Title Search Reveals DIDA Owns Depot

IRONWOOD, MI - Thursday, March 25, 2010 - The regular monthly meeting of the Downtown Ironwood Development Authority (DIDA) was held on Thursday, March 25, 2010, beginning at 8:00 AM in the Women’s Club Room on the second floor of the Municipal Memorial Building, Ironwood, Michigan.

(1) Call to Order - The meeting was called to order by DIDA Chairman George Goerig just shortly after 8:00 AM.

(2) Recording of the Roll - The following members of the Authority were present: Chairman George Goerig; Vice-Chairman Joe Karius; Rick Tippett; Gail Johnston; Cory Gresham; and Eva Smith-Furgason. Ex Officio member, Mayor Bob Burchell, was excused, and Bill Penrose was believed to be out of town. There is one vacancy on the Authority. City officials present at the meeting included: DIDA Secretary Jane Bowman; City Manager Scott Erickson; and Code Enforcement Officer Jason Alonen.

(3) Consider approval of the February 25, 2010 Regular Meeting Minutes - Joe Karius moved to approve the Minutes. Rick Tippett seconded Karius' motion. The Authority unanimously approved the minutes from February 25th's meeting.

(4) Approval of the Docket - The Authority unanimously approved the Docket as amended. Chairman Goerig asked to add an Audience with Will Andresen to the "Action Plan" portion of the agenda to hear an update on the activities of the Gogebic Range Next Generation Initiative. He also added an item to consider the purchase of an ad in the Daily Globe's Summer Fun Guide to Item 11.

(5) Citizens wishing to address the Authority on Agenda Items (3 Minute Limit) - This reporter expressed an interest to speak on Item 11. There were no other citizens wishing to address the Authority.

(6) Discussion on Re-instating Tax Increment Financing (TIF) District - The following information has been provided to help understand TIF taxes and TIF Districts. It was prepared by Norm Tyler at Eastern Michigan University.

What is Tax Increment Financing (TIF)? "Tax increment financing (TIF) allows cities to create special districts and to make public improvements within those districts that will generate private-sector development. During the development period, the tax base is frozen at the predevelopment level. Property taxes continue to be paid, but taxes derived from increases in assessed values (the tax increment) resulting from new development either go into a special fund created to retire bonds issued to originate the development, or leverage future growth in the district.

What is a TIF District? "A tax increment financing district is created by the adoption of a plan for redevelopment and a TIF plan. The assessed value of the property within the district is then determined according to the last tax roll and represents the 'original' (pre-redevelopment) assessed value of the tax increment district. Each of the taxing jurisdictions (municipality, county, school district, and special taxing jurisdiction) continues to receive its share of the taxes collected on the assessed valuation that represents the original assessed value, just as though the district had never been created and there had been no change in the assessed valuation of the area. When the original assessed value of the district has been certified, the municipality may begin the redevelopment and the tax increment financing process."

"The tax freeze lasts for a defined period of time, as set forth in the redevelopment plan. At the end of that period, taxing jurisdictions finally enjoy the benefit of increased property values."

"Typically, a locality issues bonds to purchase or acquire by eminent domain several parcels of blighted property, clears the land, prepares it for sale by installing water and sewer improvements as needed, and sells or gives it to a developer at less than the locality's cost. This is known as a land writedown. The bonds' principal and interest are paid by the tax increments, which are dedicated to that purpose."

"...Redevelopment in a TIF district is usually required by statute to follow a comprehensive plan, and thus avoids the problem of assorted development efforts creating a patchwork quilt."

"A community using TIF financing does not lose the tax revenues that were being collected before the development program. In fact, it is possible for taxing jurisdictions to increase their millage rates during the increment period, thus increasing gross tax revenues.

"The theory of TIF is based on several important principles:

Private redevelopment would not occur without the stimulative actions of the redevelopment agency. In effect, the redevelopment agency earns its revenue through planning, land assembly, and public works.

The tax base in the redevelopment district was in fact stagnant or declining, and the tax increase would not have occurred but for the public expenditures of the redevelopment agency. Healthy areas that grow and develop without the intervention of the TIF do not need tax revenues diverted to a redevelopment agency. Where TIF is necessary, it will cause an increment that the taxing authorities would otherwise not have realized.

The taxing authorities that give over their increment for a number of years will eventually receive the revenues of a larger tax base. It is not unusual for a state to limit the TIF period to 15 to 30 years."

Procedure for Establishing Tax Increment Financing (TIF)

Prepare a finding of necessity, and establish the boundaries of the district. This finding is normally a very detailed study that demonstrates that the district meets the criteria contained in the state's enabling legislation.

A redevelopment agency is created by resolution or ordinance. This agency may be the governing body of the municipality, or it may be a new agency appointed by the governing body.

A development plan is prepared and approved by the agency and the city.

The base year is declared following adoption of the plan.

The redevelopment agency will solicit developers and enter development agreements.

Chairman Goerig asked City Manager Scott Erickson if he had any new information from the State regarding the re-instatement of Ironwood's TIF District. Erickson told the Authority that Cathi Cole, Ironwood's MEDC contact, was working on that for the City but she has not come back with an answer.

Goerig suggested that the Authority request the City Commission to add re-instatement of the District to their agenda. Joe Karius made a motion to that affect. Rick Tippett seconded his motion. The Authority unanimoulsy approved that action.

(7) Discussion on Implementing the Blueprint Plan – Chairman Goerig suggested that Will Andresen be given a chance to address the Authority at this time. Authority member Eva Smith-Furgason, who was prepared to discuss the Business Development Actions agreed, and Andresen took the floor.

(7a) Gogebic Range Next Generation Initiative - Will Andresen addressed the Authority. He explained that he has been working with "about 150" other people in Iron and Gogebic Counties on an initiative aimed at attracting and retaining young people to the area to reverse the 2 decade long population decline. Andresen noted that 2010 will mark the ninth consecutive decade of population decline in the area.

Andresen went on to explain how the initiative started and how young people view the area. He explained how the initiative was taking an asset-based approach. He handed out brochures entitled "Building On Our Assets 2008-2010" that better describes the Gogebic Range Next Generation Initiative.

Andresen said the Initiative is composed of four groups: two that are designed to attract people to the area and two that are designed to retain the young people the area already has. The four groups are: Strengthening Our Niche, which is working on a project to create regional a trail system from Montreal to Wakefield; Retaining Our Students, which is trying to try to keep young people in the area from moving away; Go-In Forward, which is a group designed to provide social support to young people in the area; and Promoting Our Strengths, which is a group that promotes what we already have. This group has developed a new website the showcases the area. The site address is www.felivelife.com. Andresen said that one of the ways the group is promoting the website is by distributing "Fe" (representing "Iron" on the Periodic Table of Elements) bumper stickers. Iron was very instrumental to the development of the Gogebic-Iron Range. He handed out stickers to the DIDA members who wanted them. He told the Authority that 3000 stickers were produced.

Andresen encouraged the DIDA to include these young people in their decisions, and to invite them to participate in the process of government.

Chairman Goerig asked Andresen if any of the young people he worked with would be interested in assisting the DIDA in implementing the Downtown Blueprint Plan. Andresen said he would put out feelers to see if anyone wanted to participate.

(7b) Update on Action Plan - Eva Smith-Furgason asked DIDA Secretary Jane Bowman to read back the items on the Action Plan from the minutes. An update on each item follows:

1. Blight Officer's Review of the Focus Block - According to the plan, the Blight Officer was to review the Downtown focus area and come back to the Authority with those structures that are not in compliance. His report is to include ownership of the buildings and indicate if he is an absentee owner. Code Enforcement Officer Jason Alonen, who is also the City's Blight Officer, addressed the Authority. Has passed out photographs of all of the structures within the focus block along Aurora Street, between Suffolk and Lowell.

Alonen reported "some blight issues" Downtown. Three buildings within the focus block had problems that were currently being addressed. The awning on Dan's Antique's Building was torn. The awning has been removed. Superior Shoes was already in the process of removing a rotten canopy on it's front facade when Alonen was surveying and documenting the area. A contractor was in the process of re-siding Mattson's western facade which was exposed when Sharon's and Powers Place was demolished.

Alonen reported that siding was missing on the old Ironwood Hardware & Paint Store building downtown. A blight notice was sent to the owner. According to Alonen, the repairs have not yet been made, but the owner has addressed the issue by meeting with Dennis Hewitt and making arrangements to take advantage of the Facade Grant Program.

2. Civic Organization Involvement - Eva Smith-Furgason provided a list of civic and fraternal organizations and clubs. The list she provided includes: American Legion Auxiliary – mainly serving veterans, but also does outreach 932-3612; Big Brothers, Big Sisters – 932-8463; Boy Scouts & Girl Scouts of America; Daughters of Isabella – female auxiliary of the Knights of Columbus – contact pending; Easy Striders Running Club – social group for runners, bikers etc – contact Nancy Zak 364-5948; Freemasons of Ironwood – Suffolk St – contact pending; Friends of the Carnegie Library – a group serving the Carnegie Library, raising funds, advocating and assisting with library events contact 932- 0203; Friends of the Miners Memorial Park – a group promoting the formation of the MMP, sponsoring hikes and other events, regular meetings contact friendsofmmhp@gmail.com; Gogebic Range Trail Authority – non profit organization dedicated to maintenance and improvement of snowmobile trails Gogebic Range Trail Authority  PO Box 114 Ironwood, MI 49938; Go-In Forward Young Professional Club – a group dedicated to supporting the area’s next generation through social-networking, education, and community involvement – contact Lily Palmer goin.forward@hotmail.com; Ironwood Area Historical Society – volunteer run organization dedicated to preserving area history – housed in Depot Park – contact 932-0287; Ironwood Business and Professional Women’s Club 932-2067; Ironwood High School ROTC & Other Students; Kiwanis Club of Ironwood – an organization dedicated to serving the children of the community and the world - 663-4134 (also sponsors teen “Builders Club”); Klassic Kruisers Car Club – contact – 932-1865; Knights of Columbus – a Catholic service organization contact 932-4173; Lions and Lionness Clubs – a service organization dedicated to serving their community –many and varied projects – (Bessemer?) contact pending; Northwind Natural Foods Co-op – member owned Cooperative – 932-3547; Range Area Deaf Club – Deaf Services of America – 932-1810; Range Master Gardeners – gardening group in charge of pocket park – contact Larry Hopkins president 561-3816; Rotary Club (Ironwood-Hurley Rotary Club) – a secular organization that brings together business and professional leaders to help build goodwill and peace in the world – contact pending; SISU Ski Fest Committee – dedicated to promoting and organizing the annual cross country ski race in Ironwood – contact race director Pam Kauppila; 4-H Clubs – Gogebic County 4 H Clubs include a wide range of interests and groups ie Northwoods Homeschool Club, Small Engines Club, and more contact Gogebic County Extension Vicky Nelson 663-4045; and the VFW (Veterans of Foreign Wars) Post 1823 – 932-9944.

Smith-Furgason explained that the reason for the list is to recruit volunteers so that the monumental task of implementing the Blueprint Plan doesn't fall squarely on the shoulders of the DIDA members only. Smith-Furgason said she believed it would be a good idea to request specific tasks and assistance of each of the groups contacted.

Smith-Furgason urged Authority members to contact any of the groups and she encouraged them to add any organizations she may have missed in her list. She agreed to either email or provide a copy of the list to each of the DIDA members.

3. Downtown Merchants - Mayor Burchell was assigned the task to talk with the City Commission members to get them excited about the Blueprint Plan. The Authority previously agreed that the Ironwood Downtown Merchants needed to be involved in the process.

4. Seek Out Artists - Since the grant the City applied for will not pay for commissioned public art, DIDA members were each urged to contact local artists for their input regarding public art. Joe Karius told the Authority that he spoke with several people, including Phil Kurcera, regarding public art in the downtown. Karius pointed out that public art may not be a major component of the granting process, but it is important to a downtown business district. Karius said, since there is no apparent available funding some mechanism needs to be put into place to raise the funds for public art. He volunteered to continue speaking with area artists and concerned people if the Authority wanted him to.

Eva Smith-Furgason pointed out that the art mentioned in the Blueprint Plan is very specific in nature and that forming a committee of area artists in interested people might be a good idea. Even if no committee is to be formed, it is important for the area artists to know what kind of art is needed, Smith-Furgason said.

Smith-Furgason asked if the issue could be readdressed at the next regular meeting. Joe Karius said he would contact the artists and come back with a report.

Chairman Goerig then asked Authority member Cory Gresham to update the DIDA on the formation of an Ironwood Merchants Association. Gresham explained that a group of area businesspeople are in the process of forming a network to better communicate with each other. He told the Authority that a Facebook page has been established and that several of the area businesses have already signed on to the project.

Gresham said the current focus is on Ironwood businesses -- both highway and downtown -- but the Association could easily grow in the future to include neighboring community business districts. Gresham pointed out that the merchants and businessowners working as a collective entity would have more clout and be more productive that simply working as individuals.

Mr. Gresham told his fellow Authority members that the bulk of communications will be online, however, plans have been put into place that will allow businesses that don't have Internet access to get the information provided. He explained that the "virtual" association at the moment is the best solution for area businesses since they can post their opinions and express their ideas at their leisure, when it is convenient for them to do so.

The name of the association is the Ironwood Business Merchants Association, and the Facebook account will be open to all Ironwood businesses. The next face-to-face meeting of the Association, Gresham told the Authority, will be on Monday, April 19th, at 6:00 at Pizza King Joe's (Louise Demasi's).

(7c) Section “Business Development Actions” - Eva Smith-Furgason then highlighted the first year implementation sequence, "Business Development Actions," of the Blueprint Program:

1. Pro-Business Government - Eva Smith-Furgason pointed out that this issue depends heavily on the hiring of a Community Development Director. She asked if there was an update on filling the position. City Manager Scott Erickson indicated that a preferred candidate has been selected, and the City is currently working with him to take the position. He said he would be meeting with the primary candidate later in the day and that no deadline has yet been set, other than "as soon as possible." He said once the background checks are done, should the candidate take the position, it is realistic to expect him to be on the job within a month.

2. Library Expansion - Smith-Furgason explained that the Friends of the Library are doing a very good job on the Library Expansion project. She said the overall scope of the project has been downsized. She said she wasn't sure how the DIDA could assist their efforts, but the Blueprint Program supported the idea. Joe Karius questioned whether or not the DIDA formerly endorses the millage proposal when it comes up.

3. Public Safety - Smith-Furgason said that this issue was being handled by the IPSD.

4. Snow Removal Efforts - Smith-Furgason pointed out that the removal of snow should be a priority for the City. She suggested that a set of guidelines be established so that snow banks don't get too high in the Downtown District. She said 22" snow banks that don't allow people to enter Downtown businesses are not acceptable. She mentioned several businesses that are greatly affected when snow isn't adequately cleared. She said many customers simply will not frequent downtown businesses if it is too difficult to get to their storefronts. City Manager Scott Erickson told the Authority that improvements were made this year and that costs are the main reason for not removing snow more regularly. He claims the cost to remove snow from the Downtown Streets is between $10,000 and $15,000 each time it is done.

Smith-Furgason also expressed concern that absentee owners seldom clear their sidewalks, making the efforts of established businesses even more problematic.

5. Business Hours - Smith-Furgason pointed out that many local businesses are currently staying open later to accomodate their customers. She said she would like to see more businesses do the same.

6. Outdoor Seating - Smith-Furgason asked if the current zoning for the Downtown allowed for outdoor seating and outdoor tables. Scott Erickson said he would check into it.

7. Business Signs - Smith-Furgason pointed out that the Blueprint encouraged business signs that hang over the sidewalk. She said many downtown businesses need financial help to make sign upgrades. She was told that no current programs are available to help finance the purchase or repair of signage.

Smith-Furgason briefly addressed the Internal and External Business Recruitment as a method to expand the downtown district. She suggested that the Community Development Director should be a major player in Business Recruitment for the Downtown Business District. Internal Recruitment is expansion from within where existing Ironwood Businesses expand or open other businesses within the District. External Business Recruitment involves encouraging out-of-town businesses to locate in the Downtown Ironwood Business District.

Smith-Furgason suggested that guidelines for the Community Development Director be put in place to help him attract new business to the Downtown District.

(8) Discuss and Consider Action on Advertising for Person to Water the Hanging Flower Baskets for 2010 - Jane Bowman told the Authority that the woman who was watering the flower baskets recently had another child. She said she wasn't sure if she would like to continue to tend to the plants. She said that watering is generally necessary from June through September and the monthly cost for watering was $275/month. She said she will call last year's watering person to see if she wanted the job for the upcoming season. She asked the Authority for permission to advertise for bids should she decline the job. The Authority unanimously decided to advertise for a person or group to water the flower baskets for 2010.

(8a) Authorize sending letters for Flower Basket Donations ($35) - The Authority unanimously voted to authorize sending donation letters for this year's flower baskets.

(9) Discuss and Consider Action on Pocket Park Maintenance Contract - Eva Smith-Furgason questioned why the Pocket Park maintenance was the DIDA's resonsibility and not the City's responsibility like any other park in town.

(10) Review and Consider Action on 2010/2011 Budget - City Financial Director Julie Frederickson went through the Budget with the DIDA and several items were questioned.

During the course of the conversation it was confirmed that the DIDA holds title to the Depot and surrounding property and the Pocket Park. Other properties within the Downtown District were also discussed, and a title search would be needed to determine if the DIDA owned any other property.

Frederickson said she believed the Chief Oil Company, the former Ironwood Chamber of Commerce offices and public restrooms were owned by the DIDA at one time. She said she would look into the matter further.

(11) Discuss and Consider Action on Advertising in the 2010/2011 Ironwood Chamber Adventure Guide and the Daily Globe Summer Fun Guide - This reporter suggested that the DIDA should not be spending its limited budget on advertising. Speaking as a local businessman and DIDA taxpayer, I strongly objected to the DIDA spending money supporting the Daily Globe and the Chamber of Commerce. If I wanted to support either of these entities, I could buy my own ad in their guides. I asked the DIDA what their goal would be by advertising. Eva Smith-Furgason pointed out that just about everything the DIDA would want to say about the Downtown is already included in the Guides for nothing. After a brief conversation, the Authority -- by majority vote -- decided to table the matter until a later date. Joe Karius, having a conflict of interest as he is the Publisher of the Globe, abstained from voting.

(12) Update on Downtown Brochures - Eva Smith-Furgason informed the Authority that the Iron County Miner wasn't able to do color separations on the jpeg copy of the brochure as submitted. Smith-Furgason informed the Authority that arrangements are being made to insure that appropriate artwork is resubmmitted to the printer.

(13) Citizens wishing to address the Authority on items not on the Agenda (3 Minute Limit) - This reported told the Authority that it is inappropriate for Authority members to be laughing and joking when people are attempting to address the DIDA.

(14) Other Business - Gail Johnston brought up the issue of a farmer's market in Downtown Ironwood. Eva Smith-Furgason explained that there are not a lot of local producers -- enough to support a farmer's market. She said she has difficulty getting local produce at Food Store because there are so few local producers. She said she would contact all of her local producers to see if they would be interested in participating. A special meeting of the DIDA was scheduled for April 8th, 2010 at 8:00 AM to discuss the Farmer's Market.

(15) Adjournment - Following Other Business the meeting was adjourned.