County Mulls Costs of EDC; Will Seek Advice
Faced with the decision to invest about $100,000 annually in an economic development program, Mackinac County commissioners say they need another month before taking any action. Over the next four weeks, commissioners plan to talk with state experts and other communities, seeking to learn the best way to proceed and hoping to avoid stumbling over issues already faced by communities that have economic development programs. Commissioners also said they will seek opinions from area residents on reactivating the Economic Development Corporation (EDC).
During discussions at the commission meeting Thursday, February 26, Chair Dawn Nelson and Commissioner Mike Patrick disagreed on the fundamental set up of an economic development program.
Mr. Patrick would like commissioners to appoint a nine-member EDC board, which then would make a recommendation to the commission on who to hire as a director. The board, he said, also would set guidelines and goals before seeking a director.
An economic development director, said Mrs. Nelson, should be hired by the county commission, be experienced, and have a proven track record of economic development success. The director would work with the EDC board and report to the commission, which is responsible for funding and oversight of the EDC. Mrs. Nelson said she would be talking with the Michigan Economic Development Corporation to get a job description for an EDC director and a list of recommended board member qualifications.
Commissioner Carl Frazier agreed that the county should hire a professional EDC director.
"We've got to have someone who has a lot of knowledge," he said.
A qualified director is needed, said Vice Chair Larry Leveille, and the commission also should consider establishing an industrial park.
Setting economic development priorities and hiring a director should be next on the commission's agenda, said Commissioner Calvin "Bucky" McPhee.
Economic development discussions by commissioners are scheduled to resume Thursday, April 9.
In other business, commissioners agreed to buy a building used by the health department and ambulance service, and opted out of a proposed downtown development authority in Clark Township.
Commissioners will pay off the remaining $100,000 debt the county owes on the building used by Luce Mackinac Alger Schoolcraft (LMAS) District Health Department and Allied EMS. About two-thirds of the building, on the corner of Hombach and Burdette streets in St. Ignace, contains health department offices and one-third of the structure is used by Allied EMS to house an ambulance. The lease payment for use of the building is given to a financing company and covers the county's debt payment.
The health department is faced with cash flow problems and the state has recommended the agency extend its building financing by 10 years, which the county was asked to support. A similar request is being made to Alger and Luce county boards.
Commissioners argue that purchasing the building, rather than refinancing, is the best option and will save the county interest expense.
With the county paying off the debt on the building, it now will have to negotiate new lease with LMAS and Allied EMS.
The health department has been paying $27,219 a year, or $2,268 a month. Allied EMS pays about $1,100 a month.
Brian Schoenborn, health officer of LMAS District Health Department, and Gerald Chase of Northwest Michigan Community Health Agency made the presentation to the board.
Commissioners voted to opt out of the tax increment financing plan (TIFA) for the Downtown Development Authority (DDA) under consideration by Clark Township. Mr. Patrick, a local resident there, was the only commissioner who voted to opt in.
Clark Township also opted out during its Thursday, February 19 meeting.
The TIFA allows DDAs to capture tax dollars based on growth in property values within a downtown district. The money is used to make improvements to the district. By opting out, the county says that all the taxes normally earmarked for the county would continue to go to the county and not be captured by the DDA.
State law requires taxing units act on the TIFA 60 days after the public hearing. The public hearing was held January 8.
Also, county commissioners questioned whether proper procedures were followed by the township according to state law. The township is required to notify the county commission of its plans by certified mail. Treasurer Nora Massey, who attended the meeting, said the document was found on her desk and did not come certified, nor did it offer information on opting in or out.
"Being how Clark Township opted out and because I don't really feel we were legally notified," said Mrs. Nelson, "I think we should opt out until we get more information."
Mr. Patrick disagreed.
"We should opt into it because we are supporting one and we should support the next one," he said, referring to the St. Ignace DDA. "If it doesn't go through, which is a vote of the public in Clark Township, then it's just dissolved."
The township and the commission can decide to participate at a later date.
Commissioners Leveille and Frazier said more information is needed before they would reconsider the request.
Mrs. Nelson said she supports the DDA, but once the county opts in, it is obligated to turn over taxes forever and more information is needed, including a map of the district and estimated tax dollars.
Commissions reappointed Mary Balfour to the Hiawatha Behavioral Health Board and Jim Ramelis to complete the term of Dan Yake, who is retiring from service.
Commissioners voted to act as a pass-through agency for the Legacy House, which is seeking a $3,000 grant from the Sault Ste. Marie Tribe of Chippewa Indians. The request to the commission was made by Legacy House board members Shirley Sorrels and Kathy Lawnichak.
They also sought financial support from the commission, although they made no specific funding request. Commissioners said Legacy House needs to be a nonprofit organization before the county could consider any funding support.
County commissioners next meet Thursday, March 12, at 4 p.m. in the commissioners room at the County Courthouse annex building.









