City Approves Fort de Buade Purchase Agreement

2007-07-19 / Front Page

Terms Are Five Years, $50,000 for Building
By Ryan Schlehuber

The collection of more than 2,000 historic and local artifacts in Fort de Buade Museum is much closer to becoming a permanent display in St. Ignace with the St. Ignace City Council's authorization of a five-year purchasing agreement totaling $500,000 for the museum's building and gift shop property Monday, July 16. The city expects to complete the agreement with the Benson family this week.

The city has also signed an agreement with the Sault Ste. Marie Tribe of Chippewa Indians for $708,000 to fund the purchase of Fort de Buade over the next six years and has $118,000 of that in hand to pay for the first year's installment. The remaining $208,000 from the tribe will be used to pay financing and legal costs for the transactions and for artifact preservation and maintenance and operation of the museum, according to City Manager Eric Dodson.

City attorney Prentiss "Moie" Brown, Jr. is now working out details for the large artifacts collection from the Benson family. Marylan Benson will donate the museum collection to the city as part of the city's agreement to purchase the real estate, furnishings, and gift shop inventory. That way, she can get a tax write-off for the collection, which is valued at $500,000. Mr. Brown assured Council that the agreement with the Benson family will be finalized only when the city is sole owner of the museum collection.

The many artifacts that pertain to St. Ignace's long history were collected by Mrs. Benson's late husband, Dr. Donald Benson, who died in May 2005.

Upon closing the deal, the city will pay the full price to the Bensons and finance the purchase through the First National Bank of St. Ignace. To the bank, the city will make a $100,000 down payment from the tribal money on hand, and finance the remaining $400,000 at 4.5% interest over five years. Council is allowing the payment schedule to be determined by the mayor, treasurer, and clerk. Interest over the course of the loan, if about $100,000 is paid a year, will amount to about $50,000.

The Bensons, said Mr. Dodson, had offered to finance the purchase at 5% over 30 years, but would have held the collection until the debt was paid, so the city worked out a way to gain title immediately.

The $500,000 purchase prices includes $200,000 for the building and $300,000 for the contents, including inventory for the buildings two gift shops (a storefront resale shop and a museum store), but not the museum collection.

The city would be responsible for the loan payments to First National Bank if the tribe stops its $118,000 annual payments. In that event, said Mr. Brown, St. Ignace would likely call for a tax levy, but "I don't think we need to worry about that at all."

Tribal board member Keith Massaway assured Council that the tribe will honor its funding agreement.

"We've entered into a contract and we've never backed out of one yet," he said. "We just completed a 10-year agreement with the city to fund the construction and operation of the Little Bear East recreation facility. I don't think you have anything to worry about."

The next agreement will be with the Michilimackinac Historical Society, to make the local nonprofit organization the operator of the museum and its shops.

The Michilimackinac Historical Society promoted the efforts to keep Dr. Benson's collection in St. Ignace. Mrs. Benson had told the group that she and her husband wanted it to remain here, but she planned to sell it at auction if she could not find a way to do that.

The society intends to reopen the museum as soon as it can, however, the building will first need some interior work to meet certain fire safety codes, City Manager Eric Dodson told The St. Ignace News. Electrical wiring will have to be upgraded and new fire exit doors will have to be installed, for example.

An environmental assessment of the property, which used to be the site of Wing's Garage, was conducted by Mackinac Environmental in St. Ignace and the property has been cleared.

Historical Society President Judy Engle said she intends to open the museum from noon to 8 p.m. each day throughout the summer.

She is continuing to establish an arts and culture center where people can learn about the area's history and family genealogy.

"I'm ready to open," said Ms. Engle excitedly.

The museum has been closed since spring, which is when a lease the historical society had with the Benson family expired.

Water Tank Repairs

With one more coat of paint and completion of the instrumentation system, the city will be able to fill the Evergreen Shores water tank with water, in about a week, Department of Public Works Director Les Therrian told The St. Ignace News. The empty tower cracked in a February blizzard and has been undergoing structural repairs.

Mr. Dodson told Council Monday that Pittsburgh Tank & Tower (PT&T), the company hired to install a 26-foot stem extension last summer, did not follow project plans and that workers also failed to tighten the bolts to the new section, which allowed the tower to rock back and forth and weaken the older steel section of the tower during the storm.

The water tank is used as a back-up system for the city and St. Ignace Township, which includes the tribe's Kewadin Casino and Hotel.

Council directed Mr. Dodson to pursue a 5- to 10-year warranty on the repairs with PT&T, considering the initial stem extension project failed and concerns about the safety of the water tank will more than likely linger, especially with residents who live near it.

The city's initial warranty was for two years.

Resident Argues City's Readiness to Serve Charges

St. Ignace resident and property owner Don Lawson continued his challenge against Council on its readiness-to-serve utilities charges, demanding to see proof that the city has been in contact with the federal government on his request to lift readiness-to-serve charges for water from his three lots.

He has argued that he is not using water or sewer on any of the properties and, therefore, should not be charged for the services, which he said amounts to $200 a month.

"I'm not happy," he said. "I think the city's collection of property tax and what it collects with its water rate is unreal. I'm getting by, but it's truly difficult to keep putting out chunks of money and not getting anything for return."

Several council members pointed out that providing water and sewer services to residents is costly and the readiness to serve charge is required by the bond holders to insure the city can repay the bonds it sold to build the system.

"I'm going to carry this to the full limit," Mr. Lawson threatened Council. "The next time I see you I will likely be with my attorney or in court with you."

Mr. Dodson said he will provide Mr. Lawson with proof that he has been in contact with the federal government about Mr. Lawson's request.

Zoning Amendments

Council was introduced to language changes to its zoning ordinance that were recommended for approval by the city's Planning Commission. Council approved the introduction by Mr. Dodson without discussion. They pertained to variance time limits and housing density.

The amendments will be voted on by Council at its next regular meeting August 6.

Councilman Willie LaLonde was assured that the dilapidated benches at the city's park at Dock Three will be replaced with new ones.

Light fixtures at the park will also be replaced with sturdier ones and the shrubs that run along the fence that outlines the city's park will be trimmed, as well.

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