Legislating culture is what a proposed business license ordinance will do, say owners of some Mackinaw City establishments. Village leaders, however, remain steadfast in their intent to continue the process of writing a regulation designed to protect community residents and visitors from deceptive business practices.

A second public hearing on the ordinance was held Wednesday, January 21, and gathered support and opposition.

The hearing came at the urging last fall of Enzo Lieghio, the owner of multiple hotels in Mackinaw City. Mr. Lieghio, who said he would continue his opposition to the ordinance at a November council meeting, did not attend the hearing. Traverse City attorney Matthew Vermetten, representing the Mackinaw Area Visitors Bureau, did attend and spoke out against the legislation.

Mr. Vermetten said the ordi- nance is redundant and vague and that many laws already regulate businesses, including health and zoning codes. He offered several scenarios about how the ordinance could impact businesses, and said it invites litigation.

"When you invite litigation, you invite litigation costs," he said. "Nobody just pays those out of pocket, those are paid for by customers who are coming to your town to purchase things, items, or services, etc."

The ordinance has now gone back to committee for final clarifications and review with the village attorney. Council has not said when it intends to adopt the business license code.

Work on the ordinance began in August 2007, after the Chamber of Commerce received about 15 complaints that summer from visitors and residents about deceptive pricing practices by some downtown Mackinaw City businesses.

The Village lacked a means to address the complaints, City Manager Jeff Lawson told The St. Ignace News Friday, January 23.

"We just don't have any kind of a system to answer consumer complaints," he said, and the Village relies on its public image to help draw tourists to town.

Some Business Owners Say

'Anti-customer' Attitude

Hurts All

Councilman Jeff Hingston, who chairs the Ordinance Committee, asked that the village investigate options available to city government to address the consumer concerns. Mr. Hingston has owned the Candy Corner/Windjammer Gift Shop on Central Avenue for 28 years.

The purpose of the ordinance is to recognize "that the local economy is heavily dependent on tourism and that a favorable public perception of the entire business community is essential to the health, safety, and welfare of village residents and business operators."

During the public hearing Wednesday, former Village President Robert Heilman, owner of the Fort Fudge Shop on Straits Avenue, said he supports the ordinance.

"We've had too many customers come in our shop to complain about a certain small segment of this community that are anti-customer," he said, "and they do not fit the standards of a small business community."

Having a business license ordinance gives the village a mechanism to address consumer complaints, Mr. Hingston said Friday, January 23. Any complaints the Village receives would be forwarded to the local police department, which has the option to forward them to the Michigan attorney general or the county prosecutor.

If the Village had a business license ordinance, said Mr. Hingston, and a business is found guilty of breaking a state or federal law, then the ordinance would provide village leaders the backing they need to revoke the business license. A business that has its license revoked would lose permission to operate in Mackinaw City.

No complaint, in itself, could cause a business to lose its license, however, if a consumer sued a business for improper behavior and won, the village could then consider that when the license came up for annual renewal. Without the ordinance, if a consumer brought suit against a business and won, the business could continue to operate in the Village.

Mackinac Island also has a business license ordinance, and it was one of several studied by the Mackinaw City Ordinance Committee before it had its attorney, Tom Evashevski of St. Ignace, draft the document under discussion at the public hearing. Mr. Evashevski also is the attorney for the City of Mackinac Island. He did not attend the public hearing.

"It's a solid ordinance," said Mr. Evashevski Friday, January 23. "The Village is attempting to act as decisively as it can to address consumer protection and will continue to work on the legitimate goal."

The proposed ordinance replaces the Village's Transient Merchant License, which now is required for the first year a business is in operation, but no longer.

The proposed ordinance requires annual renewal. The license would cost $250, and annual renewal would cost $75. Businesses already operating under the Transient Merchant License would not have to pay the $250 fee, but would have to pay the renewal fee.

The ordinance would require a business to comply with village, county, state, and federal laws, be current with village taxes and fees, such as water and sewer charges, and meet zoning laws and building codes.

The village clerk would issue the business license, and the police will enforce the ordinance.

Businesses With Poor Service

Will Fail on Their Own,

Some Say

During the public meeting, Vince Rogala from the Mackinaw Club golf course said the village can't legislate good behavior. When he recently visited a store in another town, seven employees greeted him and offered assistance, he said, but his family had just the opposite experience last summer in a Central Avenue store in Mackinaw City. He told the 16 people attending Wednesday's hearing that employees were using foul language and his family left the store without making a purchase. A business that treats customers poorly eventually will fail on its own, he said.

"It seems like this is a way to push out the bad element," he said of the ordinance. "I don't believe you can legislate good business practices."

Daniel Robbins of Mackinaw City agreed with Mr. Rogala.

"I believe this is your attempt to legislate culture," he said to Council. "I don't think it's appropriate."

The ordinance is not arbitrary, Mr. Lawson said in response to citizens who questioned whether certain businesses were being targeted by it. "When you apply an ordi- nance, it has to be consistent."

He also noted that licenses would be required only of businesses in the village and not outside contractors.

License fees are expected to generate about $20,000, noted Village President Ron Wallin, although the ordinance was not proposed as a revenue generator.

"I think we feel we got pretty good input on the pros and cons," said Mr. Wallin.

The first public hearing on the ordinance was held in July 2008.