Debate Centers on Best Use of Waterfront
Some Want Preservation, Others Development, in Mackinaw City
By Paul Gingras

Should land along Mackinaw City's waterfront be preserved by the village for public enjoyment, or developed for income? This was an issue debated at a public hearing in that community February 21. Those who want to preserve the waterfront by purchasing land with village funds say that the move would contribute to the long-term success of the city because it would attract new residents, maintain tourism, and follow the wishes of the townspeople. Others are reluctant to take such valuable land off the tax rolls, and point out that construction projects along the waterfront are critical to the financial stability of the village now.

The issue is one that has been debated in St. Ignace in the past year, as well. In Mackinaw City, the conversation included the voices of several residents, village officials, and a builder, and often referred specifically to waterfront land occupied by Shepler's Mackinac Island Ferry and Bell's Fishery on South Huron Avenue.

The subject came up when Village President Ronald Wallin said he was disappointed that a line item for the purchase of waterfront property by the village was not included in Village Manager Jeff Lawson's proposed budget, which was later adopted. Mr. Wallin encouraged the council to send the budget back to committee for possible adjustments.

No action was taken on the suggestion.

"It seems to me that waterfront property is the dominant unifying factor in Mackinaw," Mr. Wallin said, referring to surveys, comments at meetings, and conversations in town.

"People want more open waterfront, and when it is available, it is the responsibility of the council to purchase it. A few years ago, when the Bell property was up for consideration, the council was presenting the case that there was a lack of money," Mr. Wallin said. "With foresight, that money would have been there."

"I think everybody in town was just sick that the city lost that property," said village resident Rosada Mann, adding that she would have preferred a park.

In terms of maintaining an open view of the Straits, the fishery is not a problem, Mr. Wallin noted.

"Down the road, if the fishery changes into something huge that is allowed by zoning, that is a problem," he suggested.

The village tried to buy the property, but it was sold for $1.1 million to the Little Traverse Bay Bands of Odawa Indians, Mr. Lawson said, which owns the fishery business. The tribe can apply to the federal government to have the land designated a federal trust property. If granted, it can be taken off the village tax roles, Mr. Lawson said.

Purchasing Bill Shepler's shoreline property, if it comes up for sale, would be a good investment for the village, Mr. Wallin suggested. He proposed the following hypothetical scenario: If Shepler's property were to become available in 10 years for $2 million, and the council begins setting aside $120,000 of tax revenue a year for waterfront preservation in 2008, the village will be well on its way to being able to purchase the property.

The dock used by Bill Shepler for his ferry business is owned by the village. Mr. Wallin advocates using revenue from the dock lease as a source of income for a waterfront preservation fund. A secondary plan would be to designate a portion of the village's tax revenue to buy waterfront property, however, Mr. Wallin does not advocate raising taxes for a waterfront preservation fund, he told The St. Ignace News.

Limited money is available for special appropriations each year, Mr. Lawson said. The village must consider the cost of operating municipal services and maintaining and improving infrastructure, and the council needs to make a policy decision weighing these factors.

"If we want to set money aside, we would look in the budget and [ask], 'How are we going to find $120,000?'" Mr. Lawson said.

Money for a waterfront preservation fund could be appropriated from reserves, which amount to about $500,000, or it could be taken out of the operational budget or infrastructure improvement budget for this year, he added. Setting aside money is a matter of priorities. A $64,000 appropriation has been made this year for pending litigation over tax appeals. If the village does not have to spend the money for litigation, it could be saved for waterfront property purchase (or another project), but to get the full $120,000 that Mr. Wallin suggested, the village would have to delay infrastructure improvements or cut jobs, Mr. Lawson said.

Mrs. Mann considered Mr. Wallin's suggestion a good idea.

"Cut someplace. Find someplace to cut, but start the account," she said.

Mackinaw Construction Manager Chris Brown, who builds large hotels in the village, said it is a good idea to buy public land for people to enjoy, but he questioned using tax dollars to buy land that brings in taxes.

"We have a lot of waterfront property that people do get to enjoy. We have the whole tip with the park area. We have a lot of nice parks, and if you could add more, that is great," however, buying land that could be developed cuts into the future tax base of the village, he said.

"If there is no more building and developing, your tax base will die," he added.

Lessons can be learned for smaller cities by studying waterfront planning trends in cities like Detroit and Chicago, Mr. Wallin suggested.

In the long term, he said, Detroit's waterfront development became a financial disaster.

"Now they are spending hundreds of millions of dollars to get it back. Chicago had the foresight not to do that. There is really no comparison between which one of the two is a great city. Chicago is doing very well by having miles of beachfront property. Mackinaw could do the same thing."

"In proportion to the miles of property that Chicago has [compared] to the proportion of waterfront that the public enjoys in Mackinaw City, I think it is a fair assessment to say that it is an equal percentage," Mr. Brown said.

Owing to the construction of large hotels between the avenue and the beach, the closing of the waterfront to public view has already begun on South Huron Avenue, Mrs. Mann said.

Mr. Brown disputed Mr. Wallin's assertion that the people of Mackinaw City would back a taxfunded waterfront preservation fund. Residents who want to see the waterfront purchased by the village should not be able to impose their will on those who do not want to pay for it, Mr. Brown said, and the village council should set up a line item in its revenue section for waterfront property purchases, and accept donations, rather than gather taxes for the cause.

"We know a lot of people with money want to help this" cause, but these things are usually done through taxes, and the village has to take the first step, Mr. Wallin said.

"I am the first one to say that, in a utopian world, it would be beautiful if all that land had nothing on it except sand, but we do not live in that" world, said Trustee James Alford. "I hasten to say that if this council, or any other council, approved $1 million of your tax money to buy [commercial waterfront property], there would be none of us sitting here now."

"I also agree that if someone feels so strongly that they want to buy [commercial waterfront property], step up. We would be more than happy to receive donations," he added.

Mr. Alford suggested that if commercial waterfront property were taken off the tax roll, residents' property taxes would increase.

"It would be a great idea, but, realistically, it is not in the ballpark," he said.

Mr. Wallin said he does not see property taxes increasing as a result of preserving the waterfront.

Trustee Janelle Bancroft questioned how the village would make up tax revenue lost if the village purchased commercial waterfront property.

The revenue would be recouped by adding new businesses, especially business owners involved in Internet-based companies, Mr. Wallin said, who will choose where to locate according to the aesthetic quality of the communities they survey. Open waterfront is critical to keeping Mackinaw City an attractive option, he added.

"Property values are going up, but if we block [the waterfront] off, then you will see property values go down, you will probably see tourism go down, because you would have destroyed what you had that was bringing people here," he added.

If the council likes the idea of starting a waterfront preservation account, but cannot make major cuts owing to the financial status of the village, then start a small account and put $1,000 to $5,000 in it, suggested Planning Commission Chairman Robert Most. By doing so, the council would have made a philosophical statement without being impractical, he said, and the village could take donations toward the fund. As time goes on, the council would be able to decide how committed it is to the idea, by determining what it is willing to put into the account. Others would notice that the village is looking at planning long-term, he suggested.