Robert prepared. He indicated that the map on the hand-out has been enhanced to show more features of the Downtown area. The map has been expanded and more items have been labeled.

Burchell told the Authority that he and his wife made 500 copies of the Brochure for the SISU Skifest and inserted them into ski bags handed out to all participants of the event. According to Burchell, it was the only Ironwood piece in the SISU packs. The Chamber of Commerce didn't provide any Ironwood information for the event.

"So I think it was a good accomplishment for this group that we got something in the bags." Burchell said. Burchell noted that changes and amendments to the brochure can still be made. He told Eva Smith-Furgason that he could forward the .pdf file of the flyer over to her and she could take it to the Iron County Miner to have it printed. The DIDA previously voted to give the Miner the bid for printing the brochure even though there are three printers who pay DIDA taxes to the City in the Downtown Business District.

Smith-Furgason questioned whether or not the Miner will accept the document in a .pdf format. Burchell said he assumed they would. George Goerig reminded the Authority that they had previously voted to accept the Miner's bid for the 5000 copies of the flyer. Burchell indicated that he and his wife produced the 500 SISU brochures as their contribution to the DIDA. He said there wasn't enough time before the race to have them printed. Jane Bowman told the DIDA that she contacted the Miner to let them know that they won the bid for the publishing of the brochure.  

9. Consider requesting staff (or hire out) to research how much property the DIDA owns - Chairman Goerig, who placed this item on the agenda, indicated that he has done some research on the matter already. He told the DIDA that the Authority does own a couple of Downtown District properties currently. Goerig indicated that he has copies of the deeds as they are recorded with the County and City Clerk Karen Gullan also has copies.

According to Goerig, the DIDA owns the Depot "area" including the Depot building and parts of the land around it as well as the Downtown Ironwood Pocket Park. He indicated that City Assessor/Building Inspector Dennis Hewitt found both properties in his tax roll records, recorded under "Ironwood DDA" and the "DDA" but was unable to locate any other properties owned by the Authority.

Goerig said he was fairly certain that the two properties mentioned were the only properties owned by the DIDA. He said that the DIDA, at one time, owned the Ironwood Theatre, but it was deeded back to the City of Ironwood a while back. He said he didn't know of any other properties owned (or once owned) by the DIDA. At one time, the DIDA owned the Chief Oil Company office building that previously housed the Chamber of Commerce.

Goerig told the Authority that having title of these properties can, at some point, be useful to the DIDA. He said the properties may be used as collateral for a loan, for bonding, or for other financing in the event the DIDA might need to generate cash.

Currently the Depot Building is leased out to the Ironwood Historical Society, who then sublets space to the Chamber of Commerce. According to Goerig, the Historical Society pays $148/year ($12.33/month) to the City of Ironwood. The present lease was drafted in 1993, Goerig said, so the total rent collected since the activation of the lease was $2,516.00. He also indicated that the Historical Society pays the City of Ironwood $329 annually to offset the cost of insurance for the property, and that the Historical Society is responsible for the upkeep of the building and property.

Goerig told the Authority that he believes the $2,516 collected by the City for rent should be handed back to the DIDA, and that a new lease needs to be drafted between the Historical Society and the DIDA.

Bob Burchell asked if there was any significance to the amount of the lease since it was such an odd amount. Goerig told the Authority that he didn't know.

According to Goerig the Historical Society, according to documents he received, had first option to purchase the Depot for $1,000 should it become available.

Smith-Furgason asked how much the Chamber of Commerce pays the Historical Society to rent their space in the Depot Building. Goerig told Eva that he believed the rent was in the neighborhood of $200/month. Smith-Furgason then asked what the annual cost of upkeep on the building averaged. Goerig said he had no idea of that cost.

Mayor Burchell asked if the lease holds the DIDA for any expenses. Goerig said that the Historical Society was responsible for any costs.

Smith-Furgason said the Historical Society is doing the City (or the DIDA) a favor by maintaining the building and property and only paying $148/year.

Karius said the subleasing issue to the Chamber needs to be examined. He suggested that it may be necessary to charge the Chamber more rent. "And I assume nobody pays taxes for this!" Karius said. He also questioned whether or not the Chamber was a non-profit entity. Manager Erickson said he would think they were not-for-profit. Karius said Goerig's idea to have City Staff further examine the issue was a good one.

Scott Erickson told the Authority that they would gather the lease; further examine the issue; and report back the the DIDA.

10. Discuss DIDA’s Statutory Authority -  Chairman Goerig handed out the Michigan Statutes that relate to the Downtown Development Authorities (Act 197 of 1975). He quoted Section 125.165(2.2)(2) "An authority shall be a public body corporate which may sue and be sued in any court of this state. An authority possesses all the powers necessary to carry out the purpose of its incorporation. The enumeration of a power in this act shall not be construed as a limitation upon the general powers of an authority."

Goerig pointed out that an authority "shall be" a public body (municipal) corporation. He told the Authority that he hasn't been able to locate Articles of Incorporation for the City of Ironwood or for the DIDA. Goerig said he found information regarding Plymouth, Michigan stating that both their city government and their Downtown Development Authority (DDA) where both municipal corporations were going to work together to hire a Community Development Director. Goerig argued that the intergovernmental agreement between Plymouth's city govenment and their DDA demonstrates that both entities were required to be municpal corporations.

Goerig told the Authority that he has asked City Manager Erickson to do some investigation with the Michigan Municipal League (MML) to clarify the situation.

Eva Smith-Furgason asked Goerig what advantage would there be for the DIDA to be municipally incorporated. Goerig answered that the  DDA's traditionally have had a number of powerful legal tools available to them and that it is a requirement of Michigan law for the DIDA to be incorporated. Goerig went on to say that all of the proper procedures were followed when the DIDA was first established, but it appears that proper actions to incorporate the DIDA were never taken.

Goerig told the Authority that he talked to several people and he said he was told, "Ironwood is very good at reading the first page and not reading the second page. You know, taking action on certain items and not following the complete process."

Scott Erickson said he will get a clarification of the laws governing Michigan DDA's from the MML.

According to the Section 125.1657 of the Act governing Michigan DDA's:

(1) The board may:

(a) Prepare an analysis of economic changes taking place in the downtown district.

(b) Study and analyze the impact of metropolitan growth upon the downtown district.

(c) Plan and propose the construction, renovation, repair, remodeling, rehabilitation, restoration, preservation, or reconstruction of a public facility, an existing building, or a multiple-family dwelling unit which may be necessary or appropriate to the execution of a plan which, in the opinion of the board, aids in the economic growth of the downtown district.

(d) Plan, propose, and implement an improvement to a public facility within the development area to comply with the barrier free design requirements of the state construction code promulgated under the Stille-DeRossett-Hale single state construction code act, 1972 PA 230, MCL 125.1501 to 125.1531.

(e) Develop long-range plans, in cooperation with the agency which is chiefly responsible for planning in the municipality, designed to halt the deterioration of property values in the downtown district and to promote the economic growth of the downtown district, and take such steps as may be necessary to persuade property owners to implement the plans to the fullest extent possible.

(f) Implement any plan of development in the downtown district necessary to achieve the purposes of this act, in accordance with the powers of the authority as granted by this act.

(g) Make and enter into contracts necessary or incidental to the exercise of its powers and the performance of its duties.

(h) Acquire by purchase or otherwise, on terms and conditions and in a manner the authority considers proper or own, convey, or otherwise dispose of, or lease as lessor or lessee, land and other property, real or personal, or rights or interests in property, which the authority determines is reasonably necessary to achieve the purposes of this act, and to grant or acquire licenses, easements, and options with respect to that property.

(i) Improve land and construct, reconstruct, rehabilitate, restore and preserve, equip, improve, maintain, repair, and operate any building, including multiple-family dwellings, and any necessary or desirable appurtenances to that property, within the downtown district for the use, in whole or in part, of any public or private person or corporation, or a combination of them.

(j) Fix, charge, and collect fees, rents, and charges for the use of any building or property under its control or any part thereof, or facility therein, and pledge the fees, rents, and charges for the payment of revenue bonds issued by the authority.

(k) Lease any building or property under its control, or any part of a building or property.

(l) Accept grants and donations of property, labor, or other things of value from a public or private source.

(m) Acquire and construct public facilities.

(n) Create, operate, and fund marketing initiatives that benefit only retail and general marketing of the downtown district.

(o) Contract for broadband service and wireless technology service in the downtown district.

(p) Operate and perform all duties and exercise all responsibilities described in this section in a qualified township if the qualified township has entered into an agreement with the municipality under section 3(7).

(q) Create, operate, and fund a loan program to fund improvements for existing buildings located in a downtown district to make them marketable for sale or lease. The board may make loans with interest at a market rate or may make loans with interest at a below market rate, as determined by the board.

(r) Create, operate, and fund retail business incubators in the downtown district.

(2) If it is the express determination of the board to create, operate, or fund a retail business incubator in the downtown district, the board shall give preference to tenants who will provide goods or services that are not available or that are underserved in the downtown area. If the board creates, operates, or funds retail business incubators in the downtown district, the board and each tenant who leases space in a retail business incubator shall enter into a written contract that includes, but is not limited to, all of the following:

(a) The lease or rental rate that may be below the fair market rate as determined by the board.

(b) The requirement that a tenant may lease space in the retail business incubator for a period not to exceed 18 months.

(c) The terms of a joint operating plan with 1 or more other businesses located in the downtown district.

(d) A copy of the business plan of the tenant that contains measurable goals and objectives.

(e) The requirement that the tenant participate in basic management classes, business seminars, or other business education programs offered by the authority, the local chamber of commerce, local community colleges, or institutions of higher education, as determined by the board.

Goerig went on to explain that the DIDA is an "authority" not merely a "board" or "committee," and that authorities have a list of legal actions they have the right to take. "The only problem we are lacking funding," Goerig said, "We have a lot of authority to accomplish a lot of objectives, but we have little or no funds to accomplish this." He went on to say that the board should be aware of the DIDA's powers in the event that they are able to somewhere -- somehow capture some revenue. 

Karius stated it was interesting, regarding the Depot Building that the law states that the Authority has the right to "fix, charge, and collect fees, rents, and charges for the use of any building or property under its control."

Goerig encouraged Authority members to read the Michigan Statutes to gain insight to the powers of the DIDA. He went on to say that his research shows that the DIDA has the ability to borrow against DIDA-owned properties to create needed revenues to make changes.

"We have to look at every aspect of trying to find funds to implement our objectives." Goerig declared. He went on to say that many people believed the DIDA didn't own any property, but they do. He suggested that collected rental income could help the low-budget DIDA gather much-needed revenue.

EDITOR'S NOTE: For several years, Steve Frank -- both as an Authority member and as a private citizen, and this reporter have repeatedly tried to convince the DIDA that they have broad powers to make sweeping changes in the Downtown, but no action was ever taken to investigate the Statute until now. This reporter presented the same printout of laws regulating DDA's to the Authority, and my presentation was ignored.

11. Consider action on removing a member from the Authority -  Following discussion on the DIDA's authorities, Goerig moved on to Item #11.

"Mr. Albert," Goerig asked, "You had a comment on Item #11?"

"Before I start with that... how long ago did I mention that the DIDA had a whole list of authority that they never put into place? I guess it takes three years before anybody puts things into action on this committee."

George, when you first stated that you wanted Eva off of the DIDA you said that she was 'insubordinate.' That implies that she is 'subordinate' to somebody. Before you can be 'insubordinate' you have to be subordinate to somebody. Everybody on this board is equal. So please explain that, if you can.

You also had everybody in this room -- well, the exsiting members -- at the time, agree to follow the Blueprint or resign. Eva's been the only one to be consistently -- even though she was initially against it -- she's consistently followed the Blueprint to a tee. And for that, what is she going to get? She's going to be ousted out of this organization.

George, how many times have you shut me down at a meeting -- where you wouldn't let me speak on different topics? Our Vice-Chairman, over there, tried to close my business. On several ocassions, he would call the radio station and say, 'If you read any more news from the Superior Chronicle, we won't give you any news!" He went and talked to our advertisers and tried to have us closed down.

George flipped off Steve at not only a DIDA meeting but also a City Commission meeting. Giving somebody the finger -- that's really professional. I think you should be censured -- both of you! And if you're not prepared to take that censure, then I think you both should resign.

When Eva was talking -- and I've been to more meetings that just about anyone else in this room, outside of probably Jane -- but when Eva talks, I watch the Chairman rolling his eyes the Vice-Chairman rolling his eyes; checking the clock; rubbing their eyes; shrugging their shoulders; making all kinds of ridiculous gestures showing that you could care less about what she has to say.

The same held true for Jackie Powers, Pam Mack, and a dozen other former members of this organization. I talked to you, George, on time and you told me that women don't have a place in positions of power. It's obvious that you are showing that.

During the SISU Skifest, the organizers came here several times to try to get assistance from this organization. The only one that tried to do anything to help them -- to make that thing run smoothly, so we wouldn't have the problems that lead to the meetings at the Towne House -- or Taconnelli's -- the only one that's tried to do anything was Eva.

I think this board is a joke. I'd like to see it end. I'm sick of paying taxes on something that doesn't ever accomplish anything.

I honestly think you two should be censured -- or resign. You shouldn't be taking this out on Eva whose actually tried to do more -- look when it came down to the brochures! The only action that's been taken is our Mayor with Eva working together. It's the only thing you've accomplished.

I've been in business here for 36 years. I've owned my building for 36 years. That adds up to a lot of money on that DIDA tax! It's ridiculous!"

"I thank you for your comments, Jim!" Goerig started to say...

"Right there... is a little chuckle from the Vice-Chairman." Steve Frank interrupted, "All of you owe Eva an apology for the way you behaved -- not just what George did at that last meeting -- but how all of you, that allowed somebody to bully her and how all of you just sat there staring off into space.

Little children would have known how to behave better than that. And a Principal would have made sure they would have behaved better than that.

But, I'm going to take the higher ground. It does not say Eva's name on here. So, I'm going to interpret this to mean that you're referring to George Goerig.  He's flipped me off twice -- once after the last DIDA meeting and once after a City Commission meeting. And City Staff saw that one -- including the Chief of Police. So I want to know, what are you going to do about that now? "

"Thank you for your comments, Steve." Goerig replied. "At this time, I'd like to step down as Chair for this one item, and let the Vice-Chair proceed with the meeting because I'm impartial (sic) on this item."

Vice Chairman Karius then took the floor and then allowed Goerig to state his position on the situation. Goerig said he would like to discuss the issue and that he had a prepared statement:

"As we all take time out of our busy days and volunteer to sit on this board, it is unfortunate that an issue such as this one that I'm about to present to the board today should come about.

Every member of the board has different personalities and opinions which bring substance to the board. There will be times when you agree and times when you disagree with a decision. When you sit on a board and the majority of  members agree to take a certain direction in accomplishing its goals, whoever votes against the majority should accept the outcome of the vote and support the decision. If he or she disagrees with the outcome of the vote, there is proper protocol to take.

According the the bylaws, the board follows Robert's Rules of Order, which is available in print or online, that outlines the proper way to bring an issue back on the table and sway other members on the subject.

On two occasions, Member Furgason disagreed with the majorities course of action in implementing the Blueprint document. Instead of following the proper procedures, she took it upon herself to approach the City Council voicing her concerns and asking for the Commission to intervene on the board's decision.

In the past, Boardmember Furgason has also broken the bylaws Section 2(f) being absent for three consecutive meetings without prior excuse and this action constitutes basis for removal from the board. On the August 29th meeting this issue was brought to Member Furgason's attention. At that time no formal action was taken, and her attendance did improve.

When a member of the board fails to abide by the bylaws and is continually insubordinate of the action and direction this board needs to take, the board should take action on the issue, which is why I ask at this time that the board take formal action on this matter by either censuring or recommending Member Furgason for removal from the board. This sort of behavior by a boardmember  should not be tolerated. It disrupts the board's authority and it hampers the board from accomplishing its goals and objectives."

Vice-Chairman Karius asked the Authority for further discussion. Bill Penrose was the first to speak up. Penrose told the Authority that he wasn't on the board when the violations took place, and he suggested that some of Smith-Furgason's actions may have been out of frustration. Penrose explained that being on a board that meets once a month when you want to see things getting done can be very frustrating. Penrose suggested that changes be made so that the meetings can be more productive. Penrose continued by saying that he will not vote for Ms. Smith-Furgason's removal from the Authority.

Mayor Bob Burchell told the Authority that he, too, supports Penrose's position on censure or removal.

Vice-Chairman attempted to turn the meeting back to Chairman Goerig stating that there appears to be no action on the agenda item.

Ms. Smith-Furgason asked to address the Authority.

"In order to be insuborndinate, you have to be suborndinate. I have been a member of this board actually longer than Chairman Goerig, and I have seen how he operates. We are all uncompensated volunteer members of this board. We're all equal on this board. There is no suborndinate/insubordinate simply because there is no superior here. If there was a superior then there could be a possiblity of being insubordinate to that superior, or to the board for that matter.

As far as proper protocol, and as far as Robert's Rules of Order, we saw how well that worked when the City Commission held a joint meeting with us and the City Commission gave their opinion on what we should do as far as putting the Depot Park back into the Community Development Block Grant. And, according to the Robert's Rules of Order, there was no way to bring that back up for discussion. None!

So, what happened? The very thing that should have happened -- the City Commission took it upon themselves to put the Depot Park back in. As far as swaying members -- it's nearly impossible to sway members when everybody is either afraid to speak up; afraid to stand up for what the believe in; and they'd rather go with what the majority says. So swaying members -- no matter how intelligent, well-worded, or reasonable their argument might be -- sometimes on this board, it's difficult, especially when the odds are stacked against you.

As far as my behavior on this board, I don't believe I was absent without excuse for three consecutive meetings. I'm well aware of the rule and I don't believe -- there might have been two meetings that I was absent for without an excuse, but not three.

And as far as having behavior that's unbecoming of a board member, I think certainly giving the middle finger to a member of the public... that, that would constitute to me --definitely, without a doubt -- a reason for censure. I'm sorry to see that no board member will back me on this, because it shows you that obviously they think it's okay to give the middle finger to someone who is at every single meeting and represents a business. I'm sorry to hear that nobody will pick that up.

I am frustrated because of what I see as a board that tries to do a lot but does not have the leadership to be able to go on. I'm surprised that it came down to trying to have me removed because I have my opinion."

Vice-Chairman Karius asked Smith-Furgason if she had any further comments. She had none, so Karius turned the meeting back to Chairman Goerig.

12. Citizens wishing to address the Authority on items not  on the Agenda (3 Minute Limit) -  Chairman Goerig asked if there were any audience members who wished to address the Authority.

Steve Frank was the first to speak.

"So, to agree with what Eva said, there, I assume that none of you and the City Mayor have a problem with your Chairman flipping off a member of the public. I don't care what you think of me personally. But you have no problem with that behavior?"

Franks question resulted in total silence from the DIDA.

"Okay. I can't wait to see... it's almost one year since you got the results of the Blueprint. I can't wait to see what you are going to report! Do you realize all the new members that... I don't know if you've read the Blueprint... You certainly didn't come to meetings before  you signed up to the DIDA. I don't know what we're going to report back to that group of what you've accomplished in a year.

You've put together a wish list. And, if by some magic you get the money, and there's no real guarantee you'll get the 10% match... We don't even know where that is coming from... Anybody can put together a wish list.

The Blueprint says that you do projects that will help you get the grants. What have you done to prove that you could spend any money that you'd be lucky enough to get?

All last year, the constant excuse was, 'We don't have any authority!' Now, all of a sudden, you have authority! You don't even know what you are capable of doing. But I have two specific examples and I insist that something is done about it! There is a truck that is parked in front of my business twelve hours every single day -- right in front of my business! There are ordinances that say that can't be done. They're never enforced! I expect it to be taken care of!

Number two... the former Pipe and Bike Shop... they shovel their roof off, onto the sidewalk... and leave it there. That's contrary to all of our codes! But that's not enforced. That's right across the street from my business. The plowing situation has been atrocious downtown! I've had two customers get stuck on the road in front of my business. That's certainly not the way to encourage people to come back!

The Blueprint said you had to improve the snow removal downtown -- not business as usual -- improve it!  And I sat there at the meeting at Taconnelli's with people saying they're losing money because of that race. They don't even realize how much money they're losing every single day during the winter because of improper snow removal. But nothing has been done about that!

Eva repeatedly tried to bring it up. Now is not the time to be discussing snow removal. That should have been done last summer. Now you should be talking about what you are going to be doing this summer downtown.

You're supposed to be focusing on that target..."

Mr. Frank stopped mid-sentence because he noticed Chairman Goerig putting his jacket on.

"Am I keeping you from something, Mr. Chairman?"

Goerig replied, "No, I'm freezing."

"You're supposed to focus on the 'Target Block." Next month's February... at the end of February you'll have your next meeting. Are you going to put bids up for something then? Will you be lucky enough if you can get them back in March? April? May? Here we go!

I'm honestly disgusted. I really am! We're not moving forward. We're not implementing the plan. And you're sure as Hell insulting me by not taking action on your Chairman for treating somebody so rudely."

"Thank-you for your comment, Mr. Franks (sic)!" Goerig said. He then allowed this reporter to address the DIDA.

"George, what were you censured for with the Civic Center board that lead to your resignation? This is not just an isolated incident. You've treated people like this repeatedly!"

"Mr. Albert, you've had your chance..."

"I have three minutes! Do you know what the Constitution's all about? Do you know what your own Charter's all about? Do you know what your Authority's all about? I have three minutes to speak! Are you going to take that away from me again?"

"I'll allow you one more..."

"How many times have you done this to me, sir? How many times has that Vice-Chairman shut down Steve or myself? We have video tape of the 'Fuhrer' waving him down because he's trying to add to a meeting. This leadership is disgusting and you people should be ashamed of yourselves for tolerating this treatment to downtown businessmen. You're downtown businesspeople! Do you like the way the City's looked for the last 30 years? Do you know how much money has been paid in taxes here? And those two people have stopped every bit of progress.

You're not following that Blueprint at all. There's a one-year plan and not one thing on that plan has been accomplished. You tore down Sharon's Place at a huge cost to the City and it leaves this big gaping ugly hole in the Downtown. And nothing is being accomplished."

"Are you finished with your one minute, Mr. Albert?" Goerig asked.

 "That's my ONE minute?"

"Your THREE minutes!" Goerig replied.

"Yes, I'm finished with my three minutes!"

"Thank-you for your comment." Goerig said.

13. Other Business -  Chairman Goerig told the Authority that he had an item to discuss under "Other Business." Chairman Goerig then gave an explanation for giving the middle finger to Mr. Frank.

"I'd  like to bring up what Member Furgason stated that I flipped Mr. Franks (sic) off several times. Okay. For one... when a member leaves the board room you're not a member of this board. You're not sitting on the board. I did not... the actions I did were personal actions. It wasn't an action of the DDA."

This reporter interupted stating that Mr. Goerig was representing the DIDA at the City Commission meeting where he again gave Mr. Frank the middle finger.

"Mr. Albert, if you're interupting the meeting, I'd like to ask you to leave. Do you want to start interupting the meeting? But if the board feels that I should be censured or some formal action should be taken on that, then I feel that right now would be the time for the board to bring that up, and take any appropriate action."

Mayor Burchell told the DIDA that he feels it is an issue that should be dicussed and resolved. He said the matter should be taken care of so it doesn't continue to fester. He went on to say that Mr. Goerig's behavior was inappropriate. He suggested that every member of the board was in agreement.

"I don't quite know how to deal with it." Burchell said.

"Mr. Mayor, I would suggest that your efforts at bringing our group together are admirable and a number of us, despite what's been said, have been trying to do that. I think the comments you've heard today -- the name calling and some other things -- calling members disgusting and things like that -- It's that kind of atmosphere in which we've had to operate. It's made it very, very difficult. It's precipitated some actions that I guess are inappropriate. But if we want to move forward, I think that applies to everybody being more civil. And taking a different approach than what's been taken. And I didn't see that today." Karius said.

Mayor Burchell told the DIDA that he believed the DIDA has made a great effort to get the Blueprint Plan initiated. Burchell said, due to the groups decision, he doesn't seem much difference in the group's stucture.

"We need to move forward. We need to listen to some of these ideas. I think with the past feelings it's going to be a tough hurdle, but I think we can all overcome it; address some of these concerns; move forward; and what Eva said, 'It's not about being nice!' But it is, Eva. It is kind of about being considerate of everybody's opinion and not getting people to the level of frustration that you've had, and that the team here has had, and folks in the audience have had. I think we have a lot to work with. We've got some new members here. I think we really need to make some strides with this new Blueprint Plan to get some things accomplished." Burchell told the DIDA.

Bill Penrose explained that he didn't witness the inappropriate behavior of the Chairman, and he said he supported him. He asked the Authority what he can do as a DIDA member about parking issues, etc. City Manager Scott Erickson told Penrose that the City will look into the matter and take appropriate action.

Rick Tippett addressed the Authority.

"I would just like to say that I appreciate the information from the public. I don't appreciate being told I should be ashamed. I'm here to gather information. I'm here to listen. And then, at a future time, I'll look into these matters and take action. I'm very new at this so I would like to hear if you have problems, and that's what I'm here for -- to look into it and to see if I can help out. That's why I joined this committee -- to try and work with the Downtown since I am part of it. And if you have problems, I'm more than happy to look into it, but I'm not ashamed at anything I do here as in not taking specific action between specific people, because of the fact that I can see by being here for a short period of time, there is anomosity between board members and the public. And it's going to be difficult to work through this. But I think we can. And I think we're heading in the right direction. I think we just have to take everyone's feelings into account. But we still have a lot of work to do and I think we're in the right direction."

City Manager Erickson addressed the Authority with some project updates. He mentioned that the Festival Ironwood group will be gathering on Monday, February 1st, at 6:00 PM in the American Legion Club Room. He told the Authority that the Chairperson, Kris Bergquist may have stepped down from his role, and there has been discussion as to who would step up to the plate to take over that responsibility. He urged DIDA members to attend the meeting.

He also mentioned the Volunteer Appreciation gathering at the Elk and Hound.

He told the DIDA that the deadline for Community Development Director applications was moved up to February 5th, and that they are still actively seeking a replacement for former Director Dan Petersen.

He informed the Authority that another grant through the State of Michigan was now available to the City of Ironwood. The maximum for the Grant is $100,000 with a 50/50 match, for downtown enhancements.

14. Adjournment - Following Manager Erickson's brief impromtu report, the meeting was adjourned.